Penumbra Inc. Common Stock (PEN)

FairStock Score: 43/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for durable advantages and a price that leaves room for error. Penumbra sells medical devices for removing blood clots and accessing vessels, which is a real clinical need. Revenue has grown: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $390.0M, up from $339.5M in fiscal Q2 2025. But net income fell to $34.8M from $45.3M, and diluted EPS dropped to $0.88 from $1.15. That profit decline while sales rise is a yellow flag. Full-year fiscal 2025 revenue was $1.4B and net income $177.7M, a huge rebound from $14.0M in fiscal 2024; however, the Lynch category is TURNAROUND - returned to profit after a loss within the last three years. The balance sheet is a strength: debt-to-equity 0.14, Altman Z-Score 18.19, Piotroski 7/9, and trailing free cash flow $215.9M. Yet free cash flow yield is only 1.7%. At the 2026-10-13 close of $320.01, FairStock calculations show P/E 78.63, P/B 8.23, EV/EBITDA 56.74, Graham Number $59.65, and margin of safety -436.48%. ROE 11.37% and ROCE 6.42% are not exceptional, so the figures do not prove a wide moat. FairStock Score is 43/100. This is a growing, low-debt business, but the price already assumes a lot. I would need profit margins to recover and cash generation to accelerate before the valuation looks defensible.

In plain English: Penumbra makes medical devices that help doctors remove blood clots and reach blood vessels. The business is growing sales and has little debt, but its profit recently fell even as sales rose. Based on the current price and its profits and cash flow, the stock looks expensive rather than cheap.

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Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer