PALO ALTO NETWORKS INC (1PANW.MI) Stock Fundamental Analysis
BIT:1PANW - Euronext Milan - US6974351057 - Common Stock - Currency: EUR
Taking everything into account, 1PANW scores 5 out of 10 in our fundamental rating. 1PANW was compared to 94 industry peers in the Software industry. 1PANW has only an average score on both its financial health and profitability. 1PANW is valued quite expensive, but it does show an excellent growth. These ratings could make 1PANW a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
1PANW had positive earnings in the past year.
In the past year 1PANW had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1PANW reported negative net income in multiple years.
Each year in the past 5 years 1PANW had a positive operating cash flow.
1.2 Ratios
1PANW's Return On Assets of 5.99% is fine compared to the rest of the industry. 1PANW outperforms 68.09% of its industry peers.
Looking at the Return On Equity, with a value of 19.68%, 1PANW belongs to the top of the industry, outperforming 81.91% of the companies in the same industry.
The Return On Invested Capital of 1PANW (6.06%) is better than 64.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 19.68% | ||
| ROIC | 6.06% |
ROA(3y)4.58%
ROA(5y)1.19%
ROE(3y)-17.38%
ROE(5y)-31%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of 1PANW (14.64%) is better than 73.40% of its industry peers.
Looking at the Operating Margin, with a value of 12.20%, 1PANW is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
1PANW has a Gross Margin of 73.86%. This is in the better half of the industry: 1PANW outperforms 61.70% of its industry peers.
In the last couple of years the Gross Margin of 1PANW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.2% | ||
| PM (TTM) | 14.64% | ||
| GM | 73.86% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.01%
GM growth 5Y0.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1PANW is destroying value.
1PANW has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 1PANW has been increased compared to 5 years ago.
The debt/assets ratio for 1PANW has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.08 indicates that 1PANW is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.08, 1PANW is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
There is no outstanding debt for 1PANW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 5.08 |
ROIC/WACC0.55
WACC10.96%
2.3 Liquidity
1PANW has a Current Ratio of 0.84. This is a bad value and indicates that 1PANW is not financially healthy enough and could expect problems in meeting its short term obligations.
1PANW has a worse Current ratio (0.84) than 74.47% of its industry peers.
1PANW has a Quick Ratio of 0.84. This is a bad value and indicates that 1PANW is not financially healthy enough and could expect problems in meeting its short term obligations.
1PANW has a worse Quick ratio (0.84) than 72.34% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.71% over the past year.
The Earnings Per Share has been growing by 25.52% on average over the past years. This is a very strong growth
1PANW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.86%.
The Revenue has been growing by 22.59% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)11.71%
EPS 3Y40.37%
EPS 5Y25.52%
EPS Q2Q%10.96%
Revenue 1Y (TTM)13.86%
Revenue growth 3Y23.55%
Revenue growth 5Y22.59%
Sales Q2Q%14.29%
3.2 Future
The Earnings Per Share is expected to grow by 23.51% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 15.53% on average over the next years. This is quite good.
EPS Next Y15.83%
EPS Next 2Y14.82%
EPS Next 3Y15.32%
EPS Next 5Y23.51%
Revenue Next Year14.63%
Revenue Next 2Y14.8%
Revenue Next 3Y14.82%
Revenue Next 5Y15.53%
3.3 Evolution
The EPS growth rate is stable: in the next years the growth will be about the same than in the last years.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
1PANW is valuated quite expensively with a Price/Earnings ratio of 54.30.
The rest of the industry has a similar Price/Earnings ratio as 1PANW.
When comparing the Price/Earnings ratio of 1PANW to the average of the S&P500 Index (28.79), we can say 1PANW is valued expensively.
1PANW is valuated quite expensively with a Price/Forward Earnings ratio of 43.63.
The rest of the industry has a similar Price/Forward Earnings ratio as 1PANW.
When comparing the Price/Forward Earnings ratio of 1PANW to the average of the S&P500 Index (21.38), we can say 1PANW is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.3 | ||
| Fwd PE | 43.63 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 1PANW is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, 1PANW is valued a bit cheaper than the industry average as 69.15% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.83 | ||
| EV/EBITDA | 76.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1PANW does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as 1PANW's earnings are expected to grow with 15.32% in the coming years.
PEG (NY)3.43
PEG (5Y)2.13
EPS Next 2Y14.82%
EPS Next 3Y15.32%
5. Dividend
5.1 Amount
1PANW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PANW (4/22/2025, 7:00:00 PM)
143.34
-6.84 (-4.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners81.36%
Inst Owner ChangeN/A
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap94.91B
Analysts78.67
Price Target192.94 (34.6%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)2.72%
Min EPS beat(2)2.16%
Max EPS beat(2)3.28%
EPS beat(4)4
Avg EPS beat(4)3.51%
Min EPS beat(4)2.16%
Max EPS beat(4)5.04%
EPS beat(8)8
Avg EPS beat(8)8.24%
EPS beat(12)12
Avg EPS beat(12)10.35%
EPS beat(16)16
Avg EPS beat(16)9.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)-1.12%
Revenue beat(4)0
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-1.2%
Revenue beat(12)1
Avg Revenue beat(12)-1.13%
Revenue beat(16)4
Avg Revenue beat(16)-0.59%
PT rev (1m)-3.67%
PT rev (3m)N/A
EPS NQ rev (1m)1.42%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.49%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.3 | ||
| Fwd PE | 43.63 | ||
| P/S | 12.6 | ||
| P/FCF | 36.83 | ||
| P/OCF | 34.74 | ||
| P/B | 16.93 | ||
| P/tB | 69.52 | ||
| EV/EBITDA | 76.26 |
EPS(TTM)2.64
EY1.84%
EPS(NY)3.29
Fwd EY2.29%
FCF(TTM)3.89
FCFY2.72%
OCF(TTM)4.13
OCFY2.88%
SpS11.38
BVpS8.46
TBVpS2.06
PEG (NY)3.43
PEG (5Y)2.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 19.68% | ||
| ROCE | 7.8% | ||
| ROIC | 6.06% | ||
| ROICexc | 7.98% | ||
| ROICexgc | 15.19% | ||
| OM | 12.2% | ||
| PM (TTM) | 14.64% | ||
| GM | 73.86% | ||
| FCFM | 34.21% |
ROA(3y)4.58%
ROA(5y)1.19%
ROE(3y)-17.38%
ROE(5y)-31%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.01%
GM growth 5Y0.61%
F-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 54.8% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 227.33% | ||
| Profit Quality | 233.7% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 5.08 |
F-Score6
WACC10.96%
ROIC/WACC0.55
Cap/Depr(3y)58.47%
Cap/Depr(5y)64.8%
Cap/Sales(3y)2.53%
Cap/Sales(5y)3.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.71%
EPS 3Y40.37%
EPS 5Y25.52%
EPS Q2Q%10.96%
EPS Next Y15.83%
EPS Next 2Y14.82%
EPS Next 3Y15.32%
EPS Next 5Y23.51%
Revenue 1Y (TTM)13.86%
Revenue growth 3Y23.55%
Revenue growth 5Y22.59%
Sales Q2Q%14.29%
Revenue Next Year14.63%
Revenue Next 2Y14.8%
Revenue Next 3Y14.82%
Revenue Next 5Y15.53%
EBIT growth 1Y34.39%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.04%
EBIT Next 3Y21.18%
EBIT Next 5YN/A
FCF growth 1Y9.02%
FCF growth 3Y30.76%
FCF growth 5Y27.39%
OCF growth 1Y9.27%
OCF growth 3Y29.41%
OCF growth 5Y25.28%