Penumbra (PEN) AI Stock Analysis

• Market Cap: $10.61B
• Dividend Yield: N/A
• Average Volume (3M): 504.39K
• Price to Earnings (P/E): 72.1
• Beta (1Y): 0.51
• Revenue Growth: 12.92%
• EPS Growth: 918.46%
• Country: US
• Employees: 4,500
• Sector: Healthcare
• Sector Strength: 51
• Industry: Medical - Devices
• EPS (TTM): 0.86
• Shares Outstanding: 38,999,130
• 10 Day Avg. Volume: 520,422
• 30 Day Avg. Volume: 504,390
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.93
• Enterprise Value/Revenue: 7.71
• Enterprise Value/Gross Profit: 11.60
• Enterprise Value/Ebitda: 50.95
• 1Y Price Target: $307.20
• Price Target Upside: 11.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 17

• Rating: 77 Outperform
• Price Target: $302.00 ▲(9.26% Upside)

Penumbra's strong financial performance and positive earnings call sentiment are the most significant factors driving the stock's score. The technical analysis suggests potential for a short-term pullback, and the high P/E ratio indicates overvaluation concerns. The recent executive appointment is a positive strategic move, supporting future growth.

Positive Factors

Revenue Growth

Strong revenue growth indicates a robust demand for Penumbra's products, enhancing its market position and supporting long-term financial health.

Leadership Appointment

The appointment of Shruthi Narayan is expected to sustain Penumbra’s growth and market leadership, particularly in thrombectomy technologies, supporting strategic expansion.

Cash Flow Management

Strong cash flow management underscores Penumbra's ability to fund operations and growth initiatives, ensuring financial stability and strategic flexibility.

Negative Factors

International Revenue Decline

Declining international revenue, especially in China, could hinder Penumbra's global expansion efforts and impact overall revenue growth.

Gross Margin Pressure

Sequential gross margin decrease due to product launch investments may pressure profitability, affecting short-term financial performance.

Challenges in Neurovascular Business

Slower growth in the neurovascular business could limit Penumbra's market expansion, impacting future revenue potential in this segment.

Penumbra Business Overview & Revenue Model

Company Description

Penumbra, Inc. is a global healthcare company specializing in innovative medical devices designed for the treatment of various vascular and neurovascular conditions. The company develops a range of products, including catheter-based devices for thrombectomy, embolization, and other minimally invasive procedures. Penumbra operates primarily in the interventional segment of the medical device industry, focusing on creating solutions that enhance patient outcomes and streamline clinical workflows.

How the Company Makes Money

Penumbra generates revenue through the sale of its medical devices, which are primarily used in hospitals and healthcare facilities for interventional procedures. The company's key revenue streams include the direct sales of its proprietary products, such as thrombectomy devices and other catheter-based interventions. Additionally, Penumbra engages in partnerships with hospitals and healthcare systems to provide comprehensive training and support for its products, further driving sales. The company also benefits from recurring revenue through the sale of disposables and accessories associated with its devices, which are necessary for their operation. Furthermore, ongoing investments in research and development enable Penumbra to expand its product offerings and enter new markets, contributing to its overall earnings.

Penumbra Financial Statement Overview

Summary

Penumbra's financial performance is impressive, with strong revenue growth, improved profitability, and efficient cash management. The company's balance sheet is solid with low leverage, and its cash flow metrics underline robust operational cash generation. Overall, Penumbra's financial health is strong, with consistent improvements across key financial metrics.

Income Statement

Penumbra has shown strong revenue growth, with a TTM revenue increase of 7.2% over the previous year. The gross profit margin is solid at 66.5%, indicating efficient cost management. Net profit margin has improved to 11.5%, reflecting better profitability. EBIT and EBITDA margins also show significant improvement, suggesting enhanced operational efficiency.

Balance Sheet

The company's balance sheet shows a healthy equity ratio of 77.2%, suggesting a strong capital structure with low leverage. The debt-to-equity ratio stands at 0.17, indicating prudent debt management. Return on Equity (ROE) has improved, demonstrating effective use of equity capital to generate profits.

Cash Flow

Penumbra has a robust free cash flow growth rate of 9.7% TTM, indicating strong cash generation capabilities. The operating cash flow to net income ratio is 1.36, highlighting efficient cash conversion from earnings. The free cash flow to net income ratio of 1.09 further supports solid cash flow management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.28B	1.19B	1.06B	847.13M	747.59M	560.41M
Gross Profit	850.92M	755.00M	682.64M	535.21M	475.38M	338.18M
EBITDA	193.66M	45.99M	108.65M	29.96M	7.84M	-26.05M
Net Income	147.70M	14.01M	90.95M	-2.00M	5.28M	-15.70M
Balance Sheet
Total Assets	1.67B	1.53B	1.56B	1.37B	1.24B	822.98M
Cash, Cash Equivalents and Short-Term Investments	421.77M	340.13M	289.19M	188.03M	254.88M	264.83M
Total Debt	220.53M	223.39M	234.34M	235.77M	173.55M	77.28M
Total Liabilities	380.86M	382.25M	377.36M	372.03M	290.32M	185.19M
Stockholders Equity	1.29B	1.15B	1.18B	998.86M	953.93M	641.50M
Cash Flow
Free Cash Flow	161.62M	147.30M	82.12M	-74.96M	-11.68M	-58.00M
Operating Cash Flow	201.49M	168.48M	97.33M	-55.66M	9.50M	-33.24M
Investing Cash Flow	8.68M	77.62M	-16.08M	54.79M	-21.73M	-104.15M
Financing Cash Flow	-76.96M	-87.01M	16.20M	11.62M	836.00K	134.92M

Penumbra Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 276.40
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 276.4 is above the 20-day moving average (MA) of 267.47, above the 50-day MA of 251.09, and above the 200-day MA of 262.44, indicating a bullish trend. The MACD of 8.43 indicates Negative momentum. The RSI at 60.15 is Neutral, neither overbought nor oversold. The STOCH value of 57.57 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
PEN	77 Outperform	$10.61B	72.11	12.03%	―	12.92%	918.46%
GMED	76 Outperform	$8.05B	23.01	8.62%	―	17.43%	775.48%
IRTC	66 Neutral	$5.85B	―	-91.13%	―	22.37%	31.14%
LIVN	61 Neutral	$3.13B	30.62	-17.87%	―	8.57%	-1154.64%
GKOS	52 Neutral	$5.02B	―	-12.98%	―	26.70%	48.19%
Sector *	51 Neutral	$8.02B	-0.39	-43.38%	2.20%	22.34%	-2.13%
PRCT	50 Neutral	$2.09B	―	-26.40%	―	55.71%	24.37%

Penumbra Corporate Events

Penumbra Appoints Shruthi Narayan as New President

On August 22, 2025, Penumbra, Inc. appointed Shruthi Narayan as President, effective September 1, 2025. Ms. Narayan, who joined Penumbra in 2013, has been instrumental in building the company’s peripheral vascular division and commercializing its vascular portfolio globally. Her appointment is expected to sustain Penumbra’s growth and market leadership in the medical device industry, particularly in thrombectomy technologies. Adam Elsesser will continue as Chairman and CEO, while Ms. Narayan’s leadership is anticipated to expand access to Penumbra’s life-saving technology worldwide.

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.