185.185 USD
+1.69 (+0.92%)
Overall PANW gets a fundamental rating of 5 out of 10. We evaluated PANW against 278 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. 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.
- 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
- The Return On Assets of PANW (4.75%) is better than 72.30% of its industry peers.
- The Return On Equity of PANW (12.89%) is better than 76.26% of its industry peers.
- The Return On Invested Capital of PANW (5.58%) is better than 74.10% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for PANW is significantly below the industry average of 10.76%.
- 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 has a better Profit Margin (11.69%) than 72.30% of its industry peers.
- The Operating Margin of PANW (13.24%) is better than 79.14% of its industry peers.
- Looking at the Gross Margin, with a value of 73.47%, PANW is in line with its industry, outperforming 59.35% 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 | 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.
- 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
- An Altman-Z score of 5.91 indicates that PANW is not in any danger for bankruptcy at the moment.
- PANW has a better Altman-Z score (5.91) than 77.34% 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 | 5.91 |
ROIC/WACC0.5
WACC11.05%
2.3 Liquidity
- A Current Ratio of 0.99 indicates that PANW may have some problems paying its short term obligations.
- Looking at the Current ratio, with a value of 0.99, PANW is doing worse than 75.18% of the companies in the same industry.
- PANW has a Quick 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.
- PANW has a Quick ratio of 0.99. This is in the lower half of the industry: PANW underperforms 73.74% 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.
- 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
- The Earnings Per Share is expected to grow by 15.63% on average over the next years. This is quite good.
- The Revenue is expected to grow by 13.08% on average over the next years. This is quite good.
EPS Next Y17.91%
EPS Next 2Y15.09%
EPS Next 3Y14.77%
EPS Next 5Y15.63%
Revenue Next Year14.64%
Revenue Next 2Y13.92%
Revenue Next 3Y13.45%
Revenue Next 5Y13.08%
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
- Based on the Price/Earnings ratio of 53.06, the valuation of PANW can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as PANW.
- When comparing the Price/Earnings ratio of PANW to the average of the S&P500 Index (28.82), we can say PANW is valued expensively.
- Based on the Price/Forward Earnings ratio of 41.86, the valuation of PANW can be described as expensive.
- PANW's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of PANW to the average of the S&P500 Index (25.95), we can say PANW is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.06 | ||
| Fwd PE | 41.86 |
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.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of PANW indicates a somewhat cheap valuation: PANW is cheaper than 65.83% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 34.97 | ||
| EV/EBITDA | 75.93 |
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.
- A more expensive valuation may be justified as PANW's earnings are expected to grow with 14.77% in the coming years.
PEG (NY)2.96
PEG (5Y)1.63
EPS Next 2Y15.09%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
- No dividends for PANW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 53.06 and the Price/Book (PB) ratio is 14.9.
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 17.91% in the next year.