Penumbra (PEN) AI Stock Analysis

• Market Cap: $9.21B
• Dividend Yield: N/A
• Average Volume (3M): 418.93K
• Price to Earnings (P/E): 223.2
• Beta (1Y): 0.63
• Revenue Growth: 13.17%
• EPS Growth: -54.30%
• Country: US
• Employees: 4,500
• Sector: Healthcare
• Sector Strength: 37
• Industry: Medical - Devices
• EPS (TTM): 0.83
• Shares Outstanding: 38,725,940
• 10 Day Avg. Volume: 323,778
• 30 Day Avg. Volume: 418,931
• PEG Ratio: 0.18
• Price to Book (P/B): 11.75
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 1.26K
• Enterprise Value/Market Cap: 0.98
• Enterprise Value/Revenue: 1.92
• Enterprise Value/Gross Profit: 11.53
• Enterprise Value/Ebitda: 51.34
• 1Y Price Target: $316.67
• Price Target Upside: 33.09% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 16

• Rating: 67 Neutral
• Price Target: $272.00 ▲(14.31%Upside)

Penumbra's overall score benefits from strong financial performance and positive earnings call highlights. However, the valuation appears stretched, and technical analysis signals bearish momentum, impacting the overall attractiveness of the stock.

Positive Factors

Earnings Growth

Penumbra is expected to have one of the most attractive combined sales and earnings growth profiles across coverage over the next two-plus years.

Market Penetration

Vascular thrombectomy is expected to be the biggest growth driver for Penumbra, with the market only roughly 10% penetrated, suggesting substantial growth potential.

Product Launch

The Thunderbolt product is considered a potential 'game changer' that could provide a price lift and help improve market growth, adding an estimated 100-200 basis points to overall growth.

Negative Factors

Manufacturing Costs

Management expects higher Thrombectomy product mix to be offset by higher manufacturing investments to support new product launches, which is expected to drive Q2/25 GM to be similar/lower than Q1/25.

Price Target Challenges

PEN's relative premium to profitable peers now sits at a fairly steep level, making it tough to lift the price target despite being a best-in-class innovator.

Revenue Guidance

Despite earlier growth of 17% in the first quarter, management is comfortable with a conservative revenue growth guidance of 12-14%, indicating confidence in stable performance.

Penumbra Business Overview & Revenue Model

Company Description

Penumbra, Inc. designs, develops, manufactures, and markets medical devices in the United States and internationally. The company offers aspiration based thrombectomy systems and accessory devices, including revascularization device for mechanical thrombectomy, such as Penumbra System under the Penumbra RED, JET, ACE, 3D Revascularization Device, and Penumbra ENGINE brands, as well as components and accessories; neurovascular embolization coiling systems to treat patients with various sizes of aneurysms and other neurovascular lesions under the Penumbra Coil 400, POD400, PAC400, and Penumbra SMART Coil brand names; and neurovascular access systems designed to provide intracranial access for use in a range of neurovascular therapies under the Neuron, Neuron MAX, Select, BENCHMARK, BMX96, DDC, and PX SLIM brands. It also provides neurosurgical aspiration tools for the removal of tissue and fluids under the Artemis Neuro Evacuation Device brand; aspiration-based thrombectomy systems for vascular applications under the Indigo System brand; and detachable embolic coil systems for peripheral embolization under the Ruby Coil and Ruby LP brand names. In addition, the company offers microcatheter for the delivery of detachable coils and occlusion devices under the LANTERN brand; and detachable, microcatheter-deliverable occlusion devices designed primarily to occlude peripheral vessels under the POD (Penumbra Occlusion Device) brand, as well as immersive computer-based technologies and immersive therapeutics to promote health, motor function, and cognition under the Real Immersive System brand; and a complementary device for use with Ruby Coil and POD for vessel occlusion under the Packing Coil and Packing Coil LP brands. The company sells its products through direct sales organizations and distributors. Penumbra, Inc. was incorporated in 2004 and is headquartered in Alameda, California.

How the Company Makes Money

Penumbra generates revenue primarily through the sale of its medical devices to hospitals and healthcare providers. The company’s revenue model is based on direct sales and distribution partnerships, where it sells its products to end-users or through third-party distributors. Key revenue streams include the sales of neuro and peripheral vascular devices, each contributing significantly to the company’s overall earnings. Additionally, Penumbra collaborates with various healthcare institutions and invests in research and development to innovate and expand its product offerings, thus driving growth and maintaining a competitive edge in the medical device industry.

