PURE STORAGE INC - CLASS A (PSTG)
US74624M1027 - Common Stock
Overall PSTG gets a fundamental rating of 4 out of 10. We evaluated PSTG against 32 industry peers in the Technology Hardware, Storage & Peripherals industry. PSTG has only an average score on both its financial health and profitability. 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.
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 has a Return On Assets (1.68%) which is comparable to the rest of the industry.
Looking at the Return On Equity, with a value of 4.83%, PSTG is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
PSTG has a Return On Invested Capital (2.81%) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.68% | ||
| ROE | 4.83% | ||
| ROIC | 2.81% |
ROA(3y)-0.28%
ROA(5y)-3.87%
ROE(3y)-2.13%
ROE(5y)-13.65%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
PSTG has a Profit Margin (2.17%) which is comparable to the rest of the industry.
PSTG has a Operating Margin (3.08%) which is comparable to the rest of the industry.
The Gross Margin of PSTG (71.40%) is better than 96.88% 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 | 3.08% | ||
| PM (TTM) | 2.17% | ||
| GM | 71.4% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y1.53%
GM growth 5Y1.48%
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.
PSTG has a better debt/assets ratio than last year.
2.2 Solvency
PSTG has an Altman-Z score of 5.07. This indicates that PSTG is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PSTG (5.07) is better than 78.13% of its industry peers.
PSTG has a debt to FCF ratio of 0.22. This is a very positive value and a sign of high solvency as it would only need 0.22 years to pay back of all of its debts.
PSTG has a better Debt to FCF ratio (0.22) than 90.63% of its industry peers.
A Debt/Equity ratio of 0.08 indicates that PSTG is not too dependend on debt financing.
PSTG has a Debt to Equity ratio (0.08) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | 0.22 | ||
| Altman-Z | 5.07 |
ROIC/WACC0.29
WACC9.7%
2.3 Liquidity
PSTG has a Current Ratio of 1.83. 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 (1.83) which is in line with its industry peers.
A Quick Ratio of 1.80 indicates that PSTG should not have too much problems paying its short term obligations.
The Quick ratio of PSTG (1.80) is better than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.8 |
3. Growth
3.1 Past
PSTG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 0.71%.
PSTG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 46.56% yearly.
The Revenue has been growing slightly by 2.80% in the past year.
Measured over the past years, PSTG shows a quite strong growth in Revenue. The Revenue has been growing by 15.79% on average per year.
EPS 1Y (TTM)0.71%
EPS 3Y99.07%
EPS 5Y46.56%
EPS growth Q2Q-5.66%
Revenue 1Y (TTM)2.8%
Revenue growth 3Y18.89%
Revenue growth 5Y15.79%
Revenue growth Q2Q-2.52%
3.2 Future
The Earnings Per Share is expected to grow by 19.62% 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 13.69% yearly.
EPS Next Y11.91%
EPS Next 2Y14.55%
EPS Next 3Y13.91%
EPS Next 5Y19.62%
Revenue Next Year10.73%
Revenue Next 2Y11.71%
Revenue Next 3Y11.18%
Revenue Next 5Y13.69%
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.
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
PSTG is valuated quite expensively with a Price/Earnings ratio of 37.88.
Compared to the rest of the industry, the Price/Earnings ratio of PSTG is on the same level as its industry peers.
PSTG is valuated rather expensively when we compare the Price/Earnings ratio to 28.02, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 33.85 indicates a quite expensive valuation of PSTG.
PSTG's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 20.58. PSTG is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.88 | ||
| Fwd PE | 33.85 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PSTG.
PSTG's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.22 | ||
| EV/EBITDA | 72.16 |
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 13.91% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.18
PEG (5Y)0.81
EPS Next 2Y14.55%
EPS Next 3Y13.91%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PURE STORAGE INC - CLASS A
NYSE:PSTG (5/7/2024, 10:41:35 AM)
53.79
-0.16 (-0.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap17.48B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 37.88 | ||
| Fwd PE | 33.85 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.18
PEG (5Y)0.81
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.68% | ||
| ROE | 4.83% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 3.08% | ||
| PM (TTM) | 2.17% | ||
| GM | 71.4% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.77
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.08 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.83 | ||
| Quick Ratio | 1.8 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)0.71%
EPS 3Y99.07%
EPS 5Y
EPS growth Q2Q
EPS Next Y11.91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)2.8%
Revenue growth 3Y18.89%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y