PALO ALTO NETWORKS INC (1PANW.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1PANW - US6974351057 - Common Stock
164.98 EUR
+7.48 (+4.75%)
Taking everything into account, 1PANW scores 5 out of 10 in our fundamental rating. 1PANW was compared to 114 industry peers in the Software industry. 1PANW has only an average score on both its financial health and profitability. 1PANW shows excellent growth, but is valued quite expensive already.
1. Profitability
1.1 Basic Checks
- In the past year 1PANW was profitable.
- In the past year 1PANW had a positive cash flow from operations.
- In multiple years 1PANW reported negative net income over the last 5 years.
- In the past 5 years 1PANW always reported a positive cash flow from operatings.
1.2 Ratios
- With a Return On Assets value of 4.75%, 1PANW perfoms like the industry average, outperforming 54.40% of the companies in the same industry.
- With a Return On Equity value of 12.89%, 1PANW perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
- 1PANW's Return On Invested Capital of 5.58% is in line compared to the rest of the industry. 1PANW outperforms 57.60% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for 1PANW is significantly below the industry average of 13.49%.
- The last Return On Invested Capital (5.58%) for 1PANW 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
- 1PANW has a Profit Margin (11.69%) which is in line with its industry peers.
- Looking at the Operating Margin, with a value of 13.24%, 1PANW is in the better half of the industry, outperforming 66.40% of the companies in the same industry.
- The Gross Margin of 1PANW (73.47%) is comparable to the rest of the industry.
- 1PANW'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
- 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.
- The number of shares outstanding for 1PANW has been increased compared to 5 years ago.
- 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 6.14. This indicates that 1PANW is financially healthy and has little risk of bankruptcy at the moment.
- 1PANW has a Altman-Z score of 6.14. This is in the better half of the industry: 1PANW outperforms 78.40% of its industry peers.
- 1PANW 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 | 6.14 |
ROIC/WACC0.51
WACC11.04%
2.3 Liquidity
- A Current Ratio of 0.99 indicates that 1PANW may have some problems paying its short term obligations.
- 1PANW has a Current ratio of 0.99. This is in the lower half of the industry: 1PANW underperforms 74.40% of its industry peers.
- 1PANW has a Quick Ratio of 0.99. This is a bad value and indicates that 1PANW is not financially healthy enough and could expect problems in meeting its short term obligations.
- 1PANW has a Quick ratio of 0.99. This is in the lower half of the industry: 1PANW underperforms 72.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- 1PANW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.32%, which is quite good.
- Measured over the past years, 1PANW shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.59% on average per year.
- 1PANW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.30%.
- The Revenue has been growing by 22.03% on average over the past years. This is a very strong growth!
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, 1PANW 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 Year14.64%
Revenue Next 2Y13.92%
Revenue Next 3Y13.45%
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.
- 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
- Based on the Price/Earnings ratio of 54.99, the valuation of 1PANW can be described as expensive.
- Compared to the rest of the industry, the Price/Earnings ratio of 1PANW is on the same level as its industry peers.
- 1PANW's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.25.
- With a Price/Forward Earnings ratio of 43.32, 1PANW can be considered very expensive at the moment.
- 1PANW's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.98. 1PANW is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 54.99 | ||
| Fwd PE | 43.32 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 1PANW is valued a bit more expensive than 63.20% of the companies in the same industry.
- 1PANW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1PANW is cheaper than 62.40% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 36.19 | ||
| EV/EBITDA | 79.45 |
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.
- A more expensive valuation may be justified as 1PANW's earnings are expected to grow with 14.77% in the coming years.
PEG (NY)3.07
PEG (5Y)1.69
EPS Next 2Y15.09%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
- 1PANW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
PALO ALTO NETWORKS INC / 1PANW.MI FAQ
What is the fundamental rating for 1PANW stock?
ChartMill assigns a fundamental rating of 5 / 10 to 1PANW.MI.
What is the valuation status for 1PANW stock?
ChartMill assigns a valuation rating of 2 / 10 to PALO ALTO NETWORKS INC (1PANW.MI). This can be considered as Overvalued.
How profitable is PALO ALTO NETWORKS INC (1PANW.MI) stock?
PALO ALTO NETWORKS INC (1PANW.MI) has a profitability rating of 5 / 10.
Can you provide the financial health for 1PANW stock?
The financial health rating of PALO ALTO NETWORKS INC (1PANW.MI) is 5 / 10.