PALO ALTO NETWORKS INC (PANW) Fundamental Analysis & Valuation

NASDAQ:PANW • US6974351057

161.91 USD
+3.35 (+2.11%)
Last: Mar 5, 2026, 11:15 AM
Overview Stock Chart Technical Analysis Fundamental Analysis Forecast Earnings Financials Ownership News

This PANW fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

Fundamental Rating

6

Taking everything into account, PANW scores 6 out of 10 in our fundamental rating. PANW was compared to 276 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!


Dividend Valuation Growth Profitability Health

6

1. PANW Profitability Analysis

1.1 Basic Checks

  • In the past year PANW was profitable.
  • In the past year PANW had a positive cash flow from operations.
  • 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.
PANW Yearly Net Income VS EBIT VS OCF VS FCFPANW Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 5.13%, PANW is in the better half of the industry, outperforming 74.64% of the companies in the same industry.
  • PANW's Return On Equity of 13.65% is fine compared to the rest of the industry. PANW outperforms 78.62% of its industry peers.
  • PANW has a better Return On Invested Capital (5.95%) than 75.36% 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 10.80%.
  • The last Return On Invested Capital (5.95%) for PANW is above the 3 year average (4.95%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 5.13%
ROE 13.65%
ROIC 5.95%
ROA(3y)6.91%
ROA(5y)2.74%
ROE(3y)29.83%
ROE(5y)-23.25%
ROIC(3y)4.95%
ROIC(5y)N/A
PANW Yearly ROA, ROE, ROICPANW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100

1.3 Margins

  • PANW has a better Profit Margin (12.96%) than 76.09% of its industry peers.
  • With an excellent Operating Margin value of 14.37%, PANW belongs to the best of the industry, outperforming 81.52% of the companies in the same industry.
  • PANW has a Gross Margin (73.50%) which is comparable to the rest of the industry.
  • PANW's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 14.37%
PM (TTM) 12.96%
GM 73.5%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.21%
GM growth 5Y0.76%
PANW Yearly Profit, Operating, Gross MarginsPANW Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40 60

More info and screens

ROAROEROICOperating and Profit MarginShow most profitable peers

6

2. PANW Health Analysis

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.
  • The number of shares outstanding for PANW has been increased compared to 5 years ago.
  • 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.
PANW Yearly Shares OutstandingPANW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
PANW Yearly Total Debt VS Total AssetsPANW Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 5B 10B 15B 20B

2.2 Solvency

  • An Altman-Z score of 5.04 indicates that PANW is not in any danger for bankruptcy at the moment.
  • With a decent Altman-Z score value of 5.04, PANW is doing good in the industry, outperforming 76.45% 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.04
ROIC/WACC0.54
WACC10.94%
PANW Yearly LT Debt VS Equity VS FCFPANW Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B

2.3 Liquidity

  • A Current Ratio of 1.04 indicates that PANW should not have too much problems paying its short term obligations.
  • PANW has a Current ratio of 1.04. This is in the lower half of the industry: PANW underperforms 72.46% of its industry peers.
  • A Quick Ratio of 1.04 indicates that PANW should not have too much problems paying its short term obligations.
  • PANW has a Quick ratio of 1.04. This is in the lower half of the industry: PANW underperforms 71.74% of its industry peers.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 1.04
PANW Yearly Current Assets VS Current LiabilitesPANW Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B

More info and screens

WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. PANW Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.46% 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 15.43% in the last year.
  • Measured over the past years, PANW shows a very strong growth in Revenue. The Revenue has been growing by 22.03% on average per year.
EPS 1Y (TTM)23.46%
EPS 3Y38.4%
EPS 5Y32.59%
EPS Q2Q%27.16%
Revenue 1Y (TTM)15.43%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%14.91%

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 2Y15.08%
EPS Next 3Y14.78%
EPS Next 5Y15.63%
Revenue Next Year14.81%
Revenue Next 2Y14.17%
Revenue Next 3Y13.76%
Revenue Next 5Y13.08%

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.
PANW Yearly Revenue VS EstimatesPANW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B
PANW Yearly EPS VS EstimatesPANW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

More info and screens

Find the best growth stocksShow best growing peers

3

4. PANW Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 43.64, which means the current valuation is very expensive for PANW.
  • PANW's Price/Earnings is on the same level as the industry average.
  • Compared to an average S&P500 Price/Earnings ratio of 27.03, PANW is valued quite expensively.
  • With a Price/Forward Earnings ratio of 36.60, PANW can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PANW.
  • PANW's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 25.11.
Industry RankSector Rank
PE 43.64
Fwd PE 36.6
PANW Price Earnings VS Forward Price EarningsPANW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • PANW's Enterprise Value to EBITDA ratio is in line with the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of PANW indicates a somewhat cheap valuation: PANW is cheaper than 61.96% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 31.65
EV/EBITDA 59.53
PANW Per share dataPANW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10

