PALO ALTO NETWORKS INC (PANW) Stock Fundamental Analysis

NASDAQ:PANW • US6974351057

148.92 USD
-0.48 (-0.32%)
At close: Feb 27, 2026
148.486 USD
-0.43 (-0.29%)
After Hours: 2/27/2026, 8:25:58 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

6

PANW gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 274 industry peers in the Software industry. PANW has an average financial health and profitability rating. PANW shows excellent growth, but is valued quite expensive already. With these ratings, PANW could be worth investigating further for growth investing!.


Dividend Valuation Growth Profitability Health

6

1. Profitability

1.1 Basic Checks

  • In the past year PANW was profitable.
  • 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.
  • PANW had a positive operating cash flow in each of the past 5 years.
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

  • PANW has a better Return On Assets (5.13%) than 72.63% of its industry peers.
  • Looking at the Return On Equity, with a value of 13.65%, PANW is in the better half of the industry, outperforming 79.20% of the companies in the same industry.
  • The Return On Invested Capital of PANW (5.95%) is better than 73.72% 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 3 year average ROIC (4.95%) for PANW is below the current ROIC(5.95%), indicating increased profibility in the last year.
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

  • Looking at the Profit Margin, with a value of 12.96%, PANW is in the better half of the industry, outperforming 73.72% of the companies in the same industry.
  • PANW has a better Operating Margin (14.37%) than 80.29% of its industry peers.
  • The Gross Margin of PANW (73.50%) is comparable to the rest of the industry.
  • In the last couple of years the Gross Margin of PANW has remained more or less at the same level.
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

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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.
  • PANW has more shares outstanding than it did 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 4.79 indicates that PANW is not in any danger for bankruptcy at the moment.
  • PANW's Altman-Z score of 4.79 is fine compared to the rest of the industry. PANW outperforms 75.91% of its industry peers.
  • 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 4.79
ROIC/WACC0.55
WACC10.87%
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

  • PANW has a Current Ratio of 1.04. This is a normal value and indicates that PANW is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.04, PANW is not doing good in the industry: 71.53% of the companies in the same industry are doing better.
  • A Quick Ratio of 1.04 indicates that PANW should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.04, PANW is doing worse than 70.44% of the companies in the same industry.
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

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

8

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.46% 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
  • PANW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.43%.
  • 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

  • Based on estimates for the next years, PANW will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.63% on average per year.
  • PANW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.08% yearly.
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

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Find the best growth stocksShow best growing peers

3

4. Valuation

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 40.14, the valuation of PANW can be described as expensive.
  • The rest of the industry has a similar Price/Earnings ratio as PANW.
  • PANW is valuated rather expensively when we compare the Price/Earnings ratio to 27.10, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 33.67, PANW can be considered very expensive at the moment.
  • PANW's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 28.06. PANW is around the same levels.
Industry RankSector Rank
PE 40.14
Fwd PE 33.67
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 is on the same level as 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 62.77% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 29.11
EV/EBITDA 55.93
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 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 14.78% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.24
PEG (5Y)1.23
EPS Next 2Y15.08%
EPS Next 3Y14.78%

More info and screens

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

0

5. Dividend

5.1 Amount

  • No dividends for PANW!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

PALO ALTO NETWORKS INC

NASDAQ:PANW (2/27/2026, 8:25:58 PM)

After market: 148.486 -0.43 (-0.29%)

148.92

-0.48 (-0.32%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-17
Earnings (Next)05-18
Inst Owners84.5%
Inst Owner Change-0.71%
Ins Owners0.4%
Ins Owner Change5.9%
Market Cap103.80B
Revenue(TTM)9.89B
Net Income(TTM)1.28B
Analysts79.67
Price Target215.72 (44.86%)
Short Float %6.7%
Short Ratio5.67
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)-0.22%
PT rev (3m)3.6%
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)0%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0.15%
Revenue NY rev (3m)0.32%
Valuation
Industry RankSector Rank
PE 40.14
Fwd PE 33.67
P/S 10.49
P/FCF 29.11
P/OCF 26.12
P/B 11.05
P/tB 85.57
EV/EBITDA 55.93
EPS(TTM)3.71
EY2.49%
EPS(NY)4.42
Fwd EY2.97%
FCF(TTM)5.12
FCFY3.44%
OCF(TTM)5.7
OCFY3.83%
SpS14.19
BVpS13.48
TBVpS1.74
PEG (NY)2.24
PEG (5Y)1.23
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 4.79
F-Score5
WACC10.87%
ROIC/WACC0.55
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 40.14 and the Price/Book (PB) ratio is 11.05.


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.