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Pure Storage

NYSE:PSTG
Snowflake Description

Adequate balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PSTG
NYSE
$4B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Pure Storage, Inc. engages in building a data platform that enables businesses to enhance performance and reduce complexity and costs worldwide. The last earnings update was 42 days ago. More info.


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  • Pure Storage has significant price volatility in the past 3 months.
PSTG Share Price and Events
7 Day Returns
-1.9%
NYSE:PSTG
-0.1%
US Tech
-0.3%
US Market
1 Year Returns
-35%
NYSE:PSTG
4.1%
US Tech
3.4%
US Market
PSTG Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Pure Storage (PSTG) -1.9% -3.6% -31.4% -35% 32% -
US Tech -0.1% 5% -1.3% 4.1% 88.1% 85.5%
US Market -0.3% 2.9% 2.1% 3.4% 36.2% 41.3%
1 Year Return vs Industry and Market
  • PSTG underperformed the Tech industry which returned 4.1% over the past year.
  • PSTG underperformed the Market in United States of America which returned 3.4% over the past year.
Price Volatility
PSTG
Industry
5yr Volatility vs Market
Related Companies

PSTG Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Pure Storage to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Pure Storage.

NYSE:PSTG Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 23 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:PSTG
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Tech Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.125 (1 + (1- 21%) (14.75%))
1.172
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.17
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.172 * 5.96%)
9.71%

Discounted Cash Flow Calculation for NYSE:PSTG using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Pure Storage is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:PSTG DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.71%)
2020 56.99 Analyst x8 51.94
2021 171.65 Analyst x11 142.59
2022 422.20 Analyst x1 319.69
2023 656.42 Est @ 55.48% 453.02
2024 916.70 Est @ 39.65% 576.64
2025 1,178.65 Est @ 28.58% 675.77
2026 1,424.06 Est @ 20.82% 744.18
2027 1,643.28 Est @ 15.39% 782.70
2028 1,833.82 Est @ 11.59% 796.11
2029 1,997.68 Est @ 8.94% 790.46
Present value of next 10 years cash flows $5,333.11
NYSE:PSTG DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $1,997.68 × (1 + 2.73%) ÷ (9.71% – 2.73%)
$29,381.90
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $29,381.90 ÷ (1 + 9.71%)10
$11,626.12
NYSE:PSTG Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $5,333.11 + $11,626.12
$16,959.22
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $16,959.22 / 253.09
$67.01
NYSE:PSTG Discount to Share Price
Calculation Result
Value per share (USD) From above. $67.01
Current discount Discount to share price of $15.62
= -1 x ($15.62 - $67.01) / $67.01
76.7%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Pure Storage is available for.
Intrinsic value
>50%
Share price is $15.62 vs Future cash flow value of $67.01
Current Discount Checks
For Pure Storage to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Pure Storage's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Pure Storage's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:PSTG PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-04-30) in USD $-0.90
NYSE:PSTG Share Price ** NYSE (2019-07-18) in USD $15.62
United States of America Tech Industry PE Ratio Median Figure of 13 Publicly-Listed Tech Companies 16.98x
United States of America Market PE Ratio Median Figure of 3,083 Publicly-Listed Companies 17.88x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Pure Storage.

NYSE:PSTG PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PSTG Share Price ÷ EPS (both in USD)

= 15.62 ÷ -0.90

-17.3x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Pure Storage's expected growth come at a high price?
Raw Data
NYSE:PSTG PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -17.3x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts
34.3%per year
United States of America Tech Industry PEG Ratio Median Figure of 8 Publicly-Listed Tech Companies 1.45x
United States of America Market PEG Ratio Median Figure of 2,124 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Pure Storage, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Pure Storage's assets?
Raw Data
NYSE:PSTG PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-04-30) in USD $2.94
NYSE:PSTG Share Price * NYSE (2019-07-18) in USD $15.62
United States of America Tech Industry PB Ratio Median Figure of 33 Publicly-Listed Tech Companies 1.71x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.8x
NYSE:PSTG PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PSTG Share Price ÷ Book Value per Share (both in USD)

