PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSTG - US74624M1027 - Common Stock
66.99 USD
-0.28 (-0.42%)
66.99 USD
0 (0%)
PSTG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 industry peers in the Technology Hardware, Storage & Peripherals industry. PSTG has an excellent financial health rating, but there are some minor concerns on its profitability. PSTG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PSTG was profitable.
In the past year PSTG had a positive cash flow from operations.
In multiple years PSTG reported negative net income over the last 5 years.
In the past 5 years PSTG always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 3.09%, PSTG is doing good in the industry, outperforming 68.57% of the companies in the same industry.
PSTG's Return On Equity of 9.29% is fine compared to the rest of the industry. PSTG outperforms 77.14% of its industry peers.
PSTG has a Return On Invested Capital (1.88%) which is comparable to the rest of the industry.
The Average Return On Invested Capital over the past 3 years for PSTG is significantly below the industry average of 15.26%.
| 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
PSTG has a better Profit Margin (3.74%) than 68.57% of its industry peers.
PSTG has a Operating Margin (2.01%) which is in line with its industry peers.
PSTG has a better Gross Margin (69.81%) than 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
PSTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PSTG has more shares outstanding than it did 1 year ago.
The number of shares outstanding for PSTG has been increased compared to 5 years ago.
The debt/assets ratio for PSTG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.45 indicates that PSTG is not in any danger for bankruptcy at the moment.
With an excellent Altman-Z score value of 5.45, PSTG belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
The Debt to FCF ratio of PSTG is 0.01, which is an excellent value as it means it would take PSTG, only 0.01 years of fcf income to pay off all of its debts.
PSTG's Debt to FCF ratio of 0.01 is amongst the best of 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.
With a decent Debt to Equity ratio value of 0.00, PSTG is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 5.45 |
ROIC/WACC0.21
WACC8.77%
2.3 Liquidity
PSTG has a Current Ratio of 1.65. This is a normal value and indicates that PSTG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.65, PSTG perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
A Quick Ratio of 1.60 indicates that PSTG should not have too much problems paying its short term obligations.
PSTG has a Quick ratio of 1.60. This is in the better half of the industry: PSTG outperforms 68.57% of its industry peers.
| 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
The Revenue has grown by 13.18% in the past year. This is quite good.
Measured over the past years, PSTG shows a quite strong growth in Revenue. The Revenue has been growing by 14.03% on average per year.
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
PSTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.85% yearly.
PSTG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.87% yearly.
EPS Next Y15.94%
EPS Next 2Y16.28%
EPS Next 3Y16.68%
EPS Next 5Y14.85%
Revenue Next Year15.16%
Revenue Next 2Y15.76%
Revenue Next 3Y15.59%
Revenue Next 5Y14.87%
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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
PSTG is valuated quite expensively with a Price/Earnings ratio of 38.28.
PSTG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PSTG to the average of the S&P500 Index (26.59), we can say PSTG is valued slightly more expensively.
With a Price/Forward Earnings ratio of 28.97, PSTG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSTG is on the same level as its industry peers.
The average S&P500 Price/Forward Earnings ratio is at 24.03. PSTG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.28 | ||
| Fwd PE | 28.97 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSTG.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSTG indicates a somewhat cheap valuation: PSTG is cheaper than 62.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.85 | ||
| EV/EBITDA | 95.83 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PSTG does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as PSTG's earnings are expected to grow with 16.68% in the coming years.
PEG (NY)2.4
PEG (5Y)0.84
EPS Next 2Y16.28%
EPS Next 3Y16.68%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
66.99
-0.28 (-0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners86.94%
Inst Owner Change-0.02%
Ins Owners5.34%
Ins Owner Change1.56%
Market Cap22.02B
Revenue(TTM)3.48B
Net Income(TTM)130.36M
Analysts79.26
Price Target96.42 (43.93%)
Short Float %2.93%
Short Ratio2.37
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)7.67%
PT rev (3m)23.88%
EPS NQ rev (1m)-0.63%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)-0.72%
EPS NY rev (3m)7.63%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0.62%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.28 | ||
| Fwd PE | 28.97 | ||
| P/S | 6.32 | ||
| P/FCF | 38.85 | ||
| P/OCF | 26.83 | ||
| P/B | 15.69 | ||
| P/tB | 21.4 | ||
| EV/EBITDA | 95.83 |
EPS(TTM)1.75
EY2.61%
EPS(NY)2.31
Fwd EY3.45%
FCF(TTM)1.72
FCFY2.57%
OCF(TTM)2.5
OCFY3.73%
SpS10.6
BVpS4.27
TBVpS3.13
PEG (NY)2.4
PEG (5Y)0.84
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 | 5.45 |
F-Score5
WACC8.77%
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 5Y14.85%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%16.05%
Revenue Next Year15.16%
Revenue Next 2Y15.76%
Revenue Next 3Y15.59%
Revenue Next 5Y14.87%
EBIT growth 1Y-47.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year42.85%
EBIT Next 3Y29.44%
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 of PURE STORAGE INC - CLASS A (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.
Can you provide the financial health for PSTG stock?
The financial health rating of PURE STORAGE INC - CLASS A (PSTG) is 7 / 10.
Can you provide the expected EPS growth for 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.