190.13 USD
+4.78 (+2.58%)
190.305 USD
+0.18 (+0.09%)
Taking everything into account, PANW scores 5 out of 10 in our fundamental rating. PANW was compared to 280 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.
Each year in the past 5 years PANW had a positive operating cash flow.
1.2 Ratios
PANW has a better Return On Assets (4.75%) than 73.21% of its industry peers.
Looking at the Return On Equity, with a value of 12.89%, PANW is in the better half of the industry, outperforming 77.14% of the companies in the same industry.
PANW has a better Return On Invested Capital (5.58%) than 75.00% 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 12.00%.
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
The Profit Margin of PANW (11.69%) is better than 72.86% of its industry peers.
With a decent Operating Margin value of 13.24%, PANW is doing good in the industry, outperforming 78.21% of the companies in the same industry.
PANW has a better Gross Margin (73.47%) than 60.36% 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 | 13.24% | ||
| 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so PANW is destroying value.
The number of shares outstanding for PANW has been increased compared to 1 year ago.
PANW has more shares outstanding than it did 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
An Altman-Z score of 5.96 indicates that PANW is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 5.96, PANW is doing good in the industry, outperforming 75.71% 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 | 5.96 |
ROIC/WACC0.51
WACC10.98%
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.
The Quick ratio of PANW (0.99) is worse than 74.29% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 19.32% 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.
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.
Based on estimates for the next years, PANW will show a quite strong growth in Revenue. The Revenue will grow by 13.04% on average per year.
EPS Next Y16.51%
EPS Next 2Y14.7%
EPS Next 3Y14.7%
EPS Next 5Y15.63%
Revenue Next Year14.45%
Revenue Next 2Y13.94%
Revenue Next 3Y13.61%
Revenue Next 5Y13.04%
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
PANW is valuated quite expensively with a Price/Earnings ratio of 54.48.
PANW's Price/Earnings is on the same level as the industry average.
PANW's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 26.31.
The Price/Forward Earnings ratio is 43.27, which means the current valuation is very expensive for PANW.
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 36.59. PANW is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.48 | ||
| Fwd PE | 43.27 |
4.2 Price Multiples
PANW's Enterprise Value to EBITDA is on the same level as the industry average.
PANW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PANW is cheaper than 65.36% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.9 | ||
| EV/EBITDA | 76.73 |
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.
A more expensive valuation may be justified as PANW's earnings are expected to grow with 14.70% in the coming years.
PEG (NY)3.3
PEG (5Y)1.67
EPS Next 2Y14.7%
EPS Next 3Y14.7%
5. Dividend
5.1 Amount
No dividends for PANW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
190.13
+4.78 (+2.58%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.03%
Inst Owner Change5.82%
Ins Owners0.91%
Ins Owner Change-1.42%
Market Cap132.52B
Revenue(TTM)9.56B
Net Income(TTM)1.12B
Analysts79.67
Price Target226.22 (18.98%)
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)3.86%
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)4.25%
PT rev (3m)4.39%
EPS NQ rev (1m)0.03%
EPS NQ rev (3m)2.77%
EPS NY rev (1m)0.01%
EPS NY rev (3m)0.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.48 | ||
| Fwd PE | 43.27 | ||
| P/S | 13.87 | ||
| P/FCF | 35.9 | ||
| P/OCF | 33.32 | ||
| P/B | 15.29 | ||
| P/tB | 39.27 | ||
| EV/EBITDA | 76.73 |
EPS(TTM)3.49
EY1.84%
EPS(NY)4.39
Fwd EY2.31%
FCF(TTM)5.3
FCFY2.79%
OCF(TTM)5.71
OCFY3%
SpS13.71
BVpS12.43
TBVpS4.84
PEG (NY)3.3
PEG (5Y)1.67
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 | 5.96 |
F-Score5
WACC10.98%
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 Y16.51%
EPS Next 2Y14.7%
EPS Next 3Y14.7%
EPS Next 5Y15.63%
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 3Y13.61%
Revenue Next 5Y13.04%
EBIT growth 1Y31.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year28.4%
EBIT Next 3Y18.95%
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 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 54.48 and the Price/Book (PB) ratio is 15.29.
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.