183.89 USD
+0.99 (+0.54%)
183.16 USD
-0.73 (-0.4%)
PANW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 280 industry peers in the Software industry. PANW has only an average score on both its financial health and profitability. PANW shows excellent growth, but is valued quite expensive already. With these ratings, PANW could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year PANW was profitable.
In the past year PANW had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: PANW reported negative net income in multiple years.
In the past 5 years PANW always reported a positive cash flow from operatings.
1.2 Ratios
PANW has a better Return On Assets (4.75%) than 73.21% of its industry peers.
PANW's Return On Equity of 12.89% is fine compared to the rest of the industry. PANW outperforms 77.14% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.58%, PANW is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
PANW had an Average Return On Invested Capital over the past 3 years of 4.95%. This is significantly below the industry average of 11.97%.
The 3 year average ROIC (4.95%) for PANW is below the current ROIC(5.58%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.89% | ||
| ROIC | 5.58% |
ROA(3y)6.91%
ROA(5y)2.74%
ROE(3y)29.83%
ROE(5y)-23.25%
ROIC(3y)4.95%
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 11.69%, PANW is in the better half of the industry, outperforming 73.21% of the companies in the same industry.
PANW has a better Operating Margin (13.24%) than 78.21% of its industry peers.
The Gross Margin of PANW (73.47%) is better than 60.36% of its industry peers.
PANW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.24% | ||
| PM (TTM) | 11.69% | ||
| GM | 73.47% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.21%
GM growth 5Y0.76%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PANW is destroying value.
Compared to 1 year ago, PANW has more shares outstanding
PANW has more shares outstanding than it did 5 years ago.
There is no outstanding debt for PANW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
PANW has an Altman-Z score of 5.92. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.92, PANW is doing good in the industry, outperforming 75.71% of the companies in the same industry.
There is no outstanding debt for PANW. 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 | ||
| Altman-Z | 5.92 |
ROIC/WACC0.51
WACC10.97%
2.3 Liquidity
A Current Ratio of 0.99 indicates that PANW may have some problems paying its short term obligations.
The Current ratio of PANW (0.99) is worse than 75.36% of its industry peers.
PANW has a Quick Ratio of 0.99. This is a bad value and indicates that PANW is not financially healthy enough and could expect problems in meeting its short term obligations.
PANW's Quick ratio of 0.99 is on the low side compared to the rest of the industry. PANW is outperformed by 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.32% over the past year.
Measured over the past years, PANW shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.59% on average per year.
PANW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.30%.
Measured over the past years, PANW shows a very strong growth in Revenue. The Revenue has been growing by 22.03% on average per year.
EPS 1Y (TTM)19.32%
EPS 3Y38.4%
EPS 5Y32.59%
EPS Q2Q%19.23%
Revenue 1Y (TTM)15.3%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%15.67%
3.2 Future
Based on estimates for the next years, PANW will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.63% on average per year.
The Revenue is expected to grow by 13.04% on average over the next years. This is quite good.
EPS Next Y16.51%
EPS Next 2Y14.7%
EPS Next 3Y14.7%
EPS Next 5Y15.63%
Revenue Next Year14.45%
Revenue Next 2Y13.94%
Revenue Next 3Y13.61%
Revenue Next 5Y13.04%
3.3 Evolution
Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past 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
Based on the Price/Earnings ratio of 52.69, the valuation of PANW can be described as expensive.
PANW's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 25.65, PANW is valued quite expensively.
The Price/Forward Earnings ratio is 41.85, which means the current valuation is very expensive for PANW.
The rest of the industry has a similar Price/Forward Earnings ratio as PANW.
PANW is valuated rather expensively when we compare the Price/Forward Earnings ratio to 34.45, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.69 | ||
| Fwd PE | 41.85 |
4.2 Price Multiples
PANW's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of PANW indicates a somewhat cheap valuation: PANW is cheaper than 65.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.72 | ||
| EV/EBITDA | 76.1 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates PANW does not grow enough to justify the current Price/Earnings ratio.
PANW has a very decent profitability rating, which may justify a higher PE ratio.
