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Penumbra, Inc. (PEN)

NEUTRAL
HealthcareMedical DevicesUnited States

Fundamental

67

Price

$323.90

Market Cap

$12.79B

Part 1 · What the company is worth

Overview

Penumbra designs and manufactures devices that remove blood clots from inside the body without open surgery, threading a catheter through a blood vessel to pull the clot out or suck it away. Its products treat conditions such as ischemic stroke, pulmonary embolism and acute limb ischemia. A second, related line of products helps physicians access blood vessels and block off unwanted ones, such as before a tumor is removed. It sells to hospitals and clinics in over 100 countries.

How it makes money

Penumbra sells physical devices — catheters, aspiration systems and related disposables — to hospitals, which use them one procedure at a time. Because each stroke, clot or vascular case consumes a new device, revenue grows with the number of procedures performed rather than through subscriptions, and it depends on hospitals adopting Penumbra's technology over rival devices, on regulatory clearance for new products, and on reimbursement from insurers and public health systems that pay for the procedure.

Revenue by segment

Thrombectomy67.5%

Devices that remove blood clots to treat pulmonary embolism, deep vein thrombosis, acute limb ischemia, ischemic stroke and coronary disease.

Embolization and Access32.5%

Devices that help physicians access blood vessels and selectively block off unwanted ones, used in a range of vascular procedures.

Competitive moat

Patents and licences · Narrow

Penumbra's devices are protected by patents on their specific mechanical and aspiration designs, and any new device must clear a lengthy regulatory approval process before it can be sold, which slows down copycats. That said, the field has several capable competitors building similar clot-removal technology, so the protection is real but not close to exclusive.

What drives demand

Defensive

Penumbra's core products treat medical emergencies such as stroke, pulmonary embolism and limb-threatening blood clots, procedures that hospitals perform regardless of the economic climate because delaying them risks death or permanent disability. Demand is therefore driven mainly by disease incidence, physician adoption of minimally invasive techniques, and hospital budgets for equipment, not by discretionary consumer spending.

Key risks

  • Lengthy and uncertain regulatory approval — The company operates under stringent domestic and foreign medical device regulations, and delays or failures in obtaining approval for new or modified products can push back launches and revenue.
  • Product liability litigation — As a maker of devices used in life-critical procedures, the company faces product liability claims and lawsuits seeking compensatory and punitive damages over alleged device failures or injuries.
  • Restrictions on off-label promotion — Regulators actively enforce rules against promoting a device for uses it was not approved for, and a violation can bring substantial monetary penalties or criminal prosecution.
  • Mandatory adverse event reporting — Medical device reporting rules require the company to notify regulators whenever it learns a device may have caused or contributed to a death or serious injury, which can trigger investigations or recalls.

The case for

Buyers argue that thrombectomy is still replacing older, less effective treatments for stroke and clot-related emergencies, that Penumbra's revenue keeps growing faster than the market, and that its second embolization and access line adds a further avenue for growth beyond its original thrombectomy business.

The case against

Sellers fear that well-funded competitors are developing similar clot-removal technology, that a single unfavorable regulatory finding or product-liability case could damage both revenue and reputation quickly, and that a business built on emergency procedures leaves little room to grow through pricing.

Written by the editors, published on August 18, 2026

Direct competitors

Who this company fights with for the same customers

No editorial profile for this company yet

No competitor list for this company yet.

