PALO ALTO NETWORKS INC (5AP.DE) Stock Fundamental Analysis
Europe - Frankfurt Stock Exchange - FRA:5AP - US6974351057 - Common Stock
158.76 EUR
-0.56 (-0.35%)
Overall 5AP gets a fundamental rating of 5 out of 10. We evaluated 5AP against 105 industry peers in the Software industry. 5AP has an average financial health and profitability rating. 5AP is valued quite expensive, but it does show an excellent growth.
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.
In the past 5 years 5AP always reported a positive cash flow from operatings.
1.2 Ratios
5AP has a Return On Assets (4.75%) which is in line with its industry peers.
5AP has a Return On Equity of 12.89%. This is comparable to the rest of the industry: 5AP outperforms 59.05% of its industry peers.
5AP has a Return On Invested Capital of 5.58%. This is comparable to the rest of the industry: 5AP outperforms 55.24% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 5AP is significantly below the industry average of 13.30%.
The last Return On Invested Capital (5.58%) for 5AP 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
5AP has a Profit Margin (11.69%) which is comparable to the rest of the industry.
With a decent Operating Margin value of 13.24%, 5AP is doing good in the industry, outperforming 61.90% of the companies in the same industry.
Looking at the Gross Margin, with a value of 73.47%, 5AP is in line with its industry, outperforming 50.48% of the companies in the same industry.
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 | 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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 5AP is destroying value.
The number of shares outstanding for 5AP has been increased compared to 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.
2.2 Solvency
An Altman-Z score of 6.00 indicates that 5AP is not in any danger for bankruptcy at the moment.
5AP's Altman-Z score of 6.00 is fine compared to the rest of the industry. 5AP outperforms 75.24% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 6 |
ROIC/WACC0.51
WACC10.98%
2.3 Liquidity
A Current Ratio of 0.99 indicates that 5AP may have some problems paying its short term obligations.
5AP has a Current ratio of 0.99. This is in the lower half of the industry: 5AP underperforms 70.48% of its industry peers.
A Quick Ratio of 0.99 indicates that 5AP may have some problems paying its short term obligations.
With a Quick ratio value of 0.99, 5AP is not doing good in the industry: 69.52% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
5AP 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, 5AP shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.59% on average per year.
Looking at the last year, 5AP shows a quite strong growth in Revenue. The Revenue has grown by 15.30% in the last year.
5AP shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.03% yearly.
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
Based on estimates for the next years, 5AP will show a quite strong growth in Earnings Per Share. The EPS will grow by 15.63% on average per year.
The Revenue is expected to grow by 13.04% on average over the next years. This is quite good.
EPS Next Y17.92%
EPS Next 2Y15.09%
EPS Next 3Y14.77%
EPS Next 5Y15.63%
Revenue Next Year14.61%
Revenue Next 2Y13.93%
Revenue Next 3Y13.45%
Revenue Next 5Y13.04%
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 53.45, the valuation of 5AP can be described as expensive.
5AP's Price/Earnings ratio is in line with the industry average.
5AP is valuated expensively when we compare the Price/Earnings ratio to 26.84, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 42.22 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.
5AP is valuated expensively when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.45 | ||
| Fwd PE | 42.22 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, 5AP is valued a bit more expensive than 65.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, 5AP is valued a bit cheaper than 60.95% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 35.27 | ||
| EV/EBITDA | 77.36 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 5AP does not grow enough to justify the current Price/Earnings ratio.
