PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - NYSE:PSTG - US74624M1027 - Common Stock
84.59 USD
+0.63 (+0.75%)
86.4749 USD
+1.88 (+2.23%)
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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. While showing a medium growth rate, PSTG is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year PSTG was profitable.
PSTG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PSTG reported negative net income in multiple 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 3.46%. This is in the better half of the industry: PSTG outperforms 68.57% of its industry peers.
With a decent Return On Equity value of 10.55%, PSTG is doing good in the industry, outperforming 77.14% of the companies in the same industry.
PSTG has a Return On Invested Capital of 2.13%. This is comparable to the rest of the industry: PSTG outperforms 57.14% of its industry peers.
PSTG had an Average Return On Invested Capital over the past 3 years of 2.97%. This is significantly below the industry average of 16.28%.
| 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's Profit Margin of 4.15% is fine compared to the rest of the industry. PSTG outperforms 71.43% of its industry peers.
PSTG's Operating Margin of 2.26% is in line compared to the rest of the industry. PSTG outperforms 54.29% of its industry peers.
The Gross Margin of PSTG (69.17%) is better 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 | 2.26% | ||
| 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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PSTG is destroying value.
Compared to 1 year ago, PSTG has more shares outstanding
Compared to 5 years ago, PSTG has more shares outstanding
PSTG has a better debt/assets ratio than last year.
2.2 Solvency
PSTG has an Altman-Z score of 6.89. This indicates that PSTG is financially healthy and has little risk of bankruptcy at the moment.
PSTG's Altman-Z score of 6.89 is amongst the best of the industry. PSTG outperforms 85.71% of its industry peers.
PSTG has a debt to FCF ratio of 0.01. This is a very positive value and a sign of high solvency as it would only need 0.01 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.01, PSTG belongs to the top 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 77.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.89 |
ROIC/WACC0.24
WACC8.77%
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's Current ratio of 1.65 is in line compared to the rest of the industry. PSTG outperforms 60.00% of its industry peers.
A Quick Ratio of 1.61 indicates that PSTG should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.61, PSTG is doing good in the industry, outperforming 68.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The earnings per share for PSTG have decreased by -5.11% in the last year.
Measured over the past years, PSTG shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.75% on average per year.
PSTG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.31%.
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 Y16.78%
EPS Next 2Y21.23%
EPS Next 3Y21.48%
EPS Next 5Y14.85%
Revenue Next Year14.44%
Revenue Next 2Y14.89%
Revenue Next 3Y14.87%
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.
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
A Price/Earnings ratio of 50.65 indicates a quite expensive valuation of PSTG.
PSTG's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 25.89. PSTG is valued rather expensively when compared to this.
PSTG is valuated quite expensively with a Price/Forward Earnings ratio of 33.66.
PSTG's Price/Forward Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 34.59, PSTG is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.65 | ||
| Fwd PE | 33.66 |
4.2 Price Multiples
PSTG's Enterprise Value to EBITDA is on the same level as the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PSTG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.6 | ||
| EV/EBITDA | 126.57 |
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 21.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.02
PEG (5Y)1.11
EPS Next 2Y21.23%
EPS Next 3Y21.48%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.59
+0.63 (+0.75%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change-1.41%
Ins Owners5.33%
Ins Owner Change2.87%
Market Cap27.80B
Revenue(TTM)3.35B
Net Income(TTM)139.20M
Analysts77.78
Price Target89.55 (5.86%)
Short Float %2.12%
Short Ratio1.93
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)4.79%
PT rev (3m)26.03%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)10.64%
EPS NY rev (1m)0.18%
EPS NY rev (3m)7.94%
Revenue NQ rev (1m)-0.01%
Revenue NQ rev (3m)4.7%
Revenue NY rev (1m)0.05%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.65 | ||
| Fwd PE | 33.66 | ||
| P/S | 8.3 | ||
| P/FCF | 50.6 | ||
| P/OCF | 34.68 | ||
| P/B | 21.08 | ||
| P/tB | 29.38 | ||
| EV/EBITDA | 126.57 |
EPS(TTM)1.67
EY1.97%
EPS(NY)2.51
Fwd EY2.97%
FCF(TTM)1.67
FCFY1.98%
OCF(TTM)2.44
OCFY2.88%
SpS10.19
BVpS4.01
TBVpS2.88
PEG (NY)3.02
PEG (5Y)1.11
Graham Number12.28
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
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 | 0.01 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 199.37% | ||
| Cap/Sales | 7.53% | ||
| Interest Coverage | 13.12 | ||
| Cash Conversion | 396.09% | ||
| Profit Quality | 394.65% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 6.89 |
F-Score6
WACC8.77%
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 Y16.78%
EPS Next 2Y21.23%
EPS Next 3Y21.48%
EPS Next 5Y14.85%
Revenue 1Y (TTM)11.31%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.73%
Revenue Next Year14.44%
Revenue Next 2Y14.89%
Revenue Next 3Y14.87%
Revenue Next 5Y14.87%
EBIT growth 1Y-48.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.11%
EBIT Next 3Y31.03%
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%
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 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.
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 16.78% in the next year.