PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
NYSE:PSTG - New York Stock Exchange, Inc. - US74624M1027 - Common Stock - Currency: USD
Taking everything into account, PSTG scores 5 out of 10 in our fundamental rating. PSTG was compared to 32 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 valued quite expensive, but it does show an excellent growth. These ratings could make PSTG a good candidate for growth investing.
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.
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 3.37%, PSTG is in the better half of the industry, outperforming 64.52% of the companies in the same industry.
With a decent Return On Equity value of 9.20%, PSTG is doing good in the industry, outperforming 77.42% of the companies in the same industry.
PSTG has a Return On Invested Capital (4.06%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 9.2% | ||
| ROIC | 4.06% |
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
With a decent Profit Margin value of 4.21%, PSTG is doing good in the industry, outperforming 64.52% of the companies in the same industry.
PSTG's Operating Margin of 4.32% is in line compared to the rest of the industry. PSTG outperforms 51.61% of its industry peers.
PSTG's Gross Margin of 71.06% is amongst the best of the industry. PSTG outperforms 96.77% of its industry peers.
PSTG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.32% | ||
| PM (TTM) | 4.21% | ||
| GM | 71.06% |
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.
The number of shares outstanding for PSTG has been increased compared to 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 6.43. This indicates that PSTG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.43, PSTG belongs to the best of the industry, outperforming 83.87% of the companies in the same industry.
There is no outstanding debt for PSTG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 6.43 |
ROIC/WACC0.45
WACC9.01%
2.3 Liquidity
PSTG has a Current Ratio of 1.77. 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 1.77. This is comparable to the rest of the industry: PSTG outperforms 51.61% of its industry peers.
A Quick Ratio of 1.74 indicates that PSTG should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.74, PSTG is in the better half of the industry, outperforming 74.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.74 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 21.38% over the past year.
The Earnings Per Share has been growing by 46.56% on average over the past years. This is a very strong growth
Looking at the last year, PSTG shows a small growth in Revenue. The Revenue has grown by 7.97% in the last year.
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)7.97%
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.
The Revenue is expected to grow by 15.38% on average over the next years. This is quite good.
EPS Next Y20.13%
EPS Next 2Y12.66%
EPS Next 3Y17.14%
EPS Next 5Y19.62%
Revenue Next Year11.81%
Revenue Next 2Y11.66%
Revenue Next 3Y12.59%
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.
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 38.28.
Compared to the rest of the industry, the Price/Earnings ratio of PSTG is on the same level as its industry peers.
PSTG is valuated rather expensively when we compare the Price/Earnings ratio to 28.20, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 37.38, which means the current valuation is very expensive for PSTG.
61.29% of the companies in the same industry are cheaper than PSTG, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of PSTG to the average of the S&P500 Index (94.48), we can say PSTG is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.28 | ||
| Fwd PE | 37.38 |
4.2 Price Multiples
PSTG's Enterprise Value to EBITDA is on the same level as the industry average.
PSTG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.2 | ||
| EV/EBITDA | 79.13 |
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 17.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.9
PEG (5Y)0.82
EPS Next 2Y12.66%
EPS Next 3Y17.14%
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 (2/11/2025, 3:34:09 PM)
67.37
-3.55 (-5.01%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners85.89%
Inst Owner Change-15.82%
Ins Owners5.2%
Ins Owner Change-10.47%
Market Cap21.98B
Analysts80
Price Target73.05 (8.43%)
Short Float %4.12%
Short Ratio4.23
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)16.98%
Min EPS beat(2)16.57%
Max EPS beat(2)17.38%
EPS beat(4)4
Avg EPS beat(4)23.36%
Min EPS beat(4)12.43%
Max EPS beat(4)47.07%
EPS beat(8)8
Avg EPS beat(8)35.02%
EPS beat(12)12
Avg EPS beat(12)70.49%
EPS beat(16)16
Avg EPS beat(16)76.13%
Revenue beat(2)0
Avg Revenue beat(2)-0.42%
Min Revenue beat(2)-0.83%
Max Revenue beat(2)-0.01%
Revenue beat(4)0
Avg Revenue beat(4)-0.51%
Min Revenue beat(4)-1.02%
Max Revenue beat(4)-0.01%
Revenue beat(8)1
Avg Revenue beat(8)-0.44%
Revenue beat(12)3
Avg Revenue beat(12)1.83%
Revenue beat(16)7
Avg Revenue beat(16)2.02%
PT rev (1m)0.44%
PT rev (3m)8.97%
EPS NQ rev (1m)-8.85%
EPS NQ rev (3m)-14.33%
EPS NY rev (1m)0.08%
EPS NY rev (3m)2.89%
Revenue NQ rev (1m)1.48%
Revenue NQ rev (3m)-0.81%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.28 | ||
| Fwd PE | 37.38 | ||
| P/S | 7.14 | ||
| P/FCF | 38.2 | ||
| P/OCF | 27.84 | ||
| P/B | 15.58 | ||
| P/tB | 21.42 | ||
| EV/EBITDA | 79.13 |
EPS(TTM)1.76
EY2.61%
EPS(NY)1.8
Fwd EY2.68%
FCF(TTM)1.76
FCFY2.62%
OCF(TTM)2.42
OCFY3.59%
SpS9.44
BVpS4.32
TBVpS3.15
PEG (NY)1.9
PEG (5Y)0.82
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.37% | ||
| ROE | 9.2% | ||
| ROCE | 5.52% | ||
| ROIC | 4.06% | ||
| ROICexc | 12.86% | ||
| ROICexgc | 25.98% | ||
| OM | 4.32% | ||
| PM (TTM) | 4.21% | ||
| GM | 71.06% | ||
| FCFM | 18.69% |
ROA(3y)-0.28%
ROA(5y)-3.87%
ROE(3y)-2.13%
ROE(5y)-13.65%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
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 3Y1.53%
GM growth 5Y1.48%
F-Score7
Asset Turnover0.8
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 164.29% | ||
| Cap/Sales | 6.96% | ||
| Interest Coverage | 18.59 | ||
| Cash Conversion | 299.85% | ||
| Profit Quality | 443.42% | ||
| Current Ratio | 1.77 | ||
| Quick Ratio | 1.74 | ||
| Altman-Z | 6.43 |
F-Score7
WACC9.01%
ROIC/WACC0.45
Cap/Depr(3y)145.76%
Cap/Depr(5y)136.18%
Cap/Sales(3y)5.78%
Cap/Sales(5y)5.77%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)21.38%
EPS 3Y99.07%
EPS 5Y46.56%
EPS Q2Q%0%
EPS Next Y20.13%
EPS Next 2Y12.66%
EPS Next 3Y17.14%
EPS Next 5Y19.62%
Revenue 1Y (TTM)7.97%
Revenue growth 3Y18.89%
Revenue growth 5Y15.79%
Sales Q2Q%8.94%
Revenue Next Year11.81%
Revenue Next 2Y11.66%
Revenue Next 3Y12.59%
Revenue Next 5Y15.38%
EBIT growth 1Y71.47%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year50.05%
EBIT Next 3Y27.24%
EBIT Next 5YN/A
FCF growth 1Y3.95%
FCF growth 3Y73.37%
FCF growth 5Y49.69%
OCF growth 1Y17.41%
OCF growth 3Y53.44%
OCF growth 5Y32.75%