NYSE:PEN

Stock Analysis Report

Executive Summary

Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States, Europe, Canada, Australia, Japan, and internationally.

Rewards

Earnings are forecast to grow 16.5% per year

Earnings grew by 403.4% over the past year

Risk Analysis

No risks detected for PEN from our risk checks.


Snowflake Analysis

Flawless balance sheet with solid track record.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

5.7%

PEN

2.0%

US Medical Equipment

0.8%

US Market


1 Year Return

21.3%

PEN

29.1%

US Medical Equipment

25.1%

US Market

Return vs Industry: PEN underperformed the US Medical Equipment industry which returned 28.4% over the past year.

Return vs Market: PEN underperformed the US Market which returned 24.7% over the past year.


Shareholder returns

PENIndustryMarket
7 Day5.7%2.0%0.8%
30 Day3.7%4.1%3.1%
90 Day12.6%12.7%10.9%
1 Year21.3%21.3%30.1%29.1%27.7%25.1%
3 Year124.6%124.6%96.1%90.4%51.3%41.6%
5 Yearn/a130.3%105.7%77.2%57.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

128.66x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: PEN ($158.09) is trading above our estimate of fair value ($59.98)

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


Price To Earnings Ratio

PE vs Industry: PEN is poor value based on its PE Ratio (120.4x) compared to the Medical Equipment industry average (46.3x).

PE vs Market: PEN is poor value based on its PE Ratio (120.4x) compared to the US market (18.9x).


Price to Earnings Growth Ratio

PEG Ratio: PEN is poor value based on its PEG Ratio (7.3x)


Price to Book Ratio

PB vs Industry: PEN is overvalued based on its PB Ratio (11.8x) compared to the US Medical Equipment industry average (4.1x).


Next Steps

Future Growth

How is Penumbra forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PEN's forecast earnings growth (16.5% per year) is above the savings rate (1.7%).

Earnings vs Market: PEN's earnings (16.5% per year) are forecast to grow faster than the US market (14.3% per year).

High Growth Earnings: PEN's earnings are forecast to grow, but not significantly.

Revenue vs Market: PEN's revenue (18.4% per year) is forecast to grow faster than the US market (7.5% per year).

High Growth Revenue: PEN's revenue (18.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PEN's Return on Equity is forecast to be low in 3 years time (9.6%).


Next Steps

Past Performance

How has Penumbra performed over the past 5 years?

49.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PEN has high quality earnings.

Growing Profit Margin: PEN's current net profit margins (8.7%) are higher than last year (2.1%).


Past Earnings Growth Analysis

Earnings Trend: PEN has become profitable over the past 5 years, growing earnings by 49.3% per year.

Accelerating Growth: PEN's earnings growth over the past year (403.4%) exceeds its 5-year average (49.3% per year).

Earnings vs Industry: PEN earnings growth over the past year (403.4%) exceeded the Medical Equipment industry 31%.


Return on Equity

High ROE: PEN's Return on Equity (9.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Penumbra's financial position?


Financial Position Analysis

Short Term Liabilities: PEN's short term assets ($451.3M) exceed its short term liabilities ($86.2M).

Long Term Liabilities: PEN's short term assets ($451.3M) exceed its long term liabilities ($61.1M).


Debt to Equity History and Analysis

Debt Level: PEN is debt free.

Reducing Debt: PEN has no debt compared to 5 years ago when its debt to equity ratio was 1.7%.

Debt Coverage: PEN has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: PEN has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: PEN has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if PEN's debt is covered by short term assets.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.1%forecastin3Years0%

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate PEN'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 PEN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PEN'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 PEN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

5.0yrs

Average management tenure


CEO

Adam Elsesser (57yo)

16yrs

Tenure

US$726,648

Compensation

Mr. Adam Elsesser Co-Founded Penumbra, Inc. in 2004 and has been its Chief Executive Officer since 2004. Mr. Elsesser has been the Chairman since January 2015 and served as its President. He served as Pres ...


CEO Compensation Analysis

Compensation vs Market: Adam's total compensation ($USD726.65K) is below average for companies of similar size in the US market ($USD6.46M).

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


Management Age and Tenure

5.0yrs

Average Tenure

57yo

Average Age

Experienced Management: PEN's management team is seasoned and experienced (5 years average tenure).


Board Age and Tenure

3.7yrs

Average Tenure

56yo

Average Age

Experienced Board: PEN's board of directors are considered experienced (3.7 years average tenure).


Insider Trading

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


Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Lynn Rothman (58yo)

    Executive VP & Chief Business Officer

    • Tenure: 5yrs
    • Compensation: US$553.14k
  • Adam Elsesser (57yo)

    Co-Founder

    • Tenure: 16yrs
    • Compensation: US$726.65k
  • Arani Bose (57yo)

    Co-Founder

    • Tenure: 15.6yrs
    • Compensation: US$501.65k
  • David Barry

    Chief Technology Officer

    • Kathleen Kidd

      Vice President of Quality & Compliance

      • Tenure: 11yrs
    • Ryan Powers

      Vice President of Operations

      • Maggie Yuen

        Chief Financial Officer

        • Tenure: 0.08yrs
      • Sri Kosaraju (41yo)

        President

        • Tenure: 0.4yrs
        • Compensation: US$555.54k
      • Lambert Shiu

        Chief Accounting Officer

        • Tenure: 0.08yrs
      • Jee Hamlyn-Harris

        Investor Relations Officer


        Board Members

        • Harp Grewal (53yo)

          Independent Director

          • Tenure: 4.8yrs
          • Compensation: US$184.92k
        • Adam Elsesser (57yo)

          Co-Founder

          • Tenure: 16yrs
          • Compensation: US$726.65k
        • Arani Bose (57yo)

          Co-Founder

          • Tenure: 15.6yrs
          • Compensation: US$501.65k
        • Tom Wilder (55yo)

          Independent Director

          • Tenure: 3yrs
          • Compensation: US$159.92k
        • Don Kassing (77yo)

          Presiding Director

          • Tenure: 4.4yrs
          • Compensation: US$159.92k
        • Surbhi Sarna (33yo)

          Independent Director

          • Tenure: 0.5yrs
        • Bridget O’Rourke (51yo)

          Independent Director

          • Tenure: 2.8yrs
          • Compensation: US$159.92k
        • Janet Leeds (57yo)

          Independent Director

          • Tenure: 1yrs

        Company Information

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


        Key Information

        • Name: Penumbra, Inc.
        • Ticker: PEN
        • Exchange: NYSE
        • Founded: 2004
        • Industry: Health Care Equipment
        • Sector: Healthcare
        • Market Cap: US$5.897b
        • Shares outstanding: 34.91m
        • Website: https://www.penumbrainc.com

        Number of Employees


        Location

        • Penumbra, Inc.
        • One Penumbra Place
        • Alameda
        • California
        • 94502
        • United States

        Listings

        TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
        PENNYSE (New York Stock Exchange)YesCommon StockUSUSDSep 2015
        0P8DB (Deutsche Boerse AG)YesCommon StockDEEURSep 2015
        PEN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNSep 2015

        Biography

        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. 


        Company Analysis and Financial Data Status

        All financial data provided by Standard & Poor's Capital IQ.
        DataLast Updated (UTC time)
        Company Analysis2020/01/22 01:08
        End of Day Share Price2020/01/21 00:00
        Earnings2019/09/30
        Annual Earnings2018/12/31


        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.