PALO ALTO NETWORKS INC (PANW) Stock Fundamental Analysis
USA - NASDAQ:PANW - US6974351057 - Common Stock
202.41 USD
-2.84 (-1.38%)
Overall PANW gets a fundamental rating of 5 out of 10. We evaluated PANW against 281 industry peers in the Software industry. PANW has an average financial health and profitability rating. 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.
The reported net income has been mixed in the past 5 years: PANW reported negative net income in multiple years.
Each year in the past 5 years PANW had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of 4.81%, PANW is in the better half of the industry, outperforming 73.31% of the companies in the same industry.
PANW has a Return On Equity of 14.49%. This is amongst the best in the industry. PANW outperforms 81.85% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.67%, PANW is in the better half of the industry, outperforming 74.73% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for PANW is significantly below the industry average of 12.07%.
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 Profit Margin of 12.30%. This is in the better half of the industry: PANW outperforms 73.67% of its industry peers.
With a decent Operating Margin value of 13.48%, PANW is doing good in the industry, outperforming 79.72% of the companies in the same industry.
The Gross Margin of PANW (73.41%) is better 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
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 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 5.98. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
PANW has a Altman-Z score of 5.98. This is in the better half of the industry: PANW outperforms 76.51% 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 | ||
| Altman-Z | 5.98 |
ROIC/WACC0.51
WACC11.09%
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.
PANW's Current ratio of 0.94 is on the low side compared to the rest of the industry. PANW is outperformed by 75.09% of its industry peers.
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.
The Quick ratio of PANW (0.94) is worse than 74.02% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.81% over the past year.
The Earnings Per Share has been growing by 32.59% on average over the past years. This is a very strong growth
The Revenue has grown by 14.87% in the past year. This is quite good.
The Revenue has been growing by 22.03% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, PANW will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.15% on average per year.
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
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.
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
The Price/Earnings ratio is 60.60, which means the current valuation is very expensive for PANW.
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 (25.89), we can say PANW is valued expensively.
Based on the Price/Forward Earnings ratio of 52.02, the valuation of PANW can be described as expensive.
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 34.59, PANW is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.6 | ||
| Fwd PE | 52.02 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as PANW.
Based on the Price/Free Cash Flow ratio, PANW is valued a bit cheaper than 62.28% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.49 | ||
| EV/EBITDA | 85.35 |
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.
PANW's earnings are expected to grow with 14.44% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.67
PEG (5Y)1.86
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 |
NASDAQ:PANW (11/17/2025, 3:03:46 PM)
202.41
-2.84 (-1.38%)
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 Cap137.01B
Revenue(TTM)9.22B
Net Income(TTM)1.13B
Analysts79.67
Price Target224.09 (10.71%)
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)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 | 60.6 | ||
| Fwd PE | 52.02 | ||
| P/S | 14.86 | ||
| P/FCF | 39.49 | ||
| P/OCF | 36.87 | ||
| P/B | 17.51 | ||
| P/tB | 54.91 | ||
| EV/EBITDA | 85.35 |
EPS(TTM)3.34
EY1.65%
EPS(NY)3.89
Fwd EY1.92%
FCF(TTM)5.13
FCFY2.53%
OCF(TTM)5.49
OCFY2.71%
SpS13.62
BVpS11.56
TBVpS3.69
PEG (NY)3.67
PEG (5Y)1.86
Graham Number29.47
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 | 5.98 |
F-Score5
WACC11.09%
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)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 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 60.6 and the Price/Book (PB) ratio is 17.51.
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.