PENUMBRA INC (PEN) Stock Fundamental Analysis
NYSE:PEN - New York Stock Exchange, Inc. - US70975L1070 - Common Stock - Currency: USD
Overall PEN gets a fundamental rating of 6 out of 10. We evaluated PEN against 187 industry peers in the Health Care Equipment & Supplies industry. While PEN has a great health rating, its profitability is only average at the moment. PEN is growing strongly while it is still valued neutral. This is a good combination! With these ratings, PEN could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
PEN had positive earnings in the past year.
In the past year PEN had a positive cash flow from operations.
In multiple years PEN reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: PEN reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of PEN (2.65%) is better than 77.01% of its industry peers.
PEN's Return On Equity of 3.48% is fine compared to the rest of the industry. PEN outperforms 77.01% of its industry peers.
With an excellent Return On Invested Capital value of 6.92%, PEN belongs to the best of the industry, outperforming 82.89% of the companies in the same industry.
PEN had an Average Return On Invested Capital over the past 3 years of 2.98%. This is below the industry average of 7.89%.
The 3 year average ROIC (2.98%) for PEN is below the current ROIC(6.92%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 3.48% | ||
| ROIC | 6.92% |
ROA(3y)2.2%
ROA(5y)1.03%
ROE(3y)2.91%
ROE(5y)1.37%
ROIC(3y)2.98%
ROIC(5y)N/A
1.3 Margins
PEN has a Profit Margin of 3.41%. This is in the better half of the industry: PEN outperforms 75.40% of its industry peers.
In the last couple of years the Profit Margin of PEN has declined.
PEN has a Operating Margin of 11.92%. This is in the better half of the industry: PEN outperforms 79.14% of its industry peers.
PEN's Operating Margin has declined in the last couple of years.
PEN has a better Gross Margin (66.37%) than 70.59% of its industry peers.
In the last couple of years the Gross Margin of PEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.92% | ||
| PM (TTM) | 3.41% | ||
| GM | 66.37% |
OM growth 3Y43.4%
OM growth 5Y-3.62%
PM growth 3Y18.27%
PM growth 5Y-33.26%
GM growth 3Y-0.21%
GM growth 5Y-1.44%
2. Health
2.1 Basic Checks
PEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
PEN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for PEN has been increased compared to 5 years ago.
Compared to 1 year ago, PEN has an improved debt to assets ratio.
2.2 Solvency
PEN has an Altman-Z score of 15.86. This indicates that PEN is financially healthy and has little risk of bankruptcy at the moment.
PEN's Altman-Z score of 15.86 is amongst the best of the industry. PEN outperforms 92.51% of its industry peers.
PEN has a debt to FCF ratio of 0.16. This is a very positive value and a sign of high solvency as it would only need 0.16 years to pay back of all of its debts.
With an excellent Debt to FCF ratio value of 0.16, PEN belongs to the best of the industry, outperforming 94.65% of the companies in the same industry.
A Debt/Equity ratio of 0.02 indicates that PEN is not too dependend on debt financing.
The Debt to Equity ratio of PEN (0.02) is better than 66.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.16 | ||
| Altman-Z | 15.86 |
ROIC/WACC0.76
WACC9.06%
2.3 Liquidity
A Current Ratio of 6.30 indicates that PEN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 6.30, PEN belongs to the top of the industry, outperforming 83.96% of the companies in the same industry.
A Quick Ratio of 3.68 indicates that PEN has no problem at all paying its short term obligations.
PEN has a better Quick ratio (3.68) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.3 | ||
| Quick Ratio | 3.68 |
3. Growth
3.1 Past
PEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 44.93%, which is quite impressive.
Measured over the past years, PEN shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.23% on average per year.
PEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.18%.
Measured over the past years, PEN shows a quite strong growth in Revenue. The Revenue has been growing by 16.89% on average per year.
EPS 1Y (TTM)44.93%
EPS 3Y60.05%
EPS 5Y24.23%
EPS Q2Q%102.44%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y16.91%
Revenue growth 5Y16.89%
Sales Q2Q%16.32%
3.2 Future
The Earnings Per Share is expected to grow by 25.44% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.69% on average over the next years. This is quite good.
EPS Next Y32.53%
EPS Next 2Y32.73%
EPS Next 3Y30.3%
EPS Next 5Y25.44%
Revenue Next Year13.8%
Revenue Next 2Y14.02%
Revenue Next 3Y13.89%
Revenue Next 5Y12.69%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 70.02, the valuation of PEN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of PEN indicates a somewhat cheap valuation: PEN is cheaper than 65.78% of the companies listed in the same industry.
PEN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.50.
PEN is valuated quite expensively with a Price/Forward Earnings ratio of 45.56.
Based on the Price/Forward Earnings ratio, PEN is valued a bit cheaper than 67.91% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 36.44. PEN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.02 | ||
| Fwd PE | 45.56 |
4.2 Price Multiples
PEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PEN is cheaper than 66.84% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PEN indicates a somewhat cheap valuation: PEN is cheaper than 71.66% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 59.35 | ||
| EV/EBITDA | 50.6 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PEN does not grow enough to justify the current Price/Earnings ratio.
