PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSTG - US74624M1027 - Common Stock
78.38 USD
+1.13 (+1.46%)
79.9 USD
+1.52 (+1.94%)
We assign a fundamental rating of 5 out of 10 to PSTG. 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.
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
With a decent Return On Assets value of 3.46%, PSTG is doing good in the industry, outperforming 68.57% 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 77.14% of the companies in the same industry.
PSTG has a Return On Invested Capital (2.13%) which is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for PSTG is significantly below the industry average of 16.16%.
| 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 better Profit Margin (4.15%) than 71.43% of its industry peers.
PSTG has a Operating Margin (2.26%) which is in line with its industry peers.
Looking at the Gross Margin, with a value of 69.17%, PSTG belongs to the top of the industry, outperforming 97.14% of the companies in the same industry.
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.
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
The debt/assets ratio for PSTG has been reduced compared to a year ago.
2.2 Solvency
PSTG has an Altman-Z score of 6.35. This indicates that PSTG is financially healthy and has little risk of bankruptcy at the moment.
With an excellent Altman-Z score value of 6.35, PSTG belongs to the best of the industry, outperforming 91.43% of the companies in the same industry.
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.
With a decent Debt to Equity ratio value of 0.00, PSTG is doing good in the industry, outperforming 77.14% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 6.35 |
ROIC/WACC0.25
WACC8.68%
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 1.61. This is a normal value and indicates that PSTG is financially healthy and should not expect problems in meeting its short term obligations.
PSTG's Quick ratio of 1.61 is fine compared to the rest of the industry. PSTG outperforms 68.57% of its industry peers.
| 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.
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.
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)-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
Based on estimates for the next years, PSTG will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.85% on average per year.
Based on estimates for the next years, PSTG will show a quite strong growth in Revenue. The Revenue will grow by 14.87% on average per year.
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.
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
A Price/Earnings ratio of 46.93 indicates a quite expensive valuation of PSTG.
The rest of the industry has a similar Price/Earnings ratio as PSTG.
PSTG is valuated expensively when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 31.19, PSTG can be considered very expensive at the moment.
PSTG's Price/Forward Earnings is on the same level as the industry average.
PSTG is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 34.46, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.93 | ||
| Fwd PE | 31.19 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSTG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.89 | ||
| EV/EBITDA | 114.65 |
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 21.48% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.8
PEG (5Y)1.03
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 |
78.38
+1.13 (+1.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change0.04%
Ins Owners5.33%
Ins Owner Change3.94%
Market Cap25.76B
Revenue(TTM)3.35B
Net Income(TTM)139.20M
Analysts77.78
Price Target89.55 (14.25%)
Short Float %2.14%
Short Ratio2.35
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 | 46.93 | ||
| Fwd PE | 31.19 | ||
| P/S | 7.69 | ||
| P/FCF | 46.89 | ||
| P/OCF | 32.13 | ||
| P/B | 19.53 | ||
| P/tB | 27.22 | ||
| EV/EBITDA | 114.65 |
EPS(TTM)1.67
EY2.13%
EPS(NY)2.51
Fwd EY3.21%
FCF(TTM)1.67
FCFY2.13%
OCF(TTM)2.44
OCFY3.11%
SpS10.19
BVpS4.01
TBVpS2.88
PEG (NY)2.8
PEG (5Y)1.03
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 | 6.35 |
F-Score6
WACC8.68%
ROIC/WACC0.25
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.