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Penumbra

NYSE:PEN
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PEN
NYSE
$6B
Market Cap
  1. Home
  2. US
  3. Healthcare
Company description

Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, Japan, and internationally. The last earnings update was 44 days ago. More info.


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  • Penumbra has significant price volatility in the past 3 months.
PEN Share Price and Events
7 Day Returns
1.7%
NYSE:PEN
1.5%
US Medical Equipment
1.2%
US Market
1 Year Returns
10.4%
NYSE:PEN
14.6%
US Medical Equipment
2.3%
US Market
PEN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Penumbra (PEN) 1.7% 20.9% 5.3% 10.4% 177.4% -
US Medical Equipment 1.5% 7.4% 2.7% 14.6% 63.8% 98.7%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • PEN underperformed the Medical Equipment industry which returned 14.6% over the past year.
  • PEN outperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
PEN
Industry
5yr Volatility vs Market

PEN Value

 Is Penumbra undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Penumbra to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Penumbra.

NYSE:PEN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 7 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 8.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PEN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Medical Equipment Unlevered Beta Simply Wall St/ S&P Global 0.85
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.852 (1 + (1- 21%) (0.86%))
0.905
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.9
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (0.905 * 5.96%)
8.12%

Discounted Cash Flow Calculation for NYSE:PEN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Penumbra is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:PEN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 8.12%)
2019 16.00 Analyst x1 14.80
2020 41.00 Analyst x1 35.07
2021 68.00 Analyst x1 53.80
2022 92.15 Est @ 35.52% 67.43
2023 115.82 Est @ 25.68% 78.39
2024 137.59 Est @ 18.8% 86.13
2025 156.83 Est @ 13.98% 90.79
2026 173.46 Est @ 10.6% 92.87
2027 187.75 Est @ 8.24% 92.98
2028 200.12 Est @ 6.59% 91.66
Present value of next 10 years cash flows $703.91
NYSE:PEN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $200.12 × (1 + 2.73%) ÷ (8.12% – 2.73%)
$3,813.20
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $3,813.20 ÷ (1 + 8.12%)10
$1,746.53
NYSE:PEN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $703.91 + $1,746.53
$2,450.44
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $2,450.44 / 34.74
$70.54
NYSE:PEN Discount to Share Price
Calculation Result
Value per share (USD) From above. $70.54
Current discount Discount to share price of $166.41
= -1 x ($166.41 - $70.54) / $70.54
-135.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Penumbra is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Penumbra's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Penumbra's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PEN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $0.34
NYSE:PEN Share Price ** NYSE (2019-06-19) in USD $166.41
United States of America Medical Equipment Industry PE Ratio Median Figure of 64 Publicly-Listed Medical Equipment Companies 41.06x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Penumbra.

NYSE:PEN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PEN Share Price ÷ EPS (both in USD)

= 166.41 ÷ 0.34

483.44x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Penumbra is overvalued based on earnings compared to the US Medical Equipment industry average.
  • Penumbra is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Penumbra's expected growth come at a high price?
Raw Data
NYSE:PEN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 483.44x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts
36.6%per year
United States of America Medical Equipment Industry PEG Ratio Median Figure of 55 Publicly-Listed Medical Equipment Companies 2.3x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NYSE:PEN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 483.44x ÷ 36.6%

13.21x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Penumbra is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Penumbra's assets?
Raw Data
NYSE:PEN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $12.64
NYSE:PEN Share Price * NYSE (2019-06-19) in USD $166.41
United States of America Medical Equipment Industry PB Ratio Median Figure of 183 Publicly-Listed Medical Equipment Companies 4.44x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NYSE:PEN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PEN Share Price ÷ Book Value per Share (both in USD)

= 166.41 ÷ 12.64

13.17x

* Primary Listing of Penumbra.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Penumbra is overvalued based on assets compared to the US Medical Equipment industry average.
X
Value checks
We assess Penumbra's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Medical Equipment industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Medical Equipment industry average (and greater than 0)? (1 check)
  5. Penumbra has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PEN Future Performance

 How is Penumbra expected to perform in the next 1 to 3 years based on estimates from 7 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
36.6%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Penumbra expected to grow at an attractive rate?
  • Penumbra's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Penumbra's earnings growth is expected to exceed the United States of America market average.
  • Penumbra's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PEN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PEN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 7 Analysts 36.6%
NYSE:PEN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 7 Analysts 18%
United States of America Medical Equipment Industry Earnings Growth Rate Market Cap Weighted Average 22%
United States of America Medical Equipment Industry Revenue Growth Rate Market Cap Weighted Average 7.9%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PEN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PEN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-12-31 764 57 54 2
2020-12-31 643 42 48 7
2019-12-31 537 26 37 7
NYSE:PEN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 471 16 12
2018-12-31 445 29 7
2018-09-30 420 20 9
2018-06-30 392 21 28
2018-03-31 363 21 13
2017-12-31 334 13 5
2017-09-30 311 3 -7
2017-06-30 294 -2 5
2017-03-31 279 -9 9
2016-12-31 263 -13 15
2016-09-30 245 -11 18
2016-06-30 228 -21 6

