DB:6PU

Stock Analysis Report

Executive Summary

Pure Storage, Inc. engages in building a data platform that enables businesses to enhance performance and reduce complexity and costs worldwide.


Snowflake Analysis

Adequate balance sheet with concerning outlook.


Similar Companies

Share Price & News

How has Pure Storage's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: 6PU has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.7%

6PU

-1.9%

DE Tech

-0.2%

DE Market


1 Year Return

2.4%

6PU

15.4%

DE Tech

13.7%

DE Market

Return vs Industry: 6PU underperformed the German Tech industry which returned 15.4% over the past year.

Return vs Market: 6PU underperformed the German Market which returned 13.7% over the past year.


Shareholder returns

6PUIndustryMarket
7 Day-2.7%-1.9%-0.2%
30 Day3.1%10.4%0.3%
90 Day27.6%21.0%3.7%
1 Year2.4%2.4%16.3%15.4%17.2%13.7%
3 Year55.5%55.5%158.4%153.0%15.4%5.3%
5 Yearn/a93.4%70.5%21.3%4.7%

Price Volatility Vs. Market

How volatile is Pure Storage's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Pure Storage undervalued compared to its fair value and its price relative to the market?

6.17x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: 6PU (€17.27) is trading above our estimate of fair value (€9.3)

Significantly Below Fair Value: 6PU is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: 6PU is unprofitable, so we can't compare its PE Ratio to the Tech industry average.

PE vs Market: 6PU is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate 6PU's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: 6PU is overvalued based on its PB Ratio (6.2x) compared to the XE Tech industry average (1.3x).


Next Steps

Future Growth

How is Pure Storage forecast to perform in the next 1 to 3 years based on estimates from 21 analysts?

9.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: 6PU is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: 6PU is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: 6PU is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: 6PU's revenue (16.7% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: 6PU's revenue (16.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: 6PU's Return on Equity is forecast to be low in 3 years time (15.7%).


Next Steps

Past Performance

How has Pure Storage performed over the past 5 years?

1.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: 6PU is currently unprofitable.

Growing Profit Margin: 6PU is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: 6PU is unprofitable, but has reduced losses over the past 5 years at a rate of 1.8% per year.

Accelerating Growth: Unable to compare 6PU's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: 6PU is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (-8.4%).


Return on Equity

High ROE: 6PU has a negative Return on Equity (-28.55%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Pure Storage's financial position?


Financial Position Analysis

Short Term Liabilities: 6PU's short term assets ($1.7B) exceed its short term liabilities ($520.3M).

Long Term Liabilities: 6PU's short term assets ($1.7B) exceed its long term liabilities ($894.5M).


Debt to Equity History and Analysis

Debt Level: 6PU's debt to equity ratio (60.4%) is considered high.

Reducing Debt: Insufficient data to determine if 6PU's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: 6PU has a low level of unsold assets or inventory.

Debt Coverage by Assets: 6PU's debt is covered by short term assets (assets are 3.7x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable 6PU has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: 6PU is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 59.3% per year.


Next Steps

Dividend

What is Pure Storage's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.7%industryaverage1.6%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate 6PU's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate 6PU's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if 6PU's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if 6PU's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of 6PU's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

1.8yrs

Average management tenure


CEO

Charlie Giancarlo (61yo)

2.5yrs

Tenure

US$8,383,230

Compensation

Mr. Charles H. Giancarlo, also known as Charlie, has been Chief Executive Officer and Director of Pure Storage, Inc. since August 22, 2017 and is also its Chairman. Mr. Giancarlo serves as an Advisor of Ve ...


CEO Compensation Analysis

Compensation vs Market: Charlie's total compensation ($USD8.38M) is above average for companies of similar size in the German market ($USD3.16M).

