PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - NYSE:PSTG - US74624M1027 - Common Stock
82.4 USD
-1.07 (-1.28%)
82.004 USD
-0.4 (-0.48%)
PSTG gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 33 industry peers in the Technology Hardware, Storage & Peripherals industry. PSTG has an excellent financial health rating, but there are some minor concerns on its profitability. PSTG is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year PSTG was profitable.
PSTG had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: PSTG reported negative net income in multiple years.
PSTG had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PSTG has a better Return On Assets (3.46%) than 72.73% of its industry peers.
PSTG's Return On Equity of 10.55% is fine compared to the rest of the industry. PSTG outperforms 78.79% of its industry peers.
PSTG has a Return On Invested Capital of 2.13%. This is comparable to the rest of the industry: PSTG outperforms 54.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for PSTG is significantly below the industry average of 14.92%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.46% | ||
| ROE | 10.55% | ||
| ROIC | 2.13% |
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
The Profit Margin of PSTG (4.15%) is better than 69.70% of its industry peers.
Looking at the Operating Margin, with a value of 2.26%, PSTG is in line with its industry, outperforming 54.55% of the companies in the same industry.
PSTG has a better Gross Margin (69.17%) than 96.97% of its industry peers.
In the last couple of years the Gross Margin of PSTG has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 2.26% | ||
| PM (TTM) | 4.15% | ||
| GM | 69.17% |
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
PSTG has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, PSTG has more shares outstanding
PSTG has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, PSTG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 6.73 indicates that PSTG is not in any danger for bankruptcy at the moment.
The Altman-Z score of PSTG (6.73) is better than 84.85% of its industry peers.
There is no outstanding debt for PSTG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.73 |
ROIC/WACC0.24
WACC8.83%
2.3 Liquidity
PSTG has a Current Ratio of 1.65. This is a normal value and indicates that PSTG is financially healthy and should not expect problems in meeting its short term obligations.
With a Current ratio value of 1.65, PSTG perfoms like the industry average, outperforming 57.58% of the companies in the same industry.
A Quick Ratio of 1.61 indicates that PSTG should not have too much problems paying its short term obligations.
With a decent Quick ratio value of 1.61, PSTG is doing good in the industry, outperforming 69.70% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
The earnings per share for PSTG have decreased by -5.11% in the last year.
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 11.31% in the past year. This is quite good.
PSTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.03% yearly.
EPS 1Y (TTM)-5.11%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%-2.27%
Revenue 1Y (TTM)11.31%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.73%
3.2 Future
The Earnings Per Share is expected to grow by 14.85% on average over the next years. This is quite good.
PSTG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.87% yearly.
EPS Next Y16.58%
EPS Next 2Y20.01%
EPS Next 3Y18.3%
EPS Next 5Y14.85%
Revenue Next Year14.04%
Revenue Next 2Y14.4%
Revenue Next 3Y13.85%
Revenue Next 5Y14.87%
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
Based on the Price/Earnings ratio of 49.34, the valuation of PSTG can be described as expensive.
PSTG's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.32, PSTG is valued quite expensively.
With a Price/Forward Earnings ratio of 33.46, PSTG can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSTG indicates a slightly more expensive valuation: PSTG is more expensive than 60.61% of the companies listed in the same industry.
PSTG is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.89, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.34 | ||
| Fwd PE | 33.46 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as PSTG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.29 | ||
| EV/EBITDA | 123 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PSTG does not grow enough to justify the current Price/Earnings ratio.
PSTG's earnings are expected to grow with 18.30% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.98
PEG (5Y)1.08
EPS Next 2Y20.01%
EPS Next 3Y18.3%
5. Dividend
5.1 Amount
PSTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
82.4
-1.07 (-1.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change0.32%
Ins Owners5.33%
Ins Owner Change2.18%
Market Cap27.08B
Analysts77.04
Price Target77.83 (-5.55%)
Short Float %3.19%
Short Ratio3.32
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)11.95%
Min EPS beat(2)8.98%
Max EPS beat(2)14.91%
EPS beat(4)4
Avg EPS beat(4)11.91%
Min EPS beat(4)6.36%
Max EPS beat(4)17.38%
EPS beat(8)8
Avg EPS beat(8)18.28%
EPS beat(12)12
Avg EPS beat(12)27.5%
EPS beat(16)16
Avg EPS beat(16)59.37%
Revenue beat(2)0
Avg Revenue beat(2)-0.62%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.33%
Revenue beat(4)0
Avg Revenue beat(4)-0.49%
Min Revenue beat(4)-0.91%
Max Revenue beat(4)-0.01%
Revenue beat(8)0
Avg Revenue beat(8)-0.75%
Revenue beat(12)1
Avg Revenue beat(12)-0.57%
Revenue beat(16)4
Avg Revenue beat(16)1.5%
PT rev (1m)9.3%
PT rev (3m)9.54%
EPS NQ rev (1m)10.8%
EPS NQ rev (3m)9.8%
EPS NY rev (1m)8.22%
EPS NY rev (3m)7.87%
Revenue NQ rev (1m)4.01%
Revenue NQ rev (3m)4.11%
Revenue NY rev (1m)2.23%
Revenue NY rev (3m)2.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 49.34 | ||
| Fwd PE | 33.46 | ||
| P/S | 8.08 | ||
| P/FCF | 49.29 | ||
| P/OCF | 33.78 | ||
| P/B | 20.53 | ||
| P/tB | 28.62 | ||
| EV/EBITDA | 123 |
EPS(TTM)1.67
EY2.03%
EPS(NY)2.46
Fwd EY2.99%
FCF(TTM)1.67
FCFY2.03%
OCF(TTM)2.44
OCFY2.96%
SpS10.19
BVpS4.01
TBVpS2.88
PEG (NY)2.98
PEG (5Y)1.08
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.46% | ||
| ROE | 10.55% | ||
| ROCE | 3.04% | ||
| ROIC | 2.13% | ||
| ROICexc | 5.56% | ||
| ROICexgc | 9.12% | ||
| OM | 2.26% | ||
| PM (TTM) | 4.15% | ||
| GM | 69.17% | ||
| FCFM | 16.4% |
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-Score6
Asset Turnover0.83
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 199.37% | ||
| Cap/Sales | 7.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 396.09% | ||
| Profit Quality | 394.65% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 6.73 |
F-Score6
WACC8.83%
ROIC/WACC0.24
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)-5.11%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%-2.27%
EPS Next Y16.58%
EPS Next 2Y20.01%
EPS Next 3Y18.3%
EPS Next 5Y14.85%
Revenue 1Y (TTM)11.31%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.73%
Revenue Next Year14.04%
Revenue Next 2Y14.4%
Revenue Next 3Y13.85%
Revenue Next 5Y14.87%
EBIT growth 1Y-48.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.11%
EBIT Next 3Y27.62%
EBIT Next 5YN/A
FCF growth 1Y20.49%
FCF growth 3Y19.62%
FCF growth 5Y41.52%
OCF growth 1Y20.98%
OCF growth 3Y22.49%
OCF growth 5Y31.78%