PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSTG - US74624M1027 - Common Stock
69.01 USD
+2 (+2.98%)
69.96 USD
+0.95 (+1.38%)
We assign a fundamental rating of 5 out of 10 to PSTG. PSTG was compared to 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
In the past year PSTG was profitable.
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.
Each year in the past 5 years PSTG had a positive operating cash flow.
1.2 Ratios
PSTG has a Return On Assets of 3.09%. This is in the better half of the industry: PSTG outperforms 71.43% of its industry peers.
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.
Looking at the Return On Invested Capital, with a value of 1.88%, PSTG is in line with its industry, 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 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.
Looking at the Operating Margin, with a value of 2.01%, PSTG is in line with its industry, outperforming 57.14% of the companies in the same industry.
PSTG's Gross Margin of 69.81% is amongst the best of 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSTG is destroying value.
PSTG has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, PSTG has more shares outstanding
PSTG has a better debt/assets ratio than last year.
2.2 Solvency
PSTG has an Altman-Z score of 5.59. This indicates that PSTG is financially healthy and has little risk of bankruptcy at the moment.
PSTG's Altman-Z score of 5.59 is amongst the best of the industry. PSTG outperforms 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.
With an excellent Debt to Equity ratio value of 0.00, PSTG belongs to the best of the industry, outperforming 82.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 5.59 |
ROIC/WACC0.21
WACC8.81%
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.
The Quick ratio of PSTG (1.60) is better than 71.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
PSTG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -0.57%.
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
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 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.
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 39.43, PSTG can be considered very expensive at the moment.
PSTG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.60, PSTG is valued a bit more expensive.
PSTG is valuated quite expensively with a Price/Forward Earnings ratio of 29.85.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSTG is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.23, PSTG is valued a bit more expensive.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.43 | ||
| Fwd PE | 29.85 |
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 62.86% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.02 | ||
| EV/EBITDA | 99.05 |
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 16.68% in the coming years.
PEG (NY)2.47
PEG (5Y)0.86
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% |
69.01
+2 (+2.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners86.46%
Inst Owner Change0%
Ins Owners5.3%
Ins Owner Change-0.33%
Market Cap22.68B
Revenue(TTM)3.48B
Net Income(TTM)130.36M
Analysts79.26
Price Target96.42 (39.72%)
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%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)-0.61%
EPS NY rev (3m)-0.54%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)1.54%
Revenue NY rev (1m)0.46%
Revenue NY rev (3m)0.98%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.43 | ||
| Fwd PE | 29.85 | ||
| P/S | 6.51 | ||
| P/FCF | 40.02 | ||
| P/OCF | 27.64 | ||
| P/B | 16.17 | ||
| P/tB | 22.05 | ||
| EV/EBITDA | 99.05 |
EPS(TTM)1.75
EY2.54%
EPS(NY)2.31
Fwd EY3.35%
FCF(TTM)1.72
FCFY2.5%
OCF(TTM)2.5
OCFY3.62%
SpS10.6
BVpS4.27
TBVpS3.13
PEG (NY)2.47
PEG (5Y)0.86
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 | 5.59 |
F-Score5
WACC8.81%
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 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.