PALO ALTO NETWORKS INC (5AP.DE) Stock Fundamental Analysis
FRA:5AP - Deutsche Boerse Ag - US6974351057 - Common Stock - Currency: EUR
Overall 5AP gets a fundamental rating of 5 out of 10. We evaluated 5AP against 94 industry peers in the Software industry. 5AP has only an average score on both its financial health and profitability. 5AP is valued quite expensively, but it does show have an excellent growth rating. With these ratings, 5AP could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year 5AP was profitable.
In the past year 5AP had a positive cash flow from operations.
In multiple years 5AP reported negative net income over the last 5 years.
In the past 5 years 5AP always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of 5AP (5.99%) is better than 64.89% of its industry peers.
With an excellent Return On Equity value of 19.68%, 5AP belongs to the best of the industry, outperforming 80.85% of the companies in the same industry.
The Return On Invested Capital of 5AP (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
5AP has a Profit Margin of 14.64%. This is in the better half of the industry: 5AP outperforms 70.21% of its industry peers.
5AP has a Operating Margin of 12.20%. This is in the better half of the industry: 5AP outperforms 69.15% of its industry peers.
5AP has a better Gross Margin (73.86%) than 60.64% of its industry peers.
5AP's Gross Margin has been stable in the last couple of years.
| 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 5AP is destroying value.
Compared to 1 year ago, 5AP has more shares outstanding
Compared to 5 years ago, 5AP has more shares outstanding
Compared to 1 year ago, 5AP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.46 indicates that 5AP is not in any danger for bankruptcy at the moment.
5AP has a better Altman-Z score (5.46) than 74.47% of its industry peers.
5AP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Altman-Z | 5.46 |
ROIC/WACC0.55
WACC10.93%
2.3 Liquidity
5AP has a Current Ratio of 0.84. This is a bad value and indicates that 5AP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.84, 5AP is not doing good in the industry: 76.60% of the companies in the same industry are doing better.
A Quick Ratio of 0.84 indicates that 5AP may have some problems paying its short term obligations.
5AP has a Quick ratio of 0.84. This is in the lower half of the industry: 5AP underperforms 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
5AP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.71%, which is quite good.
Measured over the past years, 5AP shows a very strong growth in Earnings Per Share. The EPS has been growing by 25.52% on average per year.
Looking at the last year, 5AP shows a quite strong growth in Revenue. The Revenue has grown by 13.86% in the last year.
5AP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.59% yearly.
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
Based on estimates for the next years, 5AP will show a quite strong growth in Revenue. The Revenue will grow by 15.53% on average per year.
EPS Next Y15.83%
EPS Next 2Y14.82%
EPS Next 3Y15.32%
EPS Next 5Y23.51%
Revenue Next Year14.56%
Revenue Next 2Y14.72%
Revenue Next 3Y14.69%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
5AP is valuated quite expensively with a Price/Earnings ratio of 58.76.
5AP's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 28.79, 5AP is valued quite expensively.
Based on the Price/Forward Earnings ratio of 47.32, the valuation of 5AP can be described as expensive.
5AP's Price/Forward Earnings ratio is in line with the industry average.
5AP's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 21.38.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.76 | ||
| Fwd PE | 47.32 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 5AP.
Based on the Price/Free Cash Flow ratio, 5AP is valued a bit cheaper than the industry average as 65.96% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.94 | ||
| EV/EBITDA | 82.93 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 5AP does not grow enough to justify the current Price/Earnings ratio.
5AP's earnings are expected to grow with 15.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.71
PEG (5Y)2.3
EPS Next 2Y14.82%
EPS Next 3Y15.32%
5. Dividend
5.1 Amount
5AP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:5AP (4/25/2025, 7:00:00 PM)
155.72
+2.92 (+1.91%)
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 Cap103.10B
Analysts78.67
Price Target186.02 (19.46%)
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 Years0
Div Non Decr Years0
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)-10.33%
PT rev (3m)-10.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.44%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.76 | ||
| Fwd PE | 47.32 | ||
| P/S | 13.66 | ||
| P/FCF | 39.94 | ||
| P/OCF | 37.67 | ||
| P/B | 18.37 | ||
| P/tB | 75.39 | ||
| EV/EBITDA | 82.93 |
EPS(TTM)2.65
EY1.7%
EPS(NY)3.29
Fwd EY2.11%
FCF(TTM)3.9
FCFY2.5%
OCF(TTM)4.13
OCFY2.65%
SpS11.4
BVpS8.48
TBVpS2.07
PEG (NY)3.71
PEG (5Y)2.3
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 | 5.46 |
F-Score6
WACC10.93%
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 Year14.56%
Revenue Next 2Y14.72%
Revenue Next 3Y14.69%
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%