PALO ALTO NETWORKS INC (PANW)
US6974351057 - Common Stock
We assign a fundamental rating of 5 out of 10 to PANW. PANW was compared to 279 industry peers in the Software industry. PANW has only an average score on both its financial health and profitability. PANW is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! This makes PANW very considerable 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.
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 better Return On Assets (13.42%) than 91.01% of its industry peers.
The Return On Equity of PANW (46.25%) is better than 96.04% of its industry peers.
The Return On Invested Capital of PANW (6.00%) is better than 78.42% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.42% | ||
| ROE | 46.25% | ||
| ROIC | 6% |
ROA(3y)4.58%
ROA(5y)1.19%
ROE(3y)-17.38%
ROE(5y)-30.98%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
The Profit Margin of PANW (32.99%) is better than 94.96% of its industry peers.
The Operating Margin of PANW (12.10%) is better than 80.58% of its industry peers.
Looking at the Gross Margin, with a value of 74.17%, PANW is in the better half of the industry, outperforming 63.31% 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 | 12.1% | ||
| PM (TTM) | 32.99% | ||
| GM | 74.17% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.01%
GM growth 5Y0.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PANW 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 a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.70 indicates that PANW is not in any danger for bankruptcy at the moment.
PANW has a Altman-Z score (5.70) which is comparable to the rest of the 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 | 0.21 | ||
| Altman-Z | 5.7 |
ROIC/WACC0.52
WACC11.64%
2.3 Liquidity
A Current Ratio of 0.84 indicates that PANW may have some problems paying its short term obligations.
With a Current ratio value of 0.84, PANW is not doing good in the industry: 80.22% of the companies in the same industry are doing better.
A Quick Ratio of 0.84 indicates that PANW may have some problems paying its short term obligations.
The Quick ratio of PANW (0.84) is worse than 79.86% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.71% 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 25.52% on average per year.
PANW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.00%.
Measured over the past years, PANW shows a very strong growth in Revenue. The Revenue has been growing by 22.59% on average per year.
EPS 1Y (TTM)17.71%
EPS 3Y40.37%
EPS 5Y25.52%
EPS Q2Q%13.04%
Revenue 1Y (TTM)15%
Revenue growth 3Y23.55%
Revenue growth 5Y22.59%
Sales Q2Q%13.88%
3.2 Future
PANW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 22.97% yearly.
PANW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.75% yearly.
EPS Next Y-42.96%
EPS Next 2Y-19.25%
EPS Next 3Y-9.07%
EPS Next 5Y22.97%
Revenue Next Year14.37%
Revenue Next 2Y14.9%
Revenue Next 3Y15.02%
Revenue Next 5Y16.75%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
PANW is valuated quite expensively with a Price/Earnings ratio of 31.93.
70.86% of the companies in the same industry are more expensive than PANW, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of PANW to the average of the S&P500 Index (27.73), we can say PANW is valued inline with the index average.
PANW is valuated quite expensively with a Price/Forward Earnings ratio of 50.52.
PANW's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. PANW is cheaper than 74.10% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of PANW to the average of the S&P500 Index (22.83), we can say PANW is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.93 | ||
| Fwd PE | 50.52 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PANW indicates a somewhat cheap valuation: PANW is cheaper than 68.35% of the companies listed in the same industry.
PANW's Price/Free Cash Flow ratio is rather cheap when compared to the industry. PANW is cheaper than 86.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.83 | ||
| EV/EBITDA | 90.93 |
4.3 Compensation for Growth
The decent profitability rating of PANW may justify a higher PE ratio.
