PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSTG - US74624M1027 - Common Stock
72.9 USD
+0.54 (+0.75%)
70.8 USD
-2.1 (-2.88%)
Taking everything into account, PSTG scores 5 out of 10 in our fundamental rating. PSTG was compared to 35 industry peers in the Technology Hardware, Storage & Peripherals industry. PSTG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. While showing a medium growth rate, PSTG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
- PSTG had positive earnings in the past year.
- PSTG had a positive operating cash flow in the past year.
- In multiple years PSTG reported negative net income over the last 5 years.
- Each year in the past 5 years PSTG had a positive operating cash flow.
1.2 Ratios
- With a decent Return On Assets value of 3.09%, PSTG is doing good in the industry, outperforming 71.43% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 9.29%, PSTG belongs to the top of the industry, outperforming 82.86% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 1.88%, PSTG is in line with its industry, outperforming 57.14% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for PSTG is significantly below the industry average of 16.06%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 9.29% | ||
| ROIC | 1.88% |
ROA(3y)2.14%
ROA(5y)-1.63%
ROE(3y)6.92%
ROE(5y)-7.17%
ROIC(3y)2.97%
ROIC(5y)N/A
1.3 Margins
- Looking at the Profit Margin, with a value of 3.74%, PSTG is in the better half of the industry, outperforming 74.29% of the companies in the same industry.
- PSTG has a Operating Margin of 2.01%. This is comparable to the rest of the industry: PSTG outperforms 57.14% of its industry peers.
- PSTG has a Gross Margin of 69.81%. This is amongst the best in the industry. PSTG outperforms 97.14% of its industry peers.
- In the last couple of years the Gross Margin of PSTG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.01% | ||
| PM (TTM) | 3.74% | ||
| GM | 69.81% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.13%
GM growth 5Y0.25%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PSTG is destroying value.
- The number of shares outstanding for PSTG has been increased compared to 1 year ago.
- Compared to 5 years ago, PSTG has more shares outstanding
- The debt/assets ratio for PSTG has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.86 indicates that PSTG is not in any danger for bankruptcy at the moment.
- PSTG's Altman-Z score of 5.86 is amongst the best of the industry. PSTG outperforms 82.86% of its industry peers.
- PSTG has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
- PSTG has a Debt to FCF ratio of 0.01. This is amongst the best in the industry. PSTG outperforms 94.29% of its industry peers.
- PSTG has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
- PSTG has a Debt to Equity ratio of 0.00. This is amongst the best in the industry. PSTG outperforms 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 5.86 |
ROIC/WACC0.21
WACC8.86%
2.3 Liquidity
- A Current Ratio of 1.65 indicates that PSTG should not have too much problems paying its short term obligations.
- PSTG has a better Current ratio (1.65) than 62.86% of its industry peers.
- A Quick Ratio of 1.60 indicates that PSTG should not have too much problems paying its short term obligations.
- With a decent Quick ratio value of 1.60, PSTG is doing good in the industry, outperforming 71.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
- PSTG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.57%.
- The Earnings Per Share has been growing by 45.75% on average over the past years. This is a very strong growth
- PSTG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.18%.
- The Revenue has been growing by 14.03% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.57%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%16%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%16.05%
3.2 Future
- The Earnings Per Share is expected to grow by 14.09% on average over the next years. This is quite good.
- The Revenue is expected to grow by 15.40% on average over the next years. This is quite good.
EPS Next Y15.94%
EPS Next 2Y16.28%
EPS Next 3Y16.68%
EPS Next 5Y14.09%
Revenue Next Year15.16%
Revenue Next 2Y15.79%
Revenue Next 3Y15.64%
Revenue Next 5Y15.4%
3.3 Evolution
- Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 41.66, the valuation of PSTG can be described as expensive.
- PSTG's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.38. PSTG is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 31.53 indicates a quite expensive valuation of PSTG.
- The rest of the industry has a similar Price/Forward Earnings ratio as PSTG.
- When comparing the Price/Forward Earnings ratio of PSTG to the average of the S&P500 Index (24.29), we can say PSTG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.66 | ||
| Fwd PE | 31.53 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PSTG is on the same level as its industry peers.
- PSTG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PSTG is cheaper than 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.27 | ||
| EV/EBITDA | 105.23 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- A more expensive valuation may be justified as PSTG's earnings are expected to grow with 16.68% in the coming years.
