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Market Cap

US$7.5b

Last Updated

2021/04/11 22:14 UTC

Data Sources

Company Financials +

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. More Details


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


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

Stable Share Price: PFPT is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: PFPT's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

2.2%

PFPT

4.2%

US Software

2.1%

US Market


1 Year Return

12.5%

PFPT

64.1%

US Software

56.3%

US Market

Return vs Industry: PFPT underperformed the US Software industry which returned 64.1% over the past year.

Return vs Market: PFPT underperformed the US Market which returned 56.3% over the past year.


Shareholder returns

PFPTIndustryMarket
7 Day2.2%4.2%2.1%
30 Day4.7%5.7%2.4%
90 Day-4.5%7.6%6.8%
1 Year12.5%12.5%65.3%64.1%59.1%56.3%
3 Year8.2%8.2%145.3%138.0%65.7%55.1%
5 Year152.9%152.9%303.9%281.4%122.3%97.7%

Long-Term 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?

31.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PFPT ($131.33) is trading below our estimate of fair value ($192)

Significantly Below Fair Value: PFPT is trading below fair value by more than 20%.


Price To Earnings Ratio

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

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 (17x) compared to the US Software industry average (8.9x).


Future Growth

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

5.1%

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 (12.4% per year) is forecast to grow faster than the US market (9.9% per year).

High Growth Revenue: PFPT's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PFPT's Return on Equity is forecast to be high in 3 years time (31.9%)


Past Performance

How has Proofpoint performed over the past 5 years?

-11.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PFPT is currently unprofitable.

Growing Profit Margin: PFPT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PFPT is unprofitable, and losses have increased over the past 5 years at a rate of 11.6% 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 (16.3%).


Return on Equity

High ROE: PFPT has a negative Return on Equity (-37.08%), as it is currently unprofitable.


Financial Health

How is Proofpoint's financial position?


Financial Position Analysis

Short Term Liabilities: PFPT's short term assets ($1.3B) exceed its short term liabilities ($865.2M).

Long Term Liabilities: PFPT's short term assets ($1.3B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: PFPT's debt to equity ratio (177.4%) is considered high.

Reducing Debt: PFPT's debt to equity ratio has reduced from 417.2% to 177.4% over the past 5 years.


Balance Sheet


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 37.4% per year.


Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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

2.2yrs

Average management tenure


CEO

Gary Steele (58 yo)

19.25yrs

Tenure

US$8,413,694

Compensation

Mr. Gary L. Steele serves as 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 has many technology indu...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD8.41M) is above average for companies of similar size in the US market ($USD6.40M).

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


Leadership Team

Experienced Management: PFPT's management team is considered experienced (2.2 years average tenure).


Board Members

Experienced Board: PFPT's board of directors are considered experienced (3.5 years average tenure).


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 not been meaningfully diluted in the past year.


Top Shareholders

Company Information

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


Key Information

  • Name: Proofpoint, Inc.
  • Ticker: PFPT
  • Exchange: NasdaqGS
  • Founded: 2002
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$7.538b
  • Shares outstanding: 57.39m
  • Website: https://www.proofpoint.com

Number of Employees


Location

  • Proofpoint, Inc.
  • 925 West Maude Avenue
  • Sunnyvale
  • California
  • 94085
  • United States

Listings


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 Analysis2021/04/11 22:14
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.