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 14.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.44
PEG (5Y)1.34
EPS Next 2Y15.08%
EPS Next 3Y14.78%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. PANW Dividend Analysis

5.1 Amount

  • PANW does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

PANW Fundamentals: All Metrics, Ratios and Statistics

PALO ALTO NETWORKS INC

NASDAQ:PANW (3/5/2026, 11:15:10 AM)

161.91

+3.35 (+2.11%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-17
Earnings (Next)05-18
Inst Owners84.5%
Inst Owner Change-0.65%
Ins Owners0.4%
Ins Owner Change5.94%
Market Cap112.85B
Revenue(TTM)9.89B
Net Income(TTM)1.28B
Analysts79.67
Price Target215.72 (33.23%)
Short Float %3.3%
Short Ratio2.16
Dividend
Industry RankSector Rank
Dividend Yield 0%
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)4.82%
Min EPS beat(2)2.41%
Max EPS beat(2)7.23%
EPS beat(4)4
Avg EPS beat(4)4.2%
Min EPS beat(4)1.85%
Max EPS beat(4)7.23%
EPS beat(8)8
Avg EPS beat(8)3.86%
EPS beat(12)12
Avg EPS beat(12)6.89%
EPS beat(16)16
Avg EPS beat(16)8.81%
Revenue beat(2)0
Avg Revenue beat(2)-1.46%
Min Revenue beat(2)-1.48%
Max Revenue beat(2)-1.43%
Revenue beat(4)0
Avg Revenue beat(4)-1.25%
Min Revenue beat(4)-1.48%
Max Revenue beat(4)-0.62%
Revenue beat(8)0
Avg Revenue beat(8)-1.13%
Revenue beat(12)0
Avg Revenue beat(12)-1.21%
Revenue beat(16)1
Avg Revenue beat(16)-1.16%
PT rev (1m)-8.15%
PT rev (3m)-4.64%
EPS NQ rev (1m)-13.76%
EPS NQ rev (3m)-13.79%
EPS NY rev (1m)0%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)13.15%
Revenue NQ rev (3m)13.19%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE 43.64
Fwd PE 36.6
P/S 11.41
P/FCF 31.65
P/OCF 28.39
P/B 12.01
P/tB 93.03
EV/EBITDA 59.53
EPS(TTM)3.71
EY2.29%
EPS(NY)4.42
Fwd EY2.73%
FCF(TTM)5.12
FCFY3.16%
OCF(TTM)5.7
OCFY3.52%
SpS14.19
BVpS13.48
TBVpS1.74
PEG (NY)2.44
PEG (5Y)1.34
Graham Number33.54
Profitability
Industry RankSector Rank
ROA 5.13%
ROE 13.65%
ROCE 8.38%
ROIC 5.95%
ROICexc 8.13%
ROICexgc 23.75%
OM 14.37%
PM (TTM) 12.96%
GM 73.5%
FCFM 36.04%
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 Turnover0.4
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 116.11%
Cap/Sales 4.13%
Interest Coverage 250
Cash Conversion 224.05%
Profit Quality 278.17%
Current Ratio 1.04
Quick Ratio 1.04
Altman-Z 5.04
F-Score5
WACC10.94%
ROIC/WACC0.54
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)23.46%
EPS 3Y38.4%
EPS 5Y32.59%
EPS Q2Q%27.16%
EPS Next Y17.91%
EPS Next 2Y15.08%
EPS Next 3Y14.78%
EPS Next 5Y15.63%
Revenue 1Y (TTM)15.43%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%14.91%
Revenue Next Year14.81%
Revenue Next 2Y14.17%
Revenue Next 3Y13.76%
Revenue Next 5Y13.08%
EBIT growth 1Y46.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year36.76%
EBIT Next 3Y25.17%
EBIT Next 5YN/A
FCF growth 1Y22.04%
FCF growth 3Y24.64%
FCF growth 5Y33.4%
OCF growth 1Y29.79%
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 6 / 10 to PANW.


What is the valuation status for PANW stock?

ChartMill assigns a valuation rating of 3 / 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 6 / 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 43.64 and the Price/Book (PB) ratio is 12.01.


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.