(PSTG) Pure Storage - Ratings and Ratios
FlashArray, FlashBlade, Portworx, Pure Fusion, Cloud Block Store
PSTG EPS (Earnings per Share)
PSTG Revenue
Description: PSTG Pure Storage
Pure Storage (NYSE:PSTG) sells flash-based data storage and management solutions to enterprise customers worldwide. Its core offering is the Purity software stack, which delivers always-on data reduction, encryption, and multi-protocol support (block, file, object) across both on-premises hardware and cloud-native products.
Hardware families include the FlashArray line (X, C, XL, E, and File Services) for block-oriented workloads such as databases, VMs, and ERP systems, and the FlashBlade line (S, E, EXA) for high-performance unstructured data use cases like log analytics, HPC, and backup/recovery.
Beyond hardware, Pure Storage provides a growing portfolio of software-defined services: Portworx for Kubernetes-native data management, Portworx Data Services (a DB-as-a-Service for containers), Pure Fusion (SaaS-based storage orchestration), and Cloud Block Store for hybrid-cloud block storage. The Evergreen Architecture (Pure1 AI-driven management, Evergreen//One, Evergreen//Flex) underpins a subscription-first business model that promises continuous hardware upgrades without downtime.
Financially, Pure reported FY 2024 revenue of $2.5 billion, a 16 % YoY increase driven primarily by subscription ARR growth of 28 % and higher average selling prices on FlashBlade. Gross margins expanded to 57 % (up from 53 % in FY 2023), reflecting the shift toward higher-margin SaaS contracts. However, operating cash flow remained negative (-$45 million), indicating ongoing investment in R&D and go-to-market expansion.
Key macro drivers for Pure include the accelerating migration of enterprise workloads to flash storage (global flash-storage market CAGR ≈ 15 % through 2028) and the broader shift toward containerized applications, which fuels demand for Kubernetes-native storage solutions. Conversely, a slowdown in corporate capex or a prolonged recession could compress enterprise IT budgets and pressure subscription renewal rates.
Investors should watch Pure’s subscription renewal rate (currently ~ 92 %) and its ability to convert hardware sales into multi-year SaaS contracts, as these metrics are leading indicators of long-term revenue visibility.
For a deeper, data-driven assessment of Pure Storage’s valuation relative to peers, you may find the analytical tools on ValueRay useful for building a more granular financial model.
PSTG Stock Overview
| Market Cap in USD | 30,767m |
| Sub-Industry | Technology Hardware, Storage & Peripherals |
| IPO / Inception | 2015-10-07 |
PSTG Stock Ratings
| Growth Rating | 77.7% |
| Fundamental | 69.6% |
| Dividend Rating | - |
| Return 12m vs S&P 500 | 49.8% |
| Analyst Rating | 4.10 of 5 |
PSTG Dividends
Currently no dividends paidPSTG Growth Ratios
| Growth Correlation 3m | 91% |
| Growth Correlation 12m | 32.8% |
| Growth Correlation 5y | 90% |
| CAGR 5y | 49.82% |
| CAGR/Max DD 3y (Calmar Ratio) | 1.02 |
| CAGR/Mean DD 3y (Pain Ratio) | 3.70 |
| Sharpe Ratio 12m | 1.42 |
| Alpha | 53.89 |
| Beta | 1.216 |
| Volatility | 45.52% |
| Current Volume | 2022.1k |
| Average Volume 20d | 2589.8k |
| Stop Loss | 87.3 (-5%) |
| Signal | 0.51 |
Piotroski VR‑10 (Strict, 0-10) 6.0
| Net Income (139.2m TTM) > 0 and > 6% of Revenue (6% = 201.0m TTM) |
| FCFTA 0.14 (>2.0%) and ΔFCFTA -3.64pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 26.43% (prev 42.20%; Δ -15.76pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.20 (>3.0%) and CFO 801.6m > Net Income 139.2m (YES >=105%, WARN >=100%) |
| Net Debt (-665.1m) to EBITDA (314.4m) ratio: -2.12 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.58 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (337.7m) change vs 12m ago -1.66% (target <= -2.0% for YES) |
| Gross Margin 69.17% (prev 71.66%; Δ -2.50pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 85.82% (prev 79.60%; Δ 6.22pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio 17.32 (EBITDA TTM 314.4m / Interest Expense TTM 10.8m) >= 6 (WARN >= 3) |
Altman Z'' 1.20
| (A) 0.22 = (Total Current Assets 2.42b - Total Current Liabilities 1.53b) / Total Assets 4.03b |
| (B) -0.33 = Retained Earnings (Balance) -1.34b / Total Assets 4.03b |
| (C) 0.05 = EBIT TTM 187.8m / Avg Total Assets 3.90b |
| (D) 0.49 = Book Value of Equity 1.32b / Total Liabilities 2.71b |
| Total Rating: 1.20 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 69.59
| 1. Piotroski 6.0pt = 1.0 |
| 2. FCF Yield 1.87% = 0.93 |
| 3. FCF Margin 16.40% = 4.10 |
| 4. Debt/Equity 0.17 = 2.49 |
| 5. Debt/Ebitda -2.12 = 2.50 |
| 6. ROIC - WACC (= 2.11)% = 2.63 |
| 7. RoE 10.55% = 0.88 |
| 8. Rev. Trend 64.48% = 4.84 |
| 9. EPS Trend 4.44% = 0.22 |
What is the price of PSTG shares?
