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Penumbra (PEN)
NYSE:PEN
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Penumbra
(NYSE:PEN)
74Outperform
Positive Factors
Market Share Growth
The management's commentary and third-party data provide confidence in PEN's potential to capture more market share.
Product Innovation
The launch of new products like Lightning Bolt 6X with TraX is expected to boost PEN's arterial thrombectomy segment.
Negative Factors
Valuation Concerns
Despite the company's strong performance, there is limited upside to the current valuation.
Penumbra (PEN) vs. S&P 500 (SPY)
Market Cap
$10.29B
Dividend YieldN/A
Average Volume (3M)505.35K
Price to Earnings (P/E)757.6
Beta (1Y)0.90
Revenue Growth12.86%
EPS Growth-84.18%
CountryUS
Employees4,500
SectorHealthcare
Sector Strength78
IndustryMedical Equipment & Supplies
Share Statistics
EPS (TTM)0.34
Shares Outstanding38,515,950
10 Day Avg. Volume415,187
30 Day Avg. Volume505,348
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)8.61
Price to Cash Flow (P/CF)50.30
P/FCF Ratio49.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$307.93Price Target Upside18.15% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering16
Penumbra Business Overview & Revenue Model
Company DescriptionPenumbra, Inc. engages in the design, development, manufacture, and marketing of innovative medical devices. It offers thrombectomy, embolization, access, neurosurgical tools, ruby coil system, lantern, penumbra occlusion device (POD) system, packing coil, and indigo systems products. Its target markets include interventional neuroradiologists, neurosurgeons, and interventional neurologists; and interventional radiologists, vascular surgeons, and interventional cardiologists. The company was founded by Arani Bose and Adam Elsesser on June 21, 2004 and is headquartered in Alameda, CA.
How the Company Makes MoneyPenumbra generates revenue through the sale of its medical devices and technologies to hospitals, clinics, and healthcare providers. The company's key revenue streams come from its neurovascular and vascular product lines, which include devices for treating ischemic and hemorrhagic strokes, as well as peripheral vascular diseases. Penumbra also invests in research and development to continuously innovate and expand its product offerings, which helps maintain its competitive edge in the medical device industry. Additionally, strategic partnerships and collaborations with healthcare institutions and professionals contribute to its market reach and sales growth. The company's ability to meet regulatory requirements and successfully launch new products also plays a significant role in its financial performance.
Penumbra Financial Statement Overview
Summary
Penumbra exhibits strong revenue growth and solid cash flow generation, positioning it well within the medical equipment industry. The balance sheet is stable with low leverage, but profitability metrics need improvement. Overall, the financial health is sound with promising growth prospects.Income Statement
Penumbra showed strong revenue growth of 12.9% in the latest year, indicating a positive trajectory. However, the net profit margin dropped significantly to 1.17%, down from 8.6% the previous year, due to decreased EBIT and EBIT margins. The gross profit margin remained stable at 63.2%, which is a positive indicator of profitability.75
Positive
Balance Sheet
The company maintains a solid equity base with an equity ratio of 75.1%, indicating financial stability. The debt-to-equity ratio improved to 0.19, showing prudent leverage management. Return on equity decreased to 1.22%, reflecting lower profitability despite strong equity support.80
Positive
Cash Flow
Free cash flow grew significantly by 79.3%, showcasing robust cash generation. The operating cash flow to net income ratio was 12.02, indicating strong cash conversion. These metrics suggest a healthy cash flow position, supporting the company's operational and strategic needs.85
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 1.19B | 1.06B | 847.13M | 747.59M | 560.41M | Gross Profit |
| 755.00M | 682.64M | 535.21M | 475.38M | 338.18M | EBIT |
| 9.28M | 73.55M | -18.24M | -7.50M | -38.94M | EBITDA |
| 45.99M | 112.00M | 6.08M | 7.84M | -22.34M | Net Income Common Stockholders |
| 14.01M | 90.95M | -2.00M | 2.62M | -19.26M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 340.13M | 289.19M | 188.03M | 254.88M | 264.83M | Total Assets |
| 1.53B | 1.56B | 1.37B | 1.24B | 822.98M | Total Debt |
| 223.39M | 234.34M | 235.77M | 173.55M | 77.28M | Net Debt |
| -101.02M | 66.86M | 165.91M | 114.17M | 7.61M | Total Liabilities |
| 382.25M | 377.36M | 372.03M | 290.32M | 185.19M | Stockholders Equity |
| 1.15B | 1.18B | 998.86M | 953.93M | 641.50M |
| Cash Flow | Free Cash Flow | |||
| 147.30M | 82.12M | -74.96M | -11.68M | -58.00M | Operating Cash Flow |
| 168.48M | 97.33M | -55.66M | 9.50M | -33.24M | Investing Cash Flow |
| 77.62M | -16.08M | 54.79M | -21.73M | -104.15M | Financing Cash Flow |
| -87.01M | 16.20M | 11.62M | 836.00K | 134.92M |
Penumbra Technical Analysis
Neutral
260.63
Price Trends
267.82
Negative
250.91
Positive
220.06
Positive
Market Momentum
-1.13
Positive
41.94
Neutral
23.44
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEN, the sentiment is Neutral. The current price of 260.63 is below the 20-day moving average (MA) of 279.75, below the 50-day MA of 267.82, and above the 200-day MA of 220.06, indicating a neutral trend. The MACD of -1.13 indicates Positive momentum. The RSI at 41.94 is Neutral, neither overbought nor oversold. The STOCH value of 23.44 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for PEN.
