NasdaqGM:PFPT

Stock Analysis Report

Executive Summary

Proofpoint, Inc. operates as a security-as-a-service provider that enables large and mid-sized organizations to defend, protect, archive, and govern their sensitive data worldwide.

Snowflake

Fundamentals

Excellent balance sheet with limited growth.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

PFPT

0.5%

US Software

2.3%

US Market


1 Year Return

24.1%

PFPT

19.6%

US Software

5.6%

US Market

Return vs Industry: PFPT exceeded the US Software industry which returned 19.6% over the past year.

Return vs Market: PFPT exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

PFPTIndustryMarket
7 Day1.8%0.5%2.3%
30 Day1.5%0.05%-1.0%
90 Day4.4%-3.8%-0.7%
1 Year24.1%24.1%21.3%19.6%7.9%5.6%
3 Year85.0%85.0%120.2%111.6%45.6%36.3%
5 Year242.8%242.8%177.4%157.4%65.8%47.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

14.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PFPT ($129.07) is trading below our estimate of fair value ($151.1)

Significantly Undervalued: PFPT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

PE vs Market: PFPT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: PFPT is overvalued based on its PB Ratio (13.8x) compared to the US Software industry average (5.4x).


Next Steps

Future Growth

How is Proofpoint forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?

27.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PFPT's revenue (16.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: PFPT's revenue (16.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PFPT's Return on Equity is forecast to be high in 3 years time (21.1%)


Next Steps

Past Performance

How has Proofpoint performed over the past 5 years?

-7.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PFPT is unprofitable, and losses have increased over the past 5 years at a rate of -7.2% per year.

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

Earnings vs Industry: PFPT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (19.1%).


Return on Equity

High ROE: PFPT has a negative Return on Equity (-21.79%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PFPT is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PFPT is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Proofpoint's financial position?


Financial Position Analysis

Short Term Liabilities: PFPT's short term assets ($417.5M) do not cover its short term liabilities ($627.5M)

Long Term Liabilities: PFPT's short term assets (417.5M) exceeds its long term liabilities (157.1M)


Debt to Equity History and Analysis

Debt Level: PFPT is debt free.

Reducing Debt: PFPT has no debt compared to 5 years ago when its debt to equity ratio was 231.2%.


Balance Sheet

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

Debt Coverage by Assets: PFPT's debt is not covered by short term assets (assets are -5.875353852621E+16x 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 PFPT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PFPT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 48.1% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if PFPT'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 PFPT'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 Proofpoint's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Gary Steele (57yo)

17.8yrs

Tenure

US$64,730,296

Compensation

Mr. Gary L. Steele has been the Chief Executive Officer of Proofpoint, Inc., since 2002 and its Chairman of the Board since July 9, 2018. Before joining Proofpoint in 2002, Mr. Steele served as the Chief E ...


CEO Compensation Analysis

Compensation vs. Market: Gary's total compensation ($USD64.73M) is about average for companies of similar size in the US market ($USD6.81M).

Compensation vs Earnings: Gary's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.3yrs

Average Tenure

53yo

Average Age

Experienced Management: PFPT's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

2.1yrs

Average Tenure

57yo

Average Age

Experienced Board: PFPT's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: PFPT insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$216,78504 Sep 19
Michael Johnson
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares1,844
Max PriceUS$117.56
SellUS$209,95010 Jun 19
Robert Lee
EntityIndividual
Role
Chief Compliance Officer
Executive VP and GM of Compliance & Digital Risk Business Unit
Shares1,948
Max PriceUS$107.78
SellUS$347,35412 Mar 19
Dana Evan
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares3,051
Max PriceUS$113.85
SellUS$651,89307 Feb 19
Robert Lee
EntityIndividual
Role
Chief Compliance Officer
Executive VP and GM of Compliance & Digital Risk Business Unit
Shares5,698
Max PriceUS$114.41

Ownership Breakdown


Management Team

  • Gary Steele (57yo)

    Chairman of Board & CEO

    • Tenure: 17.8yrs
    • Compensation: US$64.73m
  • Paul Auvil (55yo)

    Chief Financial Officer

    • Tenure: 12.6yrs
    • Compensation: US$10.82m
  • Robert Lee (53yo)

    Executive VP and GM of Compliance & Digital Risk Business Unit

    • Tenure: 0.6yrs
    • Compensation: US$1.66m
  • Jason Starr

    Vice President of Investor Relations

    • Tenure: 0yrs
  • David Knight (53yo)

    Executive VP & GM of Security Products

    • Tenure: 8.6yrs
    • Compensation: US$4.64m
  • Michael Yang

    VP, General Counsel & Corporate Secretary

    • Tenure: 0yrs
  • Blake Sallé (47yo)

    Executive Vice President of Worldwide Sales

    • Tenure: 1yrs
    • Compensation: US$4.81m
  • Jason Hurst

    Senior Vice President of Corporate Development

    • Tenure: 0.7yrs
  • Lyn Campbell

    Senior Vice President of Global Operations & Information Technology

    • Tenure: 0yrs
  • Bhagwat Swaroop (44yo)

    Executive Vice President of Industry Solutions & Business Development

    • Tenure: 3.3yrs
    • Compensation: US$2.58m

Board Members

  • Kevin Harvey (54yo)

    Independent Director

    • Tenure: 16.8yrs
    • Compensation: US$248.94k
  • Jon Feiber (62yo)

    Independent Director

    • Tenure: 17.3yrs
    • Compensation: US$265.59k
  • Gary Steele (57yo)

    Chairman of Board & CEO

    • Tenure: 17.8yrs
    • Compensation: US$64.73m
  • Dana Evan (59yo)

    Lead Independent Director

    • Tenure: 1.3yrs
    • Compensation: US$275.75k
  • Rick Wallace (59yo)

    Independent Director

    • Tenure: 2.4yrs
    • Compensation: US$250.32k
  • Richard Herren (57yo)

    Independent Director

    • Tenure: 3.3yrs
    • Compensation: US$270.75k
  • Peter Leav (48yo)

    Independent Director

    • Tenure: 0.3yrs
  • Leyla Seka

    Independent Director

    • Tenure: 0.3yrs
  • Michael Johnson (51yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$258.25k
  • Kristen Gil (47yo)

    Independent Director

    • Tenure: 2yrs
    • Compensation: US$255.57k

Company Information

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


Key Information

  • Name: Proofpoint, Inc.
  • Ticker: PFPT
  • Exchange: NasdaqGM
  • Founded: 2002
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$7.237b
  • Shares outstanding: 56.07m
  • Website: https://www.proofpoint.com

Number of Employees


Location

  • Proofpoint, Inc.
  • 892 Ross Drive
  • Sunnyvale
  • California
  • 94089
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PFPTNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDApr 2012
POFDB (Deutsche Boerse AG)YesCommon StockDEEURApr 2012
PFPT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2012

Biography

Proofpoint, Inc. operates as a security-as-a-service provider that enables large and mid-sized organizations to defend, protect, archive, and govern their sensitive data worldwide. It offers protection aga ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:40
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
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.