PALO ALTO NETWORKS INC (PANW) Stock Fundamental Analysis
USA - NASDAQ:PANW - US6974351057 - Common Stock
183.85 USD
-1.22 (-0.66%)
PANW gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. PANW has only an average score on both its financial health and profitability. PANW shows excellent growth, but is valued quite expensive already. These ratings could make PANW a good candidate for growth investing.
1. Profitability
1.1 Basic Checks
PANW had positive earnings in the past year.
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.
PANW had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
PANW has a better Return On Assets (4.81%) than 73.31% of its industry peers.
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.
The Return On Invested Capital of PANW (5.67%) is better than 74.73% 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 12.04%.
The 3 year average ROIC (4.95%) for PANW is below the current ROIC(5.67%), indicating increased profibility in the last year.
| 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
Looking at the Profit Margin, with a value of 12.30%, PANW is in the better half of the industry, outperforming 73.67% of the companies in the same industry.
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.
PANW has a Gross Margin of 73.41%. This is in the better half of the industry: PANW outperforms 61.21% of its industry peers.
PANW's Gross Margin has been stable in the last couple of years.
| 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
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
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
PANW has an Altman-Z score of 5.46. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
PANW has a Altman-Z score of 5.46. This is in the better half of the industry: PANW outperforms 75.80% 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 | 5.46 |
ROIC/WACC0.51
WACC11.03%
2.3 Liquidity
A Current Ratio of 0.94 indicates that PANW may have some problems paying its short term obligations.
With a Current ratio value of 0.94, PANW is not doing good in the industry: 75.44% of the companies in the same industry are doing better.
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.
PANW's Quick ratio of 0.94 is on the low side compared to the rest of the industry. PANW is outperformed by 74.38% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.94 | ||
| Quick Ratio | 0.94 |
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.
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 15.30% 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)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 15.15% on average over the next years. This is quite good.
The Revenue is expected to grow by 13.00% on average over the next years. This is quite good.
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
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 52.68 indicates a quite expensive valuation of PANW.
The rest of the industry has a similar Price/Earnings ratio as PANW.
PANW is valuated expensively when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 41.84, PANW can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of PANW is on the same level as its industry peers.
PANW is valuated rather expensively when we compare the Price/Forward Earnings ratio to 34.08, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 52.68 | ||
| Fwd PE | 41.84 |
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 64.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.86 | ||
| EV/EBITDA | 76.74 |
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)3.19
PEG (5Y)1.62
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 (11/21/2025, 2:55:09 PM)
183.85
-1.22 (-0.66%)
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 Cap124.44B
Revenue(TTM)9.56B
Net Income(TTM)1.13B
Analysts79.67
Price Target226.22 (23.05%)
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)3.58%
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 | 52.68 | ||
| Fwd PE | 41.84 | ||
| P/S | 13.49 | ||
| P/FCF | 35.86 | ||
| P/OCF | 33.49 | ||
| P/B | 15.9 | ||
| P/tB | 49.87 | ||
| EV/EBITDA | 76.74 |
EPS(TTM)3.49
EY1.9%
EPS(NY)4.39
Fwd EY2.39%
FCF(TTM)5.13
FCFY2.79%
OCF(TTM)5.49
OCFY2.99%
SpS13.62
BVpS11.56
TBVpS3.69
PEG (NY)3.19
PEG (5Y)1.62
Graham Number30.13
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 | 5.46 |
F-Score5
WACC11.03%
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 3Y14.44%
EPS Next 5Y15.15%
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 3Y13.45%
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 52.68 and the Price/Book (PB) ratio is 15.9.
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.