PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - NYSE:PSTG - US74624M1027 - Common Stock
95.8316 USD
+2.04 (+2.18%)
We assign a fundamental rating of 5 out of 10 to PSTG. PSTG was compared to 34 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
The Return On Assets of PSTG (3.46%) is better than 73.53% of its industry peers.
With a decent Return On Equity value of 10.55%, PSTG is doing good in the industry, outperforming 79.41% of the companies in the same industry.
PSTG has a Return On Invested Capital (2.13%) which is comparable to the rest of the industry.
PSTG had an Average Return On Invested Capital over the past 3 years of 2.97%. This 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
PSTG's Profit Margin of 4.15% is fine compared to the rest of the industry. PSTG outperforms 70.59% of its industry peers.
PSTG has a Operating Margin of 2.26%. This is comparable to the rest of the industry: PSTG outperforms 55.88% of its industry peers.
With an excellent Gross Margin value of 69.17%, PSTG belongs to the best of the industry, outperforming 97.06% of the companies in the same industry.
PSTG's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PSTG is destroying value.
Compared to 1 year ago, PSTG has more shares outstanding
The number of shares outstanding for PSTG has been increased compared to 5 years ago.
The debt/assets ratio for PSTG has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.55 indicates that PSTG is not in any danger for bankruptcy at the moment.
PSTG's Altman-Z score of 7.55 is amongst the best of the industry. PSTG outperforms 88.24% of its industry peers.
The Debt to FCF ratio of PSTG is 0.01, which is an excellent value as it means it would take PSTG, only 0.01 years of fcf income to pay off all of its debts.
PSTG has a Debt to FCF ratio of 0.01. This is amongst the best in the industry. PSTG outperforms 94.12% of its industry peers.
A Debt/Equity ratio of 0.00 indicates that PSTG is not too dependend on debt financing.
The Debt to Equity ratio of PSTG (0.00) is better than 79.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 7.55 |
ROIC/WACC0.25
WACC8.65%
2.3 Liquidity
A Current Ratio of 1.65 indicates that PSTG should not have too much problems paying its short term obligations.
PSTG has a Current ratio of 1.65. This is comparable to the rest of the industry: PSTG outperforms 58.82% of its industry peers.
A Quick Ratio of 1.61 indicates that PSTG should not have too much problems paying its short term obligations.
The Quick ratio of PSTG (1.61) is better than 70.59% of its industry peers.
| 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.
PSTG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.31%.
Measured over the past years, PSTG shows a quite strong growth in Revenue. The Revenue has been growing by 14.03% on average per year.
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.
The Revenue is expected to grow by 14.87% on average over the next years. This is quite good.
EPS Next Y16.78%
EPS Next 2Y21.23%
EPS Next 3Y21.08%
EPS Next 5Y14.85%
Revenue Next Year14.44%
Revenue Next 2Y14.89%
Revenue Next 3Y14.56%
Revenue Next 5Y14.87%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 57.38 indicates a quite expensive valuation of PSTG.
Compared to the rest of the industry, the Price/Earnings ratio of PSTG is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.89, PSTG is valued quite expensively.
A Price/Forward Earnings ratio of 38.13 indicates a quite expensive valuation of PSTG.
The rest of the industry has a similar Price/Forward Earnings ratio as PSTG.
PSTG's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.99.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.38 | ||
| Fwd PE | 38.13 |
4.2 Price Multiples
PSTG's Enterprise Value to EBITDA ratio is in line with the industry average.
PSTG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 57.33 | ||
| EV/EBITDA | 141.51 |
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 21.08% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.42
PEG (5Y)1.25
EPS Next 2Y21.23%
EPS Next 3Y21.08%
5. Dividend
5.1 Amount
PSTG does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:PSTG (10/27/2025, 10:42:54 AM)
95.8316
+2.04 (+2.18%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change0.16%
Ins Owners5.33%
Ins Owner Change2.16%
Market Cap31.49B
Revenue(TTM)3.35B
Net Income(TTM)139.20M
Analysts77.78
Price Target85.46 (-10.82%)
Short Float %2.12%
Short Ratio1.93
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)9.8%
PT rev (3m)20.28%
EPS NQ rev (1m)0.77%
EPS NQ rev (3m)10.64%
EPS NY rev (1m)0.18%
EPS NY rev (3m)7.94%
Revenue NQ rev (1m)0.57%
Revenue NQ rev (3m)4.7%
Revenue NY rev (1m)0.35%
Revenue NY rev (3m)2.65%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 57.38 | ||
| Fwd PE | 38.13 | ||
| P/S | 9.4 | ||
| P/FCF | 57.33 | ||
| P/OCF | 39.29 | ||
| P/B | 23.88 | ||
| P/tB | 33.28 | ||
| EV/EBITDA | 141.51 |
EPS(TTM)1.67
EY1.74%
EPS(NY)2.51
Fwd EY2.62%
FCF(TTM)1.67
FCFY1.74%
OCF(TTM)2.44
OCFY2.55%
SpS10.19
BVpS4.01
TBVpS2.88
PEG (NY)3.42
PEG (5Y)1.25
Graham Number12.28
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
ROICexgc growth 3YN/A
ROICexgc 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 | 0.01 | ||
| Debt/EBITDA | 0.01 | ||
| Cap/Depr | 199.37% | ||
| Cap/Sales | 7.53% | ||
| Interest Coverage | 13.12 | ||
| Cash Conversion | 396.09% | ||
| Profit Quality | 394.65% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 7.55 |
F-Score6
WACC8.65%
ROIC/WACC0.25
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 Y16.78%
EPS Next 2Y21.23%
EPS Next 3Y21.08%
EPS Next 5Y14.85%
Revenue 1Y (TTM)11.31%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.73%
Revenue Next Year14.44%
Revenue Next 2Y14.89%
Revenue Next 3Y14.56%
Revenue Next 5Y14.87%
EBIT growth 1Y-48.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.11%
EBIT Next 3Y29.76%
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%
PURE STORAGE INC - CLASS A / PSTG FAQ
Can you provide the ChartMill fundamental rating for PURE STORAGE INC - CLASS A?
ChartMill assigns a fundamental rating of 5 / 10 to PSTG.
What is the valuation status of PURE STORAGE INC - CLASS A (PSTG) stock?
ChartMill assigns a valuation rating of 2 / 10 to PURE STORAGE INC - CLASS A (PSTG). This can be considered as Overvalued.
Can you provide the profitability details for PURE STORAGE INC - CLASS A?
PURE STORAGE INC - CLASS A (PSTG) has a profitability rating of 5 / 10.
Can you provide the financial health for PSTG stock?
The financial health rating of PURE STORAGE INC - CLASS A (PSTG) is 7 / 10.
Can you provide the expected EPS growth for PSTG stock?
The Earnings per Share (EPS) of PURE STORAGE INC - CLASS A (PSTG) is expected to grow by 16.78% in the next year.