Compensation vs Earnings: Charlie's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Charles Giancarlo
Chairman & CEO2.5yrsUS$8.38m0.50% $22.7m
John Colgrove
Founder10.3yrsUS$3.57m5.33% $240.5m
David Hatfield
Vice Chair & President Emeritus0.3yrsUS$3.72m0.29% $13.2m
John Hayes
Founder & Advisor2.9yrsno datano data
Kevan Krysler
Chief Financial Officer0.2yrsno datano data
Paul Mountford
Chief Operating Officer0.3yrsno datano data
Cathleen Southwick
Chief Information Officer1.2yrsno datano data
Matthew Danziger
Head of Investor Relations0yrsno datano data
Joseph FitzGerald
General Counsel & Corporate Secretary0yrsno datano data
Kevin Delane
VP & Head of Worldwide Sales2.7yrsno datano data

1.8yrs

Average Tenure

56yo

Average Age

Experienced Management: 6PU's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Charles Giancarlo
Chairman & CEO2.5yrsUS$8.38m0.50% $22.7m
John Colgrove
Founder10.3yrsUS$3.57m5.33% $240.5m
Frank Slootman
Independent Director5.8yrsUS$282.99k0.0060% $270.2k
Mark Garrett
Independent Director4.6yrsUS$290.24k0.0060% $270.2k
Jeffrey Rothschild
Independent Director1.9yrsUS$868.89k0.0029% $130.4k
Scott Dietzen
Vice Chairman2.5yrsno data1.68% $75.6m
Roxanne Taylor
Independent Director1yrsno datano data
Anita Sands
Independent Director4.6yrsUS$289.74k0.00023% $10.4k
Andrew Brown
Director0.4yrsno datano data
Susan Taylor
Independent Director1.3yrsUS$731.13kno data

2.5yrs

Average Tenure

58.5yo

Average Age

Experienced Board: 6PU's board of directors are not considered experienced ( 2.5 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 9.4%.


Top Shareholders

Company Information

Pure Storage, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Pure Storage, Inc.
  • Ticker: 6PU
  • Exchange: DB
  • Founded: 2009
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Market Cap: US$4.869b
  • Listing Market Cap: US$4.512b
  • Shares outstanding: 260.38m
  • Website: https://www.purestorage.com

Number of Employees


Location

  • Pure Storage, Inc.
  • 650 Castro Street
  • Suite 400
  • Mountain View
  • California
  • 94041
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSTGNYSE (New York Stock Exchange)YesClass A Common StockUSUSDOct 2015
6PUDB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 2015
0KSALSE (London Stock Exchange)YesClass A Common StockGBUSDOct 2015

Biography

Pure Storage, Inc. engages in building a data platform that enables businesses to enhance performance and reduce complexity and costs worldwide. The company delivers its data platform through Purity Operating Environment, an optimized software for solid-state memory that offers enterprise-class storage and protocol services; FlashArray and FlashBlade optimized hardware products for solid-state memory to enhance the performance and density of flash, optimize its advanced software services, and reduce solution cost for customers; Pure1, a cloud-based management and support software; and FlashStack and Artificial Intelligence Ready Infrastructure converged infrastructure solutions. Its data platform is used for a range of use cases, including database applications, large-scale analytics, artificial intelligence/machine learning, private and public cloud infrastructure and Web scale applications, virtual server infrastructure, and virtual desktop infrastructure; and helps customers scale their businesses through real-time and accurate analytics, increase employee productivity, improve operational efficiency, and deliver compelling user experiences to their customers and partners. The company serves enterprise and commercial organizations, cloud, global systems integrators, and service providers across various set of industry verticals, consumer Web, education, energy, financial services, governments, healthcare, manufacturing, media, retail, and telecommunications through a network of distribution and channel partners. The company was formerly known as OS76, Inc. and changed its name to Pure Storage, Inc. in January 2010. Pure Storage, Inc. was founded in 2009 and is headquartered in Mountain View, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 22:33
End of Day Share Price2020/02/20 00:00
Earnings2019/10/31
Annual Earnings2019/01/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.