Penumbra Financial Statement Overview

Summary

Penumbra exhibits strong financial performance with steady revenue growth and effective cost management. The income statement shows robust revenue growth and profitability, while the balance sheet reflects financial stability with conservative leverage. The cash flow statement highlights strong cash generation, supporting operational and strategic needs. However, there is room for improvement in operating margins.

Income Statement

Penumbra's income statement demonstrates strong growth and profitability trends. The TTM revenue of $1.24 billion represents a substantial increase from prior years, indicating robust revenue growth. The gross profit margin stands at an impressive 63.5%, and the net profit margin at 3.4%, highlighting efficient cost management and profitability. However, the EBIT margin of 9.2% and EBITDA margin of 5.1% indicate room for improvement in operating efficiency.

Balance Sheet

The balance sheet shows a solid financial structure with a debt-to-equity ratio of 0.18, reflecting conservative leverage and financial stability. The equity ratio is strong at 76.1%, indicating a high proportion of equity financing and reduced financial risk. The return on equity (ROE) is modest at 3.5%, suggesting potential for enhanced profitability.

Cash Flow

Penumbra's cash flow statement is characterized by strong operational cash flow with a high operating cash flow to net income ratio of 4.24, indicating robust cash generation from operations. The free cash flow to net income ratio is 3.56, reflecting healthy cash surplus. The free cash flow growth rate of 2.06% is positive, though slightly modest, indicating stable cash generation.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	420.20M	1.19B	1.06B	847.13M	747.59M	560.41M
Gross Profit	277.55M	755.00M	682.64M	535.21M	475.38M	338.18M
EBITDA	32.93M	49.53M	112.00M	6.08M	7.84M	-22.34M
Net Income	9.03M	14.01M	90.95M	-2.00M	2.62M	-19.26M
Balance Sheet
Total Assets	1.58B	1.53B	1.56B	1.37B	1.24B	822.98M
Cash, Cash Equivalents and Short-Term Investments	313.47M	340.13M	289.19M	188.03M	254.88M	264.83M
Total Debt	231.44M	223.39M	234.34M	235.77M	173.55M	77.28M
Total Liabilities	376.31M	382.25M	377.36M	372.03M	290.32M	185.19M
Stockholders Equity	1.20B	1.15B	1.18B	998.86M	953.93M	641.50M
Cash Flow
Free Cash Flow	8.08M	147.30M	82.12M	-74.96M	-11.68M	-58.00M
Operating Cash Flow	20.37M	168.48M	97.33M	-55.66M	9.50M	-33.24M
Investing Cash Flow	-26.40M	77.62M	-16.08M	54.79M	-21.73M	-104.15M
Financing Cash Flow	-10.54M	-87.01M	16.20M	11.62M	836.00K	134.92M

Penumbra Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 237.94
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEN, the sentiment is Negative. The current price of 237.94 is below the 20-day moving average (MA) of 252.23, below the 50-day MA of 266.27, and below the 200-day MA of 253.91, indicating a bearish trend. The MACD of -5.78 indicates Positive momentum. The RSI at 25.76 is Positive, neither overbought nor oversold. The STOCH value of 17.38 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for PEN.

Penumbra Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SNN	80 Outperform	$13.26B	32.07	7.86%	3.05%	5.16%	56.79%
ALGN	74 Outperform	$14.82B	36.81	10.84%	―	1.64%	-9.60%
GMED	74 Outperform	$7.73B	42.73	4.63%	―	32.26%	112.87%
PODD	73 Outperform	$20.93B	52.07	37.92%	―	23.49%	71.25%
PEN	67 Neutral	$9.21B	223.17	3.50%	―	13.17%	-54.30%
BIO	56 Neutral	$7.00B	―	-27.51%	―	-2.46%	-637.11%
Sector *	46 Neutral	C$201.94M	-3.14	-23.14%	2.74%	21.17%	-0.61%

Penumbra Corporate Events

Penumbra Amends Incorporation Certificate After Stockholder Vote

On May 28, 2025, Penumbra, Inc. filed an Amended and Restated Certificate of Incorporation with the State of Delaware, following stockholder approval at its Annual Meeting. During the meeting, stockholders voted on several proposals, including the election of Class I directors, ratification of PricewaterhouseCoopers LLP as the independent auditor, and approval of executive compensation. Additionally, amendments to the company’s charter were approved to phase in board declassification and eliminate supermajority voting requirements, reflecting significant governance changes aimed at enhancing corporate flexibility and shareholder influence.

The most recent analyst rating on (PEN) stock is a Buy with a $232.00 price target. To see the full list of analyst forecasts on Penumbra stock, see the PEN Stock Forecast page.