PANW's earnings are expected to decrease with -9.07% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)1.25
EPS Next 2Y-19.25%
EPS Next 3Y-9.07%
5. Dividend
5.1 Amount
No dividends for PANW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
PALO ALTO NETWORKS INC
NASDAQ:PANW (12/20/2024, 8:00:02 PM)
After market: 187.52 +0.74 (+0.4%)186.78
-2.58 (-1.36%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners80.58%
Inst Owner Change2.74%
Ins Owners0.88%
Ins Owner Change11.31%
Market Cap122.57B
Analysts79.67
Price TargetN/A
Short Float %N/A
Short Ratio4.26
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/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)4.17%
Min EPS beat(2)3.28%
Max EPS beat(2)5.05%
EPS beat(4)4
Avg EPS beat(4)5.51%
Min EPS beat(4)3.28%
Max EPS beat(4)10.17%
EPS beat(8)8
Avg EPS beat(8)12.03%
EPS beat(12)12
Avg EPS beat(12)10.48%
EPS beat(16)16
Avg EPS beat(16)9.32%
Revenue beat(2)0
Avg Revenue beat(2)-0.91%
Min Revenue beat(2)-1.12%
Max Revenue beat(2)-0.7%
Revenue beat(4)0
Avg Revenue beat(4)-1.15%
Min Revenue beat(4)-1.74%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-1.24%
Revenue beat(12)2
Avg Revenue beat(12)-0.96%
Revenue beat(16)5
Avg Revenue beat(16)-0.44%
PT rev (1m)4.39%
PT rev (3m)9.43%
EPS NQ rev (1m)-0.1%
EPS NQ rev (3m)2.51%
EPS NY rev (1m)-49.45%
EPS NY rev (3m)-49.46%
Revenue NQ rev (1m)-0.04%
Revenue NQ rev (3m)0.88%
Revenue NY rev (1m)0.24%
Revenue NY rev (3m)0.25%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.93 | ||
| Fwd PE | 50.52 | ||
| P/S | 14.79 | ||
| P/FCF | 39.83 | ||
| P/OCF | 37.81 | ||
| P/B | 20.73 | ||
| P/tB | 116.57 | ||
| EV/EBITDA | 90.93 |
EPS(TTM)5.85
EY3.13%
EPS(NY)3.7
Fwd EY1.98%
FCF(TTM)4.69
FCFY2.51%
OCF(TTM)4.94
OCFY2.64%
SpS12.63
BVpS9.01
TBVpS1.6
PEG (NY)N/A
PEG (5Y)1.25
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 13.42% | ||
| ROE | 46.25% | ||
| ROCE | 7.73% | ||
| ROIC | 6% | ||
| ROICexc | 8.13% | ||
| ROICexgc | 16.49% | ||
| OM | 12.1% | ||
| PM (TTM) | 32.99% | ||
| GM | 74.17% | ||
| FCFM | 37.13% |
ROA(3y)4.58%
ROA(5y)1.19%
ROE(3y)-17.38%
ROE(5y)-30.98%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg 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 3Y2.01%
GM growth 5Y0.61%
F-Score7
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.21 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 54.18% | ||
| Cap/Sales | 1.98% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 248.27% | ||
| Profit Quality | 112.55% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 5.7 |
F-Score7
WACC11.64%
ROIC/WACC0.52
Cap/Depr(3y)58.47%
Cap/Depr(5y)64.8%
Cap/Sales(3y)2.53%
Cap/Sales(5y)3.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)17.71%
EPS 3Y40.37%
EPS 5Y25.52%
EPS Q2Q%13.04%
EPS Next Y-42.96%
EPS Next 2Y-19.25%
EPS Next 3Y-9.07%
EPS Next 5Y22.97%
Revenue 1Y (TTM)15%
Revenue growth 3Y23.55%
Revenue growth 5Y22.59%
Sales Q2Q%13.88%
Revenue Next Year14.37%
Revenue Next 2Y14.9%
Revenue Next 3Y15.02%
Revenue Next 5Y16.75%
EBIT growth 1Y70.71%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year28.08%
EBIT Next 3Y20.12%
EBIT Next 5YN/A
FCF growth 1Y26.39%
FCF growth 3Y30.76%
FCF growth 5Y27.39%
OCF growth 1Y23.12%
OCF growth 3Y29.41%
OCF growth 5Y25.28%