PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSTG - US74624M1027 - Common Stock
68.59 USD
-0.44 (-0.64%)
68.94 USD
+0.35 (+0.51%)
Taking everything into account, PSTG scores 5 out of 10 in our fundamental rating. 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 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.
PSTG had a positive operating cash flow in the past year.
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
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.
PSTG has a Return On Equity of 9.29%. This is amongst the best in the industry. PSTG outperforms 82.86% of its industry peers.
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.
PSTG had an Average Return On Invested Capital over the past 3 years of 2.97%. This 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
PSTG has a better Profit Margin (3.74%) than 74.29% of its industry peers.
The Operating Margin of PSTG (2.01%) is comparable to the rest of the 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
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.
Compared to 1 year ago, PSTG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.56 indicates that PSTG is not in any danger for bankruptcy at the moment.
PSTG has a Altman-Z score of 5.56. This is amongst the best in 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.
With an excellent Debt to FCF ratio value of 0.01, PSTG belongs to the best of the industry, outperforming 94.29% of the companies in the same industry.
A Debt/Equity ratio of 0.00 indicates that PSTG is not too dependend on debt financing.
The Debt to Equity ratio of PSTG (0.00) is better than 82.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 5.56 |
ROIC/WACC0.21
WACC8.8%
2.3 Liquidity
A Current Ratio of 1.65 indicates that PSTG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.65, PSTG is in the better half of the industry, outperforming 62.86% of the companies in the same industry.
A Quick Ratio of 1.60 indicates that PSTG should not have too much problems paying its short term obligations.
PSTG's Quick ratio of 1.60 is fine compared to the rest 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
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.
The Revenue is expected to grow by 14.87% on average over the next years. This is quite good.
EPS Next Y15.94%
EPS Next 2Y16.28%
EPS Next 3Y16.68%
EPS Next 5Y14.85%
Revenue Next Year15.16%
Revenue Next 2Y15.76%
Revenue Next 3Y15.59%
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.
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 39.19, PSTG can be considered very expensive at the moment.
PSTG's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.92. PSTG is valued slightly more expensive when compared to this.
With a Price/Forward Earnings ratio of 29.67, PSTG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSTG is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PSTG to the average of the S&P500 Index (23.57), we can say PSTG is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.19 | ||
| Fwd PE | 29.67 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSTG.
62.86% of the companies in the same industry are more expensive than PSTG, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.78 | ||
| EV/EBITDA | 98.38 |
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)2.46
PEG (5Y)0.86
EPS Next 2Y16.28%
EPS Next 3Y16.68%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
68.59
-0.44 (-0.64%)
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 Cap22.54B
Revenue(TTM)3.48B
Net Income(TTM)130.36M
Analysts79.26
Price Target96.42 (40.57%)
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 | 39.19 | ||
| Fwd PE | 29.67 | ||
| P/S | 6.47 | ||
| P/FCF | 39.78 | ||
| P/OCF | 27.47 | ||
| P/B | 16.07 | ||
| P/tB | 21.91 | ||
| EV/EBITDA | 98.38 |
EPS(TTM)1.75
EY2.55%
EPS(NY)2.31
Fwd EY3.37%
FCF(TTM)1.72
FCFY2.51%
OCF(TTM)2.5
OCFY3.64%
SpS10.6
BVpS4.27
TBVpS3.13
PEG (NY)2.46
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 | 5.56 |
F-Score5
WACC8.8%
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.