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Palo Alto Networks Inc

PANW

Computer Peripheral Equipment, NEC

Mkt Cap

$116.9B

PE

190.38

Debt

$1.947B

Cash

$2.497B

EV

$116.3B

FCF

$2.923B

Market Cap

$116.9B

P/E Ratio

190.38

Debt

$1.947B

Cash

$2.497B

EV

$116.3B

FCF

$2.923B
Charts data: {"Earnings":[{"time":"2014-07-30","value":-226452000},{"time":"2015-07-30","value":-164982000},{"time":"2016-07-30","value":-225900000},{"time":"2017-07-30","value":-216600000},{"time":"2018-07-30","value":-147900000},{"time":"2019-07-30","value":-81900000},{"time":"2020-07-30","value":-267000000},{"time":"2021-07-30","value":-498900000},{"time":"2022-07-30","value":-267000000},{"time":"2023-07-30","value":439700000}],"Sales":[{"time":"2014-07-30","value":598179000},{"time":"2015-07-30","value":928052000},{"time":"2016-07-30","value":1378500000},{"time":"2017-07-30","value":1761600000},{"time":"2018-07-30","value":2273100000},{"time":"2019-07-30","value":2899600000},{"time":"2020-07-30","value":3408400000},{"time":"2021-07-30","value":4256100000},{"time":"2022-07-30","value":5501500000},{"time":"2023-07-30","value":6892700000}],"Net Margins":[{"time":"2014-07-30","value":-0.37856895678383895},{"time":"2015-07-30","value":-0.1777723662036179},{"time":"2016-07-30","value":-0.16387377584330795},{"time":"2017-07-30","value":-0.12295640326975477},{"time":"2018-07-30","value":-0.06506532928599709},{"time":"2019-07-30","value":-0.028245275210373844},{"time":"2020-07-30","value":-0.0783358760708837},{"time":"2021-07-30","value":-0.11721999013181081},{"time":"2022-07-30","value":-0.048532218485867494},{"time":"2023-07-30","value":0.06379212790343407}],"Assets":[{"time":"2014-07-30","value":1478466000},{"time":"2015-07-30","value":1965178000},{"time":"2016-07-30","value":2761200000},{"time":"2017-07-30","value":3438300000},{"time":"2018-07-30","value":5823000000},{"time":"2019-07-30","value":6592200000},{"time":"2020-07-30","value":9065400000},{"time":"2021-07-30","value":10241600000},{"time":"2022-07-30","value":12253600000},{"time":"2023-07-30","value":14501100000}],"Stockholders Equity":[{"time":"2014-07-30","value":468583000},{"time":"2015-07-30","value":487899000},{"time":"2016-07-30","value":789900000},{"time":"2017-07-30","value":759600000},{"time":"2018-07-30","value":966400000},{"time":"2019-07-30","value":1586300000},{"time":"2020-07-30","value":1101800000},{"time":"2021-07-30","value":634500000},{"time":"2022-07-30","value":210000000},{"time":"2023-07-30","value":1748400000}],"ROE":[{"time":"2014-07-30","value":-0.4832697729110958},{"time":"2015-07-30","value":-0.338147854371499},{"time":"2016-07-30","value":-0.28598556779339157},{"time":"2017-07-30","value":-0.28515007898894157},{"time":"2018-07-30","value":-0.15304221854304637},{"time":"2019-07-30","value":-0.051629578263884514},{"time":"2020-07-30","value":-0.24233073153022328},{"time":"2021-07-30","value":-0.7862884160756501},{"time":"2022-07-30","value":-1.2714285714285714},{"time":"2023-07-30","value":0.2514870738961336}],"ROA":[{"time":"2014-07-30","value":-0.14565569989434995},{"time":"2015-07-30","value":-0.06780658037083663},{"time":"2016-07-30","value":-0.0624004056207446},{"time":"2017-07-30","value":-0.049326702149317975},{"time":"2018-07-30","value":-0.022170702387085694},{"time":"2019-07-30","value":-0.008206668486999788},{"time":"2020-07-30","value":-0.01974540560813643},{"time":"2021-07-30","value":-0.029692626152163726},{"time":"2022-07-30","value":-0.01540771691584514},{"time":"2023-07-30","value":0.03905220983235755}]}

Palo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company offers firewall appliances and software; Panorama, a security management solution for the control of firewall appliances and software deployed on a customer's network, as well as their instances in public or private cloud environments, as a virtual or a physical appliance; and virtual system upgrades, which are available as extensions to the virtual system capacity that ships with physical appliances. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, and firewall; and DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention. In addition, the company offers cloud security, secure access, security operations, and threat intelligence and cyber security consulting; professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. Palo Alto Networks, Inc. sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. The company was incorporated in 2005 and is headquartered in Santa Clara, California.

Sector

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    CRSR

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    EVLV

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    FTNT

  • LOGI Logo

    LOGI

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    MITK

Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$2.923B$3.684B$4.556B$5.528B$6.578B$7.675B$8.775B$9.828B$10.78B$11.57B$12.15B$121.5B
DCF$3.203B$3.445B$3.635B$3.761B$3.816B$3.794B$3.695B$3.524B$3.289B$3.003B$30.03B
Value$65.19B

In the chart Earnings are multiplied by this value.

Earnings Growth 4.1K%
Earnings Stability -32%


Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years07-201507-201607-201707-201807-201907-202007-202107-202207-2023TTM
Net Margin-18%-16%-12%-6.5%-2.8%-7.8%-12%-4.9%6.4%8.5%
ROA-6.8%-6.2%-4.9%-2.2%-0.82%-2%-3%-1.5%3.9%5.5%
ROE-34%-29%-29%-15%-5.2%-24%-79%-130%25%28%

What is the average Net Margin?

The average Net Margin over the past 5 years is -4.56%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +1.56%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -0.94%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +0.78%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -37.55%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -6.23%.


Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years07-201507-201607-201707-201807-201907-202007-202107-202207-2023TTM
Debt FCF3.360.980.823.051.834.503.794.111.520.67
Debt Equity2.180.730.762.921.073.358.2735.092.280.90
MIN
Graham Stability----------

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.67.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -0.04.

What is the Graham’s Stability?

Graham’s Stability measure stands at -.


Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years07-201607-201807-202007-2022Trend
Revenue26%25%26%25%-3.2%
Net Income-----
Stockholders Equity12%13%17%730%40%
FCF24%23%47%47%-32%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +24.84%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -3.24%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is -.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is +12.59%.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is +39.87%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +23.25%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -32.43%.