Palo Alto Networks CDR (PANW.CA) Stock Fundamental Analysis
TSX:PANW
17.09 CAD
-0.58 (-3.28%)
Last: Feb 23, 2026, 07:00 PM
Overall PANW gets a fundamental rating of 6 out of 10. We evaluated PANW against 66 industry peers in the Software industry. PANW has only an average score on both its financial health and profitability. PANW is growing strongly while it also seems undervalued. This is an interesting combination
1. Profitability
1.1 Basic Checks
- PANW had positive earnings in the past year.
- In the past year PANW had a positive cash flow from operations.
- The reported net income has been mixed in the past 5 years: PANW reported negative net income in multiple years.
- Each year in the past 5 years PANW had a positive operating cash flow.
1.2 Ratios
- Looking at the Return On Assets, with a value of 4.75%, PANW is in the better half of the industry, outperforming 77.27% of the companies in the same industry.
- The Return On Equity of PANW (12.89%) is better than 81.82% of its industry peers.
- PANW has a better Return On Invested Capital (5.58%) than 69.70% of its industry peers.
- Measured over the past 3 years, the Average Return On Invested Capital for PANW is significantly below the industry average of 12.35%.
- The 3 year average ROIC (4.95%) for PANW is below the current ROIC(5.58%), indicating increased profibility in the last year.
| 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
- The Profit Margin of PANW (11.69%) is better than 83.33% of its industry peers.
- PANW has a Operating Margin of 13.24%. This is in the better half of the industry: PANW outperforms 77.27% of its industry peers.
- PANW's Gross Margin of 73.47% is fine compared to the rest of the industry. PANW outperforms 74.24% of its industry peers.
- PANW'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
- PANW has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- PANW has more shares outstanding than it did 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.
2.2 Solvency
- Based on the Altman-Z score of 1.10, we must say that PANW is in the distress zone and has some risk of bankruptcy.
- The Altman-Z score of PANW (1.10) is comparable to the rest of the industry.
- PANW 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 | 1.1 |
ROIC/WACC0.52
WACC10.79%
2.3 Liquidity
- PANW has a Current Ratio of 0.99. This is a bad value and indicates that PANW is not financially healthy enough and could expect problems in meeting its short term obligations.
- PANW has a Current ratio (0.99) which is comparable to the rest of the industry.
- A Quick Ratio of 0.99 indicates that PANW may have some problems paying its short term obligations.
- With a Quick ratio value of 0.99, PANW perfoms like the industry average, outperforming 43.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.99 |
3. Growth
3.1 Past
- PANW shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.32%, which is quite good.
- The Earnings Per Share has been growing by 32.59% on average over the past years. This is a very strong growth
- PANW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 15.30%.
- The Revenue has been growing by 22.03% on average over the past years. This is a very strong growth!
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
- PANW is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 15.63% yearly.
- The Revenue is expected to grow by 13.08% on average over the next years. This is quite good.
EPS Next Y17.91%
EPS Next 2Y15.08%
EPS Next 3Y14.78%
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.
- 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 3.58, the valuation of PANW can be described as very cheap.
- Based on the Price/Earnings ratio, PANW is valued cheaply inside the industry as 93.94% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Earnings ratio of 26.64, PANW is valued rather cheaply.
- With a Price/Forward Earnings ratio of 2.82, the valuation of PANW can be described as very cheap.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of PANW indicates a rather cheap valuation: PANW is cheaper than 90.91% of the companies listed in the same industry.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.75, PANW is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.58 | ||
| Fwd PE | 2.82 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, PANW is valued cheaply inside the industry as 92.42% of the companies are valued more expensively.
- Based on the Price/Free Cash Flow ratio, PANW is valued cheaper than 93.94% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 2.36 | ||
| EV/EBITDA | 2.07 |
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.
- The decent profitability rating of PANW may justify a higher PE ratio.
- A more expensive valuation may be justified as PANW's earnings are expected to grow with 14.78% in the coming years.
PEG (NY)0.2
PEG (5Y)0.11
EPS Next 2Y15.08%
EPS Next 3Y14.78%
5. Dividend
5.1 Amount
- No dividends for PANW!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
TSX:PANW (2/23/2026, 7:00:00 PM)
17.09
-0.58 (-3.28%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-19 2025-11-19/amc
Earnings (Next)02-17 2026-02-17/amc
Inst Owners84.5%
Inst Owner ChangeN/A
Ins Owners0.4%
Ins Owner ChangeN/A
Market Cap11.91B
Revenue(TTM)9.56B
Net Income(TTM)1.12B
Analysts79.67
Price Target27.88 (63.14%)
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 YearsN/A
Div Non Decr YearsN/A
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)-0.17%
PT rev (3m)N/A
EPS NQ rev (1m)-0.05%
EPS NQ rev (3m)N/A
EPS NY rev (1m)0%
EPS NY rev (3m)N/A
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)0%
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.58 | ||
| Fwd PE | 2.82 | ||
| P/S | 0.91 | ||
| P/FCF | 2.36 | ||
| P/OCF | 2.19 | ||
| P/B | 1 | ||
| P/tB | 2.58 | ||
| EV/EBITDA | 2.07 |
EPS(TTM)4.78
EY27.97%
EPS(NY)6.06
Fwd EY35.43%
FCF(TTM)7.25
FCFY42.42%
OCF(TTM)7.81
OCFY45.71%
SpS18.77
BVpS17.02
TBVpS6.63
PEG (NY)0.2
PEG (5Y)0.11
Graham Number42.78
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 | 1.1 |
F-Score5
WACC10.79%
ROIC/WACC0.52
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 Y17.91%
EPS Next 2Y15.08%
EPS Next 3Y14.78%
EPS Next 5Y15.63%
Revenue 1Y (TTM)15.3%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%15.67%
Revenue Next Year14.64%
Revenue Next 2Y13.92%
Revenue Next 3Y13.45%
Revenue Next 5Y13.08%
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 CDR / PANW.CA 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 3.58 and the Price/Book (PB) ratio is 1.
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 17.91% in the next year.