Balance Sheet & Liquidity

Revenue

$1.50B

Trailing 12 months (through 6/30/2026)

Net Income

$161M

Trailing 12 months (through 6/30/2026)

Free Cash Flow

$175M

Total Equity

$1.43B

Total Liabilities

$399M

Current Ratio

5.75

Interest Coverage

144.33

Debt/EBITDA

1.03

Earnings Per Share

Revenue & Net Income

Free Cash Flow

Income Breakdown

Historical statement

Margins over time

Debt over time

How heavy the debt is

Growth grid

Growth — Revenue

Fair Value Estimation

Overvalued

Fair Value

$238.51

Current Price

$323.90

Margin of Safety

-35.8%

Fair Value Range

$155.03 - $321.99

Estimation Methods

Analyst Target:$361.83
DCF:$106.51
PE-based:$280.42
Graham Growth:$66.10
EPV:$44.76
Analyst Consensus:Hold (6B / 14H / 0S)
Last Earnings Surprise:-26.59%

Valuation Metrics

P/E Ratio

79.55

ROE

12.4%

P/B Ratio

8.33

P/FCF

59.06

Gross Margin

67.8%

ROIC

8.5%

Profitability Radar

Value Creation (Economic Moat)

ROIC

8.5%

WACC

8.2%

ROIC − WACC

+0.3 pp

ROIC is roughly in line with the cost of capital — the company is barely covering its capital cost.

Fundamental Analysis Criteria

Passed (18)

  • EPS shows upward trend
  • EPS CAGR 33.58%
  • Price CAGR 17.69%
  • ROIC 8.5%
  • Gross Margin 67.8%
  • Debt/Equity ratio
  • Operating Margin 12.4%
  • Positive Free Cash Flow
  • Current Ratio
  • Interest Coverage
  • Debt/EBITDA
  • Return on Tangible Assets
  • Low reliance on intangibles
  • ROE 11.1%
  • Revenue Growth 5Y 20.2%
  • Earnings Quality (OCF/NI) 1.73
  • Share Dilution 1.0%
  • Piotroski F-Score 8/9

Failed (8)

  • P/FCF 59.06
  • P/B Ratio 8.33
  • CapEx intensity
  • Price below Graham Number
  • DCF valuation (Overvalued)
  • Analyst Consensus 30% Buy
  • Earnings Surprise avg -10.5%
  • Net Margin Trend 10.7% vs 11.5%

Unavailable (2)

  • Dividend Payout NaN%
  • PEG Ratio (need PE > 0 and growth > 0)

Piotroski F-Score

8/9

Strong financial health

score
criteria

Earnings Quality

1.73

High quality: earnings backed by cash

Share Dilution

1.0%

Share count is stable

Governance

Executive Team

NameTitleAge
Mr. Adam Elsesser J.D.Co-Founder, Chairman & CEO63
Ms. Shruthi NarayanPresident40
Dr. Arani Bose M.D.Co-Founder & Director63
Ms. Maggie S. YuenChief Financial Officer53
Mr. Lambert ShiuChief Accounting Officer45
Ms. Johanna Roberts J.D.Executive VP, General Counsel & Secretary53
Mr. Ben SorciExecutive Vice President of Operations-
Mr. Pankaj TiwariExecutive VP & Chief Information Officer-

Audit Risk

7

Board Risk

5

Compensation Risk

7

Shareholder Rights Risk

4

Part 2 · The price and when to enter

This part won't tell you whether the company is worth owning: it helps you choose when to buy it, once the fundamentals have convinced you. Inside: technical analysis, potential, historical drawdowns, gamma exposure.

Latest News

Recent headlines for PEN, sourced from Markets Gazette.

  • 2/25/2026NEUTRAL
    Penumbra Q4 Earnings Assessment

    The financial community is keenly awaiting the assessment of Penumbra Inc.'s fourth-quarter earnings. While specific details from this analysis have not yet been released, investor attention remains high, given the critical importance of such reports in gauging the medical device company's financial health and future prospects. Q4 performance is particularly crucial for Penumbra, operating in a competitive medical technology market where innovation and clinical outcomes drive growth. Analysts will be closely scrutinizing key metrics such as revenue figures, profit margins, and forward-looking guidance for the upcoming year, seeking indications of the company's ability to sustain its growth trajectory and navigate industry challenges. The full disclosure of these results will provide clear direction for the stock.

via Markets Gazette