Everpure, Inc. (P)

Conclusion

Everpure, Inc. (P.US) sells data storage and management products, including FlashArray and FlashBlade systems, the Purity software that runs across them, Portworx for Kubernetes, and Evergreen//One and Evergreen//Flex storage offerings. On 2026-11-09 the share price was 102.84 USD, giving a market capitalisation of 34.3 billion USD and an enterprise value of 33.5 billion USD.

The verdict is overvalued. The price-to-free-cash-flow ratio is 267.4 against a ten-year median of 35.9, the price-to-sales ratio is 8.0 against 3.8, and the price-to-book ratio is 22.2 against 8.7. The fair value band runs from 32.35 to 48.53 USD with a midpoint of 40.44 USD, giving a margin of safety of -60.7% at the current price. A discounted cash flow value per share is not available because base free cash flow is negative, at -421.7 million USD, and the reverse DCF implied growth is not available. Revenue has compounded at 10.0% over three years and 16.8% over five, while next year's earnings per share estimate implies growth of 49.8%.

The balance sheet and returns hold the case up. The Altman Z-score is 6.5, net debt to EBITDA is -1.8, and ROIC is 29.9% against a WACC of 12.1%. The valuation itself is the main weakness, followed by free cash flow after stock-based compensation of -421.7 million USD and a share count that has risen at 5.3% a year over five years.

Financial health

Financial health is green, held up by the Altman Z-score, net debt to EBITDA, interest coverage and the current ratio, with no metric assessed as bad.

The current ratio is 1.44 and the quick ratio is 0.93. The company holds net cash, with net debt to EBITDA at -1.82, debt to equity at 0.15 and interest coverage at 103.4x. The Altman Z-score is 6.51, in the safe zone. Insolvency risk is low, about 1.1% by the estimate of the Ohlson model over one to two years. The Ohlson figure is as of 2026-01-31, and the balance sheet ratios are as of 2026-07-31.

Earnings quality

Earnings quality is yellow: free cash flow conversion over the last twelve months of 50.6% and a negative accrual ratio of -0.16 support it, while share count growth and stock-based compensation weigh on it.

Five-year free cash flow conversion is 888.7%, far above the twelve-month figure. Stock-based compensation is 12.9% of revenue, and free cash flow after it is -421.7 million USD over the last twelve months. The share count has risen at 5.3% a year over five years, so holders have been diluted rather than helped by buybacks. The Piotroski score is 5 of 8 evaluable tests. The Beneish M-score is not available. The company beat estimates in 7 of the last 8 quarters, with an average surprise of 12.4%. Current-year estimates rose 14.2% over 90 days with 18 upward revisions and no downward ones in 30 days.

Profitability

Profitability is green, with ROIC of 29.9% against a WACC of 12.1% and margins above their ten-year medians.

Gross margin is 69.7% against a median of 68.6%. Operating margin is 5.3% against a median of -8.1%, and net margin is 5.9% against a median of -9.4%. ROIC minus WACC is 17.8%. The DuPont split shows a net margin of 5.1%, an asset turnover of 0.78 and an equity multiplier of 3.23. Return on equity of 16.4% is therefore well below ROIC, which means leverage is not inflating the headline return. Operating margin stability is 1.32 on the annual basis.

Growth

Growth is green, with revenue compounding at 16.8% over five years and earnings per share at 36.2% over three years.

Revenue compound growth is 10.0% over three years, 16.8% over five and 23.6% over ten. Revenue grew in all 10 comparable years. Earnings per share compound growth is 36.2% over three years. Free cash flow per share fell 0.3% a year over three years but rose 38.8% a year over five. The next-year earnings per share estimate implies growth of 49.8%.

Valuation

Valuation is red: the price-to-free-cash-flow, price-to-sales and price-to-book ratios all sit far above their ten-year medians, and the price is above the fair value band.

The price-to-free-cash-flow ratio of 267.4 is a premium of 645.2% to its median of 35.9. The price-to-sales ratio of 8.0 carries a premium of 110.7% to its median of 3.8, and the price-to-book ratio of 22.2 a premium of 154.3% to its median of 8.7. The price-to-earnings ratio of 135.3 and the EV-to-EBITDA ratio of 77.8 have only four historical data points, so their medians are not available. The fair value from historical multiples is 40.44 USD. The discounted cash flow uses a discount rate of 12.15% and terminal growth of 2.5%, but its per-share value is not available. The fair value band is an order of magnitude built on fixed assumptions, not a price target. The company pays no dividend.

Risks

Negative free cash flow after stock-based compensation of -421.7 million USD means the business does not yet fund its share-based pay from cash, and the 5.3% annual rise in share count dilutes each holder's stake. The premium of 645.2% on price to free cash flow leaves little room if growth slows, and the fair value band sits far below the current price. The Beneish M-score is not available, so manipulation risk cannot be checked. This analysis has no debt maturity schedule and no revenue split by segment, so refinancing exposure and the sources of growth cannot be examined. The estimate revisions and earnings surprises describe analyst expectations, not delivered results.