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Penumbra's earnings are expected to grow significantly at over 20% yearly.
  • Penumbra's revenue is expected to grow by 18% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PEN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below

All data from Penumbra Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PEN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-12-31 1.48 1.48 1.48 1.00
2020-12-31 1.17 1.17 1.16 2.00
2019-12-31 0.89 0.91 0.87 2.00
NYSE:PEN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 0.34
2018-12-31 0.19
2018-09-30 0.27
2018-06-30 0.84
2018-03-31 0.40
2017-12-31 0.14
2017-09-30 -0.21
2017-06-30 0.15
2017-03-31 0.31
2016-12-31 0.49
2016-09-30 0.60
2016-06-30 0.26

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Penumbra is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Penumbra's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Penumbra has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PEN Past Performance

  How has Penumbra performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Penumbra's growth in the last year to its industry (Medical Equipment).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Penumbra has delivered over 20% year on year earnings growth in the past 5 years.
  • Penumbra's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Penumbra's 1-year earnings growth is negative, it can't be compared to the US Medical Equipment industry average.
Earnings and Revenue History
Penumbra's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Penumbra Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PEN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 470.68 11.81 232.47 39.82
2018-12-31 444.94 6.60 225.44 36.17
2018-09-30 420.20 9.03 215.72 33.70
2018-06-30 392.30 28.19 205.87 32.74
2018-03-31 363.25 13.25 195.54 32.64
2017-12-31 333.76 4.66 184.21 31.66
2017-09-30 310.82 -6.82 174.47 29.37
2017-06-30 294.09 4.85 166.24 27.74
2017-03-31 278.61 9.42 157.96 25.91
2016-12-31 263.32 14.81 148.30 23.88
2016-09-30 244.63 18.12 135.84 23.25
2016-06-30 227.86 6.42 124.85 21.31
2016-03-31 205.06 2.87 115.37 19.84
2015-12-31 186.10 1.08 101.85 18.03
2015-09-30 167.08 0.28 92.13 16.68
2015-06-30 149.13 -1.22 81.96 16.02
2015-03-31 138.30 -0.61 71.65 15.31
2014-12-31 125.51 -0.83 64.26 15.58
2013-12-31 88.85 0.89 44.92 14.08

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Penumbra has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Penumbra used its assets less efficiently than the US Medical Equipment industry average last year based on Return on Assets.
  • Penumbra has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Penumbra's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Medical Equipment industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Penumbra has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PEN Health

 How is Penumbra's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Penumbra's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Penumbra is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Penumbra's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Penumbra's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Penumbra has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Penumbra Company Filings, last reported 2 months ago.

NYSE:PEN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 436.66 49.76 194.85
2018-12-31 422.42 0.00 200.89
2018-09-30 409.29 0.00 193.92
2018-06-30 425.20 0.00 206.89
2018-03-31 414.92 0.00 215.44
2017-12-31 400.41 0.00 214.59
2017-09-30 383.83 0.00 218.82
2017-06-30 372.98 0.00 218.64
2017-03-31 373.47 0.00 231.64
2016-12-31 266.55 0.00 128.75
2016-09-30 253.85 0.00 141.83
2016-06-30 247.59 0.00 139.86
2016-03-31 238.05 0.00 144.42
2015-12-31 232.52 0.00 148.80
2015-09-30 228.59 0.00 159.10
2015-06-30 100.37 0.00 36.76
2015-03-31 101.48 0.00 47.60
2014-12-31 99.10 0.00 51.54
2013-12-31 48.16 6.00 13.68
  • Penumbra has no debt.
  • Penumbra has no debt compared to 5 years ago when it was 7.4%.
  • Penumbra has no debt, it does not need to be covered by operating cash flow.
  • Penumbra has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Penumbra's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Penumbra has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PEN Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Penumbra dividends. Estimated to be 0% next year.
If you bought $2,000 of Penumbra shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Penumbra's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Penumbra's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PEN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 7 Analyst Estimates (S&P Global) See Below
United States of America Medical Equipment Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.2%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PEN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-12-31
2020-12-31 0.00 1.00
2019-12-31 0.00 1.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Penumbra has not reported any payouts.
  • Unable to verify if Penumbra's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Penumbra's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Penumbra has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Penumbra's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Penumbra's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Penumbra afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Penumbra has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PEN Management