PEG (NY)2.61
PEG (5Y)0.91
EPS Next 2Y16.28%
EPS Next 3Y16.68%
5. Dividend
5.1 Amount
- PSTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
72.9
+0.54 (+0.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)12-02 2025-12-02/amc
Earnings (Next)02-26 2026-02-26/amc
Inst Owners86.46%
Inst Owner Change0.39%
Ins Owners5.3%
Ins Owner Change-0.15%
Market Cap23.96B
Revenue(TTM)3.48B
Net Income(TTM)130.36M
Analysts78.52
Price Target97.02 (33.09%)
Short Float %2.85%
Short Ratio2.02
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)3.24%
Min EPS beat(2)-2.49%
Max EPS beat(2)8.98%
EPS beat(4)3
Avg EPS beat(4)6.94%
Min EPS beat(4)-2.49%
Max EPS beat(4)14.91%
EPS beat(8)7
Avg EPS beat(8)15.15%
EPS beat(12)11
Avg EPS beat(12)25.66%
EPS beat(16)15
Avg EPS beat(16)54.61%
Revenue beat(2)0
Avg Revenue beat(2)-0.71%
Min Revenue beat(2)-1.1%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-0.77%
Min Revenue beat(4)-1.1%
Max Revenue beat(4)-0.33%
Revenue beat(8)0
Avg Revenue beat(8)-0.64%
Revenue beat(12)1
Avg Revenue beat(12)-0.55%
Revenue beat(16)3
Avg Revenue beat(16)1.18%
PT rev (1m)0.62%
PT rev (3m)13.53%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.06%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.68%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.66 | ||
| Fwd PE | 31.53 | ||
| P/S | 6.88 | ||
| P/FCF | 42.27 | ||
| P/OCF | 29.2 | ||
| P/B | 17.08 | ||
| P/tB | 23.29 | ||
| EV/EBITDA | 105.23 |
EPS(TTM)1.75
EY2.4%
EPS(NY)2.31
Fwd EY3.17%
FCF(TTM)1.72
FCFY2.37%
OCF(TTM)2.5
OCFY3.43%
SpS10.6
BVpS4.27
TBVpS3.13
PEG (NY)2.61
PEG (5Y)0.91
Graham Number12.96
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.09% | ||
| ROE | 9.29% | ||
| ROCE | 2.68% | ||
| ROIC | 1.88% | ||
| ROICexc | 4.53% | ||
| ROICexgc | 6.93% | ||
| OM | 2.01% | ||
| PM (TTM) | 3.74% | ||
| GM | 69.81% | ||
| FCFM | 16.27% |
ROA(3y)2.14%
ROA(5y)-1.63%
ROE(3y)6.92%
ROE(5y)-7.17%
ROIC(3y)2.97%
ROIC(5y)N/A
ROICexc(3y)14.68%
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)4.24%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.13%
GM growth 5Y0.25%
F-Score5
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 185.84% | ||
| Cap/Sales | 7.29% | ||
| Interest Coverage | 16.9 | ||
| Cash Conversion | 397.01% | ||
| Profit Quality | 434.72% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 5.86 |
F-Score5
WACC8.86%
ROIC/WACC0.21
Cap/Depr(3y)164.45%
Cap/Depr(5y)150.4%
Cap/Sales(3y)6.6%
Cap/Sales(5y)6.02%
Profit Quality(3y)704.64%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-0.57%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%16%
EPS Next Y15.94%
EPS Next 2Y16.28%
EPS Next 3Y16.68%
EPS Next 5Y14.09%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%16.05%
Revenue Next Year15.16%
Revenue Next 2Y15.79%
Revenue Next 3Y15.64%
Revenue Next 5Y15.4%
EBIT growth 1Y-47.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year43.2%
EBIT Next 3Y29.15%
EBIT Next 5YN/A
FCF growth 1Y24.69%
FCF growth 3Y19.62%
FCF growth 5Y41.52%
OCF growth 1Y23.15%
OCF growth 3Y22.49%
OCF growth 5Y31.78%
PURE STORAGE INC - CLASS A / PSTG FAQ
Can you provide the ChartMill fundamental rating for PURE STORAGE INC - CLASS A?
ChartMill assigns a fundamental rating of 5 / 10 to PSTG.
What is the valuation status for PSTG stock?
ChartMill assigns a valuation rating of 2 / 10 to PURE STORAGE INC - CLASS A (PSTG). This can be considered as Overvalued.
Can you provide the profitability details for PURE STORAGE INC - CLASS A?
PURE STORAGE INC - CLASS A (PSTG) has a profitability rating of 5 / 10.
What is the expected EPS growth for PURE STORAGE INC - CLASS A (PSTG) stock?
The Earnings per Share (EPS) of PURE STORAGE INC - CLASS A (PSTG) is expected to grow by 15.94% in the next year.