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Proofpoint

Nasdaq:PFPT
Snowflake Description

Excellent balance sheet and slightly overvalued.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PFPT
Nasdaq
$6B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Proofpoint, Inc. operates as a security-as-a-service provider that enables large and mid-sized organizations to defend, protect, archive, and govern their sensitive data worldwide. The last earnings update was 45 days ago. More info.


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  • Proofpoint has significant price volatility in the past 3 months.
PFPT Share Price and Events
7 Day Returns
-6.7%
NasdaqGM:PFPT
-1.8%
US Software
-2.8%
US Market
1 Year Returns
-17.8%
NasdaqGM:PFPT
5.2%
US Software
-15.9%
US Market
PFPT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Proofpoint (PFPT) -6.7% -12.4% -18.7% -17.8% 33% 58.3%
US Software -1.8% -13.9% -9.9% 5.2% 89.1% 140.9%
US Market -2.8% -18.8% -24% -15.9% 2.8% 13.3%
1 Year Return vs Industry and Market
  • PFPT underperformed the Software industry which returned 5.2% over the past year.
  • PFPT underperformed the Market in United States of America which returned -15.9% over the past year.
Price Volatility
PFPT
Industry
5yr Volatility vs Market
Related Companies

PFPT Value

 Is Proofpoint undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Proofpoint to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Proofpoint.

NasdaqGM:PFPT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 26 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7.7%
Perpetual Growth Rate 10-Year US Government Bond Rate 1.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGM:PFPT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 1.7%
Equity Risk Premium S&P Global 5.4%
Software Unlevered Beta Simply Wall St/ S&P Global 1.02
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.017 (1 + (1- 21%) (14.45%))
1.089
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.09
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 1.74% + (1.089 * 5.44%)
7.67%

Discounted Cash Flow Calculation for NasdaqGM:PFPT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Proofpoint is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGM:PFPT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 7.67%)
2020 173.86 Analyst x19 161.48
2021 293.99 Analyst x19 253.61
2022 383.13 Analyst x3 306.99
2023 481.00 Analyst x2 357.96
2024 573.95 Analyst x2 396.72
2025 641.94 Est @ 11.85% 412.13
2026 698.52 Est @ 8.81% 416.52
2027 745.27 Est @ 6.69% 412.76
2028 784.07 Est @ 5.21% 403.33
2029 816.74 Est @ 4.17% 390.22
Present value of next 10 years cash flows $3,511.00
NasdaqGM:PFPT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $816.74 × (1 + 1.74%) ÷ (7.67% – 1.74%)
$14,022.92
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $14,022.92 ÷ (1 + 7.67%)10
$6,699.87
NasdaqGM:PFPT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,511.00 + $6,699.87
$10,210.87
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $10,210.87 / 57.00
$179.13
NasdaqGM:PFPT Discount to Share Price
Calculation Result
Value per share (USD) From above. $179.13
Current discount Discount to share price of $97.89
= -1 x ($97.89 - $179.13) / $179.13
45.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Proofpoint is available for.
Intrinsic value
45%
Share price is $97.89 vs Future cash flow value of $179.13
Current Discount Checks
For Proofpoint to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Proofpoint's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Proofpoint's share price is below the future cash flow value, and at a substantial discount (> 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Proofpoint's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Proofpoint's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:PFPT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-12-31) in USD $-2.33
NasdaqGM:PFPT Share Price ** NasdaqGM (2020-04-03) in USD $97.89
United States of America Software Industry PE Ratio Median Figure of 70 Publicly-Listed Software Companies 37.89x
United States of America Market PE Ratio Median Figure of 2,947 Publicly-Listed Companies 12.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Proofpoint.

NasdaqGM:PFPT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:PFPT Share Price ÷ EPS (both in USD)

= 97.89 ÷ -2.33

-42.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Proofpoint is loss making, we can't compare its value to the US Software industry average.
  • Proofpoint is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Proofpoint's expected growth come at a high price?
Raw Data
NasdaqGM:PFPT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -42.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts
-0%per year
United States of America Software Industry PEG Ratio Median Figure of 57 Publicly-Listed Software Companies 2.28x
United States of America Market PEG Ratio Median Figure of 2,010 Publicly-Listed Companies 0.88x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Proofpoint, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Proofpoint's assets?
Raw Data
NasdaqGM:PFPT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-12-31) in USD $10.43
NasdaqGM:PFPT Share Price * NasdaqGM (2020-04-03) in USD $97.89
United States of America Software Industry PB Ratio Median Figure of 217 Publicly-Listed Software Companies 4.04x
United States of America Market PB Ratio Median Figure of 5,146 Publicly-Listed Companies 1.2x
NasdaqGM:PFPT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:PFPT Share Price ÷ Book Value per Share (both in USD)

