PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - NYSE:PSTG - US74624M1027 - Common Stock
92.58 USD
+0.08 (+0.09%)
93 USD
+0.42 (+0.45%)
Taking everything into account, PSTG scores 5 out of 10 in our fundamental rating. PSTG was compared to 33 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
Looking at the Return On Assets, with a value of 3.46%, PSTG is in the better half of the industry, outperforming 72.73% of the companies in the same industry.
PSTG's Return On Equity of 10.55% is fine compared to the rest of the industry. PSTG outperforms 78.79% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.13%, PSTG is in line with its industry, outperforming 54.55% of the companies in the same 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 14.92%.
| 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 69.70% of its industry peers.
Looking at the Operating Margin, with a value of 2.26%, PSTG is in line with its industry, outperforming 54.55% of the companies in the same industry.
Looking at the Gross Margin, with a value of 69.17%, PSTG belongs to the top of the industry, outperforming 96.97% of the companies in the same industry.
PSTG's Gross Margin has been stable in the last couple of years.
| 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.
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
An Altman-Z score of 7.47 indicates that PSTG is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 7.47, PSTG belongs to the top of the industry, outperforming 84.85% 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.
The Debt to FCF ratio of PSTG (0.01) is better than 93.94% 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's Debt to Equity ratio of 0.00 is fine compared to the rest of the industry. PSTG outperforms 78.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 7.47 |
ROIC/WACC0.25
WACC8.66%
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 decent Current ratio value of 1.65, PSTG is doing good in the industry, outperforming 60.61% of the companies in the same 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 better Quick ratio (1.61) than 72.73% 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 -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.
The Revenue has grown by 11.31% 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)-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
Based on estimates for the next years, PSTG will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.85% on average per year.
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 Y16.58%
EPS Next 2Y20.01%
EPS Next 3Y20.18%
EPS Next 5Y14.85%
Revenue Next Year14.38%
Revenue Next 2Y14.52%
Revenue Next 3Y14.31%
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
With a Price/Earnings ratio of 55.44, PSTG can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as PSTG.
When comparing the Price/Earnings ratio of PSTG to the average of the S&P500 Index (27.55), we can say PSTG is valued expensively.
A Price/Forward Earnings ratio of 37.59 indicates a quite expensive valuation of PSTG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSTG indicates a slightly more expensive valuation: PSTG is more expensive than 60.61% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of PSTG to the average of the S&P500 Index (23.04), we can say PSTG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.44 | ||
| Fwd PE | 37.59 |
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 is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.38 | ||
| EV/EBITDA | 139.55 |
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 20.18% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.34
PEG (5Y)1.21
EPS Next 2Y20.01%
EPS Next 3Y20.18%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
92.58
+0.08 (+0.09%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change0%
Ins Owners5.33%
Ins Owner Change2.11%
Market Cap30.43B
Analysts77.78
Price Target85.46 (-7.69%)
Short Float %2.48%
Short Ratio2.46
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)10.2%
PT rev (3m)20.28%
EPS NQ rev (1m)0.67%
EPS NQ rev (3m)10.54%
EPS NY rev (1m)8.22%
EPS NY rev (3m)7.87%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)4.71%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.44 | ||
| Fwd PE | 37.59 | ||
| P/S | 9.08 | ||
| P/FCF | 55.38 | ||
| P/OCF | 37.96 | ||
| P/B | 23.07 | ||
| P/tB | 32.15 | ||
| EV/EBITDA | 139.55 |
EPS(TTM)1.67
EY1.8%
EPS(NY)2.46
Fwd EY2.66%
FCF(TTM)1.67
FCFY1.81%
OCF(TTM)2.44
OCFY2.63%
SpS10.19
BVpS4.01
TBVpS2.88
PEG (NY)3.34
PEG (5Y)1.21
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
ROICexcg growth 3YN/A
ROICexcg 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 | 7.47 |
F-Score6
WACC8.66%
ROIC/WACC0.25
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 Y16.58%
EPS Next 2Y20.01%
EPS Next 3Y20.18%
EPS Next 5Y14.85%
Revenue 1Y (TTM)11.31%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.73%
Revenue Next Year14.38%
Revenue Next 2Y14.52%
Revenue Next 3Y14.31%
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%