PEN's earnings are expected to grow with 30.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.15
PEG (5Y)2.89
EPS Next 2Y32.73%
EPS Next 3Y30.3%
5. Dividend
5.1 Amount
PEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
230.38
+0.28 (+0.12%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners91.81%
Inst Owner Change-0.02%
Ins Owners3.48%
Ins Owner Change8.24%
Market Cap8.92B
Analysts81.74
Price Target320.41 (39.08%)
Short Float %5.08%
Short Ratio3.92
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)15.42%
Min EPS beat(2)6.98%
Max EPS beat(2)23.86%
EPS beat(4)4
Avg EPS beat(4)16.72%
Min EPS beat(4)6.98%
Max EPS beat(4)23.86%
EPS beat(8)8
Avg EPS beat(8)22.55%
EPS beat(12)12
Avg EPS beat(12)37.31%
EPS beat(16)13
Avg EPS beat(16)16.76%
Revenue beat(2)2
Avg Revenue beat(2)0.98%
Min Revenue beat(2)0.28%
Max Revenue beat(2)1.67%
Revenue beat(4)3
Avg Revenue beat(4)0.38%
Min Revenue beat(4)-0.64%
Max Revenue beat(4)1.67%
Revenue beat(8)6
Avg Revenue beat(8)0.45%
Revenue beat(12)8
Avg Revenue beat(12)0.68%
Revenue beat(16)12
Avg Revenue beat(16)1.64%
PT rev (1m)0%
PT rev (3m)2.96%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.65%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)2.82%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.36%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 70.02 | ||
| Fwd PE | 45.56 | ||
| P/S | 7.2 | ||
| P/FCF | 59.35 | ||
| P/OCF | 49.8 | ||
| P/B | 7.36 | ||
| P/tB | 8.58 | ||
| EV/EBITDA | 50.6 |
EPS(TTM)3.29
EY1.43%
EPS(NY)5.06
Fwd EY2.19%
FCF(TTM)3.88
FCFY1.68%
OCF(TTM)4.63
OCFY2.01%
SpS32.02
BVpS31.32
TBVpS26.86
PEG (NY)2.15
PEG (5Y)2.89
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.65% | ||
| ROE | 3.48% | ||
| ROCE | 10.3% | ||
| ROIC | 6.92% | ||
| ROICexc | 9.4% | ||
| ROICexgc | 11.24% | ||
| OM | 11.92% | ||
| PM (TTM) | 3.41% | ||
| GM | 66.37% | ||
| FCFM | 12.12% |
ROA(3y)2.2%
ROA(5y)1.03%
ROE(3y)2.91%
ROE(5y)1.37%
ROIC(3y)2.98%
ROIC(5y)N/A
ROICexc(3y)3.84%
ROICexc(5y)N/A
ROICexgc(3y)4.75%
ROICexgc(5y)N/A
ROCE(3y)4.43%
ROCE(5y)N/A
ROICexcg growth 3Y49.31%
ROICexcg growth 5Y-5.8%
ROICexc growth 3Y58%
ROICexc growth 5Y-7.52%
OM growth 3Y43.4%
OM growth 5Y-3.62%
PM growth 3Y18.27%
PM growth 5Y-33.26%
GM growth 3Y-0.21%
GM growth 5Y-1.44%
F-Score8
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.16 | ||
| Debt/EBITDA | 0.13 | ||
| Cap/Depr | 135.98% | ||
| Cap/Sales | 2.32% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 105.99% | ||
| Profit Quality | 355.96% | ||
| Current Ratio | 6.3 | ||
| Quick Ratio | 3.68 | ||
| Altman-Z | 15.86 |
F-Score8
WACC9.06%
ROIC/WACC0.76
Cap/Depr(3y)74.85%
Cap/Depr(5y)109.14%
Cap/Sales(3y)1.83%
Cap/Sales(5y)2.55%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)44.93%
EPS 3Y60.05%
EPS 5Y24.23%
EPS Q2Q%102.44%
EPS Next Y32.53%
EPS Next 2Y32.73%
EPS Next 3Y30.3%
EPS Next 5Y25.44%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y16.91%
Revenue growth 5Y16.89%
Sales Q2Q%16.32%
Revenue Next Year13.8%
Revenue Next 2Y14.02%
Revenue Next 3Y13.89%
Revenue Next 5Y12.69%
EBIT growth 1Y54.26%
EBIT growth 3Y67.65%
EBIT growth 5Y12.66%
EBIT Next Year76.61%
EBIT Next 3Y39.22%
EBIT Next 5Y31.32%
FCF growth 1Y367.26%
FCF growth 3YN/A
FCF growth 5Y100.55%
OCF growth 1Y571.22%
OCF growth 3Y160.78%
OCF growth 5Y44.6%