= 97.89 ÷ 10.43

9.38x

* Primary Listing of Proofpoint.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Proofpoint is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess Proofpoint's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Proofpoint has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

PFPT Future Performance

 How is Proofpoint expected to perform in the next 1 to 3 years based on estimates from 26 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
-0%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Proofpoint expected to grow at an attractive rate?
  • Unable to compare Proofpoint's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Proofpoint's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Proofpoint's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:PFPT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:PFPT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 26 Analysts -0%
NasdaqGM:PFPT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 26 Analysts 15.1%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 10.4%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.5%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.4%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGM:PFPT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:PFPT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2024-12-31 2,100 644 -131 2
2023-12-31 1,806 541 -146 2
2022-12-31 1,500 453 -156 5
2021-12-31 1,253 359 -136 25
2020-12-31 1,058 267 -197 26
2020-04-05
NasdaqGM:PFPT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-12-31 888 243 -130
2019-09-30 843 221 -123
2019-06-30 800 217 -114
2019-03-31 757 204 -120
2018-12-31 717 185 -104
2018-09-30 665 172 -89
2018-06-30 616 152 -72
2018-03-31 567 148 -62
2017-12-31 520 154 -70
2017-09-30 480 152 -86
2017-06-30 445 135 -85
2017-03-31 412 117 -100

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Proofpoint is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Proofpoint's revenue is expected to grow by 15.1% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGM:PFPT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below

All data from Proofpoint Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:PFPT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2024-12-31 -2.14 -2.14 -2.14 1.00
2023-12-31 -2.41 -2.41 -2.41 1.00
2022-12-31 -2.60 -2.60 -2.60 1.00
2021-12-31 -2.17 -1.11 -2.65 6.00
2020-12-31 -3.44 -2.25 -3.70 6.00
2020-04-05
NasdaqGM:PFPT Past Financials Data
Date (Data in USD Millions) EPS *
2019-12-31 -2.33
2019-09-30 -2.21
2019-06-30 -2.10
2019-03-31 -2.25
2018-12-31 -1.99
2018-09-30 -1.79
2018-06-30 -1.52
2018-03-31 -1.34
2017-12-31 -1.58
2017-09-30 -1.98
2017-06-30 -1.98
2017-03-31 -2.35

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Proofpoint is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Proofpoint's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Proofpoint has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

PFPT Past Performance

  How has Proofpoint performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Proofpoint's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Proofpoint does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Proofpoint's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Proofpoint's 1-year growth to the US Software industry average as it is not currently profitable.
Earnings and Revenue History
Proofpoint's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Proofpoint Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:PFPT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-12-31 888.19 -130.27 526.44 230.46
2019-09-30 843.24 -122.77 502.92 216.71
2019-06-30 800.03 -114.49 484.96 202.57
2019-03-31 757.47 -119.87 460.24 194.91
2018-12-31 716.99 -103.75 431.63 185.39
2018-09-30 665.43 -89.06 395.74 172.59
2018-06-30 615.94 -72.48 361.71 159.15
2018-03-31 566.51 -61.68 329.33 143.93
2017-12-31 519.68 -69.80 302.96 129.80
2017-09-30 479.57 -86.14 299.37 122.16
2017-06-30 444.67 -85.03 281.17 114.18
2017-03-31 412.13 -99.84 265.37 105.46
2016-12-31 378.34 -96.49 242.77 98.51
2016-09-30 343.63 -115.72 225.71 90.83
2016-06-30 313.00 -124.36 211.25 86.33
2016-03-31 286.64 -108.66 198.08 81.40
2015-12-31 265.40 -98.71 185.03 74.46
2015-09-30 246.65 -88.69 166.36 68.57
2015-06-30 227.81 -79.03 151.74 62.02
2015-03-31 210.67 -71.56 138.66 55.66
2014-12-31 195.61 -60.12 123.84 51.90
2014-09-30 180.25 -58.75 119.67 48.69
2014-06-30 164.44 -48.59 110.26 43.54
2014-03-31 149.87 -35.53 99.56 38.84
2013-12-31 137.93 -27.53 91.40 34.45
2013-09-30 125.74 -21.14 82.53 29.92
2013-06-30 118.32 -18.55 76.62 27.88

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Proofpoint has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Proofpoint has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Proofpoint improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Proofpoint's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Proofpoint has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

PFPT Health

 How is Proofpoint's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Proofpoint's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Proofpoint is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Proofpoint's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Proofpoint's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.6x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Proofpoint Company Filings, last reported 3 months ago.

