PENUMBRA INC (PEN) Stock Fundamental Analysis
NYSE:PEN - New York Stock Exchange, Inc. - US70975L1070 - Common Stock - Currency: USD
We assign a fundamental rating of 6 out of 10 to PEN. PEN was compared to 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes PEN very considerable for growth investing!
1. Profitability
1.1 Basic Checks
PEN had positive earnings in the past year.
PEN had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PEN reported negative net income in multiple years.
In multiple years PEN reported negative operating cash flow during the last 5 years.
1.2 Ratios
PEN has a Return On Assets of 8.82%. This is amongst the best in the industry. PEN outperforms 91.44% of its industry peers.
PEN has a Return On Equity of 11.41%. This is amongst the best in the industry. PEN outperforms 86.63% of its industry peers.
Looking at the Return On Invested Capital, with a value of 7.05%, PEN belongs to the top of the industry, outperforming 82.35% 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 significantly below the industry average of 8.28%.
The 3 year average ROIC (2.98%) for PEN is below the current ROIC(7.05%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.82% | ||
| ROE | 11.41% | ||
| ROIC | 7.05% |
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
The Profit Margin of PEN (11.54%) is better than 86.10% of its industry peers.
In the last couple of years the Profit Margin of PEN has declined.
With a decent Operating Margin value of 12.45%, PEN is doing good in the industry, outperforming 78.61% of the companies in the same industry.
PEN's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 66.47%, PEN is in the better half of the industry, outperforming 70.59% of the companies in the same industry.
PEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.45% | ||
| PM (TTM) | 11.54% | ||
| GM | 66.47% |
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.
Compared to 5 years ago, PEN has more shares outstanding
PEN has a better debt/assets ratio than last year.
2.2 Solvency
PEN has an Altman-Z score of 16.64. This indicates that PEN is financially healthy and has little risk of bankruptcy at the moment.
PEN has a Altman-Z score of 16.64. This is amongst the best in the industry. PEN outperforms 94.65% of its industry peers.
PEN has a debt to FCF ratio of 0.15. This is a very positive value and a sign of high solvency as it would only need 0.15 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 0.15, PEN belongs to the top 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.
With a decent Debt to Equity ratio value of 0.02, PEN is doing good in the industry, outperforming 66.84% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.15 | ||
| Altman-Z | 16.64 |
ROIC/WACC0.79
WACC8.9%
2.3 Liquidity
A Current Ratio of 6.75 indicates that PEN has no problem at all paying its short term obligations.
PEN has a Current ratio of 6.75. This is amongst the best in the industry. PEN outperforms 85.56% of its industry peers.
PEN has a Quick Ratio of 4.04. This indicates that PEN is financially healthy and has no problem in meeting its short term obligations.
PEN's Quick ratio of 4.04 is fine compared to the rest of the industry. PEN outperforms 73.26% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.75 | ||
| Quick Ratio | 4.04 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 41.53% over the past year.
PEN shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 24.23% yearly.
The Revenue has grown by 12.92% in the past year. This is quite good.
The Revenue has been growing by 16.89% on average over the past years. This is quite good.
EPS 1Y (TTM)41.53%
EPS 3Y60.05%
EPS 5Y24.23%
EPS Q2Q%34.37%
Revenue 1Y (TTM)12.92%
Revenue growth 3Y16.91%
Revenue growth 5Y16.89%
Sales Q2Q%13.38%
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
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 68.52, PEN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of PEN indicates a somewhat cheap valuation: PEN is cheaper than 65.24% of the companies listed in the same industry.
PEN is valuated expensively when we compare the Price/Earnings ratio to 26.48, which is the current average of the S&P500 Index.
PEN is valuated quite expensively with a Price/Forward Earnings ratio of 47.56.
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 34.04. PEN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.52 | ||
| Fwd PE | 47.56 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, PEN is valued a bit cheaper than the industry average as 64.17% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, PEN is valued a bit cheaper than the industry average as 72.73% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.03 | ||
| EV/EBITDA | 50.38 |
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.
The decent profitability rating of PEN may justify a higher PE ratio.