 What is the CEO of Penumbra's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Adam Elsesser
COMPENSATION $726,648
AGE 56
TENURE AS CEO 15.4 years
CEO Bio

Mr. Adam Elsesser Co Founded Penumbra, Inc. in 2004 and has been its Chief Executive Officer since 2004. Mr. Elsesser has been the Chairman and President of Penumbra, Inc. since January 2015. He served as President of Boston Scientific SMART. He also served as President and Chief Executive Officer of Smart Therapeutics Inc. He served as Editor-in-Chief of the Hastings Law Journal of Hastings College of the Law. Prior to his experience in the medical device industry, Mr. Elsesser was a partner at the law firm of Shartsis, Friese and Ginsburg, LLP. He also served as an adjunct professor of law at Hastings College of the Law. He is a member of the Board of Trustees at the San Francisco Day School. He has been a Director of Penumbra, Inc. since June 2004. He serves as a Director of Acumen Medical Inc. Mr. Elsesser received a B.A. from Stanford University and a J.D. from Hastings College of the Law.

CEO Compensation
  • Adam's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Adam's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Penumbra management team in years:

4.3
Average Tenure
51
Average Age
  • The tenure for the Penumbra management team is about average.
Management Team

Adam Elsesser

TITLE
Co Founder
COMPENSATION
$727K
AGE
56
TENURE
15.4 yrs

Arani Bose

TITLE
Co-Founder
COMPENSATION
$502K
AGE
56
TENURE
15 yrs

Sri Kosaraju

TITLE
CFO & Head of Strategy
COMPENSATION
$556K
AGE
40
TENURE
4.3 yrs

Lynn Rothman

TITLE
Executive VP & Chief Business Officer
COMPENSATION
$553K
AGE
57
TENURE
4.4 yrs

Daniel Davis

TITLE
Chief Commercial Officer
COMPENSATION
$3M
AGE
40
TENURE
1.9 yrs

Ryan Powers

TITLE
Vice President of Operations

David Barry

TITLE
Chief Technology Officer

Kathleen Kidd

TITLE
Vice President of Quality & Compliance
TENURE
10.4 yrs

Johanna Roberts

TITLE
Executive VP
AGE
46
TENURE
0.8 yrs

Sharon Hughes

TITLE
Vice President of Human Resources
TENURE
3.4 yrs
Board of Directors Tenure

Average tenure and age of the Penumbra board of directors in years:

3.8
Average Tenure
56
Average Age
  • The tenure for the Penumbra board of directors is about average.
Board of Directors

Adam Elsesser

TITLE
Co Founder
COMPENSATION
$727K
AGE
56
TENURE
4.4 yrs

Arani Bose

TITLE
Co-Founder
COMPENSATION
$502K
AGE
56
TENURE
15 yrs

Don Kassing

TITLE
Presiding Director
COMPENSATION
$160K
AGE
76
TENURE
3.8 yrs

Harp Grewal

TITLE
Independent Director
COMPENSATION
$185K
AGE
52
TENURE
4.2 yrs

Tom Wilder

TITLE
Director
COMPENSATION
$160K
AGE
54
TENURE
2.4 yrs

Bridget O’Rourke

TITLE
Director
COMPENSATION
$160K
AGE
50
TENURE
2.2 yrs

Janet Leeds

TITLE
Director
AGE
56
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
X
Management checks
We assess Penumbra's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Penumbra has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PEN News

Simply Wall St News

Why We’re Not Impressed By Penumbra, Inc.’s (NYSE:PEN) 7.5% ROCE

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Penumbra: 0.075 = US$38m ÷ (US$569m - US$69m) (Based on the trailing twelve months to March 2019.) So, Penumbra has an ROCE of 7.5%. … How Penumbra's Current Liabilities Impact Its ROCE Short term (or current) liabilities, are things like supplier invoices, overdrafts, or tax bills that need to be paid within 12 months. … The ROCE equation subtracts current liabilities from capital employed, so a company with a lot of current liabilities appears to have less capital employed, and a higher ROCE than otherwise.

Simply Wall St -

Is Penumbra, Inc. (NYSE:PEN) Excessively Paying Its CEO?

See our latest analysis for Penumbra How Does Adam Elsesser's Compensation Compare With Similar Sized Companies? … A first glance this seems like a real positive for shareholders, since Adam Elsesser is paid less than the average total compensation paid by similar sized companies. … Adam Elsesser is paid less than what is normal at similar size companies, and the total shareholder return has been pleasing over the last three years.

Simply Wall St -

Can You Imagine How Chuffed Penumbra's (NYSE:PEN) Shareholders Feel About Its 147% Share Price Gain?

