PALO ALTO NETWORKS INC (1PANW.MI) Stock Fundamental Analysis
BIT:1PANW - Euronext Milan - US6974351057 - Common Stock - Currency: EUR
We assign a fundamental rating of 5 out of 10 to 1PANW. 1PANW was compared to 100 industry peers in the Software industry. 1PANW has an average financial health and profitability rating. 1PANW is valued quite expensive, but it does show an excellent growth. With these ratings, 1PANW could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year 1PANW was profitable.
1PANW had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: 1PANW reported negative net income in multiple years.
In the past 5 years 1PANW always reported a positive cash flow from operatings.
1.2 Ratios
With a decent Return On Assets value of 5.99%, 1PANW is doing good in the industry, outperforming 66.00% of the companies in the same industry.
With an excellent Return On Equity value of 19.68%, 1PANW belongs to the best of the industry, outperforming 81.00% of the companies in the same industry.
1PANW has a better Return On Invested Capital (6.06%) than 64.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 19.68% | ||
| ROIC | 6.06% |
ROA(3y)4.58%
ROA(5y)1.19%
ROE(3y)-17.38%
ROE(5y)-31%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
1PANW's Profit Margin of 14.64% is fine compared to the rest of the industry. 1PANW outperforms 72.00% of its industry peers.
With a decent Operating Margin value of 12.20%, 1PANW is doing good in the industry, outperforming 66.00% of the companies in the same industry.
1PANW has a Gross Margin of 73.86%. This is comparable to the rest of the industry: 1PANW outperforms 59.00% of its industry peers.
1PANW's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.2% | ||
| PM (TTM) | 14.64% | ||
| GM | 73.86% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y2.01%
GM growth 5Y0.61%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1PANW is destroying value.
The number of shares outstanding for 1PANW has been increased compared to 1 year ago.
The number of shares outstanding for 1PANW has been increased compared to 5 years ago.
The debt/assets ratio for 1PANW has been reduced compared to a year ago.
2.2 Solvency
1PANW has an Altman-Z score of 5.96. This indicates that 1PANW is financially healthy and has little risk of bankruptcy at the moment.
1PANW has a better Altman-Z score (5.96) than 74.00% 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 | 0.18 | ||
| Altman-Z | 5.96 |
ROIC/WACC0.55
WACC10.99%
2.3 Liquidity
1PANW has a Current Ratio of 0.84. 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 Current ratio of 0.84. This is in the lower half of the industry: 1PANW underperforms 74.00% of its industry peers.
A Quick Ratio of 0.84 indicates that 1PANW may have some problems paying its short term obligations.
With a Quick ratio value of 0.84, 1PANW is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.71% over the past year.
1PANW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.52% yearly.
The Revenue has grown by 13.86% 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 22.59% yearly.
EPS 1Y (TTM)11.71%
EPS 3Y40.37%
EPS 5Y25.52%
EPS Q2Q%10.96%
Revenue 1Y (TTM)13.86%
Revenue growth 3Y23.55%
Revenue growth 5Y22.59%
Sales Q2Q%14.29%
3.2 Future
1PANW is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.51% yearly.
1PANW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.53% yearly.
EPS Next Y15.83%
EPS Next 2Y14.82%
EPS Next 3Y15.32%
EPS Next 5Y23.51%
Revenue Next Year14.56%
Revenue Next 2Y14.72%
Revenue Next 3Y14.69%
Revenue Next 5Y15.53%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is stable.
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 64.94 indicates a quite expensive valuation of 1PANW.
1PANW's Price/Earnings is on the same level as the industry average.
1PANW is valuated expensively when we compare the Price/Earnings ratio to 25.82, which is the current average of the S&P500 Index.
1PANW is valuated quite expensively with a Price/Forward Earnings ratio of 52.27.
1PANW's Price/Forward Earnings is on the same level as the industry average.