= 15.62 ÷ 2.94

5.31x

* Primary Listing of Pure Storage.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Pure Storage is overvalued based on assets compared to the US Tech industry average.
X
Value checks
We assess Pure Storage's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Tech industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Tech industry average (and greater than 0)? (1 check)
  5. Pure Storage has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PSTG Future Performance

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

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
34.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Pure Storage expected to grow at an attractive rate?
  • 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.
Growth vs Market Checks
  • 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.
  • Pure Storage's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PSTG Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PSTG Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 23 Analysts 34.3%
NYSE:PSTG Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 23 Analysts 18.9%
United States of America Tech Industry Earnings Growth Rate Market Cap Weighted Average 5.7%
United States of America Tech Industry Revenue Growth Rate Market Cap Weighted Average 4%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:PSTG Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PSTG Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-01-31 2,436 455 -41 6
2021-01-31 2,123 307 -176 23
2020-01-31 1,733 175 -222 23
NYSE:PSTG Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-04-30 1,431 152 -214
2019-01-31 1,360 164 -178
2018-10-31 1,276 143 -185
2018-07-31 1,181 114 -186
2018-04-30 1,098 106 -167
2018-01-31 1,025 73 -160
2017-10-31 913 51 -188
2017-07-31 832 -24 -237
2017-04-30 771 -36 -238
2017-01-31 739 -14 -222
2016-10-31 650 -10 -246
2016-07-31 585 32 -224

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • 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 is expected to grow by 18.9% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:PSTG Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below

All data from Pure Storage Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PSTG Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-01-31 -0.17 -0.17 -0.17 1.00
2021-01-31 -0.71 -0.54 -0.98 11.00
2020-01-31 -0.87 -0.78 -0.96 11.00
NYSE:PSTG Past Financials Data
Date (Data in USD Millions) EPS *
2019-04-30 -0.90
2019-01-31 -0.77
2018-10-31 -0.82
2018-07-31 -0.84
2018-04-30 -0.77
2018-01-31 -0.76
2017-10-31 -0.91
2017-07-31 -1.17
2017-04-30 -1.20
2017-01-31 -1.14
2016-10-31 -1.29
2016-07-31 -1.39

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Pure Storage is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Pure Storage's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Pure Storage has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PSTG Past Performance

  How has Pure Storage performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Pure Storage's growth in the last year to its industry (Tech).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Pure Storage's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Pure Storage Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PSTG Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-04-30 1,430.58 -214.39 780.66 376.52
2019-01-31 1,359.82 -178.36 721.62 349.94
2018-10-31 1,275.72 -185.24 693.84 328.79
2018-07-31 1,180.53 -186.46 650.66 306.93
2018-04-30 1,098.06 -167.02 597.06 292.26
2018-01-31 1,024.76 -159.88 559.22 279.20
2017-10-31 912.77 -187.89 512.54 276.35
2017-07-31 832.13 -237.30 484.37 269.03
2017-04-30 770.68 -238.44 451.87 258.31
2017-01-31 739.17 -221.53 432.35 245.82
2016-10-31 650.35 -246.45 413.48 226.90
2016-07-31 584.76 -224.13 380.21 208.35
2016-04-30 506.20 -228.42 347.74 187.90
2016-01-31 440.33 -213.75 304.08 166.65
2015-10-31 355.95 -217.09 269.74 142.25
2015-07-31 273.78 -200.99 234.46 122.04
2015-04-30 223.88 -202.30 215.65 111.58
2015-01-31 174.45 -183.23 184.67 92.71
2014-01-31 42.73 -78.56 60.65 36.08

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • 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.
  • 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.
X
Past performance checks
We assess Pure Storage's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Tech industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Pure Storage has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PSTG Health

 How is Pure Storage's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Pure Storage's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Pure Storage's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3.5x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Pure Storage Company Filings, last reported 2 months ago.

