PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
NYSE:PSTG - New York Stock Exchange, Inc. - US74624M1027 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to PSTG. PSTG was compared to 32 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
PSTG had positive earnings in the past year.
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 of 3.35%. This is in the better half of the industry: PSTG outperforms 68.75% of its industry peers.
PSTG has a Return On Equity of 10.27%. This is in the better half of the industry: PSTG outperforms 78.13% of its industry peers.
With a Return On Invested Capital value of 2.90%, PSTG perfoms like the industry average, outperforming 53.13% of the companies in the same 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 16.14%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 10.27% | ||
| ROIC | 2.9% |
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
Looking at the Profit Margin, with a value of 3.93%, PSTG is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
With a Operating Margin value of 2.95%, PSTG perfoms like the industry average, outperforming 50.00% of the companies in the same industry.
PSTG has a Gross Margin of 69.26%. This is amongst the best in the industry. PSTG outperforms 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 | 2.95% | ||
| PM (TTM) | 3.93% | ||
| GM | 69.26% |
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.
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 5.15 indicates that PSTG is not in any danger for bankruptcy at the moment.
The Altman-Z score of PSTG (5.15) is better than 84.38% of its industry peers.
PSTG has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 5.15 |
ROIC/WACC0.32
WACC9.06%
2.3 Liquidity
A Current Ratio of 1.61 indicates that PSTG should not have too much problems paying its short term obligations.
PSTG has a Current ratio of 1.61. This is comparable to the rest of the industry: PSTG outperforms 56.25% of its industry peers.
A Quick Ratio of 1.58 indicates that PSTG should not have too much problems paying its short term obligations.
PSTG has a better Quick ratio (1.58) than 68.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.58 |
3. Growth
3.1 Past
PSTG shows a small growth in Earnings Per Share. In the last year, the EPS has grown by 1.20%.
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 10.85%.
The Revenue has been growing by 14.03% on average over the past years. This is quite good.
EPS 1Y (TTM)1.2%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%-9.38%
Revenue 1Y (TTM)10.85%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.26%
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 11.47% yearly.
PSTG is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.32% yearly.
EPS Next Y8.19%
EPS Next 2Y16.42%
EPS Next 3Y11.47%
EPS Next 5YN/A
Revenue Next Year11.49%
Revenue Next 2Y12.58%
Revenue Next 3Y11.09%
Revenue Next 5Y14.32%
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
The Price/Earnings ratio is 34.60, which means the current valuation is very expensive for PSTG.
PSTG's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of PSTG to the average of the S&P500 Index (27.54), we can say PSTG is valued slightly more expensively.
The Price/Forward Earnings ratio is 25.08, which means the current valuation is very expensive for PSTG.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PSTG is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 36.44, PSTG is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.6 | ||
| Fwd PE | 25.08 |
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 | 33.57 | ||
| EV/EBITDA | 75 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PEG (NY)4.22
PEG (5Y)0.76
EPS Next 2Y16.42%
EPS Next 3Y11.47%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
58.12
+0.87 (+1.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.1%
Inst Owner Change-0.1%
Ins Owners5.3%
Ins Owner Change4.58%
Market Cap19.00B
Analysts79.29
Price Target71.05 (22.25%)
Short Float %3.84%
Short Ratio4.28
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)10.64%
Min EPS beat(2)6.36%
Max EPS beat(2)14.91%
EPS beat(4)4
Avg EPS beat(4)13.81%
Min EPS beat(4)6.36%
Max EPS beat(4)17.38%
EPS beat(8)8
Avg EPS beat(8)19.68%
EPS beat(12)12
Avg EPS beat(12)30.39%
EPS beat(16)16
Avg EPS beat(16)68.71%
Revenue beat(2)0
Avg Revenue beat(2)-0.82%
Min Revenue beat(2)-0.91%
Max Revenue beat(2)-0.73%
Revenue beat(4)0
Avg Revenue beat(4)-0.62%
Min Revenue beat(4)-0.91%
Max Revenue beat(4)-0.01%
Revenue beat(8)0
Avg Revenue beat(8)-0.8%
Revenue beat(12)1
Avg Revenue beat(12)-0.55%
Revenue beat(16)5
Avg Revenue beat(16)1.74%
PT rev (1m)0%
PT rev (3m)-2.44%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0.69%
EPS NY rev (1m)0.11%
EPS NY rev (3m)6.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 34.6 | ||
| Fwd PE | 25.08 | ||
| P/S | 5.84 | ||
| P/FCF | 33.57 | ||
| P/OCF | 23.28 | ||
| P/B | 15.27 | ||
| P/tB | 21.9 | ||
| EV/EBITDA | 75 |
EPS(TTM)1.68
EY2.89%
EPS(NY)2.32
Fwd EY3.99%
FCF(TTM)1.73
FCFY2.98%
OCF(TTM)2.5
OCFY4.3%
SpS9.95
BVpS3.81
TBVpS2.65
PEG (NY)4.22
PEG (5Y)0.76
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.35% | ||
| ROE | 10.27% | ||
| ROCE | 4.14% | ||
| ROIC | 2.9% | ||
| ROICexc | 9.1% | ||
| ROICexgc | 18.61% | ||
| OM | 2.95% | ||
| PM (TTM) | 3.93% | ||
| GM | 69.26% | ||
| FCFM | 17.39% |
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-Score7
Asset Turnover0.85
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 197.86% | ||
| Cap/Sales | 7.69% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 367.02% | ||
| Profit Quality | 442.87% | ||
| Current Ratio | 1.61 | ||
| Quick Ratio | 1.58 | ||
| Altman-Z | 5.15 |
F-Score7
WACC9.06%
ROIC/WACC0.32
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)1.2%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%-9.38%
EPS Next Y8.19%
EPS Next 2Y16.42%
EPS Next 3Y11.47%
EPS Next 5YN/A
Revenue 1Y (TTM)10.85%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.26%
Revenue Next Year11.49%
Revenue Next 2Y12.58%
Revenue Next 3Y11.09%
Revenue Next 5Y14.32%
EBIT growth 1Y-27.98%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.04%
EBIT Next 3Y25.9%
EBIT Next 5YN/A
FCF growth 1Y4.08%
FCF growth 3Y19.62%
FCF growth 5Y41.52%
OCF growth 1Y13.28%
OCF growth 3Y22.49%
OCF growth 5Y31.78%