PALO ALTO NETWORKS INC (5AP.DE) Stock Fundamental Analysis
FRA:5AP - Deutsche Boerse Ag - US6974351057 - Common Stock - Currency: EUR
5AP gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 95 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 shows excellent growth, but is valued quite expensive already. These ratings could make 5AP a good candidate 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 (5.99%) is better than 64.21% of its industry peers.
5AP's Return On Equity of 19.68% is amongst the best of the industry. 5AP outperforms 81.05% of its industry peers.
5AP's Return On Invested Capital of 6.06% is fine compared to the rest of the industry. 5AP outperforms 63.16% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 19.68% | ||
| ROIC | 6.06% |
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 has a Profit Margin of 14.64%. This is in the better half of the industry: 5AP outperforms 69.47% of its industry peers.
5AP has a Operating Margin of 12.20%. This is in the better half of the industry: 5AP outperforms 67.37% of its industry peers.
The Gross Margin of 5AP (73.86%) is better than 61.05% of 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 | 12.2% | ||
| PM (TTM) | 14.64% | ||
| GM | 73.86% |
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
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.
5AP has more shares outstanding than it did 5 years ago.
5AP has a better debt/assets ratio than last year.
2.2 Solvency
5AP has an Altman-Z score of 5.71. This indicates that 5AP is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 5AP (5.71) is better than 73.68% 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 | 0.18 | ||
| Altman-Z | 5.71 |
ROIC/WACC0.58
WACC10.53%
2.3 Liquidity
A Current Ratio of 0.84 indicates that 5AP may have some problems paying its short term obligations.
5AP has a Current ratio of 0.84. This is in the lower half of the industry: 5AP underperforms 76.84% of its industry peers.
A Quick Ratio of 0.84 indicates that 5AP may have some problems paying its short term obligations.
5AP has a Quick ratio of 0.84. This is in the lower half of the industry: 5AP underperforms 74.74% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 |
3. Growth
3.1 Past
5AP shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.71%, 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 25.52% on average per year.
Looking at the last year, 5AP shows a quite strong growth in Revenue. The Revenue has grown by 13.86% in the last year.
The Revenue has been growing by 22.59% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)11.71%
EPS 3Y40.37%
EPS 5Y25.52%
EPS Q2Q%10.96%
Revenue 1Y (TTM)13.86%
Revenue growth 3Y23.55%
Revenue growth 5Y22.59%
Sales Q2Q%14.29%
3.2 Future
The Earnings Per Share is expected to grow by 23.51% on average over the next years. This is a very strong growth
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 Y15.83%
EPS Next 2Y14.82%
EPS Next 3Y15.32%
EPS Next 5Y23.51%
Revenue Next Year14.56%
Revenue Next 2Y14.72%
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 62.73, the valuation of 5AP can be described as expensive.
5AP's Price/Earnings is on the same level as the industry average.
When comparing the Price/Earnings ratio of 5AP to the average of the S&P500 Index (28.22), we can say 5AP is valued expensively.
Based on the Price/Forward Earnings ratio of 50.39, the valuation of 5AP can be described as expensive.
5AP's Price/Forward Earnings ratio is in line with the industry average.
5AP is valuated expensively when we compare the Price/Forward Earnings ratio to 20.86, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.73 | ||
| Fwd PE | 50.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of 5AP indicates a slightly more expensive valuation: 5AP is more expensive than 60.00% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, 5AP is valued a bit cheaper than 64.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.53 | ||
| EV/EBITDA | 87.44 |
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 15.32% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.96
PEG (5Y)2.46
EPS Next 2Y14.82%
EPS Next 3Y15.32%
5. Dividend
5.1 Amount
No dividends for 5AP!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
FRA:5AP (5/2/2025, 7:00:00 PM)
165.6
+1.92 (+1.17%)
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 Cap109.64B
Analysts78.67
Price Target186.02 (12.33%)
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)2.72%
Min EPS beat(2)2.16%
Max EPS beat(2)3.28%
EPS beat(4)4
Avg EPS beat(4)3.51%
Min EPS beat(4)2.16%
Max EPS beat(4)5.04%
EPS beat(8)8
Avg EPS beat(8)8.24%
EPS beat(12)12
Avg EPS beat(12)10.35%
EPS beat(16)16
Avg EPS beat(16)9.08%
Revenue beat(2)0
Avg Revenue beat(2)-1.14%
Min Revenue beat(2)-1.16%
Max Revenue beat(2)-1.12%
Revenue beat(4)0
Avg Revenue beat(4)-1.01%
Min Revenue beat(4)-1.16%
Max Revenue beat(4)-0.7%
Revenue beat(8)0
Avg Revenue beat(8)-1.2%
Revenue beat(12)1
Avg Revenue beat(12)-1.13%
Revenue beat(16)4
Avg Revenue beat(16)-0.59%
PT rev (1m)-10.33%
PT rev (3m)-10.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)1.44%
EPS NY rev (1m)-0.17%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.26%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 62.73 | ||
| Fwd PE | 50.39 | ||
| P/S | 14.55 | ||
| P/FCF | 42.53 | ||
| P/OCF | 40.12 | ||
| P/B | 19.56 | ||
| P/tB | 80.29 | ||
| EV/EBITDA | 87.44 |
EPS(TTM)2.64
EY1.59%
EPS(NY)3.29
Fwd EY1.98%
FCF(TTM)3.89
FCFY2.35%
OCF(TTM)4.13
OCFY2.49%
SpS11.38
BVpS8.47
TBVpS2.06
PEG (NY)3.96
PEG (5Y)2.46
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 5.99% | ||
| ROE | 19.68% | ||
| ROCE | 7.8% | ||
| ROIC | 6.06% | ||
| ROICexc | 7.98% | ||
| ROICexgc | 15.19% | ||
| OM | 12.2% | ||
| PM (TTM) | 14.64% | ||
| GM | 73.86% | ||
| FCFM | 34.21% |
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-Score6
Asset Turnover0.41
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0.18 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 54.8% | ||
| Cap/Sales | 2.06% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 227.33% | ||
| Profit Quality | 233.7% | ||
| Current Ratio | 0.84 | ||
| Quick Ratio | 0.84 | ||
| Altman-Z | 5.71 |
F-Score6
WACC10.53%
ROIC/WACC0.58
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)11.71%
EPS 3Y40.37%
EPS 5Y25.52%
EPS Q2Q%10.96%
EPS Next Y15.83%
EPS Next 2Y14.82%
EPS Next 3Y15.32%
EPS Next 5Y23.51%
Revenue 1Y (TTM)13.86%
Revenue growth 3Y23.55%
Revenue growth 5Y22.59%
Sales Q2Q%14.29%
Revenue Next Year14.56%
Revenue Next 2Y14.72%
Revenue Next 3Y14.69%
Revenue Next 5Y15.53%
EBIT growth 1Y34.39%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year32.04%
EBIT Next 3Y21.18%
EBIT Next 5YN/A
FCF growth 1Y9.02%
FCF growth 3Y30.76%
FCF growth 5Y27.39%
OCF growth 1Y9.27%
OCF growth 3Y29.41%
OCF growth 5Y25.28%