NYSE:PSTG Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-04-30 743.98 456.32 1,166.15
2019-01-31 737.78 449.83 1,197.47
2018-10-31 702.33 443.21 1,143.66
2018-07-31 644.39 436.69 1,106.66
2018-04-30 631.62 430.25 1,097.96
2018-01-31 574.40 0.00 597.35
2017-10-31 459.12 0.00 551.38
2017-07-31 445.41 0.00 523.02
2017-04-30 465.31 0.00 535.98
2017-01-31 478.43 0.00 546.66
2016-10-31 477.77 0.00 518.25
2016-07-31 514.06 0.00 570.17
2016-04-30 541.42 0.00 607.00
2016-01-31 563.35 0.00 604.74
2015-10-31 583.95 0.00 573.31
2015-07-31 155.91 0.00 128.28
2015-04-30 205.97 0.00 173.23
2015-01-31 244.11 0.00 192.71
2014-01-31 146.88 0.00 130.89
  • Pure Storage's level of debt (61.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 61.3% today).
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.
X
Financial health checks
We assess Pure Storage's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Pure Storage has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PSTG Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Pure Storage dividends. Estimated to be 0% next year.
If you bought $2,000 of Pure Storage shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:PSTG Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 23 Analyst Estimates (S&P Global) See Below
United States of America Tech Industry Average Dividend Yield Market Cap Weighted Average of 8 Stocks 1.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2017 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:PSTG Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-01-31 0.00 1.00
2021-01-31 0.00 3.00
2020-01-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Pure Storage's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess Pure Storage's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Pure Storage afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Pure Storage has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PSTG Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Charlie Giancarlo
COMPENSATION $8,383,230
AGE 61
TENURE AS CEO 1.9 years
CEO Bio

