182.9 USD
-2.17 (-1.17%)
183.16 USD
+0.26 (+0.14%)
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. 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. With these ratings, PANW could be worth investigating further for growth investing!.
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.
Each year in the past 5 years PANW had a positive operating cash flow.
1.2 Ratios
The Return On Assets of PANW (4.81%) is better than 73.31% of its industry peers.
With an excellent Return On Equity value of 14.49%, PANW belongs to the best of the industry, outperforming 81.85% of the companies in the same industry.
PANW's Return On Invested Capital of 5.67% is fine compared to the rest of the industry. PANW outperforms 74.73% 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 12.04%.
The last Return On Invested Capital (5.67%) for PANW is above the 3 year average (4.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 14.49% | ||
| ROIC | 5.67% |
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
PANW has a better Profit Margin (12.30%) than 73.67% of its industry peers.
Looking at the Operating Margin, with a value of 13.48%, PANW is in the better half of the industry, outperforming 79.72% of the companies in the same industry.
PANW has a better Gross Margin (73.41%) than 61.21% of its industry peers.
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 | 13.48% | ||
| PM (TTM) | 12.3% | ||
| GM | 73.41% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), PANW is destroying value.
Compared to 1 year ago, PANW has more shares outstanding
The number of shares outstanding for PANW has been increased compared to 5 years ago.
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
PANW has an Altman-Z score of 5.46. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of PANW (5.46) is better than 75.80% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.46 |
ROIC/WACC0.52
WACC10.99%
2.3 Liquidity
PANW has a Current Ratio of 0.94. 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 0.94, PANW is not doing good in the industry: 75.44% of the companies in the same industry are doing better.
PANW has a Quick Ratio of 0.94. This is a bad value and indicates that PANW is not financially healthy enough and could expect problems in meeting its short term obligations.
PANW's Quick ratio of 0.94 is on the low side compared to the rest of the industry. PANW is outperformed by 74.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
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.
The Earnings Per Share has been growing by 32.59% on average over the past years. This is a very strong growth
Looking at the last year, PANW shows a quite strong growth in Revenue. The Revenue has grown by 15.30% in the last year.
The Revenue has been growing by 22.03% on average over the past years. This is a very strong growth!
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
The Earnings Per Share is expected to grow by 15.15% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.00% on average over the next years. This is quite good.
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 52.41, PANW can be considered very expensive at the moment.
The rest of the industry has a similar Price/Earnings ratio as PANW.
PANW is valuated expensively when we compare the Price/Earnings ratio to 25.45, which is the current average of the S&P500 Index.
PANW is valuated quite expensively with a Price/Forward Earnings ratio of 41.63.
The rest of the industry has a similar Price/Forward Earnings ratio as PANW.
PANW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 34.46.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.41 | ||
| Fwd PE | 41.63 |
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 64.41% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.68 | ||
| EV/EBITDA | 76.74 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The decent profitability rating of PANW may justify a higher PE ratio.
PANW's earnings are expected to grow with 14.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.17
PEG (5Y)1.61
EPS Next 2Y14.7%
EPS Next 3Y14.44%
5. Dividend
5.1 Amount
No dividends for PANW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
182.9
-2.17 (-1.17%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.03%
Inst Owner Change5.77%
Ins Owners0.91%
Ins Owner Change-1.76%
Market Cap123.80B
Revenue(TTM)9.56B
Net Income(TTM)1.13B
Analysts79.67
Price Target226.22 (23.69%)
Short Float %6.65%
Short Ratio8.85
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)3.58%
Min EPS beat(2)1.85%
Max EPS beat(2)5.31%
EPS beat(4)4
Avg EPS beat(4)3.15%
Min EPS beat(4)1.85%
Max EPS beat(4)5.31%
EPS beat(8)8
Avg EPS beat(8)5.96%
EPS beat(12)12
Avg EPS beat(12)10.32%
EPS beat(16)16
Avg EPS beat(16)8.6%
Revenue beat(2)0
Avg Revenue beat(2)-1.04%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-0.62%
Revenue beat(4)0
Avg Revenue beat(4)-1.09%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)-0.62%
Revenue beat(8)0
Avg Revenue beat(8)-0.99%
Revenue beat(12)0
Avg Revenue beat(12)-1.19%
Revenue beat(16)3
Avg Revenue beat(16)-0.82%
PT rev (1m)3.27%
PT rev (3m)4.46%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)4.48%
EPS NY rev (1m)0.08%
EPS NY rev (3m)3.67%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.45%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.41 | ||
| Fwd PE | 41.63 | ||
| P/S | 13.43 | ||
| P/FCF | 35.68 | ||
| P/OCF | 33.32 | ||
| P/B | 15.82 | ||
| P/tB | 49.62 | ||
| EV/EBITDA | 76.74 |
EPS(TTM)3.49
EY1.91%
EPS(NY)4.39
Fwd EY2.4%
FCF(TTM)5.13
FCFY2.8%
OCF(TTM)5.49
OCFY3%
SpS13.62
BVpS11.56
TBVpS3.69
PEG (NY)3.17
PEG (5Y)1.61
Graham Number30.13
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.81% | ||
| ROE | 14.49% | ||
| ROCE | 7.97% | ||
| ROIC | 5.67% | ||
| ROICexc | 6.96% | ||
| ROICexgc | 12.01% | ||
| OM | 13.48% | ||
| PM (TTM) | 12.3% | ||
| GM | 73.41% | ||
| FCFM | 37.63% |
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 Turnover0.39
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 71.69% | ||
| Cap/Sales | 2.67% | ||
| Interest Coverage | 731.12 | ||
| Cash Conversion | 234.26% | ||
| Profit Quality | 306.01% | ||
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 5.46 |
F-Score5
WACC10.99%
ROIC/WACC0.52
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 Y16.51%
EPS Next 2Y14.7%
EPS Next 3Y14.44%
EPS Next 5Y15.15%
Revenue 1Y (TTM)15.3%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%15.67%
Revenue Next Year14.45%
Revenue Next 2Y13.94%
Revenue Next 3Y13.45%
Revenue Next 5Y13%
EBIT growth 1Y39.92%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year28.4%
EBIT Next 3Y18.48%
EBIT Next 5YN/A
FCF growth 1Y11.9%
FCF growth 3Y24.64%
FCF growth 5Y33.4%
OCF growth 1Y14.07%
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 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 52.41 and the Price/Book (PB) ratio is 15.82.
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.