PALO ALTO NETWORKS INC (PANW) Stock Fundamental Analysis
NASDAQ:PANW • US6974351057
148.175 USD
+3.34 (+2.3%)
Last: Feb 26, 2026, 09:31 AM
Taking everything into account, PANW scores 6 out of 10 in our fundamental rating. PANW was compared to 274 industry peers in the Software industry. PANW has only an average score on both its financial health and profitability. 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
- In the past year PANW was profitable.
- In the past year PANW had a positive cash flow from operations.
- In multiple years PANW reported negative net income over the last 5 years.
- Each year in the past 5 years PANW had a positive operating cash flow.
1.2 Ratios
- PANW has a Return On Assets of 5.13%. This is in the better half of the industry: PANW outperforms 72.63% of its industry peers.
- PANW has a Return On Equity of 13.65%. This is in the better half of the industry: PANW outperforms 79.20% of its industry peers.
- The Return On Invested Capital of PANW (5.95%) is better than 73.72% of its industry peers.
- PANW had an Average Return On Invested Capital over the past 3 years of 4.95%. This is significantly below the industry average of 10.77%.
- The 3 year average ROIC (4.95%) for PANW is below the current ROIC(5.95%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 13.65% | ||
| ROIC | 5.95% |
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 (12.96%) is better than 73.72% of its industry peers.
- The Operating Margin of PANW (14.37%) is better than 80.29% of its industry peers.
- PANW has a Gross Margin (73.50%) which is in line with its industry peers.
- PANW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 14.37% | ||
| PM (TTM) | 12.96% | ||
| GM | 73.5% |
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.
- Compared to 5 years ago, PANW has more shares outstanding
- PANW has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 4.67 indicates that PANW is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 4.67, PANW is in the better half of the industry, outperforming 75.18% 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 | 4.67 |
ROIC/WACC0.54
WACC10.93%
2.3 Liquidity
- PANW has a Current Ratio of 1.04. This is a normal value and indicates that PANW is financially healthy and should not expect problems in meeting its short term obligations.
- PANW has a Current ratio of 1.04. This is in the lower half of the industry: PANW underperforms 71.53% of its industry peers.
- A Quick Ratio of 1.04 indicates that PANW should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.04, PANW is not doing good in the industry: 70.44% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 23.46% over the past year.
- PANW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.59% yearly.
- PANW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.43%.
- 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)23.46%
EPS 3Y38.4%
EPS 5Y32.59%
EPS Q2Q%27.16%
Revenue 1Y (TTM)15.43%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%14.91%
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 Y17.91%
EPS Next 2Y15.08%
EPS Next 3Y14.78%
EPS Next 5Y15.63%
Revenue Next Year14.81%
Revenue Next 2Y14.17%
Revenue Next 3Y13.76%
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
- With a Price/Earnings ratio of 39.94, PANW can be considered very expensive at the moment.
- PANW's Price/Earnings ratio is in line with the industry average.
- PANW is valuated rather expensively when we compare the Price/Earnings ratio to 27.05, which is the current average of the S&P500 Index.
- With a Price/Forward Earnings ratio of 33.50, PANW can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PANW is on the same level as its industry peers.
- The average S&P500 Price/Forward Earnings ratio is at 28.03. PANW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.94 | ||
| Fwd PE | 33.5 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PANW is on the same level as its industry peers.
- Based on the Price/Free Cash Flow ratio, PANW is valued a bit cheaper than the industry average as 62.77% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.96 | ||
| EV/EBITDA | 54.14 |
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.
- The decent profitability rating of PANW may justify a higher PE ratio.
- PANW's earnings are expected to grow with 14.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.23
PEG (5Y)1.23
EPS Next 2Y15.08%
EPS Next 3Y14.78%
5. Dividend
5.1 Amount
- PANW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:PANW (2/26/2026, 9:31:09 AM)
148.175
+3.34 (+2.3%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-17 2026-02-17/amc
Earnings (Next)05-18 2026-05-18/amc
Inst Owners84.5%
Inst Owner Change-0.71%
Ins Owners0.4%
Ins Owner Change5.9%
Market Cap103.28B
Revenue(TTM)9.89B
Net Income(TTM)1.28B
Analysts79.67
Price Target215.72 (45.58%)
Short Float %6.7%
Short Ratio5.67
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)4.82%
Min EPS beat(2)2.41%
Max EPS beat(2)7.23%
EPS beat(4)4
Avg EPS beat(4)4.2%
Min EPS beat(4)1.85%
Max EPS beat(4)7.23%
EPS beat(8)8
Avg EPS beat(8)3.86%
EPS beat(12)12
Avg EPS beat(12)6.89%
EPS beat(16)16
Avg EPS beat(16)8.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)-0.62%
Revenue beat(8)0
Avg Revenue beat(8)-1.13%
Revenue beat(12)0
Avg Revenue beat(12)-1.21%
Revenue beat(16)1
Avg Revenue beat(16)-1.16%
PT rev (1m)-0.22%
PT rev (3m)3.6%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)0%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.32%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 39.94 | ||
| Fwd PE | 33.5 | ||
| P/S | 10.44 | ||
| P/FCF | 28.96 | ||
| P/OCF | 25.99 | ||
| P/B | 11 | ||
| P/tB | 85.14 | ||
| EV/EBITDA | 54.14 |
EPS(TTM)3.71
EY2.5%
EPS(NY)4.42
Fwd EY2.99%
FCF(TTM)5.12
FCFY3.45%
OCF(TTM)5.7
OCFY3.85%
SpS14.19
BVpS13.48
TBVpS1.74
PEG (NY)2.23
PEG (5Y)1.23
Graham Number33.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.13% | ||
| ROE | 13.65% | ||
| ROCE | 8.38% | ||
| ROIC | 5.95% | ||
| ROICexc | 8.13% | ||
| ROICexgc | 23.75% | ||
| OM | 14.37% | ||
| PM (TTM) | 12.96% | ||
| GM | 73.5% | ||
| FCFM | 36.04% |
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 Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 116.11% | ||
| Cap/Sales | 4.13% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 224.05% | ||
| Profit Quality | 278.17% | ||
| Current Ratio | 1.04 | ||
| Quick Ratio | 1.04 | ||
| Altman-Z | 4.67 |
F-Score5
WACC10.93%
ROIC/WACC0.54
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)23.46%
EPS 3Y38.4%
EPS 5Y32.59%
EPS Q2Q%27.16%
EPS Next Y17.91%
EPS Next 2Y15.08%
EPS Next 3Y14.78%
EPS Next 5Y15.63%
Revenue 1Y (TTM)15.43%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%14.91%
Revenue Next Year14.81%
Revenue Next 2Y14.17%
Revenue Next 3Y13.76%
Revenue Next 5Y13.08%
EBIT growth 1Y46.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year36.76%
EBIT Next 3Y25.17%
EBIT Next 5YN/A
FCF growth 1Y22.04%
FCF growth 3Y24.64%
FCF growth 5Y33.4%
OCF growth 1Y29.79%
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 6 / 10 to PANW.
What is the valuation status for PANW stock?
ChartMill assigns a valuation rating of 3 / 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 6 / 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 39.94 and the Price/Book (PB) ratio is 11.
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.