PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:PSTG - US74624M1027 - Common Stock
68.857 USD
-25.86 (-27.3%)
Taking everything into account, PSTG scores 5 out of 10 in our fundamental rating. PSTG was compared to 35 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. PSTG is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
PSTG had positive earnings in the past year.
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.
Each year in the past 5 years PSTG had a positive operating cash flow.
1.2 Ratios
PSTG's Return On Assets of 3.46% is fine compared to the rest of the industry. PSTG outperforms 68.57% of its industry peers.
Looking at the Return On Equity, with a value of 10.55%, PSTG is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 2.13%, PSTG is in line with its industry, outperforming 57.14% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PSTG is significantly below the industry average of 15.32%.
| 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 has a Profit Margin of 4.15%. This is in the better half of the industry: PSTG outperforms 71.43% of its industry peers.
Looking at the Operating Margin, with a value of 2.26%, PSTG is in line with its industry, outperforming 57.14% of the companies in the same industry.
The Gross Margin of PSTG (69.17%) is better than 97.14% of its industry peers.
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.
The number of shares outstanding for PSTG has been increased compared to 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
An Altman-Z score of 7.62 indicates that PSTG is not in any danger for bankruptcy at the moment.
The Altman-Z score of PSTG (7.62) is better than 91.43% 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 94.29% of its industry peers.
PSTG has a Debt/Equity ratio of 0.00. This is a healthy value indicating a solid balance between debt and equity.
PSTG has a Debt to Equity ratio of 0.00. This is in the better half of the industry: PSTG outperforms 80.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 7.62 |
ROIC/WACC0.24
WACC8.72%
2.3 Liquidity
A Current Ratio of 1.65 indicates that PSTG should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.65, PSTG is in line with its industry, outperforming 60.00% 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 71.43% 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 -0.57% 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 11.92%.
The Revenue has been growing by 14.03% on average over the past years. This is quite good.
EPS 1Y (TTM)-0.57%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%16%
Revenue 1Y (TTM)11.92%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%16.05%
3.2 Future
Based on estimates for the next years, PSTG will show a quite strong growth in Earnings Per Share. The EPS will grow by 14.85% on average per year.
Based on estimates for the next years, PSTG will show a quite strong growth in Revenue. The Revenue will grow by 14.87% on average per year.
EPS Next Y16.66%
EPS Next 2Y21.28%
EPS Next 3Y21.34%
EPS Next 5Y14.85%
Revenue Next Year14.63%
Revenue Next 2Y14.94%
Revenue Next 3Y14.72%
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.
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
A Price/Earnings ratio of 39.35 indicates a quite expensive valuation of PSTG.
The rest of the industry has a similar Price/Earnings ratio as PSTG.
Compared to an average S&P500 Price/Earnings ratio of 26.15, PSTG is valued quite expensively.
PSTG is valuated quite expensively with a Price/Forward Earnings ratio of 27.38.
PSTG's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of PSTG to the average of the S&P500 Index (36.22), we can say PSTG is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.35 | ||
| Fwd PE | 27.38 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PSTG is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.19 | ||
| EV/EBITDA | 143.02 |
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 21.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.36
PEG (5Y)0.86
EPS Next 2Y21.28%
EPS Next 3Y21.34%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:PSTG (12/3/2025, 2:48:09 PM)
68.857
-25.86 (-27.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change-0.03%
Ins Owners5.33%
Ins Owner Change1.32%
Market Cap22.63B
Revenue(TTM)3.17B
Net Income(TTM)139.20M
Analysts79.26
Price Target91.35 (32.67%)
Short Float %2.99%
Short Ratio3.23
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)6.9%
PT rev (3m)28.28%
EPS NQ rev (1m)0.35%
EPS NQ rev (3m)11.04%
EPS NY rev (1m)0%
EPS NY rev (3m)8.41%
Revenue NQ rev (1m)0.1%
Revenue NQ rev (3m)4.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.35 | ||
| Fwd PE | 27.38 | ||
| P/S | 6.75 | ||
| P/FCF | 41.19 | ||
| P/OCF | 28.23 | ||
| P/B | 17.16 | ||
| P/tB | 23.91 | ||
| EV/EBITDA | 143.02 |
EPS(TTM)1.75
EY2.54%
EPS(NY)2.52
Fwd EY3.65%
FCF(TTM)1.67
FCFY2.43%
OCF(TTM)2.44
OCFY3.54%
SpS10.19
BVpS4.01
TBVpS2.88
PEG (NY)2.36
PEG (5Y)0.86
Graham Number12.57
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 | 7.62 |
F-Score6
WACC8.72%
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)-0.57%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%16%
EPS Next Y16.66%
EPS Next 2Y21.28%
EPS Next 3Y21.34%
EPS Next 5Y14.85%
Revenue 1Y (TTM)11.92%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%16.05%
Revenue Next Year14.63%
Revenue Next 2Y14.94%
Revenue Next 3Y14.72%
Revenue Next 5Y14.87%
EBIT growth 1Y-48.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year40.11%
EBIT Next 3Y31.28%
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 16.66% in the next year.