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In today's rapidly changing and fiercely competitive business landscape, it is vital for investors and industry enthusiasts to carefully evaluate companies. In this article, we will perform a comprehensive industry comparison, evaluating Pure Storage (NYSE:PSTG) against its key competitors in the Technology Hardware, Storage & Peripherals industry. By analyzing important financial metrics, market position, and growth prospects, we aim to provide valuable insights for investors and shed light on company's performance within the industry.
Pure Storage Inc is a U.S.-based company that provides an enterprise data storage platform that transforms business through a dramatic increase in performance and reduction in complexity and costs. It generates revenue from two sources: product revenue which includes the sale of integrated storage hardware and embedded operating system software and; subscription services revenue which includes Evergreen Storage subscriptions, a unified subscription which includes Pure as-a-Service, and Cloud Block Store, and Portworx. Subscription services revenue also includes professional services offerings such as installation and implementation consulting services.
| Company | P/E | P/B | P/S | ROE | EBITDA (in billions) | Gross Profit (in billions) | Revenue Growth |
|---|---|---|---|---|---|---|---|
| Pure Storage Inc | 219.60 | 15.59 | 7.56 | -2.65% | $0.01 | $0.5 | 17.68% |
| Apple Inc | 35.56 | 47.26 | 9.36 | 31.88% | $30.74 | $42.27 | -4.31% |
| Super Micro Computer Inc | 49.87 | 10.30 | 4.42 | 9.85% | $0.4 | $0.6 | 200.01% |
| Hewlett Packard Enterprise Co | 15.51 | 1.27 | 0.99 | 1.46% | $1.11 | $2.38 | 3.31% |
| NetApp Inc | 28.53 | 23.72 | 4.49 | 27.2% | $0.46 | $1.18 | 5.5% |
| Eastman Kodak Co | 8.36 | 0.47 | 0.46 | 2.66% | $0.06 | $0.05 | -10.43% |
| AstroNova Inc | 20.99 | 1.16 | 0.73 | 1.3% | $0.0 | $0.01 | -6.94% |
| Transact Technologies Inc | 61 | 0.95 | 0.60 | -2.66% | $-0.0 | $0.01 | -52.01% |
| Average | 31.4 | 12.16 | 3.01 | 10.24% | $4.68 | $6.64 | 19.3% |
Upon analyzing Pure Storage, the following trends can be observed:
The current Price to Earnings ratio of 219.6 is 6.99x higher than the industry average, indicating the stock is priced at a premium level according to the market sentiment.
The elevated Price to Book ratio of 15.59 relative to the industry average by 1.28x suggests company might be overvalued based on its book value.
With a relatively high Price to Sales ratio of 7.56, which is 2.51x the industry average, the stock might be considered overvalued based on sales performance.
The Return on Equity (ROE) of -2.65% is 12.89% below the industry average, suggesting potential inefficiency in utilizing equity to generate profits.
Compared to its industry, the company has lower Earnings Before Interest, Taxes, Depreciation, and Amortization (EBITDA) of $10 Million, which is 0.0x below the industry average, potentially indicating lower profitability or financial challenges.
The company has lower gross profit of $500 Million, which indicates 0.08x below the industry average. This potentially indicates lower revenue after accounting for production costs.
The company's revenue growth of 17.68% is significantly lower compared to the industry average of 19.3%. This indicates a potential fall in the company's sales performance.
The debt-to-equity (D/E) ratio is a key indicator of a company's financial health and its reliance on debt financing.
Considering the debt-to-equity ratio in industry comparisons allows for a concise evaluation of a company's financial health and risk profile, aiding in informed decision-making.
When evaluating Pure Storage alongside its top 4 peers in terms of the Debt-to-Equity ratio, the following insights arise:
Pure Storage exhibits a stronger financial position compared to its top 4 peers in the sector, as indicated by its lower debt-to-equity ratio of 0.2.
This suggests that the company has a more favorable balance between debt and equity, which can be seen as a positive aspect for investors.
The high PE, PB, and PS ratios of Pure Storage indicate that the company is relatively overvalued compared to its peers in the Technology Hardware, Storage & Peripherals industry. On the other hand, the low ROE, EBITDA, gross profit, and revenue growth suggest that Pure Storage may be facing challenges in generating profits and revenue efficiently when compared to its industry counterparts.
This article was generated by Benzinga's automated content engine and reviewed by an editor.
Posted In: PSTG