PEN's earnings are expected to grow with 30.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.11
PEG (5Y)2.83
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 |
240.49
-0.25 (-0.1%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners91.21%
Inst Owner Change-0.53%
Ins Owners3.58%
Ins Owner Change9.06%
Market Cap9.38B
Analysts82.61
Price Target319.64 (32.91%)
Short Float %4.9%
Short Ratio3.96
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)13.74%
Min EPS beat(2)3.63%
Max EPS beat(2)23.86%
EPS beat(4)4
Avg EPS beat(4)14.23%
Min EPS beat(4)3.63%
Max EPS beat(4)23.86%
EPS beat(8)8
Avg EPS beat(8)16.41%
EPS beat(12)12
Avg EPS beat(12)26.69%
EPS beat(16)13
Avg EPS beat(16)15.8%
Revenue beat(2)2
Avg Revenue beat(2)2.12%
Min Revenue beat(2)1.67%
Max Revenue beat(2)2.56%
Revenue beat(4)4
Avg Revenue beat(4)1.18%
Min Revenue beat(4)0.22%
Max Revenue beat(4)2.56%
Revenue beat(8)6
Avg Revenue beat(8)0.49%
Revenue beat(12)9
Avg Revenue beat(12)0.89%
Revenue beat(16)12
Avg Revenue beat(16)1.37%
PT rev (1m)-1.51%
PT rev (3m)1.89%
EPS NQ rev (1m)-4.78%
EPS NQ rev (3m)-5.34%
EPS NY rev (1m)0%
EPS NY rev (3m)2.78%
Revenue NQ rev (1m)-0.34%
Revenue NQ rev (3m)-0.45%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 68.52 | ||
| Fwd PE | 47.56 | ||
| P/S | 7.33 | ||
| P/FCF | 58.03 | ||
| P/OCF | 46.55 | ||
| P/B | 7.25 | ||
| P/tB | 8.37 | ||
| EV/EBITDA | 50.38 |
EPS(TTM)3.51
EY1.46%
EPS(NY)5.06
Fwd EY2.1%
FCF(TTM)4.14
FCFY1.72%
OCF(TTM)5.17
OCFY2.15%
SpS32.82
BVpS33.18
TBVpS28.73
PEG (NY)2.11
PEG (5Y)2.83
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.82% | ||
| ROE | 11.41% | ||
| ROCE | 10.5% | ||
| ROIC | 7.05% | ||
| ROICexc | 9.79% | ||
| ROICexgc | 11.64% | ||
| OM | 12.45% | ||
| PM (TTM) | 11.54% | ||
| GM | 66.47% | ||
| FCFM | 12.63% |
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-Score9
Asset Turnover0.76
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.15 | ||
| Debt/EBITDA | 0.12 | ||
| Cap/Depr | 209.19% | ||
| Cap/Sales | 3.11% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.96% | ||
| Profit Quality | 109.42% | ||
| Current Ratio | 6.75 | ||
| Quick Ratio | 4.04 | ||
| Altman-Z | 16.64 |
F-Score9
WACC8.9%
ROIC/WACC0.79
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)41.53%
EPS 3Y60.05%
EPS 5Y24.23%
EPS Q2Q%34.37%
EPS Next Y32.53%
EPS Next 2Y32.73%
EPS Next 3Y30.3%
EPS Next 5Y25.44%
Revenue 1Y (TTM)12.92%
Revenue growth 3Y16.91%
Revenue growth 5Y16.89%
Sales Q2Q%13.38%
Revenue Next Year13.8%
Revenue Next 2Y14.02%
Revenue Next 3Y13.89%
Revenue Next 5Y12.69%
EBIT growth 1Y48.52%
EBIT growth 3Y67.65%
EBIT growth 5Y12.66%
EBIT Next Year76.66%
EBIT Next 3Y40.36%
EBIT Next 5Y31.32%
FCF growth 1Y31590.8%
FCF growth 3YN/A
FCF growth 5Y100.55%
OCF growth 1Y979.8%
OCF growth 3Y160.78%
OCF growth 5Y44.6%