192.515 USD
+1.58 (+0.83%)
Overall PANW gets a fundamental rating of 5 out of 10. We evaluated PANW against 276 industry peers in the Software industry. PANW has an average financial health and profitability rating. PANW is valued quite expensively, but it does show have an excellent growth rating. This makes PANW very considerable 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.
- PANW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- PANW has a better Return On Assets (4.75%) than 72.10% of its industry peers.
- PANW has a better Return On Equity (12.89%) than 76.45% of its industry peers.
- PANW has a Return On Invested Capital of 5.58%. This is in the better half of the industry: PANW outperforms 74.28% 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 10.78%.
- 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
- PANW's Profit Margin of 11.69% is fine compared to the rest of the industry. PANW outperforms 72.10% of its industry peers.
- The Operating Margin of PANW (13.24%) is better than 79.35% of its industry peers.
- The Gross Margin of PANW (73.47%) is comparable to the rest of the 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 | 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.
- Compared to 1 year ago, PANW has more shares outstanding
- 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
- An Altman-Z score of 6.11 indicates that PANW is not in any danger for bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 6.11, PANW is in the better half of the industry, outperforming 77.54% of the companies in the same 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 | ||
| Altman-Z | 6.11 |
ROIC/WACC0.51
WACC11%
2.3 Liquidity
- PANW has a Current Ratio of 0.99. This is a bad value and indicates that PANW is not financially healthy enough and could expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 0.99, PANW is doing worse than 75.36% of the companies in the same industry.
- A Quick Ratio of 0.99 indicates that PANW may have some problems paying its short term obligations.
- PANW has a worse Quick ratio (0.99) than 74.28% 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.
- 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.
- Looking at the last year, PANW shows a quite strong growth in Revenue. The Revenue has grown by 15.30% in the last year.
- PANW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.03% yearly.
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 Year14.61%
Revenue Next 2Y13.93%
Revenue Next 3Y13.45%
Revenue Next 5Y13.08%
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
- A Price/Earnings ratio of 55.16 indicates a quite expensive valuation of PANW.
- PANW's Price/Earnings ratio is in line with the industry average.
- The average S&P500 Price/Earnings ratio is at 27.33. PANW is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 43.51, PANW can be considered very expensive at the moment.
- PANW's Price/Forward Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Forward Earnings ratio of 24.12, PANW is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.16 | ||
| Fwd PE | 43.51 |
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.
- PANW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PANW is cheaper than 65.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.35 | ||
| EV/EBITDA | 79.14 |
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's earnings are expected to grow with 14.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.08
PEG (5Y)1.69
EPS Next 2Y15.09%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
- No dividends for PANW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:PANW (1/15/2026, 9:57:09 AM)
192.515
+1.58 (+0.83%)
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 Change3.87%
Market Cap134.18B
Revenue(TTM)9.56B
Net Income(TTM)1.12B
Analysts79.02
Price Target231.64 (20.32%)
Short Float %6.49%
Short Ratio7.95
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)0.15%
PT rev (3m)6.74%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)1.23%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 55.16 | ||
| Fwd PE | 43.51 | ||
| P/S | 14.04 | ||
| P/FCF | 36.35 | ||
| P/OCF | 33.74 | ||
| P/B | 15.49 | ||
| P/tB | 39.76 | ||
| EV/EBITDA | 79.14 |
EPS(TTM)3.49
EY1.81%
EPS(NY)4.42
Fwd EY2.3%
FCF(TTM)5.3
FCFY2.75%
OCF(TTM)5.71
OCFY2.96%
SpS13.71
BVpS12.43
TBVpS4.84
PEG (NY)3.08
PEG (5Y)1.69
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 | 6.11 |
F-Score5
WACC11%
ROIC/WACC0.51
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 Year14.61%
Revenue Next 2Y13.93%
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 55.16 and the Price/Book (PB) ratio is 15.49.
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.