NasdaqGM:PFPT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-12-31 592.50 749.62 890.94
2019-09-30 594.73 741.37 1,051.51
2019-06-30 525.29 0.00 182.71
2019-03-31 507.11 0.00 256.99
2018-12-31 512.53 0.00 231.70
2018-09-30 503.85 0.00 190.39
2018-06-30 297.04 204.01 134.06
2018-03-31 303.69 200.91 117.20
2017-12-31 299.12 197.86 331.60
2017-09-30 32.97 381.15 459.63
2017-06-30 33.77 377.42 429.49
2017-03-31 36.73 371.94 412.88
2016-12-31 44.92 366.54 396.75
2016-09-30 50.10 361.22 412.35
2016-06-30 50.97 355.97 412.12
2016-03-31 70.06 350.80 409.79
2015-12-31 83.19 345.70 406.24
2015-09-30 76.29 340.68 416.37
2015-06-30 92.32 335.73 410.65
2015-03-31 47.91 164.16 193.54
2014-12-31 56.47 162.09 214.99
2014-09-30 61.27 160.50 232.79
2014-06-30 68.74 158.72 226.85
2014-03-31 73.29 156.97 257.25
2013-12-31 77.16 155.28 251.80
2013-09-30 37.84 2.74 71.59
2013-06-30 39.40 3.17 89.68
  • Proofpoint's level of debt (126.5%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (287.4% vs 126.5% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Proofpoint has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Proofpoint has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -47.5% per year.
X
Financial health checks
We assess Proofpoint's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Proofpoint has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

PFPT Dividends

 What is Proofpoint's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Proofpoint dividends. Estimated to be 0% next year.
If you bought $2,000 of Proofpoint shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Proofpoint's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Proofpoint's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGM:PFPT Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 26 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 19 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1936 Stocks 3.1%
United States of America Minimum Threshold Dividend Yield 10th Percentile 1.1%
United States of America Bottom 25% Dividend Yield 25th Percentile 2.1%
United States of America Top 25% Dividend Yield 75th Percentile 5.8%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGM:PFPT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2024-12-31
2023-12-31
2022-12-31 0.00 2.00
2021-12-31 0.00 3.00
2020-12-31 0.00 3.00
2020-04-05

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Proofpoint has not reported any payouts.
  • Unable to verify if Proofpoint's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Proofpoint's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Proofpoint has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Proofpoint's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Proofpoint's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 1.1%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Proofpoint afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Proofpoint has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

PFPT Management

 What is the CEO of Proofpoint's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gary Steele
COMPENSATION $64,730,296
AGE 57
TENURE AS CEO 18.3 years
CEO Bio

Mr. Gary L. Steele serves as Chief Executive Officer of Proofpoint, Inc., since 2002 and its Chairman of the Board since July 9, 2018. Before joining Proofpoint in 2002, Mr. Steele has more than 30 years of technology industry experience, he directs a global workforce of 2,600+ employees to protect people, data and brands from advanced threats and compliance risks. Before joining Proofpoint in 2002, Mr. Steele served as the Chief Executive Officer of Portera Systems. He served as a Vice President and General Manager of the Middleware and Data Warehousing Product Group at Sybase, Inc. and initiated all new Internet projects targeted at the enterprise. He also serves on the board of directors of Synack. His experience includes business development, marketing and engineering roles at Sun Microsystems and Hewlett-Packard. Mr. Gary L. Steele serves as Director at Upwork Inc. Mr. Steele has a broad range of enterprise Software as a Service (SaaS) Experience, as well as deep knowledge of enterprise sales operations and distribution. He has been an Independent Director of Vonage Holdings Corporation since July 2016. He serves as a Director at Malwarebytes Inc. since September 13, 2016 and Proofpoint NI Limited since April 5, 2013. Mr. Steele holds a B.S. Degree in Computer Science from the Washington State University.