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 Vectra Networks, Inc. and Sharecare Reality Lab. Mr. Giancarlo is the Founder at ItsOn, Inc. Mr. Giancarlo has over 30 years of experience in the semiconductor, communications and networking industries. Mr. Giancarlo served as Managing Director of Silver Lake Partners from January 2008 until October 2015. He joined Silver Lake in 2008 and served as its Senior Advisor since 2014. Mr. Giancarlo served as Managing Director and Senior Advisor of Silver Lake Partners IV, L.P. from 2008 to 2013. Previously, he served as the Head of Value Creation and Managing Director at Silver Lake Partners since joining Silver Lake in December 2007 until 2015. He served as the Chief Executive Officer and President of Avaya Inc. from June 30, 2008 to 2009. He served as an Interim Chief Executive Officer at Avaya until 2008. He served as Senior Executive at Cisco Systems, from 1993 to 2007. From 1993 to 2007, Mr. Giancarlo served in senior executive roles at Cisco Systems, including Chief Technology Officer since August 2004 and served as its Senior Vice-President. He served as the Chief Development Officer of Cisco Systems, Inc., from July 31, 2005 to January 2008 and served as its Executive Vice President May 2004 to December 2007. He directed the activities of half of Cisco’s employees and was directly responsible for Cisco’s expansion into a large number of new markets and technologies. He served as the Head of Voice and Home Networking Business at Cisco Systems Inc. His first position at Cisco served as Vice President of Business Development, where he developed Cisco’s merger and acquisition strategy and practice. He served as the President of Cisco-Linksys, LLC since June 2003. He served as a Senior Vice President of the Switching Voice and Storage Groups at Cisco Systems, Inc. since May 2002. He served as President of Cisco Linksys LLC since June 2003. While at Cisco, he was directly responsible for the creation of many of Cisco’s advanced technologies including Ethernet Switching, WiFi, Security, IP Telephony and TelePresence, as well as Cisco entry into major new markets such as the small and medium and consumer markets, consumer video and WebEx. Prior to Cisco, he served as the Vice President of Marketing and Corporate Development at Kalpana, Inc. (a/k/a Kalpana Corporation) from July 1993 to December 1994 and its Vice President of Marketing and Corporate Development. Mr. Giancarlo served as Senior Vice President of NetSys Technologies. He founded four communications equipment companies. He was the Founder and Vice President of Marketing at Adaptive Corporation. During his 14 years at Cisco, he was a key contributor to the growth of Cisco and was ultimately responsible for the products that generated 80 percent of Cisco's revenues. He serves as the Chairman of Soraa, Inc. He served as the Chairman of Avaya Holdings Corp. He served as the Chairman of Avaya Inc. since December 22, 2008 and served as its Director since June 30, 2008. He has been a Member of Board of Advisors at vIPtela Inc. since September 2015. He was an Independent Director of Accenture plc since December 15, 2008 until January 2019. He is an Independent Director of Skype Global S.à r.l. since December 2009. Mr. Giancarlo serves as an Independent Director of Blue Jeans Network, Inc. He serves as a Director of Soraa, Inc. and Vantage. He has been a Director of Vectra Networks, Inc. since May 28, 2014. He has been an Independent Director of Arista Networks, Inc. since April 2013. He serves as a Director of ItsOn, Inc. and Headwater Partners I LLC. Mr. Giancarlo has been Director at Zscaler, Inc. since November 2016. He serves as a Member of the Strategic Advisory Team at Feeva Technology, Inc. He serves as a Board Member at Attivo Networks, Inc. He serves on the Advisory Board of the UC Berkeley School of Electrical Engineering and Computer Science and serves as a Trustee of Brown University. He serves on the Board of Advisors at University of California. He served as a Director at ServiceNow, Inc. (formerly, Service-now.com/Glidesoft Inc) since November 2013 until August 31, 2017 and served as its Lead Independent Director since October 25, 2016 until August 31, 2017. He served as a Director of Skype Limited and InfoGear Technology Corporation. He served as a Member of Advisory Board at Coraid, Inc. since January 2010. He served as a Director of Mirapoint Software, Inc. and Mercury Payment Systems, LLC. He served as a Director of Tintri, Inc. since September 2016 until August 10, 2017 and Imperva. He served as a Director of Mercury Payment Systems, Inc. since April 2010. He served as an Independent Director of Netflix, Inc. from April 4, 2007 to May 2, 2012. He served as a Director of SEEQ Technology, Inc. since August 1997 and Gerson Lehrman Group, Inc. since January 4, 2008. In 2007, he was named to Network World’s list of the “Top 50 Most Powerful People in Networking” for the fourth year in a row. Mr. Giancarlo holds an M.B.A. in Business from Harvard Business School in the year 1982 to 1984, an M.S. in Electrical Engineering from the University of California at Berkeley in the year 1979 to 1980 and a B.S. in Electrical Engineering from Brown University in the year 1975 to 1979.

CEO Compensation
  • Charlie's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Charlie's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Pure Storage management team in years:

3.6
Average Tenure
53
Average Age
  • The tenure for the Pure Storage management team is about average.
Management Team

Charlie Giancarlo

TITLE
Chairman & CEO
COMPENSATION
$8M
AGE
61
TENURE
1.9 yrs

David Hatfield

TITLE
President
COMPENSATION
$4M
AGE
50
TENURE
6.5 yrs

Coz Colgrove

TITLE
COMPENSATION
$4M
AGE
56
TENURE
9.8 yrs

Tim Riitters

TITLE
Chief Financial Officer
COMPENSATION
$4M
AGE
46
TENURE
4.9 yrs

John Hayes

TITLE
Founder & Advisor
TENURE
2.3 yrs

Todd Engle

TITLE
Vice President of Operations
TENURE
8.3 yrs

Cathy Southwick

TITLE
Chief Information Officer
TENURE
0.6 yrs

Matt Danziger

TITLE
Head of Investor Relations

Joe FitzGerald

TITLE
VP & General Counsel

Kevin Delane

TITLE
VP & Head of Worldwide Sales
TENURE
2.1 yrs
Board of Directors Tenure

Average tenure and age of the Pure Storage board of directors in years:

4
Average Tenure
58.5
Average Age
  • The tenure for the Pure Storage board of directors is about average.
Board of Directors

