PALO ALTO NETWORKS INC (5AP.DE) Stock Fundamental Analysis
FRA:5AP - Deutsche Boerse Ag - US6974351057 - Common Stock - Currency: EUR
Overall 5AP gets a fundamental rating of 5 out of 10. We evaluated 5AP against 101 industry peers in the Software industry. Both the profitability and the financial health of 5AP get a neutral evaluation. Nothing too spectacular is happening here. 5AP is valued quite expensively, but it does show have an excellent growth rating. With these ratings, 5AP could be worth investigating further for growth investing!.
1. Profitability
1.1 Basic Checks
In the past year 5AP was profitable.
In the past year 5AP had a positive cash flow from operations.
The reported net income has been mixed in the past 5 years: 5AP reported negative net income in multiple years.
5AP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 5AP (5.63%) is better than 65.69% of its industry peers.
5AP has a better Return On Equity (17.12%) than 79.41% of its industry peers.
5AP has a Return On Invested Capital of 5.89%. This is in the better half of the industry: 5AP outperforms 64.71% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 17.12% | ||
| ROIC | 5.89% |
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
5AP's Profit Margin of 13.95% is fine compared to the rest of the industry. 5AP outperforms 71.57% of its industry peers.
With a decent Operating Margin value of 12.21%, 5AP is doing good in the industry, outperforming 66.67% of the companies in the same industry.
5AP has a Gross Margin (73.56%) which is in line with its industry peers.
In the last couple of years the Gross Margin of 5AP has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.21% | ||
| 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 3Y2.01%
GM growth 5Y0.61%
2. Health
2.1 Basic Checks
5AP has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
5AP has more shares outstanding than it did 1 year ago.
The number of shares outstanding for 5AP has been increased compared to 5 years ago.
Compared to 1 year ago, 5AP has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.64 indicates that 5AP is not in any danger for bankruptcy at the moment.
The Altman-Z score of 5AP (5.64) is better than 71.57% of its industry peers.
There is no outstanding debt for 5AP. 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 | 5.64 |
ROIC/WACC0.54
WACC10.98%
2.3 Liquidity
5AP has a Current Ratio of 0.90. This is a bad value and indicates that 5AP is not financially healthy enough and could expect problems in meeting its short term obligations.
With a Current ratio value of 0.90, 5AP is not doing good in the industry: 72.55% of the companies in the same industry are doing better.
5AP has a Quick Ratio of 0.90. This is a bad value and indicates that 5AP is not financially healthy enough and could expect problems in meeting its short term obligations.
5AP has a worse Quick ratio (0.90) than 69.61% 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 12.32% over the past year.
5AP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 25.52% yearly.
5AP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.91%.
5AP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.59% yearly.
EPS 1Y (TTM)12.32%
EPS 3Y40.37%
EPS 5Y25.52%
EPS Q2Q%21.21%
Revenue 1Y (TTM)13.91%
Revenue growth 3Y23.55%
Revenue growth 5Y22.59%
Sales Q2Q%15.33%
3.2 Future
5AP is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 23.51% yearly.
5AP is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.53% yearly.
EPS Next Y15.8%
EPS Next 2Y14.68%
EPS Next 3Y15.14%
EPS Next 5Y23.51%
Revenue Next Year14.56%
Revenue Next 2Y14.71%
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.
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 58.86, the valuation of 5AP can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as 5AP.
5AP is valuated expensively when we compare the Price/Earnings ratio to 25.91, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 49.60 indicates a quite expensive valuation of 5AP.
The rest of the industry has a similar Price/Forward Earnings ratio as 5AP.
When comparing the Price/Forward Earnings ratio of 5AP to the average of the S&P500 Index (21.77), we can say 5AP is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.86 | ||
| Fwd PE | 49.6 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 5AP is on the same level as its industry peers.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 5AP indicates a somewhat cheap valuation: 5AP is cheaper than 67.65% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 40.81 | ||
| EV/EBITDA | 83.56 |
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 5AP's earnings are expected to grow with 15.14% in the coming years.
PEG (NY)3.73
PEG (5Y)2.31
EPS Next 2Y14.68%
EPS Next 3Y15.14%
5. Dividend
5.1 Amount
5AP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:5AP (5/23/2025, 7:00:00 PM)
163.64
-1.16 (-0.7%)
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 Cap108.35B
Analysts78.33
Price Target190.25 (16.26%)
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 Years0
Div Non Decr Years0
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)-3.55%
PT rev (3m)-5.18%
EPS NQ rev (1m)1.8%
EPS NQ rev (3m)3.15%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)-0.18%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)-0.04%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.01%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 58.86 | ||
| Fwd PE | 49.6 | ||
| P/S | 13.8 | ||
| P/FCF | 40.81 | ||
| P/OCF | 38.17 | ||
| P/B | 16.93 | ||
| P/tB | 49.99 | ||
| EV/EBITDA | 83.56 |
EPS(TTM)2.78
EY1.7%
EPS(NY)3.3
Fwd EY2.02%
FCF(TTM)4.01
FCFY2.45%
OCF(TTM)4.29
OCFY2.62%
SpS11.86
BVpS9.66
TBVpS3.27
PEG (NY)3.73
PEG (5Y)2.31
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.63% | ||
| ROE | 17.12% | ||
| ROCE | 7.58% | ||
| ROIC | 5.89% | ||
| ROICexc | 7.65% | ||
| ROICexgc | 13.54% | ||
| OM | 12.21% | ||
| PM (TTM) | 13.95% | ||
| GM | 73.56% | ||
| FCFM | 33.81% |
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-Score5
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 | 226% | ||
| Profit Quality | 242.41% | ||
| Current Ratio | 0.9 | ||
| Quick Ratio | 0.9 | ||
| Altman-Z | 5.64 |
F-Score5
WACC10.98%
ROIC/WACC0.54
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)12.32%
EPS 3Y40.37%
EPS 5Y25.52%
EPS Q2Q%21.21%
EPS Next Y15.8%
EPS Next 2Y14.68%
EPS Next 3Y15.14%
EPS Next 5Y23.51%
Revenue 1Y (TTM)13.91%
Revenue growth 3Y23.55%
Revenue growth 5Y22.59%
Sales Q2Q%15.33%
Revenue Next Year14.56%
Revenue Next 2Y14.71%
Revenue Next 3Y14.69%
Revenue Next 5Y15.53%
EBIT growth 1Y23.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.09%
EBIT Next 3Y20.86%
EBIT Next 5YN/A
FCF growth 1Y9.56%
FCF growth 3Y30.76%
FCF growth 5Y27.39%
OCF growth 1Y11.11%
OCF growth 3Y29.41%
OCF growth 5Y25.28%