Over the past week, the price has changed by -1.82%, over one month by +5.55%, over three months by +67.61% and over the past year by +72.07%.
Is Pure Storage a good stock to buy?
Based on momentum, paid dividends and discounted-cash-flow analyses, the fair value of PSTG is around 113.81 USD . This means that PSTG is currently undervalued and has a potential upside of +23.81% (Margin of Safety).
Is PSTG a buy, sell or hold?
- Strong Buy: 10
- Buy: 5
- Hold: 5
- Sell: 0
- Strong Sell: 1
What are the forecasts/targets for the PSTG price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 84.9 | -7.6% |
| Analysts Target Price | 84.9 | -7.6% |
| ValueRay Target Price | 129.1 | 40.5% |
Last update: 2025-10-11 05:03
PSTG Fundamental Data Overview
P/E Trailing = 228.3415
P/E Forward = 44.2478
P/S = 9.1831
P/B = 21.991
P/EG = 4.109
Beta = 1.216
Revenue TTM = 3.35b USD
EBIT TTM = 187.8m USD
EBITDA TTM = 314.4m USD
Long Term Debt = 223.3m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 92.9m USD (from shortTermDebt, last quarter)
Debt = 222.7m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -665.1m USD (from netDebt column, last quarter)
Enterprise Value = 29.45b USD (30.77b + Debt 222.7m - CCE 1.54b)
Interest Coverage Ratio = 17.32 (Ebit TTM 187.8m / Interest Expense TTM 10.8m)
FCF Yield = 1.87% (FCF TTM 549.3m / Enterprise Value 29.45b)
FCF Margin = 16.40% (FCF TTM 549.3m / Revenue TTM 3.35b)
Net Margin = 4.15% (Net Income TTM 139.2m / Revenue TTM 3.35b)
Gross Margin = 69.17% ((Revenue TTM 3.35b - Cost of Revenue TTM 1.03b) / Revenue TTM)
Gross Margin QoQ = 70.19% (prev 68.87%)
Tobins Q-Ratio = 7.31 (Enterprise Value 29.45b / Total Assets 4.03b)
Interest Expense / Debt = 2.36% (Interest Expense 5.27m / Debt 222.7m)
Taxrate = 6.83% (3.45m / 50.6m)
NOPAT = 175.0m (EBIT 187.8m * (1 - 6.83%))
Current Ratio = 1.58 (Total Current Assets 2.42b / Total Current Liabilities 1.53b)
Debt / Equity = 0.17 (Debt 222.7m / totalStockholderEquity, last quarter 1.32b)
Debt / EBITDA = -2.12 (Net Debt -665.1m / EBITDA 314.4m)
Debt / FCF = -1.21 (Net Debt -665.1m / FCF TTM 549.3m)
Total Stockholder Equity = 1.32b (last 4 quarters mean from totalStockholderEquity)
RoA = 3.46% (Net Income 139.2m / Total Assets 4.03b)
RoE = 10.55% (Net Income TTM 139.2m / Total Stockholder Equity 1.32b)
RoCE = 12.17% (EBIT 187.8m / Capital Employed (Equity 1.32b + L.T.Debt 223.3m))
RoIC = 12.55% (NOPAT 175.0m / Invested Capital 1.39b)
WACC = 10.44% (E(30.77b)/V(30.99b) * Re(10.50%) + D(222.7m)/V(30.99b) * Rd(2.36%) * (1-Tc(0.07)))
Discount Rate = 10.50% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: 33.33 | Cagr: 1.13%
[DCF Debug] Terminal Value 70.97% ; FCFE base≈591.0m ; Y1≈629.5m ; Y5≈757.6m
Fair Price DCF = 27.08 (DCF Value 8.90b / Shares Outstanding 328.6m; 5y FCF grow 7.23% → 3.0% )
EPS Correlation: 4.44 | EPS CAGR: 12.64% | SUE: 1.25 | # QB: 2
Revenue Correlation: 64.48 | Revenue CAGR: 9.19% | SUE: 3.37 | # QB: 5
Additional Sources for PSTG Stock
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