PALO ALTO NETWORKS INC (5AP.DE) Fundamental Analysis & Valuation

FRA:5AP • US6974351057

Current stock price

127.68 EUR
-8.16 (-6.01%)
Last:

This 5AP.DE fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. 5AP.DE Profitability Analysis

1.1 Basic Checks

  • 5AP had positive earnings in the past year.
  • In the past year 5AP had a positive cash flow from operations.
  • In multiple years 5AP reported negative net income over the last 5 years.
  • In the past 5 years 5AP always reported a positive cash flow from operatings.
5AP.DE Yearly Net Income VS EBIT VS OCF VS FCF5AP.DE 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

  • With a Return On Assets value of 5.13%, 5AP perfoms like the industry average, outperforming 59.26% of the companies in the same industry.
  • 5AP has a Return On Equity of 13.65%. This is in the better half of the industry: 5AP outperforms 66.67% of its industry peers.
  • 5AP has a better Return On Invested Capital (5.95%) than 62.04% of its industry peers.
  • 5AP had an Average Return On Invested Capital over the past 3 years of 4.95%. This is significantly below the industry average of 13.30%.
  • The 3 year average ROIC (4.95%) for 5AP 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
5AP.DE Yearly ROA, ROE, ROIC5AP.DE Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100

1.3 Margins

  • 5AP's Profit Margin of 12.96% is fine compared to the rest of the industry. 5AP outperforms 67.59% of its industry peers.
  • The Operating Margin of 5AP (14.37%) is better than 69.44% of its industry peers.
  • The Gross Margin of 5AP (73.50%) is comparable to the rest of the industry.
  • 5AP's Gross Margin has been stable in the last couple of years.
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%
5AP.DE Yearly Profit, Operating, Gross Margins5AP.DE 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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6

2. 5AP.DE Health Analysis

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.
  • 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.
5AP.DE Yearly Shares Outstanding5AP.DE Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
5AP.DE Yearly Total Debt VS Total Assets5AP.DE 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

  • 5AP has an Altman-Z score of 5.68. This indicates that 5AP is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of 5AP (5.68) is better than 81.48% of its industry peers.
  • 5AP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.68
ROIC/WACC0.54
WACC11%
5AP.DE Yearly LT Debt VS Equity VS FCF5AP.DE 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

  • A Current Ratio of 1.04 indicates that 5AP should not have too much problems paying its short term obligations.
  • 5AP has a Current ratio of 1.04. This is in the lower half of the industry: 5AP underperforms 67.59% of its industry peers.
  • 5AP has a Quick Ratio of 1.04. This is a normal value and indicates that 5AP is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.04, 5AP is not doing good in the industry: 65.74% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 1.04
5AP.DE Yearly Current Assets VS Current Liabilites5AP.DE 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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8

3. 5AP.DE Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.46% over the past year.
  • 5AP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.59% yearly.
  • 5AP shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.43%.
  • Measured over the past years, 5AP 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, 5AP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.26% on average per year.
  • The Revenue is expected to grow by 15.85% on average over the next years. This is quite good.
EPS Next Y12.75%
EPS Next 2Y10.1%
EPS Next 3Y12.36%
EPS Next 5Y15.26%
Revenue Next Year22.95%
Revenue Next 2Y21.48%
Revenue Next 3Y18.74%
Revenue Next 5Y15.85%

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.
5AP.DE Yearly Revenue VS Estimates5AP.DE Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
5AP.DE Yearly EPS VS Estimates5AP.DE 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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1

4. 5AP.DE Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 39.65, the valuation of 5AP can be described as expensive.
  • 5AP's Price/Earnings is on the same level as the industry average.
  • 5AP's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 24.88.
  • A Price/Forward Earnings ratio of 36.39 indicates a quite expensive valuation of 5AP.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of 5AP is on the same level as its industry peers.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.19, 5AP is valued quite expensively.
Industry RankSector Rank
PE 39.65
Fwd PE 36.39
5AP.DE Price Earnings VS Forward Price Earnings5AP.DE Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, 5AP is valued a bit more expensive than the industry average as 65.74% of the companies are valued more cheaply.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of 5AP is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 33.51
EV/EBITDA 68.89
5AP.DE Per share data5AP.DE EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 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.
  • 5AP's earnings are expected to grow with 12.36% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.11
PEG (5Y)1.22
EPS Next 2Y10.1%
EPS Next 3Y12.36%

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

0

5. 5AP.DE Dividend Analysis

5.1 Amount

  • 5AP does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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5AP.DE Fundamentals: All Metrics, Ratios and Statistics

PALO ALTO NETWORKS INC

FRA:5AP (3/27/2026, 7:00:00 PM)

127.68

-8.16 (-6.01%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-17
Earnings (Next)05-18
Inst Owners73.51%
Inst Owner ChangeN/A
Ins Owners0.34%
Ins Owner ChangeN/A
Market Cap103.55B
Revenue(TTM)9.89B
Net Income(TTM)1.28B
Analysts80
Price Target183.37 (43.62%)
Short Float %N/A
Short RatioN/A
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)-8.68%
PT rev (3m)-7.72%
EPS NQ rev (1m)-13.8%
EPS NQ rev (3m)-13.76%
EPS NY rev (1m)-4.37%
EPS NY rev (3m)-4.38%
Revenue NQ rev (1m)13.15%
Revenue NQ rev (3m)13.19%
Revenue NY rev (1m)7.24%
Revenue NY rev (3m)7.27%
Valuation
Industry RankSector Rank
PE 39.65
Fwd PE 36.39
P/S 12.08
P/FCF 33.51
P/OCF 30.06
P/B 12.72
P/tB 98.5
EV/EBITDA 68.89
EPS(TTM)3.22
EY2.52%
EPS(NY)3.51
Fwd EY2.75%
FCF(TTM)3.81
FCFY2.98%
OCF(TTM)4.25
OCFY3.33%
SpS10.57
BVpS10.04
TBVpS1.3
PEG (NY)3.11
PEG (5Y)1.22
Graham Number26.97
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 5.68
F-Score5
WACC11%
ROIC/WACC0.54
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 Y12.75%
EPS Next 2Y10.1%
EPS Next 3Y12.36%
EPS Next 5Y15.26%
Revenue 1Y (TTM)15.43%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%14.91%
Revenue Next Year22.95%
Revenue Next 2Y21.48%
Revenue Next 3Y18.74%
Revenue Next 5Y15.85%
EBIT growth 1Y46.66%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year41.96%
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 / 5AP.DE Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for PALO ALTO NETWORKS INC?

ChartMill assigns a fundamental rating of 5 / 10 to 5AP.DE.


What is the valuation status of PALO ALTO NETWORKS INC (5AP.DE) stock?

ChartMill assigns a valuation rating of 1 / 10 to PALO ALTO NETWORKS INC (5AP.DE). This can be considered as Overvalued.


What is the profitability of 5AP stock?

PALO ALTO NETWORKS INC (5AP.DE) has a profitability rating of 5 / 10.


How financially healthy is PALO ALTO NETWORKS INC?

The financial health rating of PALO ALTO NETWORKS INC (5AP.DE) is 6 / 10.


Can you provide the expected EPS growth for 5AP stock?

The Earnings per Share (EPS) of PALO ALTO NETWORKS INC (5AP.DE) is expected to grow by 12.75% in the next year.