Penumbra Risk Analysis
Penumbra disclosed 59 risk factors in its most recent earnings report. Penumbra reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Penumbra Peers Comparison
Overall Rating
UnderperformOutperform
Sector (49)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
79 Outperform | $230.08B | 17.98 | 30.95% | 1.72% | 4.59% | 134.50% | |
78 Outperform | $140.97B | 76.57 | 9.03% | ― | 17.60% | 16.84% | |
78 Outperform | $12.39B | 30.55 | 7.82% | 2.51% | 4.58% | 55.99% | |
77 Outperform | $119.64B | 28.35 | 8.42% | 3.05% | 2.72% | 4.48% | |
74 Outperform | $10.29B | 757.65 | 1.20% | ― | 12.86% | -84.18% | |
68 Neutral | $40.21B | 28.75 | 17.17% | ― | -4.67% | 3.34% | |
49 Neutral | $6.84B | 0.05 | -53.14% | 2.48% | 24.49% | -3.26% |
* Healthcare Sector Average
Performance Comparison
PEN
Penumbra
260.63
31.09
13.54%
ABT
Abbott Laboratories
129.89
13.41
11.51%
BSX
Boston Scientific
95.37
28.51
42.64%
EW
Edwards Lifesciences
67.95
-25.41
-27.22%
MDT
Medtronic
92.33
10.73
13.15%
SNN
Smith & Nephew Snats
28.21
1.47
5.50%
Penumbra Earnings Call Summary
Earnings Call Date: Feb 18, 2025 | % Change Since: -3.88% | Next Earnings Date: May 6, 2025
Earnings Call Sentiment Positive
Penumbra demonstrated robust growth and profitability in its U.S. thrombectomy business, driven by product innovation and strategic expansion. However, international revenue challenges, particularly in China, and costs associated with the exit from Immersive Healthcare slightly tempered overall performance. The overall sentiment is positive due to strong domestic growth and future strategic initiatives outweighing the international setbacks.Highlights
Strong Revenue Growth
Fourth quarter 2024 revenue reached $321.3 million, representing a year-over-year growth of 12.9% on an adjusted basis and 13% on a constant currency basis. Full year revenue increased 13.4% year-over-year to over $1.2 billion.
U.S. Thrombectomy Business Performance
U.S. thrombectomy sales increased 27.3% year-over-year to $180.6 million in Q4, with the U.S. VTE franchise delivering robust year-over-year revenue growth of 41%. The full year revenue for the U.S. thrombectomy business was $646.7 million, reflecting a 26.8% increase versus 2023.
Product Innovation and Expansion
Introduced 9 new products to the U.S. commercial market, including new CAVT products like Flash 2.0 and Lightning Bolt 12. Expanded CAVT's footprint into Europe and additional international geographies.
Profitability and Margin Expansion
Fourth quarter gross margin of 67.4% expanded 170 basis points over the prior year period. Operating income of $48.6 million or 15.1% of revenue increased 200 basis points over the prior year period. Generated $49.1 million in operating cash in Q4.
Future Growth Strategy
Signed a contract to build a manufacturing facility in Costa Rica to expand manufacturing capacity. Aimed to achieve a gross margin profile over 70% by the end of 2026, with operating margin expansion expected to outpace gross margin expansion.
Lowlights
International Revenue Decline
International revenue decreased 9.4% adjusted and 9.1% in constant currency, primarily due to a decline in China revenue of $15.4 million in Q4.
Impact of Immersive Healthcare Exit
Full year 2024 non-GAAP operating expenses included expenses related to Immersive Healthcare impairment charges of $76.9 million and wind-down expenses of $5 million.
Italian Payback Legislation
Fourth quarter results included a $5.8 million reserve pertaining to Italian payback legislation, impacting financials.
Company Guidance
During the fourth quarter of 2024 conference call, Penumbra provided detailed guidance and metrics for the upcoming year. The company reported a Q4 2024 non-GAAP revenue of $321.3 million, marking a 12.9% year-over-year growth, with a gross margin of 67.4%, up by 170 basis points from the previous year. The U.S. thrombectomy business, a key growth driver, saw a 27.3% increase in Q4 sales, contributing to a full-year revenue of $1.2 billion, a 13.4% increase from 2023. International sales decreased by 9.4% due to a significant decline in China. The company also highlighted its expectation for 2025 revenue growth between 12% and 14%, with U.S. thrombectomy sales projected to grow by 19-20%. Looking ahead, Penumbra aims to achieve a gross margin over 70% by the end of 2026 and plans to expand its manufacturing capacity with a new facility in Costa Rica, enhancing its operational efficiencies.Penumbra Corporate Events
Executive/Board Changes
Penumbra Announces Board Transition with Kassing’s Retirement
Neutral
Feb 21, 2025
Penumbra, Inc. announced that Don Kassing will retire from the Board of Directors on April 1, 2025, after 17 years of service. Kassing’s retirement, which follows his tenure as Presiding Director since 2015, did not stem from any disagreement with the company. His departure marks a significant transition for Penumbra, which has benefitted from his guidance through various phases of growth.
Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.