Penumbra, Inc. (PEN)
NEUTRALFundamental
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
Devices that remove blood clots to treat pulmonary embolism, deep vein thrombosis, acute limb ischemia, ischemic stroke and coronary disease.
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 · NarrowPenumbra'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
DefensivePenumbra'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
Fair Value
$238.51
Current Price
$323.90
Margin of Safety
-35.8%
Fair Value Range
$155.03 - $321.99
Estimation Methods
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
Strong financial health
Earnings Quality
High quality: earnings backed by cash
Share Dilution
Share count is stable
Governance
Executive Team
| Name | Title | Age |
|---|---|---|
| Mr. Adam Elsesser J.D. | Co-Founder, Chairman & CEO | 63 |
| Ms. Shruthi Narayan | President | 40 |
| Dr. Arani Bose M.D. | Co-Founder & Director | 63 |
| Ms. Maggie S. Yuen | Chief Financial Officer | 53 |
| Mr. Lambert Shiu | Chief Accounting Officer | 45 |
| Ms. Johanna Roberts J.D. | Executive VP, General Counsel & Secretary | 53 |
| Mr. Ben Sorci | Executive Vice President of Operations | - |
| Mr. Pankaj Tiwari | Executive 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.
- 2/25/2026NEUTRALPenumbra 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