PALO ALTO NETWORKS INC (5AP.DE) Stock Fundamental Analysis
Europe • Frankfurt Stock Exchange • FRA:5AP • US6974351057
149.24 EUR
+5 (+3.47%)
Last: Jan 30, 2026, 07:00 PM
Overall 5AP gets a fundamental rating of 5 out of 10. We evaluated 5AP against 114 industry peers in the Software industry. 5AP has only an average score on both its financial health and profitability. 5AP is valued quite expensive, but it does show an excellent growth.
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.
- In multiple years 5AP reported negative net income over the last 5 years.
- 5AP had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- 5AP has a Return On Assets (4.75%) which is comparable to the rest of the industry.
- Looking at the Return On Equity, with a value of 12.89%, 5AP is in line with its industry, outperforming 58.77% of the companies in the same industry.
- With a Return On Invested Capital value of 5.58%, 5AP perfoms like the industry average, outperforming 56.14% of the companies in the same industry.
- 5AP had an Average Return On Invested Capital over the past 3 years of 4.95%. This is significantly below the industry average of 13.49%.
- 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's Profit Margin of 11.69% is in line compared to the rest of the industry. 5AP outperforms 59.65% of its industry peers.
- With a decent Operating Margin value of 13.24%, 5AP is doing good in the industry, outperforming 64.91% of the companies in the same industry.
- 5AP has a Gross Margin (73.47%) which is in line with its industry peers.
- 5AP's Gross Margin has been stable in the last couple of years.
| 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), 5AP is destroying value.
- Compared to 1 year ago, 5AP has more shares outstanding
- The number of shares outstanding for 5AP has been increased compared to 5 years ago.
- 5AP has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
- An Altman-Z score of 5.60 indicates that 5AP is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.60, 5AP is doing good in the industry, outperforming 75.44% 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 | ||
| Altman-Z | 5.6 |
ROIC/WACC0.51
WACC11.03%
2.3 Liquidity
- A Current Ratio of 0.99 indicates that 5AP may have some problems paying its short term obligations.
- With a Current ratio value of 0.99, 5AP is not doing good in the industry: 71.93% of the companies in the same industry are doing better.
- 5AP has a Quick Ratio of 0.99. 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 Quick ratio value of 0.99, 5AP is not doing good in the industry: 70.18% 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.
- 5AP shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.59% yearly.
- The Revenue has grown by 15.30% in the past year. This is quite good.
- 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)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.
- Based on estimates for the next years, 5AP will show a quite strong growth in Revenue. The Revenue will grow by 13.08% on average per year.
EPS Next Y17.91%
EPS Next 2Y15.09%
EPS Next 3Y14.77%
EPS Next 5Y15.63%
Revenue Next Year14.64%
Revenue Next 2Y13.92%
Revenue Next 3Y13.45%
Revenue Next 5Y13.08%
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.
- 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
- 5AP is valuated quite expensively with a Price/Earnings ratio of 51.11.
- The rest of the industry has a similar Price/Earnings ratio as 5AP.
- The average S&P500 Price/Earnings ratio is at 28.30. 5AP is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 40.38, 5AP can be considered very expensive at the moment.
- 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 25.57, 5AP is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 51.11 | ||
| Fwd PE | 40.38 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, 5AP is valued a bit more expensive than 65.79% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, 5AP is valued a bit cheaper than the industry average as 61.40% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.73 | ||
| EV/EBITDA | 71.24 |
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.
- A more expensive valuation may be justified as 5AP's earnings are expected to grow with 14.77% in the coming years.
PEG (NY)2.85
PEG (5Y)1.57
EPS Next 2Y15.09%
EPS Next 3Y14.77%
5. Dividend
5.1 Amount
- No dividends for 5AP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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 5 / 10 to 5AP.DE.
What is the valuation status of PALO ALTO NETWORKS INC (5AP.DE) stock?
ChartMill assigns a valuation rating of 2 / 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.
How financially healthy is PALO ALTO NETWORKS INC?
The financial health rating of PALO ALTO NETWORKS INC (5AP.DE) is 5 / 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 17.91% in the next year.