Penumbra, Inc. Fundamental Analysis (NYSE: PEN)
Penumbra, Inc. (NYSE: PEN) shows weak financial fundamentals with a PE ratio of 79.90, profit margin of 10.67%, and ROE of 11.09%. The company generates $1.5B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 69.9/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze PEN's fundamental strength across five key dimensions:
Efficiency Score
WeakPEN struggles to generate sufficient returns from assets.
Valuation Score
WeakPEN trades at a premium to fair value.
Growth Score
ModeratePEN shows steady but slowing expansion.
Financial Health Score
ExcellentPEN maintains a strong and stable balance sheet.
Profitability Score
WeakPEN struggles to sustain strong margins.
Key Financial Metrics
Is PEN Expensive or Cheap?
P/E Ratio
PEN trades at 79.90 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, PEN's PEG of 11.77 indicates potential overvaluation.
Price to Book
The market values Penumbra, Inc. at 8.39 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 57.88 times EBITDA. This signals the market has high growth expectations.
How Well Does PEN Make Money?
Net Profit Margin
For every $100 in sales, Penumbra, Inc. keeps $10.67 as profit after all expenses.
Operating Margin
Core operations generate 12.45 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $11.09 in profit for every $100 of shareholder equity.
ROA
Penumbra, Inc. generates $8.13 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Penumbra, Inc. produces operating cash flow of $278.33M, showing steady but balanced cash generation.
Free Cash Flow
Penumbra, Inc. generates strong free cash flow of $216.32M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.49 in free cash annually.
FCF Yield
PEN converts 1.68% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
79.90
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
11.77
vs 25 benchmark
P/B Ratio
Price to book value ratio
8.39
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.55
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.14
vs 25 benchmark
Current Ratio
Current assets to current liabilities
5.75
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.11
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How PEN Stacks Against Its Sector Peers
| Metric | PEN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 79.90 | 31.50 | Worse (Expensive) |
| ROE | 11.09% | 422.00% | Weak |
| Net Margin | 10.67% | 19867.00% | Weak |
| Debt/Equity | 0.14 | 0.53 | Strong (Low Leverage) |
| Current Ratio | 5.75 | 5.56 | Strong Liquidity |
| ROA | 8.13% | 1571.00% | Weak |
PEN outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Penumbra, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Defensive, Growth, Innovation
EPS CAGR
N/A
Industry Style: Defensive, Growth, Innovation
FCF CAGR
N/A
Industry Style: Defensive, Growth, Innovation