PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSTG - US74624M1027 - Common Stock
67.79 USD
-0.64 (-0.94%)
67.9392 USD
+0.15 (+0.22%)
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
PSTG had positive earnings in the past year.
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
The Return On Assets of PSTG (3.09%) is better than 68.57% of its industry peers.
PSTG has a better Return On Equity (9.29%) than 77.14% of its industry peers.
PSTG has a Return On Invested Capital (1.88%) which is comparable to the rest of the industry.
PSTG had an Average Return On Invested Capital over the past 3 years of 2.97%. This is significantly below the industry average of 15.27%.
| 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's Operating Margin of 2.01% is in line compared to the rest of the industry. PSTG outperforms 54.29% 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.
Compared to 1 year ago, PSTG has more shares outstanding
PSTG has more shares outstanding than it did 5 years ago.
PSTG has a better debt/assets ratio than last year.
2.2 Solvency
PSTG has an Altman-Z score of 5.50. This indicates that PSTG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PSTG (5.50) is better than 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'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.
PSTG has a better Debt to Equity ratio (0.00) than 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 5.5 |
ROIC/WACC0.21
WACC8.74%
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.
PSTG has a Quick Ratio of 1.60. 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 better Quick ratio (1.60) than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.6 |
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.
Looking at the last year, PSTG shows a quite strong growth in Revenue. The Revenue has grown by 13.18% in the last year.
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 14.85% 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 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.
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
With a Price/Earnings ratio of 38.74, 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 valuation a bit more expensive than the S&P500 average which is at 26.77.
PSTG is valuated quite expensively with a Price/Forward Earnings ratio of 29.32.
PSTG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.35. PSTG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.74 | ||
| Fwd PE | 29.32 |
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.
Based on the Price/Free Cash Flow ratio, PSTG is valued a bit cheaper than the industry average as 65.71% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.31 | ||
| EV/EBITDA | 97.11 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PSTG's earnings are expected to grow with 16.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.43
PEG (5Y)0.85
EPS Next 2Y16.28%
EPS Next 3Y16.68%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
67.79
-0.64 (-0.94%)
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 Change-0.5%
Market Cap22.28B
Revenue(TTM)3.48B
Net Income(TTM)130.36M
Analysts79.26
Price Target96.42 (42.23%)
Short Float %2.86%
Short Ratio2.28
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)5.55%
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)-0.54%
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 | 38.74 | ||
| Fwd PE | 29.32 | ||
| P/S | 6.39 | ||
| P/FCF | 39.31 | ||
| P/OCF | 27.15 | ||
| P/B | 15.88 | ||
| P/tB | 21.66 | ||
| EV/EBITDA | 97.11 |
EPS(TTM)1.75
EY2.58%
EPS(NY)2.31
Fwd EY3.41%
FCF(TTM)1.72
FCFY2.54%
OCF(TTM)2.5
OCFY3.68%
SpS10.6
BVpS4.27
TBVpS3.13
PEG (NY)2.43
PEG (5Y)0.85
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 | 5.5 |
F-Score5
WACC8.74%
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 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 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.