PALO ALTO NETWORKS INC (PANW) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:PANW • US6974351057

166.72 USD
+0.48 (+0.29%)
At close: Feb 4, 2026
167.03 USD
+0.31 (+0.19%)
After Hours: 2/4/2026, 8:00:03 PM
Fundamental Rating

5

Overall PANW gets a fundamental rating of 5 out of 10. We evaluated PANW against 278 industry peers in the Software industry. PANW has an average financial health and profitability rating. PANW shows excellent growth, but is valued quite expensive already. These ratings could make PANW a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • In the past year PANW was profitable.
  • PANW had a positive operating cash flow in the past year.
  • In multiple years PANW reported negative net income over the last 5 years.
  • In the past 5 years PANW always reported a positive cash flow from operatings.
PANW Yearly Net Income VS EBIT VS OCF VS FCFPANW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • PANW's Return On Assets of 4.75% is fine compared to the rest of the industry. PANW outperforms 72.30% of its industry peers.
  • PANW's Return On Equity of 12.89% is fine compared to the rest of the industry. PANW outperforms 76.26% of its industry peers.
  • The Return On Invested Capital of PANW (5.58%) is better than 73.74% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for PANW is significantly below the industry average of 10.78%.
  • The 3 year average ROIC (4.95%) for PANW is below the current ROIC(5.58%), indicating increased profibility in the last year.
Industry RankSector 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
PANW Yearly ROA, ROE, ROICPANW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100

1.3 Margins

  • With a decent Profit Margin value of 11.69%, PANW is doing good in the industry, outperforming 72.30% of the companies in the same industry.
  • PANW has a better Operating Margin (13.24%) than 79.14% of its industry peers.
  • PANW has a Gross Margin (73.47%) which is in line with its industry peers.
  • In the last couple of years the Gross Margin of PANW has remained more or less at the same level.
Industry RankSector 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%
PANW Yearly Profit, Operating, Gross MarginsPANW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

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5

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PANW is destroying value.
  • The number of shares outstanding for PANW has been increased compared to 1 year ago.
  • Compared to 5 years ago, PANW has more shares outstanding
  • 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.
PANW Yearly Shares OutstandingPANW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
PANW Yearly Total Debt VS Total AssetsPANW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • PANW has an Altman-Z score of 5.42. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
  • PANW has a Altman-Z score of 5.42. This is in the better half of the industry: PANW outperforms 78.78% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.42
ROIC/WACC0.5
WACC11.11%
PANW Yearly LT Debt VS Equity VS FCFPANW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • PANW has a Current 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.
  • With a Current ratio value of 0.99, PANW is not doing good in the industry: 75.18% of the companies in the same industry are doing better.
  • A Quick Ratio of 0.99 indicates that PANW may have some problems paying 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 73.74% of its industry peers.
Industry RankSector Rank
Current Ratio 0.99
Quick Ratio 0.99
PANW Yearly Current Assets VS Current LiabilitesPANW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

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8

3. Growth

3.1 Past

  • PANW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.32%, which is quite good.
  • PANW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.59% yearly.
  • The Revenue has grown by 15.30% in the past year. This is quite good.
  • 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.
  • Based on estimates for the next years, PANW will show a quite strong growth in Revenue. The Revenue will grow by 13.08% on average per year.
EPS Next Y17.91%
EPS Next 2Y15.09%
EPS Next 3Y14.77%
EPS Next 5Y15.63%
Revenue Next Year14.64%
Revenue Next 2Y13.92%
Revenue Next 3Y13.45%
Revenue Next 5Y13.08%

3.3 Evolution

  • The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in 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.
PANW Yearly Revenue VS EstimatesPANW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B
PANW Yearly EPS VS EstimatesPANW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

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2

4. Valuation

4.1 Price/Earnings Ratio

  • PANW is valuated quite expensively with a Price/Earnings ratio of 47.77.
  • The rest of the industry has a similar Price/Earnings ratio as PANW.
  • When comparing the Price/Earnings ratio of PANW to the average of the S&P500 Index (28.25), we can say PANW is valued expensively.
  • A Price/Forward Earnings ratio of 37.69 indicates a quite expensive valuation of PANW.
  • PANW's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 27.50. PANW is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 47.77
Fwd PE 37.69
PANW Price Earnings VS Forward Price EarningsPANW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • PANW's Enterprise Value to EBITDA is on the same level as the industry average.
  • Based on the Price/Free Cash Flow ratio, PANW is valued a bit cheaper than the industry average as 63.67% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 31.48
EV/EBITDA 68.48
PANW Per share dataPANW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

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's earnings are expected to grow with 14.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.67
PEG (5Y)1.47
EPS Next 2Y15.09%
EPS Next 3Y14.77%

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0

5. Dividend

5.1 Amount

  • PANW does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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PALO ALTO NETWORKS INC

NASDAQ:PANW (2/4/2026, 8:00:03 PM)

After market: 167.03 +0.31 (+0.19%)

166.72

+0.48 (+0.29%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-19
Earnings (Next)02-24
Inst Owners84.5%
Inst Owner Change-1.55%
Ins Owners0.4%
Ins Owner Change5.25%
Market Cap116.20B
Revenue(TTM)9.56B
Net Income(TTM)1.12B
Analysts79.02
Price Target234.87 (40.88%)
Short Float %6.91%
Short Ratio7.56
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)1.4%
PT rev (3m)4.81%
EPS NQ rev (1m)0.02%
EPS NQ rev (3m)1.22%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.21%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.17%
Valuation
Industry RankSector Rank
PE 47.77
Fwd PE 37.69
P/S 12.16
P/FCF 31.48
P/OCF 29.22
P/B 13.41
P/tB 34.43
EV/EBITDA 68.48
EPS(TTM)3.49
EY2.09%
EPS(NY)4.42
Fwd EY2.65%
FCF(TTM)5.3
FCFY3.18%
OCF(TTM)5.71
OCFY3.42%
SpS13.71
BVpS12.43
TBVpS4.84
PEG (NY)2.67
PEG (5Y)1.47
Graham Number31.24
Profitability
Industry RankSector 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 RankSector 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 5.42
F-Score5
WACC11.11%
ROIC/WACC0.5
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 Y17.91%
EPS Next 2Y15.09%
EPS Next 3Y14.77%
EPS Next 5Y15.63%
Revenue 1Y (TTM)15.3%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%15.67%
Revenue Next Year14.64%
Revenue Next 2Y13.92%
Revenue Next 3Y13.45%
Revenue Next 5Y13.08%
EBIT growth 1Y31.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year30.85%
EBIT Next 3Y19.13%
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 for PANW stock?

ChartMill assigns a valuation rating of 2 / 10 to PALO ALTO NETWORKS INC (PANW). This can be considered as Overvalued.


What is the profitability of PANW stock?

PALO ALTO NETWORKS INC (PANW) has a profitability rating of 5 / 10.


What are the PE and PB ratios of PALO ALTO NETWORKS INC (PANW) stock?

The Price/Earnings (PE) ratio for PALO ALTO NETWORKS INC (PANW) is 47.77 and the Price/Book (PB) ratio is 13.41.


What is the expected EPS growth for PALO ALTO NETWORKS INC (PANW) stock?

The Earnings per Share (EPS) of PALO ALTO NETWORKS INC (PANW) is expected to grow by 17.91% in the next year.