PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSTG - US74624M1027 - Common Stock
70.43 USD
-1.77 (-2.45%)
70.3001 USD
-0.13 (-0.18%)
Overall PSTG gets a fundamental rating of 5 out of 10. We evaluated PSTG against 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While PSTG has a great health rating, its profitability is only average at the moment. PSTG is valied quite expensively at the moment, while 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.
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 3.46%, PSTG is doing good in the industry, outperforming 68.57% of the companies in the same industry.
With a decent Return On Equity value of 10.55%, PSTG is doing good in the industry, outperforming 77.14% of the companies in the same industry.
With a Return On Invested Capital value of 2.13%, PSTG perfoms like the industry average, 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 15.32%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.46% | ||
| ROE | 10.55% | ||
| ROIC | 2.13% |
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's Profit Margin of 4.15% is fine compared to the rest of the industry. PSTG outperforms 71.43% of its industry peers.
PSTG has a Operating Margin of 2.26%. This is comparable to the rest of the industry: PSTG outperforms 57.14% of its industry peers.
The Gross Margin of PSTG (69.17%) is better 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 | 2.26% | ||
| PM (TTM) | 4.15% | ||
| GM | 69.17% |
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.
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
PSTG has an Altman-Z score of 5.98. This indicates that PSTG is financially healthy and has little risk of bankruptcy at the moment.
PSTG's Altman-Z score of 5.98 is amongst the best of the industry. PSTG outperforms 85.71% 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.
A Debt/Equity ratio of 0.00 indicates that PSTG is not too dependend on debt financing.
The Debt to Equity ratio of PSTG (0.00) is better than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 5.98 |
ROIC/WACC0.24
WACC8.76%
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.
PSTG has a Current ratio (1.65) which is comparable to the rest of the industry.
PSTG has a Quick Ratio of 1.61. This is a normal value and indicates that PSTG is financially healthy and should not expect problems in meeting its short term obligations.
PSTG has a Quick ratio of 1.61. This is in the better half of the industry: PSTG outperforms 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The earnings per share for PSTG have decreased by -0.57% in the last year.
PSTG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.75% yearly.
The Revenue has grown by 11.92% in the past year. This is quite good.
PSTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.03% yearly.
EPS 1Y (TTM)-0.57%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%16%
Revenue 1Y (TTM)11.92%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%16.05%
3.2 Future
The Earnings Per Share is expected to grow by 14.85% on average over the next years. This is quite good.
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 Y16.66%
EPS Next 2Y21.28%
EPS Next 3Y21.34%
EPS Next 5Y14.85%
Revenue Next Year14.63%
Revenue Next 2Y14.94%
Revenue Next 3Y14.72%
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
With a Price/Earnings ratio of 40.25, PSTG can be considered very expensive at the moment.
PSTG's Price/Earnings is on the same level as the industry average.
PSTG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.46.
PSTG is valuated quite expensively with a Price/Forward Earnings ratio of 28.00.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSTG is on the same level as its industry peers.
PSTG is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 36.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.25 | ||
| Fwd PE | 28 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as PSTG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.13 | ||
| EV/EBITDA | 106.45 |
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 21.34% in the coming years.
PEG (NY)2.42
PEG (5Y)0.88
EPS Next 2Y21.28%
EPS Next 3Y21.34%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
70.43
-1.77 (-2.45%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change-0.03%
Ins Owners5.33%
Ins Owner Change1.32%
Market Cap23.15B
Revenue(TTM)3.17B
Net Income(TTM)139.20M
Analysts79.26
Price Target91.35 (29.7%)
Short Float %2.99%
Short Ratio3.23
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)2
Avg EPS beat(2)11.95%
Min EPS beat(2)8.98%
Max EPS beat(2)14.91%
EPS beat(4)4
Avg EPS beat(4)11.91%
Min EPS beat(4)6.36%
Max EPS beat(4)17.38%
EPS beat(8)8
Avg EPS beat(8)18.28%
EPS beat(12)12
Avg EPS beat(12)27.5%
EPS beat(16)16
Avg EPS beat(16)59.37%
Revenue beat(2)0
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-0.91%
Max Revenue beat(4)-0.01%
Revenue beat(8)0
Avg Revenue beat(8)-0.75%
Revenue beat(12)1
Avg Revenue beat(12)-0.57%
Revenue beat(16)4
Avg Revenue beat(16)1.5%
PT rev (1m)6.9%
PT rev (3m)28.28%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)11.04%
EPS NY rev (1m)0%
EPS NY rev (3m)8.41%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)4.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.25 | ||
| Fwd PE | 28 | ||
| P/S | 6.91 | ||
| P/FCF | 42.13 | ||
| P/OCF | 28.88 | ||
| P/B | 17.55 | ||
| P/tB | 24.46 | ||
| EV/EBITDA | 106.45 |
EPS(TTM)1.75
EY2.48%
EPS(NY)2.52
Fwd EY3.57%
FCF(TTM)1.67
FCFY2.37%
OCF(TTM)2.44
OCFY3.46%
SpS10.19
BVpS4.01
TBVpS2.88
PEG (NY)2.42
PEG (5Y)0.88
Graham Number12.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.46% | ||
| ROE | 10.55% | ||
| ROCE | 3.04% | ||
| ROIC | 2.13% | ||
| ROICexc | 5.56% | ||
| ROICexgc | 9.12% | ||
| OM | 2.26% | ||
| PM (TTM) | 4.15% | ||
| GM | 69.17% | ||
| FCFM | 16.4% |
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-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 199.37% | ||
| Cap/Sales | 7.53% | ||
| Interest Coverage | 13.12 | ||
| Cash Conversion | 396.09% | ||
| Profit Quality | 394.65% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 5.98 |
F-Score6
WACC8.76%
ROIC/WACC0.24
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 Y16.66%
EPS Next 2Y21.28%
EPS Next 3Y21.34%
EPS Next 5Y14.85%
Revenue 1Y (TTM)11.92%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%16.05%
Revenue Next Year14.63%
Revenue Next 2Y14.94%
Revenue Next 3Y14.72%
Revenue Next 5Y14.87%
EBIT growth 1Y-48.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.11%
EBIT Next 3Y31.28%
EBIT Next 5YN/A
FCF growth 1Y20.49%
FCF growth 3Y19.62%
FCF growth 5Y41.52%
OCF growth 1Y20.98%
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 16.66% in the next year.