PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
USA - NYSE:PSTG - US74624M1027 - Common Stock
90.99 USD
-0.86 (-0.94%)
91.5937 USD
+0.6 (+0.66%)
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. PSTG is quite expensive at the moment. 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.
In the past 5 years PSTG always reported a positive cash flow from operatings.
1.2 Ratios
PSTG's Return On Assets of 3.46% is fine compared to the rest of the industry. PSTG outperforms 73.53% of its industry peers.
PSTG's Return On Equity of 10.55% is fine compared to the rest of the industry. PSTG outperforms 79.41% of its industry peers.
PSTG has a Return On Invested Capital (2.13%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital 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
PSTG's Profit Margin of 4.15% is fine compared to the rest of the industry. PSTG outperforms 70.59% of its industry peers.
Looking at the Operating Margin, with a value of 2.26%, PSTG is in line with its industry, outperforming 55.88% of the companies in the same industry.
Looking at the Gross Margin, with a value of 69.17%, PSTG belongs to the top 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
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.
Compared to 1 year ago, PSTG has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 7.41 indicates that PSTG is not in any danger for bankruptcy at the moment.
PSTG has a Altman-Z score of 7.41. This is amongst the best in 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.
Looking at the Debt to FCF ratio, with a value of 0.01, PSTG belongs to the top of the industry, outperforming 94.12% of the companies in the same industry.
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 79.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.01 | ||
| Altman-Z | 7.41 |
ROIC/WACC0.25
WACC8.65%
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.
The Current ratio of PSTG (1.65) is comparable to the rest of the industry.
A Quick Ratio of 1.61 indicates that PSTG should not have too much problems paying its short term obligations.
PSTG has a better Quick ratio (1.61) than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.61 |
3. Growth
3.1 Past
PSTG shows a slight negative growth in Earnings Per Share. In the last year, the EPS has decreased by -5.11%.
PSTG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.75% yearly.
PSTG shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.31%.
The Revenue has been growing by 14.03% on average over the past years. This is quite good.
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
PSTG is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 14.85% yearly.
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 3Y20.18%
EPS Next 5Y14.85%
Revenue Next Year14.38%
Revenue Next 2Y14.52%
Revenue Next 3Y14.31%
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
With a Price/Earnings ratio of 54.49, PSTG can be considered very expensive at the moment.
PSTG's Price/Earnings is on the same level as the industry average.
PSTG is valuated expensively when we compare the Price/Earnings ratio to 27.69, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 36.94 indicates a quite expensive valuation of PSTG.
PSTG's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of PSTG to the average of the S&P500 Index (23.18), we can say PSTG is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.49 | ||
| Fwd PE | 36.94 |
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 ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 54.43 | ||
| EV/EBITDA | 138.36 |
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.
A more expensive valuation may be justified as PSTG's earnings are expected to grow with 20.18% in the coming years.
PEG (NY)3.29
PEG (5Y)1.19
EPS Next 2Y20.01%
EPS Next 3Y20.18%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
90.99
-0.86 (-0.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change0.03%
Ins Owners5.33%
Ins Owner Change2.11%
Market Cap29.90B
Analysts77.78
Price Target85.46 (-6.08%)
Short Float %2.48%
Short Ratio2.46
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)0.67%
EPS NQ rev (3m)10.54%
EPS NY rev (1m)8.22%
EPS NY rev (3m)7.75%
Revenue NQ rev (1m)0.58%
Revenue NQ rev (3m)4.71%
Revenue NY rev (1m)0.3%
Revenue NY rev (3m)2.59%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.49 | ||
| Fwd PE | 36.94 | ||
| P/S | 8.93 | ||
| P/FCF | 54.43 | ||
| P/OCF | 37.3 | ||
| P/B | 22.67 | ||
| P/tB | 31.6 | ||
| EV/EBITDA | 138.36 |
EPS(TTM)1.67
EY1.84%
EPS(NY)2.46
Fwd EY2.71%
FCF(TTM)1.67
FCFY1.84%
OCF(TTM)2.44
OCFY2.68%
SpS10.19
BVpS4.01
TBVpS2.88
PEG (NY)3.29
PEG (5Y)1.19
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 | 0.01 | ||
| 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 | 7.41 |
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 Y16.58%
EPS Next 2Y20.01%
EPS Next 3Y20.18%
EPS Next 5Y14.85%
Revenue 1Y (TTM)11.31%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.73%
Revenue Next Year14.38%
Revenue Next 2Y14.52%
Revenue Next 3Y14.31%
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%