PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSTG - US74624M1027 - Common Stock
67.06 USD
+0.74 (+1.12%)
67.1188 USD
+0.06 (+0.09%)
PSTG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 35 industry peers in the Technology Hardware, Storage & Peripherals industry. While PSTG has a great health rating, its profitability is only average at the moment. 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.
PSTG had a positive operating cash flow in the past year.
In multiple years PSTG reported negative net income over the last 5 years.
In the past 5 years PSTG always reported a positive cash flow from operatings.
1.2 Ratios
PSTG's Return On Assets of 3.09% is fine compared to the rest of the industry. PSTG outperforms 68.57% of its industry peers.
PSTG's Return On Equity of 9.29% is fine compared to the rest of the industry. PSTG outperforms 77.14% 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 54.29% 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 15.26%.
| 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
The Profit Margin of PSTG (3.74%) is better than 68.57% of its industry peers.
PSTG has a Operating Margin (2.01%) which is in line with its industry peers.
PSTG has a better Gross Margin (69.81%) than 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
PSTG has an Altman-Z score of 5.45. This indicates that PSTG is financially healthy and has little risk of bankruptcy at the moment.
PSTG's Altman-Z score of 5.45 is amongst the best of the industry. PSTG outperforms 82.86% of its industry peers.
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 | 5.45 |
ROIC/WACC0.21
WACC8.78%
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 Current ratio (1.65) which is comparable to the rest of the industry.
PSTG has a Quick Ratio of 1.60. This is a normal value and indicates that PSTG is financially healthy and should not expect problems in meeting its short term obligations.
The Quick ratio of PSTG (1.60) is better than 68.57% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.6 |
3. Growth
3.1 Past
The earnings per share for PSTG have decreased by -0.57% in the last year.
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 13.18% in the last year.
Measured over the past years, PSTG shows a quite strong growth in Revenue. The Revenue has been growing by 14.03% on average per year.
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
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 Y16.66%
EPS Next 2Y21.28%
EPS Next 3Y21.34%
EPS Next 5Y14.85%
Revenue Next Year14.63%
Revenue Next 2Y14.94%
Revenue Next 3Y14.72%
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
PSTG is valuated quite expensively with a Price/Earnings ratio of 38.32.
PSTG's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.26. PSTG is valued slightly more expensive when compared to this.
A Price/Forward Earnings ratio of 26.66 indicates a quite expensive valuation of PSTG.
The rest of the industry has a similar Price/Forward Earnings ratio as PSTG.
When comparing the Price/Forward Earnings ratio of PSTG to the average of the S&P500 Index (23.68), we can say PSTG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.32 | ||
| Fwd PE | 26.66 |
4.2 Price Multiples
PSTG's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSTG indicates a somewhat cheap valuation: PSTG is cheaper than 62.86% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.89 | ||
| EV/EBITDA | 95.93 |
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.
PSTG's earnings are expected to grow with 21.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.3
PEG (5Y)0.84
EPS Next 2Y21.28%
EPS Next 3Y21.34%
5. Dividend
5.1 Amount
PSTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
67.06
+0.74 (+1.12%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners86.94%
Inst Owner Change-0.02%
Ins Owners5.34%
Ins Owner Change1.11%
Market Cap22.04B
Revenue(TTM)3.48B
Net Income(TTM)130.36M
Analysts79.26
Price Target96.42 (43.78%)
Short Float %2.93%
Short Ratio2.37
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)7.67%
PT rev (3m)23.88%
EPS NQ rev (1m)-0.53%
EPS NQ rev (3m)-0.17%
EPS NY rev (1m)-0.11%
EPS NY rev (3m)8.29%
Revenue NQ rev (1m)0.77%
Revenue NQ rev (3m)1.45%
Revenue NY rev (1m)0.16%
Revenue NY rev (3m)0.52%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 38.32 | ||
| Fwd PE | 26.66 | ||
| P/S | 6.33 | ||
| P/FCF | 38.89 | ||
| P/OCF | 26.86 | ||
| P/B | 15.71 | ||
| P/tB | 21.42 | ||
| EV/EBITDA | 95.93 |
EPS(TTM)1.75
EY2.61%
EPS(NY)2.52
Fwd EY3.75%
FCF(TTM)1.72
FCFY2.57%
OCF(TTM)2.5
OCFY3.72%
SpS10.6
BVpS4.27
TBVpS3.13
PEG (NY)2.3
PEG (5Y)0.84
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-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 185.84% | ||
| Cap/Sales | 7.29% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 397.01% | ||
| Profit Quality | 434.72% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.6 | ||
| Altman-Z | 5.45 |
F-Score6
WACC8.78%
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 Y16.66%
EPS Next 2Y21.28%
EPS Next 3Y21.34%
EPS Next 5Y14.85%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%16.05%
Revenue Next Year14.63%
Revenue Next 2Y14.94%
Revenue Next 3Y14.72%
Revenue Next 5Y14.87%
EBIT growth 1Y-47.27%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year42.85%
EBIT Next 3Y29.44%
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 of PURE STORAGE INC - CLASS A (PSTG) stock?
ChartMill assigns a valuation rating of 3 / 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.
Can you provide the financial health for PSTG stock?
The financial health rating of PURE STORAGE INC - CLASS A (PSTG) is 7 / 10.
Can you provide the expected EPS growth for PSTG stock?
The Earnings per Share (EPS) of PURE STORAGE INC - CLASS A (PSTG) is expected to grow by 16.66% in the next year.