Penumbra (PEN) AI Stock Analysis

• Market Cap: $12.36B
• Dividend Yield: N/A
• Average Volume (3M): 419.36K
• Price to Earnings (P/E): 75.4
• Beta (1Y): 0.19
• Revenue Growth: 14.61%
• EPS Growth: 369.96%
• Country: US
• Employees: 4,500
• Sector: Healthcare
• Sector Strength: 45
• Industry: Medical - Devices
• EPS (TTM): 0.97
• Shares Outstanding: 39,162,178
• 10 Day Avg. Volume: 328,944
• 30 Day Avg. Volume: 419,361
• PEG Ratio: -7.72
• Price to Book (P/B): 7.97
• Price to Sales (P/S): 7.68
• P/FCF Ratio: 62.29
• Enterprise Value/Market Cap: 0.79
• Enterprise Value/Revenue: 7.27
• Enterprise Value/Gross Profit: 10.89
• Enterprise Value/Ebitda: 47.44
• 1Y Price Target: $344.64
• Price Target Upside: 9.22% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 15
• EPS Forecast (FY): 5.05
• Revenue Forecast (FY): $1.58B

• Rating: 78 Outperform
• Price Target: $340.00 ▲(7.75% Upside)

Penumbra's strong financial performance and positive earnings call are the most significant factors driving the score. The company's robust revenue growth and improved profitability are key strengths. However, the high P/E ratio suggests potential overvaluation, and technical indicators show an overbought condition, which could pose risks.

Positive Factors

Revenue Growth

Strong revenue growth indicates increasing demand for Penumbra's products, enhancing market position and supporting long-term financial stability.

Product Innovation

Continuous innovation in product offerings can strengthen competitive advantage and drive future growth by addressing unmet medical needs.

Gross Margin Expansion

Improving gross margins reflect efficient cost management and pricing power, contributing to enhanced profitability and financial health.

Negative Factors

China Growth Headwinds

Challenges in the Chinese market could limit international growth potential, affecting overall revenue diversification and expansion strategies.

Operating Expenses Increase

Rising operating expenses could pressure profit margins and indicate higher costs associated with scaling operations, impacting long-term profitability.

Slight Decline in U.S. Stroke Market

A declining U.S. stroke market may challenge revenue growth in a key segment, necessitating strategic adjustments to maintain market share.

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, which are utilized by healthcare providers for various interventional procedures. The company has established a robust revenue model based on direct sales to hospitals and medical institutions, as well as partnerships with distributors in various regions. Key revenue streams include the sale of thrombectomy devices, embolization products, and other specialty medical devices. Additionally, Penumbra invests in research and development to create new products and enhancements, which helps to drive future sales. Strategic partnerships with healthcare providers and clinical institutions also contribute to its earnings by facilitating broader adoption of its technologies in clinical practice.

Penumbra Financial Statement Overview

Summary

Penumbra demonstrates strong financial health with impressive revenue and profit growth, efficient cost management, and a solid balance sheet. The income statement shows robust revenue growth and improved profit margins, while the balance sheet reflects low debt and strong equity utilization. Cash flow is stable, though the decline in free cash flow growth warrants monitoring.

Income Statement

Penumbra has demonstrated strong revenue growth with a TTM revenue increase of 4.19% and a consistent upward trend over the past years. The gross profit margin has improved to 66.47% TTM, indicating efficient cost management. Net profit margin has significantly increased to 11.54% TTM, reflecting enhanced profitability. EBIT and EBITDA margins have also shown improvement, suggesting better operational efficiency.

Balance Sheet

The company maintains a healthy balance sheet with a low debt-to-equity ratio of 0.17 TTM, indicating prudent financial leverage. Return on equity has improved to 12.41% TTM, showcasing effective utilization of equity. The equity ratio remains strong, highlighting a solid capital structure.

Cash Flow

Penumbra's cash flow performance is stable, with an operating cash flow to net income ratio of 1.28 TTM, indicating strong cash generation relative to earnings. However, the free cash flow growth rate has declined by 5.57% TTM, which could be a concern if it persists. The free cash flow to net income ratio remains robust at 0.80 TTM, reflecting good cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.33B	1.19B	1.06B	847.13M	747.59M	560.41M
Gross Profit	891.03M	755.00M	682.64M	535.21M	475.38M	338.18M
EBITDA	204.55M	45.99M	108.65M	29.96M	7.84M	-26.05M
Net Income	164.03M	14.01M	90.95M	-2.00M	5.28M	-15.70M
Balance Sheet
Total Assets	1.74B	1.53B	1.56B	1.37B	1.24B	822.98M
Cash, Cash Equivalents and Short-Term Investments	470.30M	340.13M	289.19M	188.03M	254.88M	264.83M
Total Debt	217.04M	223.39M	234.34M	235.77M	173.55M	77.28M
Total Liabilities	385.67M	382.25M	377.36M	372.03M	290.32M	185.19M
Stockholders Equity	1.36B	1.15B	1.18B	998.86M	953.93M	641.50M
Cash Flow
Free Cash Flow	152.62M	147.30M	82.12M	-74.96M	-11.68M	-58.00M
Operating Cash Flow	203.29M	168.48M	97.33M	-55.66M	9.50M	-33.24M
Investing Cash Flow	-189.90M	77.62M	-16.08M	54.79M	-21.73M	-104.15M
Financing Cash Flow	27.54M	-87.01M	16.20M	11.62M	836.00K	134.92M

Penumbra Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 315.54
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For PEN, the sentiment is Positive. The current price of 315.54 is above the 20-day moving average (MA) of 313.35, above the 50-day MA of 288.76, and above the 200-day MA of 268.16, indicating a bullish trend. The MACD of 6.72 indicates Positive momentum. The RSI at 61.11 is Neutral, neither overbought nor oversold. The STOCH value of 76.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for PEN.

Penumbra Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GMED	82 Outperform	$12.74B	30.58	10.01%	―	11.75%	364.73%
PEN	78 Outperform	$12.36B	75.41	13.32%	―	14.61%	369.96%
LIVN	63 Neutral	$3.55B	-16.19	-17.63%	―	8.97%	-1024.86%
GKOS	61 Neutral	$6.56B	-73.60	-12.19%	―	30.38%	47.64%
Sector *	51 Neutral	$7.86B	-0.30	-43.30%	2.27%	22.53%	-2.21%
IRTC	51 Neutral	$6.10B	-116.76	-53.15%	―	25.45%	66.62%
PRCT	41 Neutral	$1.93B	-22.42	-27.22%	―	50.07%	21.22%