Scott Dietzen

TITLE
Vice Chairman
AGE
57
TENURE
1.9 yrs

Charlie Giancarlo

TITLE
Chairman & CEO
COMPENSATION
$8M
AGE
61

Coz Colgrove

TITLE
COMPENSATION
$4M
AGE
56
TENURE
9.8 yrs

Frank Slootman

TITLE
Director
COMPENSATION
$283K
AGE
60
TENURE
5.2 yrs

Mark Garrett

TITLE
Director
COMPENSATION
$290K
AGE
61
TENURE
4 yrs

Anita Sands

TITLE
Director
COMPENSATION
$290K
AGE
43
TENURE
4 yrs

Mike Speiser

TITLE
Director
COMPENSATION
$270K
AGE
48
TENURE
9.8 yrs

Jeff Rothschild

TITLE
Director
COMPENSATION
$869K
AGE
64
TENURE
1.3 yrs

Sue Taylor

TITLE
Director
COMPENSATION
$731K
AGE
50
TENURE
0.8 yrs

Roxanne Taylor

TITLE
Director
AGE
62
TENURE
0.4 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
27. Mar 19 Sell Scott Dietzen Individual 25. Mar 19 25. Mar 19 -400,000 $20.46 $-8,182,470
09. Oct 18 Sell John Colgrove Individual 05. Oct 18 05. Oct 18 -4,779 $25.40 $-121,237
09. Oct 18 Sell Timothy Riitters Individual 05. Oct 18 05. Oct 18 -14,945 $25.29 $-377,424
09. Oct 18 Sell David Hatfield Individual 05. Oct 18 05. Oct 18 -4,893 $25.26 $-123,591
09. Oct 18 Sell Scott Dietzen Individual 05. Oct 18 05. Oct 18 -3,377 $25.20 $-85,022
21. Sep 18 Sell Timothy Riitters Individual 20. Sep 18 20. Sep 18 -26,680 $27.46 $-732,657
21. Sep 18 Sell David Hatfield Individual 20. Sep 18 20. Sep 18 -50,253 $27.46 $-1,379,867
21. Sep 18 Sell Charles Giancarlo Individual 20. Sep 18 20. Sep 18 -54,990 $27.46 $-1,509,926
06. Sep 18 Sell Anita Sands Individual 04. Sep 18 04. Sep 18 -15,000 $27.02 $-405,257
X
Management checks
We assess Pure Storage's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Pure Storage has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PSTG News

Simply Wall St News

Pure Storage (NYSE:PSTG) Is Using Debt In A Risky Way

The external fund manager backed by Berkshire Hathaway's Charlie Munger, Li Lu, makes no bones about it when he says 'The biggest investment risk is not the volatility of prices, but whether you will suffer a permanent loss of capital.' It's only natural to consider a company's balance sheet when you examine how risky it is, since debt is often involved when a business collapses. … NYSE:PSTG Historical Debt, July 9th 2019 How Strong Is Pure Storage's Balance Sheet? … This short term liquidity is a sign that Pure Storage could probably pay off its debt with ease, as its balance sheet is far from stretched.

Simply Wall St -

Update: Pure Storage (NYSE:PSTG) Stock Gained 40% In The Last Three Years

In the last 3 years Pure Storage saw its revenue grow at 35% per year. … While the compound gain of 12% per year over three years is pretty good, you might argue it doesn't fully reflect the strong revenue growth. … NYSE:PSTG Income Statement, May 21st 2019 Pure Storage is a well known stock, with plenty of analyst coverage, suggesting some visibility into future growth.

Simply Wall St -

Have Insiders Been Selling Pure Storage, Inc. (NYSE:PSTG) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Pure Storage, Inc. … The Last 12 Months Of Insider Transactions At Pure Storage. … Insiders in Pure Storage didn't buy any shares in the last year

Simply Wall St -

Pure Storage, Inc. (NYSE:PSTG): What Does The Future Look Like?

