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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make PEN a good candidate 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
With a decent Return On Assets value of 2.65%, PEN is doing good in the industry, outperforming 77.01% of the companies in the same industry.
Looking at the Return On Equity, with a value of 3.48%, PEN is in the better half of the industry, outperforming 77.01% of the companies in the same industry.
PEN has a better Return On Invested Capital (6.92%) than 82.89% of its industry peers.
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's Profit Margin of 3.41% is fine compared to the rest of the industry. PEN outperforms 75.40% of its industry peers.
PEN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 11.92%, PEN is in the better half of the industry, outperforming 79.14% of the companies in the same industry.
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.
The number of shares outstanding for PEN has been reduced compared to 1 year ago.
Compared to 5 years ago, PEN has more shares outstanding
The debt/assets ratio for PEN has been reduced compared to a year ago.
2.2 Solvency
PEN has an Altman-Z score of 17.50. This indicates that PEN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 17.50, PEN belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
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.
PEN's Debt to FCF ratio of 0.16 is amongst the best of the industry. PEN outperforms 94.65% 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.
PEN has a better Debt to Equity ratio (0.02) than 66.31% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.02 | ||
| Debt/FCF | 0.16 | ||
| Altman-Z | 17.5 |
ROIC/WACC0.77
WACC9.01%
2.3 Liquidity
PEN has a Current Ratio of 6.30. This indicates that PEN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Current ratio value of 6.30, PEN belongs to the best 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.
With a decent Quick ratio value of 3.68, PEN is doing good in the industry, outperforming 70.59% of the companies in the same industry.
| 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.
The Revenue has grown by 13.18% 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)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
Based on estimates for the next years, PEN will show a very strong growth in Earnings Per Share. The EPS will grow by 25.44% on average per year.
PEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.69% yearly.
EPS Next Y32.53%
EPS Next 2Y32.73%
EPS Next 3Y30.29%
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
A Price/Earnings ratio of 78.08 indicates a quite expensive valuation of PEN.
Based on the Price/Earnings ratio, PEN is valued a bit cheaper than 65.24% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.35. PEN is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 50.80, the valuation of PEN can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PEN indicates a somewhat cheap valuation: PEN is cheaper than 66.84% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, PEN is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.08 | ||
| Fwd PE | 50.8 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PEN indicates a somewhat cheap valuation: PEN is cheaper than 65.24% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, PEN is valued a bit cheaper than 71.66% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 66.18 | ||
| EV/EBITDA | 56.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEN's earnings are expected to grow with 30.29% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.4
PEG (5Y)3.22
EPS Next 2Y32.73%
EPS Next 3Y30.29%
5. Dividend
5.1 Amount
PEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
256.87
-0.14 (-0.05%)
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 Change0.15%
Ins Owners3.48%
Ins Owner Change6.52%
Market Cap9.95B
Analysts81.74
Price Target325.32 (26.65%)
Short Float %3.46%
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)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)0.02%
PT rev (3m)3.17%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-2.54%
EPS NY rev (1m)-0.76%
EPS NY rev (3m)3.25%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-1.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 78.08 | ||
| Fwd PE | 50.8 | ||
| P/S | 8.02 | ||
| P/FCF | 66.18 | ||
| P/OCF | 55.53 | ||
| P/B | 8.2 | ||
| P/tB | 9.56 | ||
| EV/EBITDA | 56.74 |
EPS(TTM)3.29
EY1.28%
EPS(NY)5.06
Fwd EY1.97%
FCF(TTM)3.88
FCFY1.51%
OCF(TTM)4.63
OCFY1.8%
SpS32.02
BVpS31.32
TBVpS26.86
PEG (NY)2.4
PEG (5Y)3.22
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 | 17.5 |
F-Score8
WACC9.01%
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 Y32.53%
EPS Next 2Y32.73%
EPS Next 3Y30.29%
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%