PALO ALTO NETWORKS INC (PANW) Stock Fundamental Analysis

NASDAQ:PANW • US6974351057

148.7 USD
-2.29 (-1.52%)
At close: Feb 20, 2026
148.999 USD
+0.3 (+0.2%)
After Hours: 2/20/2026, 8:00:01 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

5

Overall PANW gets a fundamental rating of 5 out of 10. We evaluated PANW against 276 industry peers in the Software industry. Both the profitability and the financial health of PANW get a neutral evaluation. Nothing too spectacular is happening here. PANW is valued quite expensive, but it does show an excellent growth. These ratings could make PANW a good candidate for growth investing.


Dividend Valuation Growth Profitability Health

5

1. Profitability

1.1 Basic Checks

  • In the past year PANW was profitable.
  • PANW had a positive operating cash flow in the past year.
  • In multiple years PANW reported negative net income over the last 5 years.
  • PANW had a positive operating cash flow in each of the past 5 years.
PANW Yearly Net Income VS EBIT VS OCF VS FCFPANW 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

  • PANW has a better Return On Assets (4.75%) than 71.01% of its industry peers.
  • PANW has a better Return On Equity (12.89%) than 76.09% of its industry peers.
  • The Return On Invested Capital of PANW (5.58%) is better than 73.19% of its industry peers.
  • PANW had an Average Return On Invested Capital over the past 3 years of 4.95%. This is significantly below the industry average of 10.64%.
  • The 3 year average ROIC (4.95%) for PANW is below the current ROIC(5.58%), indicating increased profibility in the last year.
Industry RankSector 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
PANW Yearly ROA, ROE, ROICPANW Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 -50 -100

1.3 Margins

  • With a decent Profit Margin value of 11.69%, PANW is doing good in the industry, outperforming 71.74% of the companies in the same industry.
  • The Operating Margin of PANW (13.24%) is better than 78.62% of its industry peers.
  • PANW's Gross Margin of 73.47% is in line compared to the rest of the industry. PANW outperforms 59.06% of its industry peers.
  • PANW's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
PANW Yearly Profit, Operating, Gross MarginsPANW 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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ROAROEROICOperating and Profit MarginShow most profitable peers

5

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.
  • Compared to 1 year ago, PANW has more shares outstanding
  • Compared to 5 years ago, PANW has more shares outstanding
  • 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 Yearly Shares OutstandingPANW Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M
PANW Yearly Total Debt VS Total AssetsPANW 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 4.99. This indicates that PANW is financially healthy and has little risk of bankruptcy at the moment.
  • PANW has a better Altman-Z score (4.99) than 77.54% 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 4.99
ROIC/WACC0.51
WACC10.98%
PANW Yearly LT Debt VS Equity VS FCFPANW 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

  • A Current Ratio of 0.99 indicates that PANW may have some problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 0.99, PANW is doing worse than 75.36% of the companies in the same 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 is not doing good in the industry: 74.28% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 0.99
Quick Ratio 0.99
PANW Yearly Current Assets VS Current LiabilitesPANW 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. Growth

3.1 Past

  • The Earnings Per Share has grown by an impressive 23.46% over the past year.
  • PANW shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.59% yearly.
  • PANW shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.87%.
  • 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)14.87%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%14.91%

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.
  • Based on estimates for the next years, PANW 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 2Y15.08%
EPS Next 3Y14.78%
EPS Next 5Y15.63%
Revenue Next Year14.81%
Revenue Next 2Y14.17%
Revenue Next 3Y13.76%
Revenue Next 5Y13.08%

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.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
PANW Yearly Revenue VS EstimatesPANW Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B 15B 20B
PANW Yearly EPS VS EstimatesPANW Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6 8 10