CEO Compensation
  • Gary's compensation has increased whilst company is loss making.
  • Gary's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Proofpoint management team in years:

3.8
Average Tenure
53
Average Age
  • The tenure for the Proofpoint management team is about average.
Management Team

Gary Steele

TITLE
Chairman of Board & CEO
COMPENSATION
$65M
AGE
57
TENURE
18.3 yrs

Paul Auvil

TITLE
Chief Financial Officer
COMPENSATION
$11M
AGE
55
TENURE
13.1 yrs

Blake Sallé

TITLE
Executive Vice President of Worldwide Sales
COMPENSATION
$5M
AGE
47
TENURE
1.5 yrs

David Knight

TITLE
Executive VP & GM of Security Products
COMPENSATION
$5M
AGE
53
TENURE
9.1 yrs

Bhagwat Swaroop

TITLE
Executive Vice President of Industry Solutions & Business Development
COMPENSATION
$3M
AGE
44
TENURE
3.8 yrs

Lyn Campbell

TITLE
Senior Vice President of Global Operations & Information Technology

Jason Starr

TITLE
Vice President of Investor Relations

Michael Yang

TITLE
VP, General Counsel & Corporate Secretary

Robert Lee

TITLE
Executive VP and GM of Compliance & Digital Risk Business Unit
COMPENSATION
$2M
AGE
53
TENURE
1.1 yrs

Jason Hurst

TITLE
Senior Vice President of Corporate Development
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Proofpoint board of directors in years:

2.8
Average Tenure
57
Average Age
  • The average tenure for the Proofpoint board of directors is less than 3 years, this suggests a new board.
Board of Directors

Jon Feiber

TITLE
Independent Director
COMPENSATION
$266K
AGE
62
TENURE
17.8 yrs

Gary Steele

TITLE
Chairman of Board & CEO
COMPENSATION
$65M
AGE
57
TENURE
1.8 yrs

Dana Evan

TITLE
Lead Independent Director
COMPENSATION
$276K
AGE
59
TENURE
1.8 yrs

Richard Herren

TITLE
Independent Director
COMPENSATION
$271K
AGE
57
TENURE
3.8 yrs

Michael Johnson

TITLE
Independent Director
COMPENSATION
$258K
AGE
51
TENURE
2.8 yrs

Kevin Harvey

TITLE
Independent Director
COMPENSATION
$249K
AGE
54
TENURE
17.3 yrs

Rick Wallace

TITLE
Independent Director
COMPENSATION
$250K
AGE
59
TENURE
2.9 yrs

Kristen Gil

TITLE
Independent Director
COMPENSATION
$256K
AGE
47
TENURE
2.5 yrs

Leyla Seka

TITLE
Independent Director
TENURE
0.8 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month open market individual insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
20. Nov 19 Sell Blake Sallé Individual 20. Nov 19 20. Nov 19 -10,479 $119.97 $-1,257,214
04. Sep 19 Sell Michael Johnson Individual 03. Sep 19 03. Sep 19 -1,844 $117.56 $-216,785
10. Jun 19 Sell Robert Lee Individual 06. Jun 19 06. Jun 19 -1,948 $107.78 $-209,950
X
Management checks
We assess Proofpoint's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Proofpoint has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

PFPT News

Simply Wall St News

Have Insiders Been Selling Proofpoint, Inc. (NASDAQ:PFPT) Shares?

For example, a Harvard University study found that 'insider purchases earn abnormal returns of more than 6% per year.' Check out our latest analysis for Proofpoint The Last 12 Months Of Insider Transactions At Proofpoint In the last twelve months, the biggest single sale by an insider was when the Executive VP and GM of Compliance & Digital Risk Business Unit, Robert Lee, sold US$652k worth of shares at a price of US$114 per share. … Insider Ownership of Proofpoint Another way to test the alignment between the leaders of a company and other shareholders is to look at how many shares they own. … Proofpoint insiders own about US$100m worth of shares (which is 1.6% of the company).

Simply Wall St -

Estimating The Fair Value Of Proofpoint, Inc. (NASDAQ:PFPT)

We assume companies with shrinking free cash flow will slow their rate of shrinkage, and that companies with growing free cash flow will see their growth rate slow, over this period. … A DCF is all about the idea that a dollar in the future is less valuable than a dollar today, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $266.4m $326.4m $393.5m $479.9m $548.7m $608.3m $659.5m $703.8m $742.6m $777.4m Growth Rate Estimate Source Analyst x19 Analyst x5 Analyst x2 Analyst x2 Est @ 14.34% Est @ 10.86% Est @ 8.42% Est @ 6.71% Est @ 5.52% Est @ 4.68% Present Value ($, Millions) Discounted @ 9.2% $244.0 $273.7 $302.2 $337.6 $353.5 $358.8 $356.3 $348.2 $336.5 $322.6 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $3.2b We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … In the same way as with the 10-year 'growth' period, we discount future cash flows to today's value, using a cost of equity of 9.2%.

Simply Wall St -

Is Proofpoint, Inc.'s (NASDAQ:PFPT) CEO Being Overpaid?

This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … When we examined a selection of companies with market caps ranging from US$4.0b to US$12b, we found the median CEO total compensation was US$6.9m. … Thus we can conclude that Gary Steele receives more in total compensation than the median of a group of companies in the same market, and of similar size to Proofpoint, Inc..

