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 overvalued.


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

5.4%

PSTG

2.3%

US Tech

1.8%

US Market


1 Year Return

-18.0%

PSTG

8.1%

US Tech

7.3%

US Market

Return vs Industry: PSTG underperformed the US Tech industry which returned 8.1% over the past year.

Return vs Market: PSTG underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

PSTGIndustryMarket
7 Day5.4%2.3%1.8%
30 Day2.2%5.7%-0.7%
90 Day14.6%14.8%0.06%
1 Year-18.0%-18.0%9.9%8.1%9.7%7.3%
3 Year44.9%44.9%100.6%85.1%46.3%36.9%
5 Yearn/a121.4%99.0%64.5%46.5%

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?

9.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: PSTG ($18.11) is trading below our estimate of fair value ($20.02)

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


Price To Earnings Ratio

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

Low 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 (6.3x) compared to the US Tech industry average (1.7x).


Next Steps

Future Growth

How is Pure Storage forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

33.4%

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 (17.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: PSTG's revenue (17.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: PSTG's Return on Equity is forecast to be low in 3 years time (17.8%).


Next Steps

Past Performance

How has Pure Storage performed over the past 5 years?

2.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: PSTG is unprofitable, but has reduced losses over the past 5 years at a rate of 2.3% 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 (64%).


Return on Equity

High ROE: PSTG has a negative Return on Equity (-29.87%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: PSTG is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: PSTG is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Pure Storage's financial position?


Financial Position Analysis

Short Term Liabilities: PSTG's short term assets ($1.6B) exceeds its short term liabilities ($514.6M)

Long Term Liabilities: PSTG's short term assets (1.6B) exceeds its long term liabilities (863.9M)


Debt to Equity History and Analysis

Debt Level: PSTG's debt to equity ratio (62.8%) 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

Inventory Level: PSTG has a low level of unsold assets or inventory.

Debt Coverage by Assets: PSTG's debt is covered by short term assets (assets are 3.562680x 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.

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 106.9% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

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

3.9yrs

Average management tenure


CEO

Charlie Giancarlo (61yo)

2.2yrs

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

Compensation vs. Market: Charlie has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

3.9yrs

Average Tenure

53yo

Average Age

Experienced Management: PSTG's management team is considered experienced (3.9 years average tenure).


Board Age and Tenure

2.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: PSTG's board of directors are not considered experienced ( 2.2 years average tenure), which suggests a new board.


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$8,182,47027 Mar 19
Scott Dietzen
EntityIndividual
Role
Vice Chairman
Vice Chairman
Shares400,000
Max PriceUS$20.46

Ownership Breakdown


Management Team

  • Charlie Giancarlo (61yo)

    Chairman & CEO

    • Tenure: 2.2yrs
    • Compensation: US$8.38m
  • David Hatfield (50yo)

    President

    • Tenure: 6.8yrs
    • Compensation: US$3.72m
  • Joe FitzGerald

    VP & General Counsel

    • Tenure: 0yrs
  • Matt Danziger

    Head of Investor Relations

    • Tenure: 0yrs
  • Coz Colgrove (56yo)

    • Tenure: 10yrs
    • Compensation: US$3.57m
  • Kevin Delane

    VP & Head of Worldwide Sales

    • Tenure: 2.3yrs
  • Todd Engle

    Vice President of Operations

    • Tenure: 8.5yrs
  • John Hayes

    Founder & Advisor

    • Tenure: 2.6yrs
  • Tim Riitters (46yo)

    Chief Financial Officer

    • Tenure: 5.2yrs
    • Compensation: US$3.84m
  • Cathy Southwick

    Chief Information Officer

    • Tenure: 0.8yrs

Board Members

  • Charlie Giancarlo (61yo)

    Chairman & CEO

    • Tenure: 2.2yrs
    • Compensation: US$8.38m
  • Frank Slootman (60yo)

    Director

    • Tenure: 5.4yrs
    • Compensation: US$282.99k
  • Mark Garrett (61yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$290.24k
  • Jeff Rothschild (64yo)

    Director

    • Tenure: 1.6yrs
    • Compensation: US$868.89k
  • Scott Dietzen (57yo)

    Vice Chairman

    • Tenure: 2.2yrs
  • Roxanne Taylor (62yo)

    Director

    • Tenure: 0.7yrs
  • Anita Sands (43yo)

    Director

    • Tenure: 4.3yrs
    • Compensation: US$289.74k
  • Coz Colgrove (56yo)

    • Tenure: 10yrs
    • Compensation: US$3.57m
  • Andy Brown (56yo)

    Director

    • Tenure: 0.08yrs
  • Sue Taylor (50yo)

    Director

    • Tenure: 1yrs
    • 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$4.639b
  • Shares outstanding: 256.18m
  • 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 Analysis2019/10/18 00:35
End of Day Share Price2019/10/17 00:00
Earnings2019/07/31
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.