More info and screens

Find the best growth stocksShow best growing peers

2

4. Valuation

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 40.08, which means the current valuation is very expensive for PANW.
  • PANW's Price/Earnings is on the same level as the industry average.
  • When comparing the Price/Earnings ratio of PANW to the average of the S&P500 Index (26.99), we can say PANW is valued slightly more expensively.
  • A Price/Forward Earnings ratio of 33.62 indicates a quite expensive valuation of PANW.
  • The rest of the industry has a similar Price/Forward Earnings ratio as PANW.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 28.06, PANW is valued at the same level.
Industry RankSector Rank
PE 40.08
Fwd PE 33.62
PANW Price Earnings VS Forward Price EarningsPANW Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • PANW's Enterprise Value to EBITDA is on the same level as the industry average.
  • PANW's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. PANW is cheaper than 63.04% of the companies in the same industry.
Industry RankSector Rank
P/FCF 28.08
EV/EBITDA 61.89
PANW Per share dataPANW EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • A more expensive valuation may be justified as PANW's earnings are expected to grow with 14.78% in the coming years.
PEG (NY)2.24
PEG (5Y)1.23
EPS Next 2Y15.08%
EPS Next 3Y14.78%

More info and screens

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

0

5. Dividend

5.1 Amount

  • No dividends for PANW!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

PALO ALTO NETWORKS INC

NASDAQ:PANW (2/20/2026, 8:00:01 PM)

After market: 148.999 +0.3 (+0.2%)

148.7

-2.29 (-1.52%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-17
Earnings (Next)05-18
Inst Owners84.5%
Inst Owner Change-1.17%
Ins Owners0.4%
Ins Owner Change5.79%
Market Cap103.64B
Revenue(TTM)9.22B
Net Income(TTM)1.12B
Analysts79.67
Price Target234.35 (57.6%)
Short Float %6.7%
Short Ratio5.67
Dividend
Industry RankSector 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)1.17%
PT rev (3m)4.58%
EPS NQ rev (1m)-0.06%
EPS NQ rev (3m)1.17%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)1.2%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0.27%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.17%
Valuation
Industry RankSector Rank
PE 40.08
Fwd PE 33.62
P/S 10.85
P/FCF 28.08
P/OCF 26.06
P/B 11.96
P/tB 30.71
EV/EBITDA 61.89
EPS(TTM)3.71
EY2.49%
EPS(NY)4.42
Fwd EY2.97%
FCF(TTM)5.3
FCFY3.56%
OCF(TTM)5.71
OCFY3.84%
SpS13.71
BVpS12.43
TBVpS4.84
PEG (NY)2.24
PEG (5Y)1.23
Graham Number32.21
Profitability
Industry RankSector 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 RankSector 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 4.99
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)23.46%
EPS 3Y38.4%
EPS 5Y32.59%
EPS Q2Q%27.16%
EPS Next Y17.91%
EPS Next 2Y15.08%
EPS Next 3Y14.78%
EPS Next 5Y15.63%
Revenue 1Y (TTM)14.87%
Revenue growth 3Y18.79%
Revenue growth 5Y22.03%
Sales Q2Q%14.91%
Revenue Next Year14.81%
Revenue Next 2Y14.17%
Revenue Next 3Y13.76%
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 INC / PANW FAQ

What is the ChartMill fundamental rating of PALO ALTO NETWORKS INC (PANW) stock?

ChartMill assigns a fundamental rating of 5 / 10 to PANW.


What is the valuation status for PANW stock?

ChartMill assigns a valuation rating of 2 / 10 to PALO ALTO NETWORKS INC (PANW). This can be considered as Overvalued.


What is the profitability of PANW stock?

PALO ALTO NETWORKS INC (PANW) has a profitability rating of 5 / 10.


What are the PE and PB ratios of PALO ALTO NETWORKS INC (PANW) stock?

The Price/Earnings (PE) ratio for PALO ALTO NETWORKS INC (PANW) is 40.08 and the Price/Book (PB) ratio is 11.96.


What is the expected EPS growth for PALO ALTO NETWORKS INC (PANW) stock?

The Earnings per Share (EPS) of PALO ALTO NETWORKS INC (PANW) is expected to grow by 17.91% in the next year.