Simply Wall St -

Is Proofpoint, Inc. (NASDAQ:PFPT) Excessively Paying Its CEO?

This report will, first, examine the CEO compensation levels in comparison to CEO compensation at companies of similar size. … See our latest analysis for Proofpoint How Does Gary Steele's Compensation Compare With Similar Sized Companies? … We examined companies with market caps from US$4.0b to US$12b, and discovered that the median CEO total compensation of that group was US$6.9m.

Simply Wall St -

What You Must Know About Proofpoint, Inc.'s (NASDAQ:PFPT) Financial Health

See our latest analysis for Proofpoint Does PFPT Produce Much Cash Relative To Its Debt? … Moreover, PFPT has produced US$204m in operating cash flow over the same time period, resulting in an operating cash to total debt ratio of 346%, indicating that PFPT’s current level of operating cash is high enough to cover debt. … Next Steps: PFPT has demonstrated its ability to generate sufficient levels of cash flow, while its debt hovers at a safe level.

Simply Wall St -

Investors Who Bought Proofpoint (NASDAQ:PFPT) Shares Five Years Ago Are Now Up 299%

See our latest analysis for Proofpoint Given that Proofpoint didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … When a company doesn't make profits, we'd generally expect to see good revenue growth. … Proofpoint seems like a high growth stock - so growth investors might want to add it to their watchlist.

Simply Wall St -

What Do Analysts Think About Proofpoint, Inc.'s (NASDAQ:PFPT) Long Term Outlook?

Proofpoint, Inc.'s (NASDAQ:PFPT) latest earnings announcement in December 2018 … company earnings became less negative compared to the previous year's level

Simply Wall St -

Have Insiders Been Selling Proofpoint, Inc. (NASDAQ:PFPT) Shares?

So shareholders might well want to know whether insiders have been buying or selling shares in Proofpoint, Inc. … Proofpoint Insider Transactions Over The Last Year. … In the last year Proofpoint insiders didn't buy any company stock

Simply Wall St -

Should You Think About Buying Proofpoint, Inc. (NASDAQ:PFPT) Now?

(NASDAQ:PFPT), which is in the software business, and is based in United States,. … saw a significant share price rise of over 20% in the past couple of months on the NASDAQGM. … With many analysts covering the mid-cap stock, we may expect any price-sensitive announcements have already been factored into the stock’s share price?

Simply Wall St -

Is Proofpoint, Inc.'s (NASDAQ:PFPT) CEO Pay Fair?

First, this article will compare CEO compensation with compensation at similar sized companies. … Next, we'll consider growth that the business demonstrates. … How Does Gary Steele's Compensation Compare With Similar Sized Companies?

Simply Wall St -

PFPT Company Info

Description

Proofpoint, Inc. operates as a security-as-a-service provider that enables large and mid-sized organizations to defend, protect, archive, and govern their sensitive data worldwide. It offers protection against advanced and targeted threats, including malicious attachments, polymorphic threats, zero-day exploits, user-transparent ‘drive-by’ downloads, malicious web links, hybrid threats, malware free attacks, and other penetration tactics. The company also provides integrated email security, cloud security, advanced threat, information protection and archiving, and digital risk protection product services. In addition, it offers solutions that enable secure business-to-business and business-to-consumer communications; email encryption services that encrypt sensitive emails and deliver them to PC or mobile device; file-transfer solutions for end-users to share various forms of documents and other content; security optimized cloud architecture solutions; and extensible security-as-a-service platform. The company serves aerospace and defense, education, financial services, government, healthcare, manufacturing, and retail sectors. Proofpoint, Inc. was founded in 2002 and is headquartered in Sunnyvale, California.

Details
Name: Proofpoint, Inc.
PFPT
Exchange: NasdaqGM
Founded: 2002
$5,580,087,690
57,003,654
Website: http://www.proofpoint.com
Address: Proofpoint, Inc.
892 Ross Drive,
Sunnyvale,
California, 94089,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM PFPT Common Stock Nasdaq Global Market US USD 20. Apr 2012
DB POF Common Stock Deutsche Boerse AG DE EUR 20. Apr 2012
BMV PFPT * Common Stock Bolsa Mexicana de Valores MX MXN 20. Apr 2012
Number of employees
Current staff
Staff numbers
3,368
Proofpoint employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2020/04/05 05:45
End of day share price update: 2020/04/03 00:00
Last estimates confirmation: 2020/03/31
Last earnings filing: 2020/02/20
Last earnings reported: 2019/12/31
Last annual earnings reported: 2019/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.