By comparing earnings per share (EPS) and share price changes over time, we can get a feel for how investor attitudes to a company have morphed over time. … During three years of share price growth, Penumbra achieved compound earnings per share growth of 29% per year. … We note that the 35% yearly (average) share price gain isn't too far from the EPS growth rate?

Simply Wall St -

With EPS Growth And More, Penumbra (NYSE:PEN) Is Interesting

One way to double-check a company's growth is to look at how its revenue, and earnings before interest and tax (EBIT) margins are changing. … Penumbra shareholders can take confidence from the fact that EBIT margins are up from 0.4% to 7.0%, and revenue is growing. … You can take a look at the company's revenue and earnings growth trend, in the chart below.

Simply Wall St -

Read This Before Selling Penumbra, Inc. (NYSE:PEN) Shares

We often see insiders buying up shares in companies that perform well over the long term. … So shareholders might well want to know whether insiders have been buying or selling shares in Penumbra, Inc. … In any event it's generally a positive if insiders are buying shares at around the current price

Simply Wall St -

How Do Penumbra, Inc.’s (NYSE:PEN) Returns Compare To Its Industry?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … What is Return On Capital Employed (ROCE)? … ROCE measures the 'return' (pre-tax profit) a company generates from capital employed in its business.

Simply Wall St -

Is Penumbra, Inc. (NYSE:PEN) A Financially Strong Company?

Help shape the future of investing tools and you could win a $250 gift card! … This article will examine PEN’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Don’t forget that this is a general and concentrated examination of Penumbra's financial health, so you should conduct further analysis.

Simply Wall St -

Do Institutions Own Penumbra, Inc. (NYSE:PEN) Shares?

Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … We'd expect to see both institutions and retail investors owning a portion of the company. … Let's take a closer look to see what the different types of shareholder can tell us about PEN

Simply Wall St -

Should You Be Worried About Penumbra, Inc.'s (NYSE:PEN) 1.4% Return On Equity?

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.013 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Understanding Your Return On Investment In Penumbra Inc (NYSE:PEN)

As a result, your investment is being put to work to fund operations and if you want to earn an attractive return on your investment, the business needs to be making an adequate amount of money from the funds you provide. … You need to pay attention to this because your return on investment is linked to dividends and internal investments to improve the business, which can only occur if the company is expected to produce adequate earnings with the capital that has been provided. … Thus, to understand how your money can grow by investing in Penumbra, you need to look at what the company returns to owners for the use of their capital, which can be done in many ways but today we will use return on capital employed (ROCE)

Simply Wall St -

PEN Company Info

Description

Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, Japan, and internationally. The company offers neurovascular access systems designed to provide intracranial access for use in a range of neurovascular therapies under the Neuron, Neuron MAX, Select, BENCHMARK, DDC, and PX SLIM brands; and aspiration based thrombectomy systems and accessory devices, including revascularization device for mechanical thrombectomy, such as Penumbra System under the JET, ACE and 3D Revascularization Device brands. It also offers neurovascular embolization coiling systems to treat patients with various sizes of aneurysms and other neurovascular lesions under the Penumbra Coil 400 and Penumbra SMART Coil brands. In addition, the company provides neurosurgical aspiration tools for the removal of tissue and fluids under the Artemis Neuro Evacuation Device brand; and detachable embolic coil systems for peripheral embolization under the RUBY Coil brand, as well as microcatheter for the delivery of detachable coils and occlusion devices under the LANTERN brand. Further, it offers detachable, microcatheter-deliverable occlusion devices designed primarily to occlude peripheral vessels under the POD (Penumbra Occlusion Device) brand; and aspiration-based thrombectomy systems for peripheral applications under the Indigo System brand, as well as a complementary device for use with RUBY Coil and POD for vessel occlusion under the POD Packing Coil brand. The company sells its products through direct sales organizations and distributors to hospitals in neuro and peripheral vascular markets. Penumbra, Inc. was founded in 2004 and is headquartered in Alameda, California.

Details
Name: Penumbra, Inc.
PEN
Exchange: NYSE
Founded: 2004
$5,780,666,875
34,737,497
Website: http://www.penumbrainc.com
Address: Penumbra, Inc.
One Penumbra Place,
Alameda,
California, 94502,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PEN Common Stock New York Stock Exchange US USD 18. Sep 2015
DB 0P8 Common Stock Deutsche Boerse AG DE EUR 18. Sep 2015
BMV PEN * Common Stock Bolsa Mexicana de Valores MX MXN 18. Sep 2015
Number of employees
Current staff
Staff numbers
2,200
Penumbra employees.
Industry
Health Care Equipment
Healthcare
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/20 00:51
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/17
Last earnings filing: 2019/05/07
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.