PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - NYSE:PSTG - US74624M1027 - Common Stock
86.76 USD
+4.46 (+5.42%)
86.5011 USD
-0.26 (-0.3%)
Overall PSTG gets a fundamental rating of 5 out of 10. We evaluated PSTG against 33 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 quite expensive at the moment. It does show a decent growth rate.
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.
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
With a decent Return On Assets value of 3.46%, PSTG is doing good in the industry, outperforming 72.73% of the companies in the same industry.
With a decent Return On Equity value of 10.55%, PSTG is doing good in the industry, outperforming 78.79% of the companies in the same industry.
With a Return On Invested Capital value of 2.13%, PSTG perfoms like the industry average, outperforming 54.55% 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 14.98%.
| 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 has a Profit Margin of 4.15%. This is in the better half of the industry: PSTG outperforms 69.70% of its industry peers.
PSTG has a Operating Margin (2.26%) which is in line with its industry peers.
PSTG has a Gross Margin of 69.17%. This is amongst the best in the industry. PSTG outperforms 96.97% 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 | 2.26% | ||
| 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
Compared to 5 years ago, PSTG has more shares outstanding
The debt/assets ratio for PSTG has been reduced compared to a year ago.
2.2 Solvency
PSTG has an Altman-Z score of 6.72. This indicates that PSTG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.72, PSTG belongs to the top of the industry, outperforming 87.88% 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 | ||
| Altman-Z | 6.72 |
ROIC/WACC0.24
WACC8.69%
2.3 Liquidity
A Current Ratio of 1.65 indicates that PSTG should not have too much problems paying its short term obligations.
PSTG has a Current ratio of 1.65. This is comparable to the rest of the industry: PSTG outperforms 57.58% of its industry peers.
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 Quick ratio of 1.61. This is in the better half of the industry: PSTG outperforms 69.70% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
PSTG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.11%.
The Earnings Per Share has been growing by 45.75% on average over the past years. This is a very strong growth
Looking at the last year, PSTG shows a quite strong growth in Revenue. The Revenue has grown by 11.31% in the last year.
PSTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.03% yearly.
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
PSTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.85% yearly.
The Revenue is expected to grow by 14.87% on average over the next years. This is quite good.
EPS Next Y7.72%
EPS Next 2Y16.6%
EPS Next 3Y19.99%
EPS Next 5Y14.85%
Revenue Next Year14.04%
Revenue Next 2Y14.4%
Revenue Next 3Y13.85%
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
The Price/Earnings ratio is 51.95, which means the current valuation is very expensive for PSTG.
PSTG's Price/Earnings is on the same level as the industry average.
PSTG's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.27.
The Price/Forward Earnings ratio is 37.32, which means the current valuation is very expensive for PSTG.
Based on the Price/Forward Earnings ratio, PSTG is valued a bit more expensive than the industry average as 60.61% of the companies are valued more cheaply.
PSTG is valuated expensively when we compare the Price/Forward Earnings ratio to 22.77, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.95 | ||
| Fwd PE | 37.32 |
4.2 Price Multiples
PSTG's Enterprise Value to EBITDA ratio is in line with the industry average.
PSTG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.9 | ||
| EV/EBITDA | 122.84 |
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 19.99% in the coming years. This may justify a more expensive valuation.
PEG (NY)6.73
PEG (5Y)1.14
EPS Next 2Y16.6%
EPS Next 3Y19.99%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
86.76
+4.46 (+5.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change0.32%
Ins Owners5.35%
Ins Owner Change4.43%
Market Cap28.51B
Analysts77.04
Price Target77.83 (-10.29%)
Short Float %3.49%
Short Ratio3.78
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)9.54%
PT rev (3m)9.54%
EPS NQ rev (1m)9.81%
EPS NQ rev (3m)39.12%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)5.71%
Revenue NQ rev (1m)3.99%
Revenue NQ rev (3m)12.16%
Revenue NY rev (1m)2.28%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.95 | ||
| Fwd PE | 37.32 | ||
| P/S | 8.51 | ||
| P/FCF | 51.9 | ||
| P/OCF | 35.57 | ||
| P/B | 21.62 | ||
| P/tB | 30.13 | ||
| EV/EBITDA | 122.84 |
EPS(TTM)1.67
EY1.92%
EPS(NY)2.32
Fwd EY2.68%
FCF(TTM)1.67
FCFY1.93%
OCF(TTM)2.44
OCFY2.81%
SpS10.19
BVpS4.01
TBVpS2.88
PEG (NY)6.73
PEG (5Y)1.14
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 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 199.37% | ||
| Cap/Sales | 7.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 396.09% | ||
| Profit Quality | 394.65% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 6.72 |
F-Score6
WACC8.69%
ROIC/WACC0.24
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 Y7.72%
EPS Next 2Y16.6%
EPS Next 3Y19.99%
EPS Next 5Y14.85%
Revenue 1Y (TTM)11.31%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.73%
Revenue Next Year14.04%
Revenue Next 2Y14.4%
Revenue Next 3Y13.85%
Revenue Next 5Y14.87%
EBIT growth 1Y-48.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.04%
EBIT Next 3Y28.86%
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%