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PSTG

Pure Storage NYSE:PSTG Stock Report

Last Price

US$25.92

Market Cap

US$7.7b

7D

2.4%

1Y

32.7%

Updated

29 Jun, 2022

Data

Company Financials +
PSTG fundamental analysis
Snowflake Score
Valuation3/6
Future Growth5/6
Past Performance0/6
Financial Health5/6
Dividends0/6

PSTG Stock Overview

Pure Storage, Inc. provides data storage technologies, products, and services in the United States and internationally.

Pure Storage Competitors

Price History & Performance

Summary of all time highs, changes and price drops for Pure Storage
Historical stock prices
Current Share PriceUS$25.92
52 Week HighUS$36.71
52 Week LowUS$17.40
Beta1.52
1 Month Change6.32%
3 Month Change-26.59%
1 Year Change32.72%
3 Year Change66.26%
5 Year Change99.39%
Change since IPO61.90%

Recent News & Updates

Jun 16

Pure Storage: Flying High

Pure Storage is a fantastic, value-oriented investment during the current volatile market. The company just drove 50% y/y revenue growth in its recently-released first quarter, driven by a pull-in of deal execution. Management notes that the resumption of sales travel has resulted in tremendous new customer growth, especially overseas. Pure Storage still looks very cheap at a ~2.6x forward revenue multiple.

Shareholder Returns

PSTGUS TechUS Market
7D2.4%2.7%1.6%
1Y32.7%0.4%-20.8%

Return vs Industry: PSTG exceeded the US Tech industry which returned -0.3% over the past year.

Return vs Market: PSTG exceeded the US Market which returned -20.4% over the past year.

Price Volatility

Is PSTG's price volatile compared to industry and market?
PSTG volatility
PSTG Average Weekly Movement8.6%
Tech Industry Average Movement9.4%
Market Average Movement8.1%
10% most volatile stocks in US Market16.8%
10% least volatile stocks in US Market3.2%

Stable Share Price: PSTG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 9% a week.

Volatility Over Time: PSTG's weekly volatility (9%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20094,300Charlie Giancarlohttps://www.purestorage.com

Pure Storage, Inc. provides data storage technologies, products, and services in the United States and internationally. The company’s Purity software is shared across its products and provides enterprise-class data services, such as data reduction, data protection, and encryption, as well as storage protocols, including block, file, and object. Its products portfolio includes FlashArray for block-oriented storage, addressing databases, applications, virtual machines, and other traditional workloads; FlashArray//XL; and FlashArray//C, an all-QLC flash array.

Pure Storage Fundamentals Summary

How do Pure Storage's earnings and revenue compare to its market cap?
PSTG fundamental statistics
Market CapUS$7.67b
Earnings (TTM)-US$70.59m
Revenue (TTM)US$2.39b

3.2x

P/S Ratio

-108.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
PSTG income statement (TTM)
RevenueUS$2.39b
Cost of RevenueUS$771.47m
Gross ProfitUS$1.62b
Other ExpensesUS$1.69b
Earnings-US$70.59m

Last Reported Earnings

May 08, 2022

Next Earnings Date

n/a

Earnings per share (EPS)-0.24
Gross Margin67.70%
Net Profit Margin-2.96%
Debt/Equity Ratio78.7%

How did PSTG perform over the long term?

See historical performance and comparison
We’ve recently updated our valuation analysis.

Valuation

Is PSTG undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

  • Price-To-Sales vs Peers

  • Price-To-Sales vs Industry

  • Price-To-Sales vs Fair Ratio

  • Below Fair Value

  • Significantly Below Fair Value

  • PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for PSTG?

Other financial metrics that can be useful for relative valuation.

PSTG key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue3x
Enterprise Value/EBITDA117.7x
PEG Ration/a

Price to Sales Ratio vs Peers

How does PSTG's PS Ratio compare to its peers?

PSTG PS Ratio vs Peers
The above table shows the PS ratio for PSTG vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
CompanyPSEstimated GrowthMarket Cap
Peer Average449.8x
WDC Western Digital
0.7x4.0%US$14.2b
NTAP NetApp
2.3x5.3%US$14.5b
STX Seagate Technology Holdings
1.3x2.1%US$15.4b
CLPE Clear Peak Energy
1794.9xn/aUS$4.2b
PSTG Pure Storage
3.2x13.6%US$7.7b

Price-To-Sales vs Peers: PSTG is good value based on its Price-To-Sales Ratio (3.2x) compared to the peer average (449.8x).


