PALO ALTO NETWORKS INC (5AP.DE) Stock Fundamental Analysis
FRA:5AP - US6974351057 - Common Stock
162.3 EUR
-1.26 (-0.77%)
5AP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 108 industry peers in the Software industry. 5AP has only an average score on both its financial health and profitability. 5AP is valued quite expensively, but it does show have an excellent growth rating.
1. Profitability
1.1 Basic Checks
5AP had positive earnings in the past year.
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 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 5.63%, 5AP is in line with its industry, outperforming 59.26% of the companies in the same industry.
Looking at the Return On Equity, with a value of 17.12%, 5AP is in the better half of the industry, outperforming 77.78% of the companies in the same industry.
The Return On Invested Capital of 5AP (5.01%) is comparable to the rest of the industry.
Measured over the past 3 years, the Average Return On Invested Capital for 5AP is significantly below the industry average of 12.57%.
The 3 year average ROIC (4.95%) for 5AP 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
5AP's Profit Margin of 13.95% is fine compared to the rest of the industry. 5AP outperforms 67.59% of its industry peers.
With a decent Operating Margin value of 11.36%, 5AP is doing good in the industry, outperforming 63.89% of the companies in the same industry.
With a Gross Margin value of 73.56%, 5AP perfoms like the industry average, outperforming 53.70% of the companies in the same industry.
5AP'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
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.
5AP has more shares outstanding than it did 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.
2.2 Solvency
5AP has an Altman-Z score of 5.78. This indicates that 5AP is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.78, 5AP is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
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 | 5.78 |
ROIC/WACC0.45
WACC11.21%
2.3 Liquidity
A Current Ratio of 0.90 indicates that 5AP may have some problems paying its short term obligations.
5AP's Current ratio of 0.90 is on the low side compared to the rest of the industry. 5AP is outperformed by 69.44% of its industry peers.
A Quick Ratio of 0.90 indicates that 5AP may have some problems paying its short term obligations.
With a Quick ratio value of 0.90, 5AP is not doing good in the industry: 69.44% of the companies in the same industry are doing better.
| 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.
5AP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.59% yearly.
Looking at the last year, 5AP shows a quite strong growth in Revenue. The Revenue has grown by 14.87% in the last year.
The Revenue has been growing by 22.03% on average over the past years. This is a very strong growth!
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
Based on estimates for the next years, 5AP will show a very strong growth in Earnings Per Share. The EPS will grow by 23.53% on average per year.
Based on estimates for the next years, 5AP will show a quite strong growth in Revenue. The Revenue will grow by 14.71% on average per year.
EPS Next Y15.49%
EPS Next 2Y14.51%
EPS Next 3Y14.12%
EPS Next 5Y23.53%
Revenue Next Year14.24%
Revenue Next 2Y13.89%
Revenue Next 3Y13.14%
Revenue Next 5Y14.71%
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.
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
The Price/Earnings ratio is 56.55, which means the current valuation is very expensive for 5AP.
The rest of the industry has a similar Price/Earnings ratio as 5AP.
Compared to an average S&P500 Price/Earnings ratio of 26.90, 5AP is valued quite expensively.
Based on the Price/Forward Earnings ratio of 49.00, the valuation of 5AP can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as 5AP.
The average S&P500 Price/Forward Earnings ratio is at 22.52. 5AP is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.55 | ||
| Fwd PE | 49 |
4.2 Price Multiples
62.96% of the companies in the same industry are cheaper than 5AP, based on the Enterprise Value to EBITDA ratio.
5AP's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 5AP is cheaper than 60.19% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.08 | ||
| EV/EBITDA | 91.1 |
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 14.12% in the coming years.
PEG (NY)3.65
PEG (5Y)1.74
EPS Next 2Y14.51%
EPS Next 3Y14.12%
5. Dividend
5.1 Amount
No dividends for 5AP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:5AP (9/2/2025, 7:00:00 PM)
162.3
-1.26 (-0.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners81.93%
Inst Owner ChangeN/A
Ins Owners0.93%
Ins Owner ChangeN/A
Market Cap108.41B
Analysts77.67
Price Target187.94 (15.8%)
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)1.74%
PT rev (3m)-1.22%
EPS NQ rev (1m)-0.03%
EPS NQ rev (3m)0.28%
EPS NY rev (1m)2.76%
EPS NY rev (3m)3.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.04%
Revenue NY rev (1m)0.26%
Revenue NY rev (3m)-0.33%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 56.55 | ||
| Fwd PE | 49 | ||
| P/S | 14.23 | ||
| P/FCF | 42.08 | ||
| P/OCF | 39.36 | ||
| P/B | 17.46 | ||
| P/tB | 51.54 | ||
| EV/EBITDA | 91.1 |
EPS(TTM)2.87
EY1.77%
EPS(NY)3.31
Fwd EY2.04%
FCF(TTM)3.86
FCFY2.38%
OCF(TTM)4.12
OCFY2.54%
SpS11.41
BVpS9.3
TBVpS3.15
PEG (NY)3.65
PEG (5Y)1.74
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
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 3Y2.21%
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 | 5.78 |
F-Score6
WACC11.21%
ROIC/WACC0.45
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 Y15.49%
EPS Next 2Y14.51%
EPS Next 3Y14.12%
EPS Next 5Y23.53%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%15.84%
Revenue Next Year14.24%
Revenue Next 2Y13.89%
Revenue Next 3Y13.14%
Revenue Next 5Y14.71%
EBIT growth 1Y14.61%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year25.95%
EBIT Next 3YN/A
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