189.02 USD
-1.78 (-0.93%)
189.27 USD
+0.25 (+0.13%)
Overall PANW gets a fundamental rating of 5 out of 10. We evaluated PANW against 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. These ratings would make PANW suitable 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.
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.
1.2 Ratios
With a decent Return On Assets value of 4.75%, PANW is doing good in the industry, outperforming 72.10% of the companies in the same industry.
PANW's Return On Equity of 12.89% is fine compared to the rest of the industry. PANW outperforms 76.45% of its industry peers.
Looking at the Return On Invested Capital, with a value of 5.58%, PANW is in the better half of the industry, outperforming 74.28% of the companies in the same industry.
PANW had an Average Return On Invested Capital over the past 3 years of 4.95%. This is significantly below the industry average of 10.78%.
The last Return On Invested Capital (5.58%) for PANW is above the 3 year average (4.95%), which is a sign of increasing profitability.
| 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
Looking at the Profit Margin, with a value of 11.69%, PANW is in the better half of the industry, outperforming 72.10% of the companies in the same industry.
PANW has a better Operating Margin (13.24%) than 79.35% of its industry peers.
PANW's Gross Margin of 73.47% is in line compared to the rest of the industry. PANW outperforms 59.42% of its industry peers.
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.
Compared to 1 year ago, PANW has more shares outstanding
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
PANW has an Altman-Z score of 6.06. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 6.06, PANW is doing good in the industry, outperforming 76.45% 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 | 6.06 |
ROIC/WACC0.51
WACC11%
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.
PANW has a worse Current ratio (0.99) than 75.36% of its industry peers.
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 74.28% 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.
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 15.63% on average over the next years. This is quite good.
Based on estimates for the next years, PANW will show a quite strong growth in Revenue. The Revenue will grow by 13.08% on average per year.
EPS Next Y17.92%
EPS Next 2Y15.09%
EPS Next 3Y14.77%
EPS Next 5Y15.63%
Revenue Next Year14.61%
Revenue Next 2Y13.93%
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
The Price/Earnings ratio is 54.16, which means the current valuation is very expensive for PANW.
Compared to the rest of the industry, the Price/Earnings ratio of PANW is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 27.19, PANW is valued quite expensively.
The Price/Forward Earnings ratio is 42.72, which means the current valuation is very expensive for PANW.
PANW's Price/Forward Earnings is on the same level as the industry average.
PANW is valuated expensively when we compare the Price/Forward Earnings ratio to 23.92, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.16 | ||
| Fwd PE | 42.72 |
4.2 Price Multiples
PANW's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, PANW is valued a bit cheaper than 65.58% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.69 | ||
| EV/EBITDA | 78.32 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as PANW's earnings are expected to grow with 14.77% in the coming years.
PEG (NY)3.02
PEG (5Y)1.66
EPS Next 2Y15.09%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
PANW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
189.02
-1.78 (-0.93%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners84.5%
Inst Owner Change-0.24%
Ins Owners0.4%
Ins Owner Change3.87%
Market Cap131.75B
Revenue(TTM)9.56B
Net Income(TTM)1.12B
Analysts79.02
Price Target231.64 (22.55%)
Short Float %6.49%
Short Ratio7.95
Dividend
| Industry Rank | Sector 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)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)0.15%
PT rev (3m)6.74%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)1.23%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.14%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.16 | ||
| Fwd PE | 42.72 | ||
| P/S | 13.79 | ||
| P/FCF | 35.69 | ||
| P/OCF | 33.12 | ||
| P/B | 15.2 | ||
| P/tB | 39.04 | ||
| EV/EBITDA | 78.32 |
EPS(TTM)3.49
EY1.85%
EPS(NY)4.42
Fwd EY2.34%
FCF(TTM)5.3
FCFY2.8%
OCF(TTM)5.71
OCFY3.02%
SpS13.71
BVpS12.43
TBVpS4.84
PEG (NY)3.02
PEG (5Y)1.66
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 | 6.06 |
F-Score5
WACC11%
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 Y17.92%
EPS Next 2Y15.09%
EPS Next 3Y14.77%
EPS Next 5Y15.63%
Revenue 1Y (TTM)15.3%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%15.67%
Revenue Next Year14.61%
Revenue Next 2Y13.93%
Revenue Next 3Y13.45%
Revenue Next 5Y13.08%
EBIT growth 1Y31.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year30.85%
EBIT Next 3Y19.13%
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 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 54.16 and the Price/Book (PB) ratio is 15.2.
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 17.92% in the next year.