Palo Alto Networks Inc

Technology
Computer peripheral equipment
www.paloaltonetworks.com

Earnings Score
Moat Score
Safety Score

Market Cap $132.65B
PE 49
Debt $645.80M
Cash $2.29B
EV $131.00B
FCF $3.08B

Earnings

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Sales & Net Margins

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Earnings	$2.73B
EBIT	$1.07B
ROE	46%
ROA	5%
FCF	$3.08B
Equity	$5.91B
Growth Stability	1
PE	48.52
PEG	1.86
PB	22.44
P/FCF	43.11
P/S	16
Price/Cash	0.02
Debt/Equity	0.11
Debt/FCF	0.21
Net Margins	16%
Gross Margins	74%
Op. Margins	13%
Earnings CAGR	1%
Sales Growth YoY	14%
Sales Growth QoQ	-2%
Sales CAGR	25%
FCF CAGR	24%
Equity CAGR	12%
Earnings Stability	0
Earnings Growth YoY	81%
Earnings Growth QoQ	-2%

Earnings CAGR 5Y	26%
Sales CAGR 5Y	25%
FCF CAGR 5Y	37%
Equity CAGR 5Y	46%
Earnings CAGR 3Y	22%
Sales CAGR 3Y	22%
FCF CAGR 3Y	30%
Equity CAGR 3Y	325%
Market Cap	$132.65B
Revenue	$8.29B
Assets	$20.37B
Total Debt	$645.80M
Cash	$2.29B
Shares Outstanding	326.8M
EV	131B
Earnings Score	6%
Moat Score	86%
Safety Score	98%
Final Score	63%
Working Capital	-1.16B
Current Ratio	0.84
Gross Profit	$6.15B
Shares Growth 3y	4%
Equity Growth QoQ	14%
Equity Growth YoY	172%

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.

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
2022
- 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 0%

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Palo Alto Networks Inc Discounted Cash Flow

Fully customizable DCF calculator online for Palo Alto Networks Inc.

Years

Calculation mode

= $162B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$3.1B	$3.8B	$4.7B	$5.8B	$7.2B	$8.9B	$11B	$14B	$17B	$21B	$26B	$259B
DCF		$3.5B	$3.9B	$4.4B	$4.9B	$5.5B	$6.2B	$7B	$7.9B	$8.9B	$10B	$100B
Value	$162B

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%	16%
ROA	-	-6%	-5%	-2%	-1%	-2%	-3%	-2%	4%	5%	5%
ROE	-	-29%	-29%	-15%	-5%	-24%	-79%	-127%	25%	50%	46%

Good Net Margins (16.4%)

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	0.21
Debt over Equity	2.18	0.73	0.76	2.92	1.07	3.35	8.27	35.09	2.28	0.19	0.11
Growth Stability	-	-	-	-	-	-	-	-	-	-	1

Good Debt/FCF ratio (0.21)

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 (0.11)

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%	25%
Earnings YoY growth	-	37%	-4%	-32%	-45%	226%	87%	-46%	-265%	486%	26%
Equity YoY growth	-	62%	-4%	27%	64%	-31%	-42%	-67%	733%	196%	46%
FCF YoY growth	-	85%	20%	31%	-0%	-11%	69%	29%	47%	18%	37%