PSTG
Pure Storage, Inc. (PSTG)
Last Price$49.4(5.8%)
Market Cap$16.8B
LTM Rule of 40 (EBIT margin)
13.2%
5Y avg
11.7%
Computer Hardware industry median
(23.9%)
Stock quality & Intrinsic value
7/10
(0.7%) overvalued

Pure Storage, Inc. Rule of 40 (EBIT margin)

Annual
Quarterly
LTM
Industry median
Company stand-alone
PSTG
Technology
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Jan'14Jan'15Jan'16Jan'17Jan'18Jan'19Feb'20Jan'21Feb'22Feb'23Feb'24
Rule of 40 (EBIT margin)
0.0%
204.8%
104.7%
31.7%
22.4%
20.5%
9.2%
(11.2%)
25.0%
29.3%
4.7%
PSTG
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Pure Storage, Inc. (PSTG) Rule of 40 (EBIT margin) comparison analysis

PSTG key stats

USD
Millions
Billions
Annual
Quarterly
Trailing
Key stats
Income statement
Balance sheet
Cash Flow Statement
Valuation
Ratios
Per share
Per employee
Dividends & Yields
Jan'14Jan'15Jan'16Jan'17Jan'18Jan'19Feb'20Jan'21Feb'22Feb'23Feb'24
% growth
42.7
0.0%
174.5
308.2%
440.3
152.4%
728.0
65.3%
1,023.0
40.5%
1,359.8
32.9%
1,643.4
20.9%
1,684.2
2.5%
2,180.8
29.5%
2,753.4
26.3%
2,830.6
2.8%
Cost of Goods Sold (COGS)24.177.6167.9252.3353.8457.5509.9535.3708.3855.8809.4
% margin
18.6
43.5%
96.9
55.5%
272.4
61.9%
475.7
65.3%
669.2
65.4%
902.3
66.4%
1,133.6
69.0%
1,148.9
68.2%
1,472.5
67.5%
1,897.6
68.9%
2,021.2
71.4%
Operating Expenses96.7277.4482.6690.5854.41,071.61,324.81,379.01,570.91,814.11,934.0
Research & Development Expenses (R&D)36.192.7166.6245.8279.2349.9433.7480.5581.9692.5736.8
Selling, General & Administrative Expenses (SG&A)60.7184.7316.0444.7575.2721.6891.2898.5989.01,121.61,197.3
(78.1)
(182.8%)
(180.5)
(103.5%)
(210.2)
(47.7%)
(244.8)
(33.6%)
(185.2)
(18.1%)
(169.3)
(12.4%)
(191.3)
(11.6%)
(230.0)
(13.7%)
(98.4)
(4.5%)
83.5
3.0%
53.6
1.9%
Interest Income0.00.00.00.00.00.027.217.49.417.350.4
Interest Expense0.00.00.00.00.00.026.131.436.74.77.5
Pre-tax Income(78.3)(181.9)(212.2)(243.2)(173.7)(177.3)(194.7)(270.2)(128.5)91.890.6
% effective tax rate
0.3
(0.4%)
1.3
(0.7%)
1.6
(0.7%)
1.9
(0.8%)
3.9
(2.2%)
1.1
(0.6%)
6.3
(3.2%)
11.9
(4.4%)
14.8
(11.5%)
18.7
20.4%
29.3
32.3%
% margin
(78.6)
(183.8%)
(183.2)
(105.0%)
(213.8)
(48.5%)
(245.1)
(33.7%)
(177.6)
(17.4%)
(178.4)
(13.1%)
(201.0)
(12.2%)
(282.1)
(16.7%)
(143.3)
(6.6%)
73.1
2.7%
61.3
2.2%
EPS(0.51)(1.18)(2.59)(1.26)(0.84)(0.77)(0.79)(1.05)(0.50)0.240.20
Diluted EPS(0.51)(1.18)(2.59)(1.26)(0.84)(0.77)(0.79)(1.05)(0.50)0.230.19
% margin
(73.7)
(172.5%)
(165.1)
(94.6%)
(179.9)
(40.9%)
(193.0)
(26.5%)
(94.2)
(9.2%)
(84.8)
(6.2%)
(77.1)
(4.7%)
(168.7)
(10.0%)
(8.7)
(0.4%)
183.9
6.7%
222.5
7.9%

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FAQ

1) What is Pure Storage, Inc.'s Rule of 40 (EBIT margin)?

As of today, Microsoft Corp's last 12-month Rule of 40 (EBIT margin) is 13.2%, based on the financial report for Dec 31, 2024 (Q4’2024). The average annual Rule of 40 (EBIT margin) for Pure Storage, Inc. have been 17.3% over the past three years, and 12.3% over the past five years.

2) Is Pure Storage, Inc.'s Rule of 40 (EBIT margin) Good?

As of today, Pure Storage, Inc.'s Rule of 40 (EBIT margin) is 13.2%, which is higher than industry median of (23.9%). It indicates that Pure Storage, Inc.'s Rule of 40 (EBIT margin) is Good.

3) How does Pure Storage, Inc.'s Rule of 40 (EBIT margin) compare to its peers?

As of today, Pure Storage, Inc.'s Rule of 40 (EBIT margin) is 13.2%, which is lower than peer median of 23.9%. The list of peers includes ANET, WDC, STX, SMCI, NTAP, LOGI, HPQ, DELL, IONQ, RGTI.