1PANW is valuated expensively when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.94 | ||
| Fwd PE | 52.27 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 1PANW is valued a bit more expensive than the industry average as 60.00% of the companies are valued more cheaply.
Based on the Price/Free Cash Flow ratio, 1PANW is valued a bit cheaper than 66.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.12 | ||
| EV/EBITDA | 91.89 |
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 15.32% in the coming years.
PEG (NY)4.1
PEG (5Y)2.54
EPS Next 2Y14.82%
EPS Next 3Y15.32%
5. Dividend
5.1 Amount
1PANW does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1PANW (5/16/2025, 7:00:00 PM)
172.74
+29.4 (+20.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners81.36%
Inst Owner ChangeN/A
Ins Owners1.03%
Ins Owner ChangeN/A
Market Cap114.37B
Analysts78.33
Price Target188.28 (9%)
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)2.72%
Min EPS beat(2)2.16%
Max EPS beat(2)3.28%
EPS beat(4)4
Avg EPS beat(4)3.51%
Min EPS beat(4)2.16%
Max EPS beat(4)5.04%
EPS beat(8)8
Avg EPS beat(8)8.24%
EPS beat(12)12
Avg EPS beat(12)10.35%
EPS beat(16)16
Avg EPS beat(16)9.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)-1.12%
Revenue beat(4)0
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-1.2%
Revenue beat(12)1
Avg Revenue beat(12)-1.13%
Revenue beat(16)4
Avg Revenue beat(16)-0.59%
PT rev (1m)-6.59%
PT rev (3m)N/A
EPS NQ rev (1m)1.42%
EPS NQ rev (3m)N/A
EPS NY rev (1m)1.49%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0.26%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0.19%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 64.94 | ||
| Fwd PE | 52.27 | ||
| P/S | 15.09 | ||
| P/FCF | 44.12 | ||
| P/OCF | 41.61 | ||
| P/B | 20.29 | ||
| P/tB | 83.28 | ||
| EV/EBITDA | 91.89 |
EPS(TTM)2.66
EY1.54%
EPS(NY)3.31
Fwd EY1.91%
FCF(TTM)3.92
FCFY2.27%
OCF(TTM)4.15
OCFY2.4%
SpS11.45
BVpS8.51
TBVpS2.07
PEG (NY)4.1
PEG (5Y)2.54
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 19.68% | ||
| ROCE | 7.8% | ||
| ROIC | 6.06% | ||
| ROICexc | 7.98% | ||
| ROICexgc | 15.19% | ||
| OM | 12.2% | ||
| PM (TTM) | 14.64% | ||
| GM | 73.86% | ||
| FCFM | 34.21% |
ROA(3y)4.58%
ROA(5y)1.19%
ROE(3y)-17.38%
ROE(5y)-31%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg 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 3Y2.01%
GM growth 5Y0.61%
F-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 54.8% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 227.33% | ||
| Profit Quality | 233.7% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 5.96 |
F-Score6
WACC10.99%
ROIC/WACC0.55
Cap/Depr(3y)58.47%
Cap/Depr(5y)64.8%
Cap/Sales(3y)2.53%
Cap/Sales(5y)3.32%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.71%
EPS 3Y40.37%
EPS 5Y25.52%
EPS Q2Q%10.96%
EPS Next Y15.83%
EPS Next 2Y14.82%
EPS Next 3Y15.32%
EPS Next 5Y23.51%
Revenue 1Y (TTM)13.86%
Revenue growth 3Y23.55%
Revenue growth 5Y22.59%
Sales Q2Q%14.29%
Revenue Next Year14.56%
Revenue Next 2Y14.72%
Revenue Next 3Y14.69%
Revenue Next 5Y15.53%
EBIT growth 1Y34.39%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.04%
EBIT Next 3Y21.18%
EBIT Next 5YN/A
FCF growth 1Y9.02%
FCF growth 3Y30.76%
FCF growth 5Y27.39%
OCF growth 1Y9.27%
OCF growth 3Y29.41%
OCF growth 5Y25.28%