The most recent earnings announcement Pure Storage, Inc.'s (NYSE:PSTG) released in January 2019 … company earnings became less negative compared to the previous year's level

Simply Wall St -

What does Pure Storage, Inc.'s (NYSE:PSTG) Balance Sheet Tell Us About Its Future?

Stocks with market capitalization between $2B and $10B, such as Pure Storage, Inc. … Today we will look at PSTG’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … How does PSTG’s operating cash flow stack up against its debt?

Simply Wall St -

Who Has Been Selling Pure Storage, Inc. (NYSE:PSTG) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Pure Storage, Inc. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … Pure Storage Insider Transactions Over The Last Year.

Simply Wall St -

Should You Think About Buying Pure Storage, Inc. (NYSE:PSTG) Now?

saw significant share price movement during recent months on the NYSE, rising to highs of $28.52 and falling to the lows of $15.39. … A question to answer is whether Pure Storage's current trading price of $15.39 reflective of the actual value of the? … Let’s take a look at Pure Storage’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Before Investing In Pure Storage Inc (NYSE:PSTG), Consider This

Pure Storage Inc (NYSE:PSTG) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … Pure Storage’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure. … There are two methods I will use to evaluate the quality of Pure Storage’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability

Simply Wall St -

Who Really Owns Pure Storage Inc (NYSE:PSTG)?

The big shareholder groups in Pure Storage Inc (NYSE:PSTG) have power over the company. … With a market capitalization of US$5.81b, Pure Storage is rather large. … institutional investors have bought into the company

Simply Wall St -

Why Are Insiders Bearish About Pure Storage Inc's (NYSE:PSTG) Stock?

some insider selling over the past three months, with insiders divesting from. … A well-known argument is that insiders divesting from their own companies’ shares sends a pessimistic signal. … A two-decade research published in The MIT Press (1998) showed that stocks following insider selling declined 2.7% relative to the market

Simply Wall St -

PSTG Company Info

Description

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 Operating Environment, an optimized software for solid-state memory that offers enterprise-class storage and protocol services; FlashArray and FlashBlade optimized hardware products for solid-state memory to enhance the performance and density of flash, optimize its advanced software services, and reduce solution cost for customers; Pure1, a cloud-based management and support software; and FlashStack and Artificial Intelligence Ready Infrastructure converged infrastructure solutions. Its data platform is used for a range of use cases, including database applications, large-scale analytics, artificial intelligence/machine learning, private and public cloud infrastructure and Web scale applications, virtual server infrastructure, and virtual desktop infrastructure; and helps customers scale their businesses through real-time and accurate analytics, increase employee productivity, improve operational efficiency, and deliver compelling user experiences to their customers and partners. The company serves enterprise and commercial organizations, cloud, global systems integrators, and service providers across various set of industry verticals, consumer Web, education, energy, financial services, governments, healthcare, manufacturing, media, retail, and telecommunications through a network of distribution and channel partners. The company was formerly known as OS76, Inc. and changed its name to Pure Storage, Inc. in January 2010. Pure Storage, Inc. was founded in 2009 and is headquartered in Mountain View, California.

Details
Name: Pure Storage, Inc.
PSTG
Exchange: NYSE
Founded: 2009
$3,953,289,573
253,091,522
Website: http://www.purestorage.com
Address: Pure Storage, Inc.
650 Castro Street,
Suite 400,
Mountain View,
California, 94041,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PSTG Class A Common Stock New York Stock Exchange US USD 07. Oct 2015
DB 6PU Class A Common Stock Deutsche Boerse AG DE EUR 07. Oct 2015
LSE 0KSA Class A Common Stock London Stock Exchange GB USD 07. Oct 2015
Number of employees
Current staff
Staff numbers
3,150
Pure Storage employees.
Industry
Technology Hardware, Storage and Peripherals
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/07/19 00:46
End of day share price update: 2019/07/18 00:00
Last estimates confirmation: 2019/07/12
Last earnings filing: 2019/06/07
Last earnings reported: 2019/04/30
Last annual earnings reported: 2019/01/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.