PURE STORAGE INC - CLASS A (PSTG)
US74624M1027 - Common Stock
Taking everything into account, PSTG scores 5 out of 10 in our fundamental rating. PSTG was compared to 31 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 valued quite expensive, but it does show an excellent growth. This makes PSTG very considerable for growth investing!
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.
PSTG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of PSTG (3.61%) is better than 67.74% of its industry peers.
PSTG's Return On Equity of 9.39% is amongst the best of the industry. PSTG outperforms 83.87% of its industry peers.
PSTG's Return On Invested Capital of 4.35% is in line compared to the rest of the industry. PSTG outperforms 54.84% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 9.39% | ||
| ROIC | 4.35% |
ROA(3y)-0.28%
ROA(5y)-3.87%
ROE(3y)-2.13%
ROE(5y)-13.65%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PSTG has a better Profit Margin (4.53%) than 70.97% of its industry peers.
PSTG has a Operating Margin (4.90%) which is in line with its industry peers.
PSTG has a better Gross Margin (71.66%) than 100.00% 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 | 4.9% | ||
| PM (TTM) | 4.53% | ||
| GM | 71.66% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.53%
GM growth 5Y1.48%
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
Compared to 1 year ago, PSTG has an improved debt to assets ratio.
2.2 Solvency
PSTG has an Altman-Z score of 5.30. This indicates that PSTG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PSTG (5.30) is better than 83.87% of its industry peers.
The Debt to FCF ratio of PSTG is 0.15, which is an excellent value as it means it would take PSTG, only 0.15 years of fcf income to pay off all of its debts.
PSTG has a Debt to FCF ratio of 0.15. This is amongst the best in the industry. PSTG outperforms 90.32% of its industry peers.
PSTG has a Debt/Equity ratio of 0.07. This is a healthy value indicating a solid balance between debt and equity.
PSTG has a better Debt to Equity ratio (0.07) than 67.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 5.3 |
ROIC/WACC0.37
WACC11.61%
2.3 Liquidity
A Current Ratio of 1.99 indicates that PSTG should not have too much problems paying its short term obligations.
PSTG has a Current ratio (1.99) which is comparable to the rest of the industry.
PSTG has a Quick Ratio of 1.96. This is a normal value and indicates that PSTG is financially healthy and should not expect problems in meeting its short term obligations.
PSTG's Quick ratio of 1.96 is fine compared to the rest of the industry. PSTG outperforms 77.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.96 |
3. Growth
3.1 Past
PSTG shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 21.38%, which is quite impressive.
PSTG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 46.56% yearly.
PSTG shows a small growth in Revenue. In the last year, the Revenue has grown by 2.80%.
PSTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 15.79% yearly.
EPS 1Y (TTM)21.38%
EPS 3Y99.07%
EPS 5Y46.56%
EPS Q2Q%0%
Revenue 1Y (TTM)2.8%
Revenue growth 3Y18.89%
Revenue growth 5Y15.79%
Sales Q2Q%8.94%
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 19.62% yearly.
Based on estimates for the next years, PSTG will show a quite strong growth in Revenue. The Revenue will grow by 15.38% on average per year.
EPS Next Y16.91%
EPS Next 2Y15.39%
EPS Next 3Y13.79%
EPS Next 5Y19.62%
Revenue Next Year10.8%
Revenue Next 2Y11.55%
Revenue Next 3Y11.36%
Revenue Next 5Y15.38%
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
The Price/Earnings ratio is 37.92, which means the current valuation is very expensive for PSTG.
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 (29.61), we can say PSTG is valued slightly more expensively.
PSTG is valuated quite expensively with a Price/Forward Earnings ratio of 35.30.
PSTG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.09. PSTG is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.92 | ||
| Fwd PE | 35.3 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSTG.
PSTG's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PSTG is cheaper than 64.52% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.47 | ||
| EV/EBITDA | 53.12 |
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 13.79% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.24
PEG (5Y)0.81
EPS Next 2Y15.39%
EPS Next 3Y13.79%
5. Dividend
5.1 Amount
PSTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PURE STORAGE INC - CLASS A
NYSE:PSTG (12/4/2024, 11:56:07 AM)
66.74
+13.2 (+24.65%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap21.87B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.92 | ||
| Fwd PE | 35.3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.24
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.61% | ||
| ROE | 9.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.9% | ||
| PM (TTM) | 4.53% | ||
| GM | 71.66% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.07 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.99 | ||
| Quick Ratio | 1.96 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)21.38%
EPS 3Y99.07%
EPS 5Y
EPS Q2Q%
EPS Next Y16.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.8%
Revenue growth 3Y18.89%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y