PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
NYSE:PSTG - New York Stock Exchange, Inc. - US74624M1027 - Common Stock - Currency: USD
Taking everything into account, PSTG scores 5 out of 10 in our fundamental rating. PSTG was compared to 32 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.
In the past 5 years PSTG always reported a positive cash flow from operatings.
1.2 Ratios
Looking at the Return On Assets, with a value of 3.35%, PSTG is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
PSTG has a Return On Equity of 10.27%. This is in the better half of the industry: PSTG outperforms 78.13% of its industry peers.
PSTG's Return On Invested Capital of 2.90% is in line compared to the rest of the industry. PSTG outperforms 53.13% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSTG is significantly below the industry average of 16.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 10.27% | ||
| ROIC | 2.9% |
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
Looking at the Profit Margin, with a value of 3.93%, PSTG is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
With a Operating Margin value of 2.95%, PSTG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
PSTG has a Gross Margin of 69.26%. This is amongst the best in the industry. PSTG outperforms 96.88% of its industry peers.
PSTG's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.95% | ||
| PM (TTM) | 3.93% | ||
| GM | 69.26% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PSTG is destroying value.
PSTG has more shares outstanding than it did 1 year ago.
PSTG has more shares outstanding than it did 5 years ago.
The debt/assets ratio for PSTG has been reduced compared to a year ago.
2.2 Solvency
PSTG has an Altman-Z score of 4.66. This indicates that PSTG is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.66, PSTG belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
PSTG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 4.66 |
ROIC/WACC0.29
WACC10.1%
2.3 Liquidity
PSTG has a Current 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 has a Current ratio (1.61) which is in line with its industry peers.
A Quick Ratio of 1.58 indicates that PSTG should not have too much problems paying its short term obligations.
PSTG's Quick ratio of 1.58 is fine compared to the rest of the industry. PSTG outperforms 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
PSTG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.20%.
Measured over the past years, PSTG shows a very strong growth in Earnings Per Share. The EPS has been growing by 45.75% on average per year.
The Revenue has grown by 10.85% in the past year. This is quite good.
The Revenue has been growing by 14.03% on average over the past years. This is quite good.
EPS 1Y (TTM)1.2%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%-9.38%
Revenue 1Y (TTM)10.85%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.26%
3.2 Future
PSTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 12.92% yearly.
PSTG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.32% yearly.
EPS Next Y1.9%
EPS Next 2Y13.62%
EPS Next 3Y12.92%
EPS Next 5YN/A
Revenue Next Year11.49%
Revenue Next 2Y12.58%
Revenue Next 3Y11.94%
Revenue Next 5Y14.32%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 30.74, which means the current valuation is very expensive for PSTG.
PSTG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.32, PSTG is valued at the same level.
PSTG is valuated rather expensively with a Price/Forward Earnings ratio of 23.40.
PSTG's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.13. PSTG is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.74 | ||
| Fwd PE | 23.4 |
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.
PSTG's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 29.86 | ||
| EV/EBITDA | 65.57 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PSTG's earnings are expected to grow with 12.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)16.14
PEG (5Y)0.67
EPS Next 2Y13.62%
EPS Next 3Y12.92%
5. Dividend
5.1 Amount
PSTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
51.65
-2.84 (-5.21%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.1%
Inst Owner Change2.56%
Ins Owners5.3%
Ins Owner Change-5.15%
Market Cap16.90B
Analysts80
Price Target71.05 (37.56%)
Short Float %3.92%
Short Ratio4.02
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)10.64%
Min EPS beat(2)6.36%
Max EPS beat(2)14.91%
EPS beat(4)4
Avg EPS beat(4)13.81%
Min EPS beat(4)6.36%
Max EPS beat(4)17.38%
EPS beat(8)8
Avg EPS beat(8)19.68%
EPS beat(12)12
Avg EPS beat(12)30.39%
EPS beat(16)16
Avg EPS beat(16)68.71%
Revenue beat(2)0
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.73%
Revenue beat(4)0
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-0.91%
Max Revenue beat(4)-0.01%
Revenue beat(8)0
Avg Revenue beat(8)-0.8%
Revenue beat(12)1
Avg Revenue beat(12)-0.55%
Revenue beat(16)5
Avg Revenue beat(16)1.74%
PT rev (1m)1.83%
PT rev (3m)-2.47%
EPS NQ rev (1m)0.69%
EPS NQ rev (3m)35.2%
EPS NY rev (1m)0%
EPS NY rev (3m)-3.36%
Revenue NQ rev (1m)0.53%
Revenue NQ rev (3m)10.19%
Revenue NY rev (1m)0.39%
Revenue NY rev (3m)0.06%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.74 | ||
| Fwd PE | 23.4 | ||
| P/S | 5.19 | ||
| P/FCF | 29.86 | ||
| P/OCF | 20.71 | ||
| P/B | 13.58 | ||
| P/tB | 19.48 | ||
| EV/EBITDA | 65.57 |
EPS(TTM)1.68
EY3.25%
EPS(NY)2.21
Fwd EY4.27%
FCF(TTM)1.73
FCFY3.35%
OCF(TTM)2.49
OCFY4.83%
SpS9.94
BVpS3.8
TBVpS2.65
PEG (NY)16.14
PEG (5Y)0.67
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 10.27% | ||
| ROCE | 4.14% | ||
| ROIC | 2.9% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 18.61% | ||
| OM | 2.95% | ||
| PM (TTM) | 3.93% | ||
| GM | 69.26% | ||
| FCFM | 17.39% |
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
ROICexcg growth 3YN/A
ROICexcg 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-Score7
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 197.86% | ||
| Cap/Sales | 7.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 367.02% | ||
| Profit Quality | 442.87% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 4.66 |
F-Score7
WACC10.1%
ROIC/WACC0.29
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)1.2%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%-9.38%
EPS Next Y1.9%
EPS Next 2Y13.62%
EPS Next 3Y12.92%
EPS Next 5YN/A
Revenue 1Y (TTM)10.85%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.26%
Revenue Next Year11.49%
Revenue Next 2Y12.58%
Revenue Next 3Y11.94%
Revenue Next 5Y14.32%
EBIT growth 1Y-27.98%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.04%
EBIT Next 3Y25.9%
EBIT Next 5YN/A
FCF growth 1Y4.08%
FCF growth 3Y19.62%
FCF growth 5Y41.52%
OCF growth 1Y13.28%
OCF growth 3Y22.49%
OCF growth 5Y31.78%