PENUMBRA INC (PEN) Stock Fundamental Analysis
NYSE:PEN - New York Stock Exchange, Inc. - US70975L1070 - Common Stock - Currency: USD
Taking everything into account, PEN scores 6 out of 10 in our fundamental rating. PEN was compared to 189 industry peers in the Health Care Equipment & Supplies industry. PEN has an excellent financial health rating, but there are some minor concerns on its profitability. PEN is valued quite expensive, but it does show an excellent growth. With these ratings, PEN could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year PEN was profitable.
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.
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
PEN's Return On Assets of 2.65% is fine compared to the rest of the industry. PEN outperforms 76.72% of its industry peers.
The Return On Equity of PEN (3.48%) is better than 76.19% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.92%, PEN belongs to the top of the industry, outperforming 82.54% 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 7.71%.
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 better Profit Margin (3.41%) than 74.60% of its industry peers.
PEN's Profit Margin has declined in the last couple of years.
The Operating Margin of PEN (11.92%) is better than 78.31% of its industry peers.
PEN's Operating Margin has declined in the last couple of years.
The Gross Margin of PEN (66.37%) is better than 69.31% of its industry peers.
PEN's Gross Margin has been stable in the last couple of years.
| 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.
PEN has a better debt/assets ratio than last year.
2.2 Solvency
PEN has an Altman-Z score of 19.64. This indicates that PEN is financially healthy and has little risk of bankruptcy at the moment.
PEN has a better Altman-Z score (19.64) than 95.24% of its industry peers.
The Debt to FCF ratio of PEN is 0.16, which is an excellent value as it means it would take PEN, only 0.16 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of PEN (0.16) is better than 94.18% of its industry peers.
PEN has a Debt/Equity ratio of 0.02. This is a healthy value indicating a solid balance between debt and equity.
With a decent Debt to Equity ratio value of 0.02, PEN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.16 | ||
| Altman-Z | 19.64 |
ROIC/WACC0.77
WACC8.93%
2.3 Liquidity
A Current Ratio of 6.30 indicates that PEN has no problem at all paying its short term obligations.
PEN has a better Current ratio (6.30) than 83.60% of its industry peers.
A Quick Ratio of 3.68 indicates that PEN has no problem at all paying its short term obligations.
PEN has a Quick ratio of 3.68. This is in the better half of the industry: PEN outperforms 69.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 6.3 | ||
| Quick Ratio | 3.68 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 44.93% 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.
Looking at the last year, PEN shows a quite strong growth in Revenue. The Revenue has grown by 13.18% in the last year.
The Revenue has been growing by 16.89% on average over the past years. This is quite good.
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
PEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 24.91% yearly.
PEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.47% yearly.
EPS Next Y28.94%
EPS Next 2Y31.9%
EPS Next 3Y29.21%
EPS Next 5Y24.91%
Revenue Next Year13.47%
Revenue Next 2Y13.84%
Revenue Next 3Y13.69%
Revenue Next 5Y12.47%
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 87.92, 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 65.61% of the companies listed in the same industry.
PEN is valuated expensively when we compare the Price/Earnings ratio to 23.99, which is the current average of the S&P500 Index.
PEN is valuated quite expensively with a Price/Forward Earnings ratio of 57.93.
Based on the Price/Forward Earnings ratio, PEN is valued a bit cheaper than 68.25% of the companies in the same industry.
PEN's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 20.35.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.92 | ||
| Fwd PE | 57.93 |
4.2 Price Multiples
PEN's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. PEN is cheaper than 64.55% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, PEN is valued a bit cheaper than 70.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 74.52 | ||
| EV/EBITDA | 64.78 |
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 PEN's earnings are expected to grow with 29.21% in the coming years.
PEG (NY)3.04
PEG (5Y)3.63
EPS Next 2Y31.9%
EPS Next 3Y29.21%
5. Dividend
5.1 Amount
PEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
289.25
-2.71 (-0.93%)
Chartmill FA Rating
GICS SectorHealth Care
GICS IndustryGroupHealth Care Equipment & Services
GICS IndustryHealth Care Equipment & Supplies
Earnings (Last)
Earnings (Next)
Inst Owners92.16%
Inst Owner Change0.31%
Ins Owners3.87%
Ins Owner Change4.03%
Market Cap11.20B
Analysts82.5
Price Target314.46 (8.72%)
Short Float %4.21%
Short Ratio3.03
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)-0.47%
PT rev (3m)15.85%
EPS NQ rev (1m)-1.67%
EPS NQ rev (3m)-10.89%
EPS NY rev (1m)0.04%
EPS NY rev (3m)-3.65%
Revenue NQ rev (1m)-1.39%
Revenue NQ rev (3m)-2.78%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.8%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.92 | ||
| Fwd PE | 57.93 | ||
| P/S | 9.03 | ||
| P/FCF | 74.52 | ||
| P/OCF | 62.53 | ||
| P/B | 9.24 | ||
| P/tB | 10.77 | ||
| EV/EBITDA | 64.78 |
EPS(TTM)3.29
EY1.14%
EPS(NY)4.99
Fwd EY1.73%
FCF(TTM)3.88
FCFY1.34%
OCF(TTM)4.63
OCFY1.6%
SpS32.02
BVpS31.32
TBVpS26.86
PEG (NY)3.04
PEG (5Y)3.63
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 | 19.64 |
F-Score8
WACC8.93%
ROIC/WACC0.77
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 Y28.94%
EPS Next 2Y31.9%
EPS Next 3Y29.21%
EPS Next 5Y24.91%
Revenue 1Y (TTM)13.18%
Revenue growth 3Y16.91%
Revenue growth 5Y16.89%
Sales Q2Q%16.32%
Revenue Next Year13.47%
Revenue Next 2Y13.84%
Revenue Next 3Y13.69%
Revenue Next 5Y12.47%
EBIT growth 1Y54.26%
EBIT growth 3Y67.65%
EBIT growth 5Y12.66%
EBIT Next Year73.67%
EBIT Next 3Y39.05%
EBIT Next 5Y27.76%
FCF growth 1Y367.26%
FCF growth 3YN/A
FCF growth 5Y100.55%
OCF growth 1Y571.22%
OCF growth 3Y160.78%
OCF growth 5Y44.6%