Palo Alto Networks Inc

Technology
Computer peripheral equipment
www.paloaltonetworks.com

Earnings Score
Moat Score
Safety Score

Market Cap $123.87B
PE 99
Debt $533.80M
Cash $2.24B
EV $122.17B
FCF $2.93B

Earnings

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Sales & Net Margins

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Earnings	$1.25B
EBIT	$1.26B
ROE	20%
ROA	6%
FCF	$2.93B
Equity	$6.38B
Growth Stability	1
PE	98.74
PEG	2.69
PB	19.43
P/FCF	42.25
P/S	14.45
Price/Cash	0.02
Debt/Equity	0.08
Debt/FCF	0.18
Net Margins	14%
Gross Margins	74%
Op. Margins	15%
Earnings CAGR	1%
Sales Growth YoY	14%
Sales Growth QoQ	6%
Sales CAGR	24%
FCF CAGR	23%
Equity CAGR	14%
Earnings Stability	0.01
Earnings Growth YoY	-85%
Earnings Growth QoQ	-24%

Earnings CAGR 5Y	37%
Sales CAGR 5Y	24%
FCF CAGR 5Y	35%
Equity CAGR 5Y	66%
Earnings CAGR 3Y	20%
Sales CAGR 3Y	20%
FCF CAGR 3Y	22%
Equity CAGR 3Y	260%
Market Cap	$123.87B
Revenue	$8.57B
Assets	$20.95B
Total Debt	$533.80M
Cash	$2.24B
Shares Outstanding	656.5M
EV	122.17B
Earnings Score	6%
Moat Score	87%
Safety Score	98%
Final Score	64%
Working Capital	-1.21B
Current Ratio	0.84
Gross Profit	$6.33B
Shares Growth 3y	4%
Equity Growth QoQ	8%
Equity Growth YoY	46%

Assets & ROA

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Stockholders Equity & ROE

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Palo Alto Networks is a pure-play cybersecurity vendor that sells security appliances, subscriptions, and support to enterprises, government entities, and service providers. The company's product portfolio includes firewall appliances, virtual firewalls, endpoint protection, cloud security, and cybersecurity analytics. The Santa Clara, California, firm was established in 2005 and sells its products worldwide.

SEC Filings

Direct access to Palo Alto Networks Inc (PANW) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2025
- 10-Q Jan 31
2024
- 10-Q Oct 31
- 10-K Jul 31
- 10-Q Apr 30
- 10-Q Jan 31
2023
- 10-Q Oct 31
- 10-K Jul 31
- 10-Q Apr 30
- 10-Q Jan 31

Sector Comparison

How does Palo Alto Networks Inc compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Palo Alto Networks Inc compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 1%

Stability 1%

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Palo Alto Networks Inc Discounted Cash Flow

Fully customizable DCF calculator online for Palo Alto Networks Inc.

Years

Calculation mode

= $150B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$2.9B	$3.6B	$4.5B	$5.5B	$6.8B	$8.4B	$10B	$13B	$16B	$19B	$24B	$239B
DCF		$3.3B	$3.7B	$4.1B	$4.6B	$5.2B	$5.8B	$6.5B	$7.3B	$8.2B	$9.2B	$92B
Value	$150B

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.

Years	07/2015	07/2016	07/2017	07/2018	07/2019	07/2020	07/2021	07/2022	07/2023	07/2024	TTM
Net Margins	-18%	-16%	-12%	-7%	-3%	-8%	-12%	-5%	6%	32%	14%
ROA	-	-6%	-5%	-2%	-1%	-2%	-3%	-2%	4%	5%	6%
ROE	-	-29%	-29%	-15%	-5%	-24%	-79%	-127%	25%	50%	20%

Good Net Margins (14.06%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

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.

Years	07/2015	07/2016	07/2017	07/2018	07/2019	07/2020	07/2021	07/2022	07/2023	07/2024	TTM
Debt over FCF	-	0.98	0.82	3.05	1.83	4.5	3.79	4.11	1.52	0.31	0.18
Debt over Equity	2.18	0.73	0.76	2.92	1.07	3.35	8.27	35.09	2.28	0.19	0.08
Growth Stability	-	-	-	-	-	-	-	-	-	-	1

Good Debt/FCF ratio (0.18)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Good Debt/Equity ratio (0.08)

The company is not overleveraged and has a good balance between equity and debt.

Good Graham’s Stability (1)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

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.

Years	07/2015	07/2016	07/2017	07/2018	07/2019	07/2020	07/2021	07/2022	07/2023	07/2024	CAGR 5Y
Revenue YoY growth	-	49%	28%	29%	28%	18%	25%	29%	25%	16%	24%
Earnings YoY growth	-	37%	-4%	-32%	-45%	226%	87%	-46%	-265%	486%	37%
Equity YoY growth	-	62%	-4%	27%	64%	-31%	-42%	-67%	733%	196%	66%
FCF YoY growth	-	85%	20%	31%	-0%	-11%	69%	29%	47%	18%	35%