PURE STORAGE INC - CLASS A (PSTG) Stock Fundamental Analysis
NYSE:PSTG - US74624M1027 - Common Stock
79.23 USD
+0.5 (+0.64%)
78.5495 USD
-0.68 (-0.86%)
Taking everything into account, PSTG scores 5 out of 10 in our fundamental rating. PSTG was compared to 33 industry peers in the Technology Hardware, Storage & Peripherals industry. PSTG has an excellent financial health rating, but there are some minor concerns on its profitability. PSTG is valied quite expensively at the moment, while 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.
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
PSTG's Return On Assets of 3.46% is fine compared to the rest of the industry. PSTG outperforms 72.73% of its industry peers.
PSTG has a better Return On Equity (10.55%) than 78.79% of its industry peers.
PSTG has a Return On Invested Capital of 2.13%. This is comparable to the rest of the industry: PSTG outperforms 54.55% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for PSTG is significantly below the industry average of 14.98%.
| 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 69.70% of its industry peers.
The Operating Margin of PSTG (2.26%) is comparable to the rest of the industry.
PSTG has a better Gross Margin (69.17%) than 96.97% 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 | 2.26% | ||
| 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.
PSTG has more shares outstanding than it did 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 6.46 indicates that PSTG is not in any danger for bankruptcy at the moment.
PSTG's Altman-Z score of 6.46 is amongst the best of the industry. PSTG outperforms 84.85% of its industry peers.
There is no outstanding debt for PSTG. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6.46 |
ROIC/WACC0.24
WACC8.72%
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.
PSTG has a Current ratio (1.65) which is in line with its industry peers.
PSTG has a Quick Ratio of 1.61. 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 Quick ratio of 1.61. This is in the better half of the industry: PSTG outperforms 69.70% 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.
PSTG shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 45.75% yearly.
Looking at the last year, PSTG shows a quite strong growth in Revenue. The Revenue has grown by 11.31% in the last year.
PSTG shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 14.03% yearly.
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.
The Revenue is expected to grow by 14.87% on average over the next years. This is quite good.
EPS Next Y7.72%
EPS Next 2Y16.6%
EPS Next 3Y19.99%
EPS Next 5Y14.85%
Revenue Next Year11.55%
Revenue Next 2Y12.72%
Revenue Next 3Y14.26%
Revenue Next 5Y14.87%
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.
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 47.44 indicates a quite expensive valuation of PSTG.
PSTG's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.06, PSTG is valued quite expensively.
The Price/Forward Earnings ratio is 34.08, which means the current valuation is very expensive for PSTG.
60.61% of the companies in the same industry are cheaper than PSTG, based on the Price/Forward Earnings ratio.
PSTG is valuated expensively when we compare the Price/Forward Earnings ratio to 22.69, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.44 | ||
| Fwd PE | 34.08 |
4.2 Price Multiples
PSTG's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as PSTG.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.14 | ||
| EV/EBITDA | 117.14 |
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 19.99% in the coming years.
PEG (NY)6.14
PEG (5Y)1.04
EPS Next 2Y16.6%
EPS Next 3Y19.99%
5. Dividend
5.1 Amount
No dividends for PSTG!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
79.23
+0.5 (+0.64%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryTechnology Hardware, Storage & Peripherals
Earnings (Last)
Earnings (Next)
Inst Owners87.4%
Inst Owner Change0.32%
Ins Owners5.35%
Ins Owner Change4.56%
Market Cap25.89B
Analysts77.04
Price Target77.55 (-2.12%)
Short Float %3.49%
Short Ratio3.78
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)9.14%
PT rev (3m)9.14%
EPS NQ rev (1m)8.74%
EPS NQ rev (3m)37.78%
EPS NY rev (1m)-0.44%
EPS NY rev (3m)5.71%
Revenue NQ rev (1m)3.87%
Revenue NQ rev (3m)11.91%
Revenue NY rev (1m)0.06%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.44 | ||
| Fwd PE | 34.08 | ||
| P/S | 7.73 | ||
| P/FCF | 47.14 | ||
| P/OCF | 32.3 | ||
| P/B | 19.63 | ||
| P/tB | 27.37 | ||
| EV/EBITDA | 117.14 |
EPS(TTM)1.67
EY2.11%
EPS(NY)2.32
Fwd EY2.93%
FCF(TTM)1.68
FCFY2.12%
OCF(TTM)2.45
OCFY3.1%
SpS10.25
BVpS4.04
TBVpS2.9
PEG (NY)6.14
PEG (5Y)1.04
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 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 199.37% | ||
| Cap/Sales | 7.53% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 396.09% | ||
| Profit Quality | 394.65% | ||
| Current Ratio | 1.65 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 6.46 |
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)-5.11%
EPS 3Y33.42%
EPS 5Y45.75%
EPS Q2Q%-2.27%
EPS Next Y7.72%
EPS Next 2Y16.6%
EPS Next 3Y19.99%
EPS Next 5Y14.85%
Revenue 1Y (TTM)11.31%
Revenue growth 3Y13.26%
Revenue growth 5Y14.03%
Sales Q2Q%12.73%
Revenue Next Year11.55%
Revenue Next 2Y12.72%
Revenue Next 3Y14.26%
Revenue Next 5Y14.87%
EBIT growth 1Y-48.55%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year35.04%
EBIT Next 3Y28.86%
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%