NYSE:PSTG

Stock Analysis Report

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Executive Summary

Pure Storage, Inc. provides technology and data storage solutions in the United States and internationally. More Details


Snowflake Analysis

Adequate balance sheet with concerning outlook.


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

Stable Share Price: PSTG is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: PSTG's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

-3.7%

PSTG

-3.5%

US Tech

-1.0%

US Market


1 Year Return

23.6%

PSTG

55.0%

US Tech

19.6%

US Market

Return vs Industry: PSTG underperformed the US Tech industry which returned 55% over the past year.

Return vs Market: PSTG exceeded the US Market which returned 19.6% over the past year.


Shareholder returns

PSTGIndustryMarket
7 Day-3.7%-3.5%-1.0%
30 Day2.5%-1.0%2.2%
90 Day25.1%7.7%11.5%
1 Year23.6%23.6%56.5%55.0%22.3%19.6%
3 Year27.9%27.9%174.0%162.3%45.3%35.7%
5 Year66.5%66.5%404.1%355.1%124.8%99.8%

Long-Term 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 compared to its fair value and its price relative to the market?

8.46x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: PSTG ($22.86) is trading above our estimate of fair value ($3.48)

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


Price To Earnings Ratio

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

PE vs Market: PSTG 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 PSTG's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PSTG is overvalued based on its PB Ratio (8.5x) compared to the US Tech industry average (2.5x).


Next Steps

Future Growth

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

19.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: PSTG's revenue (15% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: PSTG's revenue (15% 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 low in 3 years time (13.6%).


Next Steps

Past Performance

How has Pure Storage performed over the past 5 years?

2.4%

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 2.4% 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 (-13.1%).


Return on Equity

High ROE: PSTG has a negative Return on Equity (-31.89%), as it is currently unprofitable.


Next Steps

Financial Health

How is Pure Storage's financial position?


Financial Position Analysis

Short Term Liabilities: PSTG's short term assets ($1.7B) exceed its short term liabilities ($659.5M).

Long Term Liabilities: PSTG's short term assets ($1.7B) exceed its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: PSTG's debt to equity ratio (101.8%) is considered high.

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 63% per year.


Next Steps

Dividend

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


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.


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 PSTG'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?

1.2yrs

Average management tenure


CEO

Charlie Giancarlo (62 yo)

3.42yrs

Tenure

US$8,725,179

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 ($USD8.73M) is above average for companies of similar size in the US market ($USD6.20M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Charles Giancarlo
Chairman & CEO3.42yrsUS$8.73m0.36%
$ 22.2m
John Colgrove
Founder11.25yrsUS$3.75m3.83%
$ 238.7m
Kevan Krysler
Chief Financial Officer1.08yrsUS$8.28m0.14%
$ 8.9m
Paul Mountford
Chief Operating Officer1.17yrsUS$9.67m0.14%
$ 8.5m
David Hatfield
Vice Chair & President Emeritus1.17yrsUS$3.80m0.26%
$ 16.1m
John Hayes
Founder & Advisor3.83yrsno datano data
Cathleen Southwick
Chief Information Officer2.08yrsno datano data
Matthew Danziger
Head of Investor Relationsno datano datano data
Joseph FitzGerald
Chief Legal Officer & Corporate Secretaryno datano datano data
Arthur Johnson
Vice President of Corporate Development & Strategic Planningno datano datano data
Jason Rose
Chief Marketing Officer0.42yrno datano data
Dominick Delfino
Chief Revenue Officer & Global Head of Sales0.17yrno datano data

1.2yrs

Average Tenure

57yo

Average Age

Experienced Management: PSTG's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Charles Giancarlo
Chairman & CEO3.42yrsUS$8.73m0.36%
$ 22.2m
John Colgrove
Founder11.25yrsUS$3.75m3.83%
$ 238.7m
Mark Garrett
Independent Director5.5yrsUS$298.01k0.014%
$ 903.7k
Jeffrey Rothschild
Independent Director2.75yrsUS$279.01k0.014%
$ 891.2k
Gregory Tomb
Independent Director0.92yrno data0.0012%
$ 77.3k
Scott Dietzen
Vice Chairman2.33yrsno data0.90%
$ 56.3m
Roxanne Taylor
Independent Director1.92yrsUS$936.64k0.0096%
$ 601.2k
Anita Sands
Independent Director5.5yrsUS$294.26k0.0090%
$ 560.7k
Andrew Brown
Independent Director1.33yrsUS$791.59k0.0036%
$ 227.0k
Susan Jannifer Taylor
Independent Director2.25yrsUS$295.51k0.011%
$ 672.9k

2.3yrs

Average Tenure

58yo

Average Age

Experienced Board: PSTG's board of directors are not considered experienced ( 2.3 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PSTG insiders have only sold shares 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 4.8%.


Top Shareholders

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$6.236b
  • Shares outstanding: 272.81m
  • 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. provides technology and data storage solutions in the United States and internationally. It delivers solutions based on proprietary Purity Operating Environment Software that implements ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/16 23:16
End of Day Share Price2021/01/15 00:00
Earnings2020/11/01
Annual Earnings2020/02/02


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.