Price to Earnings Ratio vs Industry

How does PSTG's PE Ratio compare vs other companies in the US Tech Industry?

Price-To-Sales vs Industry: PSTG is expensive based on its Price-To-Sales Ratio (3.2x) compared to the US Tech industry average (1x)


Price to Sales Ratio vs Fair Ratio

What is PSTG's PS Ratio compared to its Fair PS Ratio? This is the expected PS Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

PSTG PS Ratio vs Fair Ratio.
Fair Ratio
Current PS Ratio3.2x
Fair PS Ratio6.9x

Price-To-Sales vs Fair Ratio: PSTG is good value based on its Price-To-Sales Ratio (3.2x) compared to the estimated Fair Price-To-Sales Ratio (6.9x).


Share Price vs Fair Value

What is the Fair Price of PSTG when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: PSTG ($25.92) is trading below our estimate of fair value ($30.53)

Significantly Below Fair Value: PSTG is trading below fair value, but not by a significant amount.


Price to Earnings Growth Ratio

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


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Future Growth

How is Pure Storage forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

  • Earnings vs Savings Rate

  • Earnings vs Market

  • High Growth Earnings

  • Revenue vs Market

  • High Growth Revenue

  • Future ROE


113.4%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PSTG is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.9%).

Earnings vs Market: PSTG is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PSTG is expected to become profitable in the next 3 years.

Revenue vs Market: PSTG's revenue (13.6% per year) is forecast to grow faster than the US market (8.3% per year).

High Growth Revenue: PSTG's revenue (13.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PSTG's Return on Equity is forecast to be high in 3 years time (37.9%)


Discover growth companies

Past Performance

How has Pure Storage performed over the past 5 years?

Past Performance Score

0/6

Past Performance Score 0/6

  • Quality Earnings

  • Growing Profit Margin

  • Earnings Trend

  • Accelerating Growth

  • Earnings vs Industry

  • High ROE


0.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: PSTG is currently unprofitable.

Growing Profit Margin: PSTG is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PSTG is unprofitable, but has reduced losses over the past 5 years at a rate of 0.6% per year.

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

Earnings vs Industry: PSTG is unprofitable, making it difficult to compare its past year earnings growth to the Tech industry (67.6%).


Return on Equity

High ROE: PSTG has a negative Return on Equity (-9.71%), as it is currently unprofitable.


Discover strong past performing companies

Financial Health

How is Pure Storage's financial position?

Financial Health Score

5/6

Financial Health Score 5/6

  • Short Term Liabilities

  • Long Term Liabilities

  • Debt Level

  • Reducing Debt

  • Stable Cash Runway

  • Forecast Cash Runway

Financial Position Analysis

Short Term Liabilities: PSTG's short term assets ($1.9B) exceed its short term liabilities ($1.4B).

Long Term Liabilities: PSTG's short term assets ($1.9B) exceed its long term liabilities ($659.9M).


Debt to Equity History and Analysis

Debt Level: PSTG has more cash than its total debt.

Reducing Debt: Insufficient data to determine if PSTG's debt to equity ratio has reduced 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 PSTG has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PSTG is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 59.9% per year.


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Dividend

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

Dividend Score

0/6

Dividend Score 0/6

  • Notable Dividend

  • High Dividend

  • Stable Dividend

  • Growing Dividend

  • Earnings Coverage

  • Future Dividend Coverage

Dividend Yield vs Market

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

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

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


Earnings Payout to Shareholders

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


Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as PSTG has not reported any payouts.


Discover strong dividend paying companies

Management

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

1.4yrs

Average management tenure


CEO

Charlie Giancarlo (63 yo)

4.83yrs

Tenure

US$9,794,382

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 since September 2018. Mr. Giancarlo serve...


CEO Compensation Analysis

Compensation vs Market: Charlie's total compensation ($USD9.79M) is about average for companies of similar size in the US market ($USD8.21M).

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


Leadership Team

Experienced Management: PSTG's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

Experienced Board: PSTG'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 been diluted in the past year, with total shares outstanding growing by 4.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Pure Storage, Inc.
  • Ticker: PSTG
  • Exchange: NYSE
  • Founded: 2009
  • Industry: Technology Hardware, Storage and Peripherals
  • Sector: Tech
  • Implied Market Cap: US$7.673b
  • Shares outstanding: 296.02m
  • Website: https://www.purestorage.com

Number of Employees


Location

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

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2022/06/29 00:00
End of Day Share Price2022/06/29 00:00
Earnings2022/05/08
Annual Earnings2022/02/06


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.