184.06 USD
-3.6 (-1.92%)
184.01 USD
-0.05 (-0.03%)
Taking everything into account, PANW scores 5 out of 10 in our fundamental rating. PANW was compared to 277 industry peers in the Software industry. Both the profitability and the financial health of PANW get a neutral evaluation. Nothing too spectacular is happening here. PANW is valued quite expensively, but it does show have an excellent growth rating. These ratings would make PANW suitable for growth investing!
1. Profitability
1.1 Basic Checks
- PANW had positive earnings in the past year.
- 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
- Looking at the Return On Assets, with a value of 4.75%, PANW is in the better half of the industry, outperforming 72.20% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 12.89%, PANW is in the better half of the industry, outperforming 76.53% of the companies in the same industry.
- PANW has a Return On Invested Capital of 5.58%. This is in the better half of the industry: PANW outperforms 74.37% 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 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
- The Profit Margin of PANW (11.69%) is better than 72.20% of its industry peers.
- Looking at the Operating Margin, with a value of 13.24%, PANW is in the better half of the industry, outperforming 79.42% of the companies in the same industry.
- With a Gross Margin value of 73.47%, PANW perfoms like the industry average, outperforming 59.21% of the companies in the same industry.
- 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
- PANW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- PANW has more shares outstanding than it did 1 year ago.
- The number of shares outstanding for PANW has been increased compared to 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 6.02. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
- With a decent Altman-Z score value of 6.02, PANW is doing good in the industry, outperforming 77.26% of the companies in the same industry.
- PANW 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 | ||
| Altman-Z | 6.02 |
ROIC/WACC0.5
WACC11.1%
2.3 Liquidity
- A Current Ratio of 0.99 indicates that PANW may have some problems paying its short term obligations.
- PANW has a worse Current ratio (0.99) than 75.45% of its industry peers.
- 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 74.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
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.
- Looking at the last year, PANW shows a quite strong growth in Revenue. The Revenue has grown by 15.30% in the last year.
- 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
- PANW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.63% yearly.
- The Revenue is expected to grow by 13.08% on average over the next years. This is quite good.
EPS Next Y17.92%
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
- 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
- PANW is valuated quite expensively with a Price/Earnings ratio of 52.74.
- PANW's Price/Earnings is on the same level as the industry average.
- When comparing the Price/Earnings ratio of PANW to the average of the S&P500 Index (26.94), we can say PANW is valued expensively.
- The Price/Forward Earnings ratio is 41.60, which means the current valuation is very expensive for PANW.
- PANW's Price/Forward Earnings is on the same level as the industry average.
- When comparing the Price/Forward Earnings ratio of PANW to the average of the S&P500 Index (23.94), we can say PANW is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.74 | ||
| Fwd PE | 41.6 |
4.2 Price Multiples
- PANW's Enterprise Value to EBITDA ratio is in line with the industry average.
- PANW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PANW is cheaper than 65.34% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.75 | ||
| EV/EBITDA | 77.73 |
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.
- A more expensive valuation may be justified as PANW's earnings are expected to grow with 14.77% in the coming years.
PEG (NY)2.94
PEG (5Y)1.62
EPS Next 2Y15.09%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
- PANW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
184.06
-3.6 (-1.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-19 2025-11-19/amc
Earnings (Next)02-11 2026-02-11/amc
Inst Owners84.5%
Inst Owner Change-0.24%
Ins Owners0.4%
Ins Owner Change3.35%
Market Cap128.29B
Revenue(TTM)9.56B
Net Income(TTM)1.12B
Analysts79.02
Price Target234.87 (27.61%)
Short Float %6.81%
Short Ratio7.91
Dividend
| Industry Rank | Sector 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)1.55%
PT rev (3m)8.23%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)1.25%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.03%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.74 | ||
| Fwd PE | 41.6 | ||
| P/S | 13.42 | ||
| P/FCF | 34.75 | ||
| P/OCF | 32.25 | ||
| P/B | 14.81 | ||
| P/tB | 38.01 | ||
| EV/EBITDA | 77.73 |
EPS(TTM)3.49
EY1.9%
EPS(NY)4.42
Fwd EY2.4%
FCF(TTM)5.3
FCFY2.88%
OCF(TTM)5.71
OCFY3.1%
SpS13.71
BVpS12.43
TBVpS4.84
PEG (NY)2.94
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 | 6.02 |
F-Score5
WACC11.1%
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 Y17.92%
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 52.74 and the Price/Book (PB) ratio is 14.81.
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 17.92% in the next year.