5AP's earnings are expected to grow with 14.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.98
PEG (5Y)1.64
EPS Next 2Y15.09%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
5AP does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FRA:5AP (12/29/2025, 7:00:00 PM)
158.76
-0.56 (-0.35%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners84.51%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap110.66B
Revenue(TTM)9.56B
Net Income(TTM)1.12B
Analysts79
Price Target198.72 (25.17%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector 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)3.86%
Min EPS beat(2)2.41%
Max EPS beat(2)5.31%
EPS beat(4)4
Avg EPS beat(4)2.93%
Min EPS beat(4)1.85%
Max EPS beat(4)5.31%
EPS beat(8)8
Avg EPS beat(8)4.22%
EPS beat(12)12
Avg EPS beat(12)8.99%
EPS beat(16)16
Avg EPS beat(16)8.59%
Revenue beat(2)0
Avg Revenue beat(2)-1.02%
Min Revenue beat(2)-1.43%
Max Revenue beat(2)-0.62%
Revenue beat(4)0
Avg Revenue beat(4)-1.17%
Min Revenue beat(4)-1.46%
Max Revenue beat(4)-0.62%
Revenue beat(8)0
Avg Revenue beat(8)-1.16%
Revenue beat(12)0
Avg Revenue beat(12)-1.22%
Revenue beat(16)2
Avg Revenue beat(16)-1.01%
PT rev (1m)1.61%
PT rev (3m)7.38%
EPS NQ rev (1m)0.05%
EPS NQ rev (3m)1.3%
EPS NY rev (1m)1.21%
EPS NY rev (3m)1.29%
Revenue NQ rev (1m)0.04%
Revenue NQ rev (3m)0.3%
Revenue NY rev (1m)0.14%
Revenue NY rev (3m)0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 53.45 | ||
| Fwd PE | 42.22 | ||
| P/S | 13.62 | ||
| P/FCF | 35.27 | ||
| P/OCF | 32.73 | ||
| P/B | 15.03 | ||
| P/tB | 38.58 | ||
| EV/EBITDA | 77.36 |
EPS(TTM)2.97
EY1.87%
EPS(NY)3.76
Fwd EY2.37%
FCF(TTM)4.5
FCFY2.84%
OCF(TTM)4.85
OCFY3.05%
SpS11.65
BVpS10.57
TBVpS4.12
PEG (NY)2.98
PEG (5Y)1.64
Graham Number26.57
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.75% | ||
| ROE | 12.89% | ||
| ROCE | 7.85% | ||
| ROIC | 5.58% | ||
| ROICexc | 7.55% | ||
| ROICexgc | 13.59% | ||
| OM | 13.24% | ||
| PM (TTM) | 11.69% | ||
| GM | 73.47% | ||
| FCFM | 38.63% |
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 Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 82.09% | ||
| Cap/Sales | 2.99% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 246.45% | ||
| Profit Quality | 330.41% | ||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 | ||
| Altman-Z | 6 |
F-Score5
WACC10.98%
ROIC/WACC0.51
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)19.32%
EPS 3Y38.4%
EPS 5Y32.59%
EPS Q2Q%19.23%
EPS Next Y17.92%
EPS Next 2Y15.09%
EPS Next 3Y14.77%
EPS Next 5Y15.63%
Revenue 1Y (TTM)15.3%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%15.67%
Revenue Next Year14.61%
Revenue Next 2Y13.93%
Revenue Next 3Y13.45%
Revenue Next 5Y13.04%
EBIT growth 1Y31.87%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year30.85%
EBIT Next 3Y19.13%
EBIT Next 5YN/A
FCF growth 1Y26.27%
FCF growth 3Y24.64%
FCF growth 5Y33.4%
OCF growth 1Y29.69%
OCF growth 3Y23.25%
OCF growth 5Y29.11%
PALO ALTO NETWORKS INC / 5AP.DE FAQ
Can you provide the ChartMill fundamental rating for PALO ALTO NETWORKS INC?
ChartMill assigns a fundamental rating of 4 / 10 to 5AP.DE.
What is the valuation status for 5AP 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 4 / 10.
What is the earnings growth outlook for PALO ALTO NETWORKS INC?
The Earnings per Share (EPS) of PALO ALTO NETWORKS INC (5AP.DE) is expected to grow by 17.92% in the next year.