PALO ALTO NETWORKS INC (1PANW.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PANW - US6974351057 - Common Stock
176.46 EUR
-5.08 (-2.8%)
Overall 1PANW gets a fundamental rating of 4 out of 10. We evaluated 1PANW against 114 industry peers in the Software industry. 1PANW has only an average score on both its financial health and profitability. 1PANW is valued quite expensive, but it does show an excellent growth.
1. Profitability
1.1 Basic Checks
1PANW had positive earnings in the past year.
In the past year 1PANW had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 1PANW reported negative net income in multiple years.
Of the past 5 years 1PANW 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of 1PANW (5.63%) is comparable to the rest of the industry.
1PANW has a better Return On Equity (17.12%) than 76.32% of its industry peers.
With a Return On Invested Capital value of 5.01%, 1PANW perfoms like the industry average, outperforming 57.02% of the companies in the same industry.
1PANW had an Average Return On Invested Capital over the past 3 years of 4.95%. This is significantly below the industry average of 13.10%.
The 3 year average ROIC (4.95%) for 1PANW is below the current ROIC(5.01%), indicating increased profibility in the last year.
| 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
1PANW's Profit Margin of 13.95% is fine compared to the rest of the industry. 1PANW outperforms 64.91% of its industry peers.
Looking at the Operating Margin, with a value of 11.36%, 1PANW is in the better half of the industry, outperforming 63.16% of the companies in the same industry.
1PANW has a Gross Margin of 73.56%. This is comparable to the rest of the industry: 1PANW outperforms 56.14% of its industry peers.
1PANW's Gross Margin has been stable in the last couple of years.
| 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
1PANW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
1PANW has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1PANW has more shares outstanding
There is no outstanding debt for 1PANW. 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
1PANW has an Altman-Z score of 6.27. This indicates that 1PANW is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 6.27, 1PANW is doing good in the industry, outperforming 78.95% of the companies in the same industry.
There is no outstanding debt for 1PANW. 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 | 6.27 |
ROIC/WACC0.46
WACC10.92%
2.3 Liquidity
A Current Ratio of 0.90 indicates that 1PANW may have some problems paying its short term obligations.
Looking at the Current ratio, with a value of 0.90, 1PANW is doing worse than 71.93% of the companies in the same industry.
A Quick Ratio of 0.90 indicates that 1PANW may have some problems paying its short term obligations.
1PANW has a worse Quick ratio (0.90) than 70.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 17.81% 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 14.87% in the past year. This is quite good.
1PANW 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
The Earnings Per Share is expected to grow by 15.15% on average over the next years. This is quite good.
Based on estimates for the next years, 1PANW will show a quite strong growth in Revenue. The Revenue will grow by 13.00% on average per year.
EPS Next Y16.41%
EPS Next 2Y14.66%
EPS Next 3Y14.36%
EPS Next 5Y15.15%
Revenue Next Year14.45%
Revenue Next 2Y13.94%
Revenue Next 3Y13.45%
Revenue Next 5Y13%
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
1PANW is valuated quite expensively with a Price/Earnings ratio of 61.27.
Compared to the rest of the industry, the Price/Earnings ratio of 1PANW is on the same level as its industry peers.
Compared to an average S&P500 Price/Earnings ratio of 26.15, 1PANW is valued quite expensively.
The Price/Forward Earnings ratio is 52.58, which means the current valuation is very expensive for 1PANW.
1PANW's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of 1PANW to the average of the S&P500 Index (36.12), we can say 1PANW is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.27 | ||
| Fwd PE | 52.58 |
4.2 Price Multiples
1PANW's Enterprise Value to EBITDA ratio is a bit more expensive when compared to the industry. 1PANW is more expensive than 67.54% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as 1PANW.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.12 | ||
| EV/EBITDA | 100.13 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1PANW does not grow enough to justify the current Price/Earnings ratio.
1PANW's earnings are expected to grow with 14.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.73
PEG (5Y)1.88
EPS Next 2Y14.66%
EPS Next 3Y14.36%
5. Dividend
5.1 Amount
No dividends for 1PANW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PANW (11/17/2025, 7:00:00 PM)
176.46
-5.08 (-2.8%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners83.03%
Inst Owner ChangeN/A
Ins Owners0.91%
Ins Owner ChangeN/A
Market Cap119.44B
Revenue(TTM)9.22B
Net Income(TTM)1.24B
Analysts79.02
Price Target186.2 (5.52%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
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)0.08%
PT rev (3m)0.67%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.01%
EPS NY rev (1m)0.8%
EPS NY rev (3m)3.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 61.27 | ||
| Fwd PE | 52.58 | ||
| P/S | 15.59 | ||
| P/FCF | 46.12 | ||
| P/OCF | 43.14 | ||
| P/B | 19.14 | ||
| P/tB | 56.49 | ||
| EV/EBITDA | 100.13 |
EPS(TTM)2.88
EY1.63%
EPS(NY)3.36
Fwd EY1.9%
FCF(TTM)3.83
FCFY2.17%
OCF(TTM)4.09
OCFY2.32%
SpS11.32
BVpS9.22
TBVpS3.12
PEG (NY)3.73
PEG (5Y)1.88
Graham Number24.44
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 | 6.27 |
F-Score6
WACC10.92%
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 Y16.41%
EPS Next 2Y14.66%
EPS Next 3Y14.36%
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 2Y13.94%
Revenue Next 3Y13.45%
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 / 1PANW.MI FAQ
What is the fundamental rating for 1PANW stock?
ChartMill assigns a fundamental rating of 4 / 10 to 1PANW.MI.
What is the valuation status of PALO ALTO NETWORKS INC (1PANW.MI) stock?
ChartMill assigns a valuation rating of 1 / 10 to PALO ALTO NETWORKS INC (1PANW.MI). This can be considered as Overvalued.
Can you provide the profitability details for PALO ALTO NETWORKS INC?
PALO ALTO NETWORKS INC (1PANW.MI) has a profitability rating of 4 / 10.
What is the financial health of PALO ALTO NETWORKS INC (1PANW.MI) stock?
The financial health rating of PALO ALTO NETWORKS INC (1PANW.MI) is 5 / 10.