PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - NYSE:PSTG - US74624M1027 - Common Stock
97.01 USD
+1.91 (+2.01%)
97.01 USD
0 (0%)
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.
The reported net income has been mixed in the past 5 years: PSTG reported negative net income in multiple years.
PSTG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 3.46%, PSTG is doing good in the industry, outperforming 74.29% of the companies in the same industry.
PSTG has a better Return On Equity (10.55%) than 80.00% of its industry peers.
The Return On Invested Capital of PSTG (2.13%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSTG is significantly below the industry average of 16.54%.
| 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
The Profit Margin of PSTG (4.15%) is better than 71.43% of its industry peers.
PSTG has a Operating Margin (2.26%) which is comparable to the rest of the industry.
PSTG has a Gross Margin of 69.17%. 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 | 2.26% | ||
| 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
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.
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 7.65 indicates that PSTG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.65, PSTG belongs to the top of the industry, outperforming 88.57% of the companies in the same industry.
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 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 | 7.65 |
ROIC/WACC0.24
WACC8.73%
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 of 1.65. This is comparable to the rest of the industry: PSTG outperforms 60.00% of its industry peers.
A Quick Ratio of 1.61 indicates that PSTG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.61, PSTG is in the better half of the industry, outperforming 71.43% of the companies in the same industry.
| 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 -5.11% in the last year.
Measured over the past years, PSTG shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.75% on average per year.
Looking at the last year, PSTG shows a quite strong growth in Revenue. The Revenue has grown by 11.31% in the last year.
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)-5.11%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%-2.27%
Revenue 1Y (TTM)11.31%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.73%
3.2 Future
The Earnings Per Share is expected to grow by 14.85% on average over the next years. This is quite good.
The Revenue is expected to grow by 14.87% on average over the next years. This is quite good.
EPS Next Y16.78%
EPS Next 2Y21.23%
EPS Next 3Y21.08%
EPS Next 5Y14.85%
Revenue Next Year14.44%
Revenue Next 2Y14.89%
Revenue Next 3Y14.56%
Revenue Next 5Y14.87%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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 58.09.
PSTG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.13, PSTG is valued quite expensively.
Based on the Price/Forward Earnings ratio of 38.60, the valuation of PSTG can be described as expensive.
PSTG's Price/Forward Earnings ratio is in line with the industry average.
PSTG is valuated expensively when we compare the Price/Forward Earnings ratio to 22.35, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.09 | ||
| Fwd PE | 38.6 |
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 in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.03 | ||
| EV/EBITDA | 143.64 |
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 21.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.46
PEG (5Y)1.27
EPS Next 2Y21.23%
EPS Next 3Y21.08%
5. Dividend
5.1 Amount
PSTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
97.01
+1.91 (+2.01%)
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-1.17%
Ins Owners5.33%
Ins Owner Change2.16%
Market Cap31.88B
Revenue(TTM)3.35B
Net Income(TTM)139.20M
Analysts77.78
Price Target89.55 (-7.69%)
Short Float %2.12%
Short Ratio1.93
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)15.05%
PT rev (3m)26.03%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)10.64%
EPS NY rev (1m)0.18%
EPS NY rev (3m)7.94%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)4.7%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.09 | ||
| Fwd PE | 38.6 | ||
| P/S | 9.52 | ||
| P/FCF | 58.03 | ||
| P/OCF | 39.77 | ||
| P/B | 24.17 | ||
| P/tB | 33.69 | ||
| EV/EBITDA | 143.64 |
EPS(TTM)1.67
EY1.72%
EPS(NY)2.51
Fwd EY2.59%
FCF(TTM)1.67
FCFY1.72%
OCF(TTM)2.44
OCFY2.51%
SpS10.19
BVpS4.01
TBVpS2.88
PEG (NY)3.46
PEG (5Y)1.27
Graham Number12.28
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 | 7.65 |
F-Score6
WACC8.73%
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)-5.11%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%-2.27%
EPS Next Y16.78%
EPS Next 2Y21.23%
EPS Next 3Y21.08%
EPS Next 5Y14.85%
Revenue 1Y (TTM)11.31%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.73%
Revenue Next Year14.44%
Revenue Next 2Y14.89%
Revenue Next 3Y14.56%
Revenue Next 5Y14.87%
EBIT growth 1Y-48.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.11%
EBIT Next 3Y29.76%
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 16.78% in the next year.