PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
NYSE:PSTG - New York Stock Exchange, Inc. - US74624M1027 - Common Stock - Currency: USD
Overall PSTG gets a fundamental rating of 5 out of 10. We evaluated PSTG against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. While PSTG has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, PSTG is valued expensive at the moment.
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.
In the past 5 years PSTG always reported a positive cash flow from operatings.
1.2 Ratios
PSTG has a better Return On Assets (3.35%) than 68.75% of its industry peers.
PSTG has a Return On Equity of 10.27%. This is in the better half of the industry: PSTG outperforms 78.13% of its industry peers.
PSTG has a Return On Invested Capital (2.90%) which is in line with 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 16.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 10.27% | ||
| ROIC | 2.9% |
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 3.93%. This is in the better half of the industry: PSTG outperforms 62.50% of its industry peers.
PSTG has a Operating Margin of 2.95%. This is comparable to the rest of the industry: PSTG outperforms 50.00% of its industry peers.
With an excellent Gross Margin value of 69.26%, PSTG belongs to the best of the industry, outperforming 96.88% of the companies in the same industry.
PSTG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.95% | ||
| PM (TTM) | 3.93% | ||
| GM | 69.26% |
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
The number of shares outstanding for PSTG has been increased compared to 5 years ago.
PSTG has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 4.94 indicates that PSTG is not in any danger for bankruptcy at the moment.
The Altman-Z score of PSTG (4.94) is better than 87.50% of its industry peers.
PSTG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 4.94 |
ROIC/WACC0.29
WACC10.1%
2.3 Liquidity
PSTG has a Current 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 Current ratio of 1.61. This is comparable to the rest of the industry: PSTG outperforms 56.25% of its industry peers.
PSTG has a Quick Ratio of 1.58. 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 (1.58) is better than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
PSTG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.20%.
The Earnings Per Share has been growing by 45.75% on average over the past years. This is a very strong growth
The Revenue has grown by 10.85% in the past year. This is quite good.
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)1.2%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%-9.38%
Revenue 1Y (TTM)10.85%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.26%
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 12.92% on average per year.
The Revenue is expected to grow by 14.32% on average over the next years. This is quite good.
EPS Next Y8.08%
EPS Next 2Y16.42%
EPS Next 3Y12.92%
EPS Next 5YN/A
Revenue Next Year11.49%
Revenue Next 2Y12.54%
Revenue Next 3Y11.94%
Revenue Next 5Y14.32%
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
With a Price/Earnings ratio of 33.33, PSTG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of PSTG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.28, PSTG is valued a bit more expensive.
Based on the Price/Forward Earnings ratio of 24.16, the valuation of PSTG can be described as rather expensive.
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 (21.76), we can say PSTG is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.33 | ||
| Fwd PE | 24.16 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PSTG is on the same level as its industry peers.
PSTG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 32.38 | ||
| EV/EBITDA | 70.82 |
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 12.92% in the coming years.
PEG (NY)4.13
PEG (5Y)0.73
EPS Next 2Y16.42%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
56
+0.78 (+1.41%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.1%
Inst Owner Change2.56%
Ins Owners5.3%
Ins Owner Change-3.01%
Market Cap18.32B
Analysts80
Price Target71.05 (26.87%)
Short Float %3.95%
Short Ratio4.46
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)10.64%
Min EPS beat(2)6.36%
Max EPS beat(2)14.91%
EPS beat(4)4
Avg EPS beat(4)13.81%
Min EPS beat(4)6.36%
Max EPS beat(4)17.38%
EPS beat(8)8
Avg EPS beat(8)19.68%
EPS beat(12)12
Avg EPS beat(12)30.39%
EPS beat(16)16
Avg EPS beat(16)68.71%
Revenue beat(2)0
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.73%
Revenue beat(4)0
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-0.91%
Max Revenue beat(4)-0.01%
Revenue beat(8)0
Avg Revenue beat(8)-0.8%
Revenue beat(12)1
Avg Revenue beat(12)-0.55%
Revenue beat(16)5
Avg Revenue beat(16)1.74%
PT rev (1m)1.83%
PT rev (3m)-2.47%
EPS NQ rev (1m)0.69%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)6.06%
EPS NY rev (3m)2.49%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)0.42%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 33.33 | ||
| Fwd PE | 24.16 | ||
| P/S | 5.63 | ||
| P/FCF | 32.38 | ||
| P/OCF | 22.45 | ||
| P/B | 14.73 | ||
| P/tB | 21.12 | ||
| EV/EBITDA | 70.82 |
EPS(TTM)1.68
EY3%
EPS(NY)2.32
Fwd EY4.14%
FCF(TTM)1.73
FCFY3.09%
OCF(TTM)2.49
OCFY4.45%
SpS9.94
BVpS3.8
TBVpS2.65
PEG (NY)4.13
PEG (5Y)0.73
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 10.27% | ||
| ROCE | 4.14% | ||
| ROIC | 2.9% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 18.61% | ||
| OM | 2.95% | ||
| PM (TTM) | 3.93% | ||
| GM | 69.26% | ||
| FCFM | 17.39% |
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-Score7
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 197.86% | ||
| Cap/Sales | 7.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 367.02% | ||
| Profit Quality | 442.87% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 4.94 |
F-Score7
WACC10.1%
ROIC/WACC0.29
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)1.2%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%-9.38%
EPS Next Y8.08%
EPS Next 2Y16.42%
EPS Next 3Y12.92%
EPS Next 5YN/A
Revenue 1Y (TTM)10.85%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.26%
Revenue Next Year11.49%
Revenue Next 2Y12.54%
Revenue Next 3Y11.94%
Revenue Next 5Y14.32%
EBIT growth 1Y-27.98%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.04%
EBIT Next 3Y25.9%
EBIT Next 5YN/A
FCF growth 1Y4.08%
FCF growth 3Y19.62%
FCF growth 5Y41.52%
OCF growth 1Y13.28%
OCF growth 3Y22.49%
OCF growth 5Y31.78%