PALO ALTO NETWORKS INC (PANW) Stock Fundamental Analysis
USA - NASDAQ:PANW - US6974351057 - Common Stock
216.19 USD
+3.9 (+1.84%)
Taking everything into account, PANW scores 5 out of 10 in our fundamental rating. PANW was compared to 281 industry peers in the Software industry. PANW has only an average score on both its financial health and profitability. PANW is valued quite expensive, but it does show an excellent growth. With these ratings, PANW could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
PANW had positive earnings in the past year.
PANW had a positive operating cash flow in the past year.
In multiple years PANW reported negative net income over the last 5 years.
PANW had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
PANW has a Return On Assets of 5.63%. This is in the better half of the industry: PANW outperforms 74.02% of its industry peers.
PANW has a better Return On Equity (17.12%) than 85.05% of its industry peers.
PANW has a better Return On Invested Capital (5.01%) than 74.02% 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 11.82%.
The 3 year average ROIC (4.95%) for PANW is below the current ROIC(5.01%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 17.12% | ||
| ROIC | 5.01% |
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 (13.95%) is better than 76.16% of its industry peers.
PANW has a better Operating Margin (11.36%) than 76.87% of its industry peers.
Looking at the Gross Margin, with a value of 73.56%, PANW is in the better half of the industry, outperforming 61.21% of the companies in the same industry.
In the last couple of years the Gross Margin of PANW has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.36% | ||
| PM (TTM) | 13.95% | ||
| GM | 73.56% |
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
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.
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 6.49. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
PANW's Altman-Z score of 6.49 is fine compared to the rest of the industry. PANW outperforms 75.44% of its industry peers.
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 | 0.13 | ||
| Altman-Z | 6.49 |
ROIC/WACC0.46
WACC10.91%
2.3 Liquidity
A Current Ratio of 0.90 indicates that PANW may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.90, PANW is doing worse than 76.87% of the companies in the same industry.
PANW has a Quick Ratio of 0.90. This is a bad value and indicates that PANW is not financially healthy enough and could expect problems in meeting its short term obligations.
The Quick ratio of PANW (0.90) is worse than 76.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.81% 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.
The Revenue has grown by 14.87% 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)17.81%
EPS 3Y38.4%
EPS 5Y32.59%
EPS Q2Q%25.83%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%15.84%
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 15.15% yearly.
Based on estimates for the next years, PANW will show a quite strong growth in Revenue. The Revenue will grow by 13.00% on average per year.
EPS Next Y16.51%
EPS Next 2Y14.7%
EPS Next 3Y14.44%
EPS Next 5Y15.15%
Revenue Next Year14.45%
Revenue Next 2Y13.94%
Revenue Next 3Y13.45%
Revenue Next 5Y13%
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 64.73, PANW can be considered very expensive at the moment.
PANW's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of PANW to the average of the S&P500 Index (26.06), we can say PANW is valued expensively.
Based on the Price/Forward Earnings ratio of 55.56, the valuation of PANW can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PANW is on the same level as its industry peers.
PANW is valuated expensively when we compare the Price/Forward Earnings ratio to 32.73, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.73 | ||
| Fwd PE | 55.56 |
4.2 Price Multiples
PANW's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PANW is valued a bit cheaper than the industry average as 60.85% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.77 | ||
| EV/EBITDA | 104.08 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
PANW has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as PANW's earnings are expected to grow with 14.44% in the coming years.
PEG (NY)3.92
PEG (5Y)1.99
EPS Next 2Y14.7%
EPS Next 3Y14.44%
5. Dividend
5.1 Amount
PANW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:PANW (11/10/2025, 3:18:09 PM)
216.19
+3.9 (+1.84%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.03%
Inst Owner Change0.34%
Ins Owners0.91%
Ins Owner Change-1.54%
Market Cap146.33B
Revenue(TTM)9.22B
Net Income(TTM)1.24B
Analysts79.67
Price Target224.09 (3.65%)
Short Float %6.94%
Short Ratio7.27
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)2.01%
Min EPS beat(2)1.85%
Max EPS beat(2)2.16%
EPS beat(4)4
Avg EPS beat(4)3.09%
Min EPS beat(4)1.85%
Max EPS beat(4)5.04%
EPS beat(8)8
Avg EPS beat(8)6.54%
EPS beat(12)12
Avg EPS beat(12)10.13%
EPS beat(16)16
Avg EPS beat(16)8.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-1.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-1.18%
Revenue beat(12)0
Avg Revenue beat(12)-1.27%
Revenue beat(16)4
Avg Revenue beat(16)-0.65%
PT rev (1m)3.27%
PT rev (3m)4.46%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)0.08%
EPS NY rev (3m)3.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.73 | ||
| Fwd PE | 55.56 | ||
| P/S | 16.49 | ||
| P/FCF | 48.77 | ||
| P/OCF | 45.62 | ||
| P/B | 20.24 | ||
| P/tB | 59.74 | ||
| EV/EBITDA | 104.08 |
EPS(TTM)3.34
EY1.54%
EPS(NY)3.89
Fwd EY1.8%
FCF(TTM)4.43
FCFY2.05%
OCF(TTM)4.74
OCFY2.19%
SpS13.11
BVpS10.68
TBVpS3.62
PEG (NY)3.92
PEG (5Y)1.99
Graham Number28.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 17.12% | ||
| ROCE | 7.05% | ||
| ROIC | 5.01% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 11.52% | ||
| OM | 11.36% | ||
| PM (TTM) | 13.95% | ||
| GM | 73.56% | ||
| FCFM | 33.81% |
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-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.13 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 61.75% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 238.74% | ||
| Profit Quality | 242.41% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 6.49 |
F-Score6
WACC10.91%
ROIC/WACC0.46
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.81%
EPS 3Y38.4%
EPS 5Y32.59%
EPS Q2Q%25.83%
EPS Next Y16.51%
EPS Next 2Y14.7%
EPS Next 3Y14.44%
EPS Next 5Y15.15%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%15.84%
Revenue Next Year14.45%
Revenue Next 2Y13.94%
Revenue Next 3Y13.45%
Revenue Next 5Y13%
EBIT growth 1Y14.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year28.4%
EBIT Next 3Y18.48%
EBIT Next 5YN/A
FCF growth 1Y-0.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.55%
OCF growth 3YN/A
OCF growth 5YN/A
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 64.73 and the Price/Book (PB) ratio is 20.24.
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.