PANW's earnings are expected to grow with 14.70% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.19
PEG (5Y)1.62
EPS Next 2Y14.7%
EPS Next 3Y14.7%
5. Dividend
5.1 Amount
No dividends for PANW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
183.89
+0.99 (+0.54%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.03%
Inst Owner Change5.82%
Ins Owners0.91%
Ins Owner Change-1.42%
Market Cap128.17B
Revenue(TTM)9.56B
Net Income(TTM)1.12B
Analysts79.67
Price Target226.22 (23.02%)
Short Float %6.65%
Short Ratio8.85
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)3.86%
Min EPS beat(2)2.41%
Max EPS beat(2)5.31%
EPS beat(4)4
Avg EPS beat(4)2.93%
Min EPS beat(4)1.85%
Max EPS beat(4)5.31%
EPS beat(8)8
Avg EPS beat(8)4.22%
EPS beat(12)12
Avg EPS beat(12)8.99%
EPS beat(16)16
Avg EPS beat(16)8.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)-0.62%
Revenue beat(4)0
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)-0.62%
Revenue beat(8)0
Avg Revenue beat(8)-1.16%
Revenue beat(12)0
Avg Revenue beat(12)-1.22%
Revenue beat(16)2
Avg Revenue beat(16)-1.01%
PT rev (1m)4.25%
PT rev (3m)4.39%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)2.77%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.69 | ||
| Fwd PE | 41.85 | ||
| P/S | 13.41 | ||
| P/FCF | 34.72 | ||
| P/OCF | 32.22 | ||
| P/B | 14.79 | ||
| P/tB | 37.98 | ||
| EV/EBITDA | 76.1 |
EPS(TTM)3.49
EY1.9%
EPS(NY)4.39
Fwd EY2.39%
FCF(TTM)5.3
FCFY2.88%
OCF(TTM)5.71
OCFY3.1%
SpS13.71
BVpS12.43
TBVpS4.84
PEG (NY)3.19
PEG (5Y)1.62
Graham Number31.24
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.89% | ||
| ROCE | 7.85% | ||
| ROIC | 5.58% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 13.59% | ||
| OM | 13.24% | ||
| PM (TTM) | 11.69% | ||
| GM | 73.47% | ||
| FCFM | 38.63% |
ROA(3y)6.91%
ROA(5y)2.74%
ROE(3y)29.83%
ROE(5y)-23.25%
ROIC(3y)4.95%
ROIC(5y)N/A
ROICexc(3y)6.58%
ROICexc(5y)N/A
ROICexgc(3y)15.61%
ROICexgc(5y)N/A
ROCE(3y)6.97%
ROCE(5y)N/A
ROICexgc growth 3YN/A
ROICexgc 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 3Y2.21%
GM growth 5Y0.76%
F-Score5
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 82.09% | ||
| Cap/Sales | 2.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 246.45% | ||
| Profit Quality | 330.41% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 5.92 |
F-Score5
WACC10.97%
ROIC/WACC0.51
Cap/Depr(3y)59.63%
Cap/Depr(5y)58.33%
Cap/Sales(3y)2.25%
Cap/Sales(5y)2.6%
Profit Quality(3y)341.57%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)19.32%
EPS 3Y38.4%
EPS 5Y32.59%
EPS Q2Q%19.23%
EPS Next Y16.51%
EPS Next 2Y14.7%
EPS Next 3Y14.7%
EPS Next 5Y15.63%
Revenue 1Y (TTM)15.3%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%15.67%
Revenue Next Year14.45%
Revenue Next 2Y13.94%
Revenue Next 3Y13.61%
Revenue Next 5Y13.04%
EBIT growth 1Y31.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year28.4%
EBIT Next 3Y18.95%
EBIT Next 5YN/A
FCF growth 1Y26.27%
FCF growth 3Y24.64%
FCF growth 5Y33.4%
OCF growth 1Y29.69%
OCF growth 3Y23.25%
OCF growth 5Y29.11%
PALO ALTO NETWORKS INC / PANW FAQ
What is the ChartMill fundamental rating of PALO ALTO NETWORKS INC (PANW) stock?
ChartMill assigns a fundamental rating of 5 / 10 to PANW.
What is the valuation status of PALO ALTO NETWORKS INC (PANW) stock?
ChartMill assigns a valuation rating of 3 / 10 to PALO ALTO NETWORKS INC (PANW). This can be considered as Overvalued.
How profitable is PALO ALTO NETWORKS INC (PANW) stock?
PALO ALTO NETWORKS INC (PANW) has a profitability rating of 6 / 10.
Can you provide the PE and PB ratios for PANW stock?
The Price/Earnings (PE) ratio for PALO ALTO NETWORKS INC (PANW) is 52.69 and the Price/Book (PB) ratio is 14.79.
What is the financial health of PALO ALTO NETWORKS INC (PANW) stock?
The financial health rating of PALO ALTO NETWORKS INC (PANW) is 5 / 10.