PALO ALTO NETWORKS INC (PANW) Stock Fundamental Analysis
USA - NASDAQ:PANW - US6974351057 - Common Stock
220.29 USD
+3.18 (+1.46%)
219.92 USD
-0.37 (-0.17%)
Taking everything into account, PANW scores 5 out of 10 in our fundamental rating. PANW was compared to 285 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. This makes PANW very considerable 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.
In multiple years PANW reported negative net income over the last 5 years.
Of the past 5 years PANW 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 5.63%, PANW is doing good in the industry, outperforming 73.68% of the companies in the same industry.
PANW has a better Return On Equity (17.12%) than 84.91% of its industry peers.
PANW has a Return On Invested Capital of 5.01%. This is in the better half of the industry: PANW outperforms 73.68% 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 11.88%.
The last Return On Invested Capital (5.01%) for PANW is above the 3 year average (4.95%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 17.12% | ||
| ROIC | 5.01% |
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
With a decent Profit Margin value of 13.95%, PANW is doing good in the industry, outperforming 76.84% of the companies in the same industry.
PANW has a Operating Margin of 11.36%. This is in the better half of the industry: PANW outperforms 77.19% of its industry peers.
PANW has a Gross Margin of 73.56%. This is in the better half of the industry: PANW outperforms 61.75% 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 | 11.36% | ||
| PM (TTM) | 13.95% | ||
| GM | 73.56% |
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.
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
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 6.62 indicates that PANW is not in any danger for bankruptcy at the moment.
With a decent Altman-Z score value of 6.62, PANW is doing good in the industry, outperforming 74.74% 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 | 0.13 | ||
| Altman-Z | 6.62 |
ROIC/WACC0.46
WACC10.94%
2.3 Liquidity
PANW has a Current Ratio of 0.90. 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 0.90, PANW is doing worse than 76.49% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that PANW may have some problems paying its short term obligations.
PANW's Quick ratio of 0.90 is on the low side compared to the rest of the industry. PANW is outperformed by 75.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
PANW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 17.81%, 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
The Revenue has grown by 14.87% in the past year. This is quite good.
PANW shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.03% yearly.
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
PANW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.15% yearly.
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 Y16.5%
EPS Next 2Y14.66%
EPS Next 3Y14.34%
EPS Next 5Y15.15%
Revenue Next Year14.45%
Revenue Next 2Y13.93%
Revenue Next 3Y13.21%
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
Based on the Price/Earnings ratio of 65.96, the valuation of PANW can be described as expensive.
PANW's Price/Earnings ratio is in line with the industry average.
The average S&P500 Price/Earnings ratio is at 26.89. PANW is valued rather expensively when compared to this.
PANW is valuated quite expensively with a Price/Forward Earnings ratio of 56.61.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PANW is on the same level as its industry peers.
When comparing the Price/Forward Earnings ratio of PANW to the average of the S&P500 Index (22.99), we can say PANW is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.96 | ||
| Fwd PE | 56.61 |
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 61.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.69 | ||
| EV/EBITDA | 106.51 |
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.
PANW's earnings are expected to grow with 14.34% in the coming years. This may justify a more expensive valuation.
PEG (NY)4
PEG (5Y)2.02
EPS Next 2Y14.66%
EPS Next 3Y14.34%
5. Dividend
5.1 Amount
No dividends for PANW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
220.29
+3.18 (+1.46%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.03%
Inst Owner Change-0.18%
Ins Owners0.91%
Ins Owner Change-11.17%
Market Cap149.11B
Revenue(TTM)9.22B
Net Income(TTM)1.24B
Analysts79.02
Price Target217 (-1.49%)
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)2.01%
Min EPS beat(2)1.85%
Max EPS beat(2)2.16%
EPS beat(4)4
Avg EPS beat(4)3.09%
Min EPS beat(4)1.85%
Max EPS beat(4)5.04%
EPS beat(8)8
Avg EPS beat(8)6.54%
EPS beat(12)12
Avg EPS beat(12)10.13%
EPS beat(16)16
Avg EPS beat(16)8.85%
Revenue beat(2)0
Avg Revenue beat(2)-1.31%
Min Revenue beat(2)-1.46%
Max Revenue beat(2)-1.16%
Revenue beat(4)0
Avg Revenue beat(4)-1.11%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-1.18%
Revenue beat(12)0
Avg Revenue beat(12)-1.27%
Revenue beat(16)4
Avg Revenue beat(16)-0.65%
PT rev (1m)0%
PT rev (3m)1.15%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)-0.03%
EPS NY rev (1m)0.07%
EPS NY rev (3m)3.66%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.36%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 65.96 | ||
| Fwd PE | 56.61 | ||
| P/S | 16.8 | ||
| P/FCF | 49.69 | ||
| P/OCF | 46.48 | ||
| P/B | 20.62 | ||
| P/tB | 60.87 | ||
| EV/EBITDA | 106.51 |
EPS(TTM)3.34
EY1.52%
EPS(NY)3.89
Fwd EY1.77%
FCF(TTM)4.43
FCFY2.01%
OCF(TTM)4.74
OCFY2.15%
SpS13.11
BVpS10.68
TBVpS3.62
PEG (NY)4
PEG (5Y)2.02
Graham Number28.33
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 17.12% | ||
| ROCE | 7.05% | ||
| ROIC | 5.01% | ||
| ROICexc | 6.51% | ||
| ROICexgc | 11.52% | ||
| OM | 11.36% | ||
| PM (TTM) | 13.95% | ||
| GM | 73.56% | ||
| FCFM | 33.81% |
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-Score6
Asset Turnover0.4
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.13 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 61.75% | ||
| Cap/Sales | 2.34% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 238.74% | ||
| Profit Quality | 242.41% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 6.62 |
F-Score6
WACC10.94%
ROIC/WACC0.46
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
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 Y16.5%
EPS Next 2Y14.66%
EPS Next 3Y14.34%
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 2Y13.93%
Revenue Next 3Y13.21%
Revenue Next 5Y13%
EBIT growth 1Y14.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year28.4%
EBIT Next 3Y17.96%
EBIT Next 5YN/A
FCF growth 1Y-0.39%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y1.55%
OCF growth 3YN/A
OCF growth 5YN/A
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 65.96 and the Price/Book (PB) ratio is 20.62.
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.