Palo Alto Networks CDR (PANW.CA) Fundamental Analysis & Valuation

TSX:PANW

Current stock price

18.51 CAD
+0.39 (+2.15%)
Last:

This PANW.CA fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

6

1. PANW.CA Profitability Analysis

1.1 Basic Checks

  • PANW had positive earnings in the past year.
  • PANW had a positive operating cash flow in the past year.
  • The reported net income has been mixed in the past 5 years: PANW reported negative net income in multiple years.
  • In the past 5 years PANW always reported a positive cash flow from operatings.
PANW.CA Yearly Net Income VS EBIT VS OCF VS FCFPANW.CA 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 decent Return On Assets value of 5.13%, PANW is doing good in the industry, outperforming 79.10% of the companies in the same industry.
  • PANW's Return On Equity of 13.65% is fine compared to the rest of the industry. PANW outperforms 79.10% of its industry peers.
  • Looking at the Return On Invested Capital, with a value of 5.95%, PANW is in the better half of the industry, outperforming 68.66% of the companies in the same industry.
  • The Average Return On Invested Capital over the past 3 years for PANW is significantly below the industry average of 12.43%.
  • The 3 year average ROIC (4.95%) for PANW 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
PANW.CA Yearly ROA, ROE, ROICPANW.CA Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100

1.3 Margins

  • The Profit Margin of PANW (12.96%) is better than 82.09% of its industry peers.
  • PANW has a better Operating Margin (14.37%) than 77.61% of its industry peers.
  • The Gross Margin of PANW (73.50%) is better than 74.63% of its industry peers.
  • PANW'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%
PANW.CA Yearly Profit, Operating, Gross MarginsPANW.CA 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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5

2. PANW.CA Health Analysis

2.1 Basic Checks

  • PANW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
  • The number of shares outstanding for PANW has been increased compared to 1 year ago.
  • The number of shares outstanding for PANW has been increased compared to 5 years ago.
  • There is no outstanding debt for PANW. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
PANW.CA Yearly Shares OutstandingPANW.CA Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
PANW.CA Yearly Total Debt VS Total AssetsPANW.CA 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

  • PANW has an Altman-Z score of 1.20. This is a bad value and indicates that PANW is not financially healthy and even has some risk of bankruptcy.
  • PANW's Altman-Z score of 1.20 is in line compared to the rest of the industry. PANW outperforms 53.73% of its industry peers.
  • PANW 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 1.2
ROIC/WACC0.55
WACC10.75%
PANW.CA Yearly LT Debt VS Equity VS FCFPANW.CA 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

  • PANW has a Current Ratio of 1.04. This is a normal value and indicates that PANW is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Current ratio value of 1.04, PANW perfoms like the industry average, outperforming 46.27% of the companies in the same industry.
  • A Quick Ratio of 1.04 indicates that PANW should not have too much problems paying its short term obligations.
  • The Quick ratio of PANW (1.04) is comparable to the rest of the industry.
Industry RankSector Rank
Current Ratio 1.04
Quick Ratio 1.04
PANW.CA Yearly Current Assets VS Current LiabilitesPANW.CA 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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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

8

3. PANW.CA Growth Analysis

3.1 Past

  • PANW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 23.46%, which is quite impressive.
  • The Earnings Per Share has been growing by 32.59% on average over the past years. This is a very strong growth
  • The Revenue has grown by 15.43% in the past year. This is quite good.
  • The Revenue has been growing by 22.03% on average over the past years. This is a very strong growth!
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

  • The Earnings Per Share is expected to grow by 15.26% on average over the next years. This is quite good.
  • PANW is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 15.85% yearly.
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

  • 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.
PANW.CA Yearly Revenue VS EstimatesPANW.CA Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B 25B
PANW.CA Yearly EPS VS EstimatesPANW.CA 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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Find the best growth stocksShow best growing peers

9

4. PANW.CA Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 3.61, the valuation of PANW can be described as very cheap.
  • PANW's Price/Earnings ratio is rather cheap when compared to the industry. PANW is cheaper than 94.03% of the companies in the same industry.
  • PANW's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.23.
  • PANW is valuated cheaply with a Price/Forward Earnings ratio of 3.30.
  • 91.04% of the companies in the same industry are more expensive than PANW, based on the Price/Forward Earnings ratio.
  • PANW is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.51, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 3.61
Fwd PE 3.3
PANW.CA Price Earnings VS Forward Price EarningsPANW.CA Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of PANW indicates a rather cheap valuation: PANW is cheaper than 89.55% of the companies listed in the same industry.
  • 94.03% of the companies in the same industry are more expensive than PANW, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 3.04
EV/EBITDA 3.35
PANW.CA Per share dataPANW.CA EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 5 10 15

4.3 Compensation for Growth

  • PANW's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • PANW has a very decent profitability rating, which may justify a higher PE ratio.
  • A more expensive valuation may be justified as PANW's earnings are expected to grow with 12.36% in the coming years.
PEG (NY)0.28
PEG (5Y)0.11
EPS Next 2Y10.1%
EPS Next 3Y12.36%

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

0

5. PANW.CA Dividend Analysis

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

PANW.CA Fundamentals: All Metrics, Ratios and Statistics

Palo Alto Networks CDR

TSX:PANW (3/26/2026, 7:00:00 PM)

18.51

+0.39 (+2.15%)

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 Cap15.01B
Revenue(TTM)9.89B
Net Income(TTM)1.28B
Analysts80
Price Target25.58 (38.2%)
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 YearsN/A
Div Non Decr YearsN/A
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)-8.26%
PT rev (3m)N/A
EPS NQ rev (1m)-13.8%
EPS NQ rev (3m)N/A
EPS NY rev (1m)-4.37%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)13.15%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)7.24%
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 3.61
Fwd PE 3.3
P/S 1.1
P/FCF 3.04
P/OCF 2.73
P/B 1.16
P/tB 8.95
EV/EBITDA 3.35
EPS(TTM)5.13
EY27.71%
EPS(NY)5.6
Fwd EY30.26%
FCF(TTM)6.08
FCFY32.86%
OCF(TTM)6.78
OCFY36.63%
SpS16.88
BVpS16.02
TBVpS2.07
PEG (NY)0.28
PEG (5Y)0.11
Graham Number43.01
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 1.2
F-Score5
WACC10.75%
ROIC/WACC0.55
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 CDR / PANW.CA Fundamental Analysis FAQ

What is the ChartMill fundamental rating of Palo Alto Networks CDR (PANW.CA) stock?

ChartMill assigns a fundamental rating of 6 / 10 to PANW.CA.


What is the valuation status for PANW stock?

ChartMill assigns a valuation rating of 9 / 10 to Palo Alto Networks CDR (PANW.CA). This can be considered as Undervalued.


What is the profitability of PANW stock?

Palo Alto Networks CDR (PANW.CA) has a profitability rating of 6 / 10.


What are the PE and PB ratios of Palo Alto Networks CDR (PANW.CA) stock?

The Price/Earnings (PE) ratio for Palo Alto Networks CDR (PANW.CA) is 3.61 and the Price/Book (PB) ratio is 1.16.


What is the expected EPS growth for Palo Alto Networks CDR (PANW.CA) stock?

The Earnings per Share (EPS) of Palo Alto Networks CDR (PANW.CA) is expected to grow by 12.75% in the next year.