NYSE:PSTG

Stock Analysis Report

Executive Summary

Pure Storage, Inc. engages in building a data platform that enables businesses to enhance performance and reduce complexity and costs worldwide.

Snowflake

Fundamentals

Adequate balance sheet and slightly overvalued.

Risks

  • Pure Storage has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.1%

NYSE:PSTG

4.5%

US Tech

0.9%

US Market


1 Year Return

-37.1%

NYSE:PSTG

-3.8%

US Tech

0.3%

US Market

PSTG underperformed the Tech industry which returned -6.4% over the past year.

PSTG underperformed the Market in United States of America which returned -0.5% over the past year.


Share holder returns

PSTGIndustryMarket
7 Day3.1%4.5%0.9%
30 Day-12.4%2.8%-1.9%
90 Day-10.7%11.0%1.6%
1 Year-37.1%-37.1%-2.1%-3.8%2.6%0.3%
3 Year17.8%17.8%92.4%77.1%41.0%31.8%
5 Yearn/a101.0%80.5%55.2%38.0%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Pure Storage's share price is below the future cash flow value, and at a moderate discount (> 20%).

Pure Storage's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Pure Storage is loss making, we can't compare its value to the US Tech industry average.

Pure Storage is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Pure Storage, we can't assess if its growth is good value.


Price Based on Value of Assets

Pure Storage is overvalued based on assets compared to the US Tech industry average.


Next Steps

Future Growth

How is Pure Storage expected to perform in the next 1 to 3 years based on estimates from 23 analysts?

34.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Pure Storage's revenue is expected to grow by 18.8% yearly, however this is not considered high growth (20% yearly).

Pure Storage is not considered high growth as it is expected to be loss making for the next 1-3 years.

Pure Storage's revenue growth is expected to exceed the United States of America market average.

Unable to compare Pure Storage's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Pure Storage's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Pure Storage is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


Next Steps

Past Performance

How has Pure Storage performed over the past 5 years?

2.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Pure Storage does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.

Unable to compare Pure Storage's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Pure Storage's 1-year growth to the US Tech industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Pure Storage has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Pure Storage has efficiently used its assets last year compared to the US Tech industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Pure Storage improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Pure Storage's financial position?


Financial Position Analysis

Pure Storage is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Pure Storage's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Pure Storage's level of debt (61.3%) compared to net worth is high (greater than 40%).

Unable to establish if Pure Storage's debt level has increased without past 5-year debt data.


Balance Sheet

Low level of unsold assets.

Debt is covered by short term assets, assets are 3.5x 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.

Whilst loss making Pure Storage has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making Pure Storage has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -97.3% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Pure Storage's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Pure Storage's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Pure Storage has not reported any payouts.

Unable to verify if Pure Storage's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Pure Storage has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Pure Storage's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

3.7yrs

Average management tenure


CEO

Charlie Giancarlo (61yo)

2.0yrs

Tenure

US$8,383,230

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. Mr. Giancarlo serves as an Advisor of Ve ...


CEO Compensation Analysis

Charlie's remuneration is higher than average for companies of similar size in United States of America.

Charlie's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

3.7yrs

Average Tenure

53yo

Average Age

The tenure for the Pure Storage management team is about average.


Board Age and Tenure

4.1yrs

Average Tenure

58.5yo

Average Age

The tenure for the Pure Storage board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


Recent Insider Transactions

SellUS$8,182,47027 Mar 19
Scott Dietzen
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares400,000
Max PriceUS$20.46
SellUS$377,42409 Oct 18
Timothy Riitters
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares14,945
Max PriceUS$25.29
SellUS$123,59109 Oct 18
David Hatfield
EntityIndividual
Role
President
President
Shares4,893
Max PriceUS$25.26
SellUS$85,02209 Oct 18
Scott Dietzen
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares3,377
Max PriceUS$25.20
SellUS$121,23709 Oct 18
John Colgrove
EntityIndividual
Role
Member of the Board of Directors
Shares4,779
Max PriceUS$25.40
SellUS$732,65721 Sep 18
Timothy Riitters
EntityIndividual
Role
Chief Financial Officer
Chief Financial Officer
Shares26,680
Max PriceUS$27.46
SellUS$1,509,92621 Sep 18
Charles Giancarlo
EntityIndividual
Role
Chief Executive Officer
Chairman & CEO
Shares54,990
Max PriceUS$27.46
SellUS$1,379,86721 Sep 18
David Hatfield
EntityIndividual
Role
President
President
Shares50,253
Max PriceUS$27.46
SellUS$405,25706 Sep 18
Anita Sands
EntityIndividual
Role
Member of the Board of Directors
Director
Shares15,000
Max PriceUS$27.02

Ownership Breakdown


Management Team

  • Charlie Giancarlo (61yo)

    Chairman & CEO

    • Tenure: 2.0yrs
    • Compensation: US$8.38m
  • David Hatfield (50yo)

    President

    • Tenure: 6.6yrs
    • Compensation: US$3.72m
  • Joe FitzGerald

    VP & General Counsel

    • Tenure: 0.0yrs
  • Matt Danziger

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Coz Colgrove (56yo)

    • Tenure: 9.8yrs
    • Compensation: US$3.57m
  • Kevin Delane

    VP & Head of Worldwide Sales

    • Tenure: 2.2yrs
  • Todd Engle

    Vice President of Operations

    • Tenure: 8.3yrs
  • John Hayes

    Founder & Advisor

    • Tenure: 2.4yrs
  • Tim Riitters (46yo)

    Chief Financial Officer

    • Tenure: 5.0yrs
    • Compensation: US$3.84m
  • Cathy Southwick

    Chief Information Officer

    • Tenure: 0.7yrs

Board Members

  • Charlie Giancarlo (61yo)

    Chairman & CEO

    • Tenure: 2.0yrs
    • Compensation: US$8.38m
  • Frank Slootman (60yo)

    Director

    • Tenure: 5.3yrs
    • Compensation: US$282.99k
  • Mark Garrett (61yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$290.24k
  • Jeff Rothschild (64yo)

    Director

    • Tenure: 1.4yrs
    • Compensation: US$868.89k
  • Scott Dietzen (57yo)

    Vice Chairman

    • Tenure: 2.0yrs
  • Mike Speiser (48yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$270.24k
  • Roxanne Taylor (62yo)

    Director

    • Tenure: 0.5yrs
  • Anita Sands (43yo)

    Director

    • Tenure: 4.1yrs
    • Compensation: US$289.74k
  • Coz Colgrove (56yo)

    • Tenure: 9.8yrs
    • Compensation: US$3.57m
  • Sue Taylor (50yo)

    Director

    • Tenure: 0.8yrs
    • Compensation: US$731.13k

Company Information

Pure Storage, Inc.'s company bio, 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
  • Market Cap: US$3.503b
  • Shares outstanding: 253.09m
  • Website: https://www.purestorage.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PSTGNYSE (New York Stock Exchange)YesClass A Common StockUSUSDOct 2015
6PUDB (Deutsche Boerse AG)YesClass A Common StockDEEUROct 2015
0KSALSE (London Stock Exchange)YesClass A Common StockGBUSDOct 2015

Biography

Pure Storage, Inc. engages in building a data platform that enables businesses to enhance performance and reduce complexity and costs worldwide. The company delivers its data platform through Purity Operat ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/20 00:40
End of Day Share Price2019/08/19 00:00
Earnings2019/04/30
Annual Earnings2019/01/31


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.