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%)
72.9282 USD
+0.03 (+0.04%)
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. PSTG is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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
- 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.
- With an excellent Return On Equity value of 9.29%, PSTG belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
- PSTG's Return On Invested Capital of 1.88% is in line compared to the rest of the industry. PSTG outperforms 57.14% of its industry peers.
- The Average Return On Invested Capital over the past 3 years 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
- With a decent Profit Margin value of 3.74%, PSTG is doing good in the industry, outperforming 74.29% of the companies in the same industry.
- PSTG has a Operating Margin (2.01%) which is in line with its industry peers.
- PSTG's Gross Margin of 69.81% is amongst the best of the industry. PSTG outperforms 97.14% of its industry peers.
- PSTG's Gross Margin has been stable in the last couple of years.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSTG is destroying value.
- The number of shares outstanding for PSTG has been increased compared to 1 year ago.
- PSTG has more shares outstanding than it did 5 years ago.
- PSTG has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.86 indicates that PSTG is not in any danger for bankruptcy at the moment.
- PSTG has a better Altman-Z score (5.86) than 82.86% of its industry peers.
- 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 has a better Debt to FCF ratio (0.01) than 94.29% of its industry peers.
- A Debt/Equity ratio of 0.00 indicates that PSTG is not too dependend on debt financing.
- PSTG's Debt to Equity ratio of 0.00 is amongst the best of 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
- 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 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.
- PSTG has a Quick ratio of 1.60. 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 | 1.6 |
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.
- The Revenue has grown by 13.18% in the past year. This is quite good.
- 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
- PSTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.09% yearly.
- 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
- PSTG is valuated quite expensively with a Price/Earnings ratio of 41.66.
- Compared to the rest of the industry, the Price/Earnings ratio of PSTG is on the same level as its industry peers.
- 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.
- The average S&P500 Price/Forward Earnings ratio is at 24.29. PSTG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.66 | ||
| Fwd PE | 31.53 |
4.2 Price Multiples
- PSTG's Enterprise Value to EBITDA ratio is in line with the industry average.
- Based on the Price/Free Cash Flow ratio, PSTG is valued a bit 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 %2.86%
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)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.