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Palo Alto Networks

DB:5AP
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
5AP
DB
$23B
Market Cap
  1. Home
  2. DE
  3. Software
Company description

Palo Alto Networks, Inc. provides security platform solutions worldwide. The last earnings update was 57 days ago. More info.


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5AP Share Price and Events
7 Day Returns
4.2%
DB:5AP
13.9%
DE Software
0.8%
DE Market
1 Year Returns
36.2%
DB:5AP
27.2%
DE Software
-4.5%
DE Market
5AP Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Palo Alto Networks (5AP) 4.2% 1.1% 19% 36.2% 60.3% 379.9%
DE Software 13.9% 16.3% 23.7% 27.2% 64% 103.7%
DE Market 0.8% 6.9% 8.1% -4.5% 10.4% 13.9%
1 Year Return vs Industry and Market
  • 5AP outperformed the Software industry which returned 27.2% over the past year.
  • 5AP outperformed the Market in Germany which returned -4.5% over the past year.
Price Volatility
5AP
Industry
5yr Volatility vs Market

5AP Value

 Is Palo Alto Networks undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Palo Alto Networks to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Palo Alto Networks.

DB:5AP Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 37 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 7%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:5AP
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.137 (1 + (1- 21%) (6.7%))
1.132
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (1.132 * 5.96%)
6.98%

Discounted Cash Flow Calculation for DB:5AP using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Palo Alto Networks is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:5AP DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 6.98%)
2019 987.57 Analyst x17 923.17
2020 1,309.21 Analyst x18 1,144.04
2021 1,516.58 Analyst x7 1,238.84
2022 1,412.30 Analyst x2 1,078.44
2023 1,591.00 Analyst x1 1,135.68
2024 1,648.76 Est @ 3.63% 1,100.17
2025 1,691.79 Est @ 2.61% 1,055.28
2026 1,723.86 Est @ 1.9% 1,005.17
2027 1,747.91 Est @ 1.4% 952.74
2028 1,766.17 Est @ 1.04% 899.92
Present value of next 10 years cash flows $10,533.47
DB:5AP DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,766.17 × (1 + 0.23%) ÷ (6.98% – 0.23%)
$26,236.38
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $26,236.38 ÷ (1 + 6.98%)10
$13,368.30
DB:5AP Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $10,533.47 + $13,368.30
$23,901.76
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $23,901.76 / 95.48
$250.34
DB:5AP Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:5AP represents 0.88589x of NYSE:PANW
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.88589x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 250.34 x 0.88589
€221.78
Value per share (EUR) From above. €221.78
Current discount Discount to share price of €217.45
= -1 x (€217.45 - €221.78) / €221.78
2%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Palo Alto Networks is available for.
Intrinsic value
2%
Share price is €217.45 vs Future cash flow value of €221.78
Current Discount Checks
For Palo Alto Networks to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Palo Alto Networks's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Palo Alto Networks's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Palo Alto Networks's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Palo Alto Networks's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:5AP PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in USD $-1.07
NYSE:PANW Share Price ** NYSE (2019-04-25) in USD $245.46
Germany Software Industry PE Ratio Median Figure of 22 Publicly-Listed Software Companies 35.83x
Germany Market PE Ratio Median Figure of 424 Publicly-Listed Companies 20.1x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Palo Alto Networks.

DB:5AP PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:PANW Share Price ÷ EPS (both in USD)

= 245.46 ÷ -1.07

-228.65x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Palo Alto Networks is loss making, we can't compare its value to the DE Software industry average.
  • Palo Alto Networks is loss making, we can't compare the value of its earnings to the Germany market.
Price based on expected Growth
Does Palo Alto Networks's expected growth come at a high price?
Raw Data
DB:5AP PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -228.65x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 37 Analysts
74.4%per year
Germany Software Industry PEG Ratio Median Figure of 14 Publicly-Listed Software Companies 2.96x
Germany Market PEG Ratio Median Figure of 268 Publicly-Listed Companies 1.57x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Palo Alto Networks, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Palo Alto Networks's assets?
Raw Data
DB:5AP PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in USD $11.44
NYSE:PANW Share Price * NYSE (2019-04-25) in USD $245.46
Germany Software Industry PB Ratio Median Figure of 34 Publicly-Listed Software Companies 2.91x
Germany Market PB Ratio Median Figure of 574 Publicly-Listed Companies 1.87x
DB:5AP PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:PANW Share Price ÷ Book Value per Share (both in USD)

= 245.46 ÷ 11.44

21.46x

* Primary Listing of Palo Alto Networks.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Palo Alto Networks is overvalued based on assets compared to the DE Software industry average.
X
Value checks
We assess Palo Alto Networks's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Palo Alto Networks has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

5AP Future Performance

 How is Palo Alto Networks expected to perform in the next 1 to 3 years based on estimates from 37 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
74.4%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Palo Alto Networks expected to grow at an attractive rate?
  • Palo Alto Networks's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Palo Alto Networks's earnings growth is expected to exceed the Germany market average.
  • Palo Alto Networks's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:5AP Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:5AP Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 37 Analysts 74.4%
DB:5AP Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 37 Analysts 15.2%
Germany Software Industry Earnings Growth Rate Market Cap Weighted Average 12.1%
Germany Software Industry Revenue Growth Rate Market Cap Weighted Average 7.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 11.8%
Germany Market Revenue Growth Rate Market Cap Weighted Average 4.8%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:5AP Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 37 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:5AP Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-07-31 5,385 1
2022-07-31 4,520 1,794 522 2
2021-07-31 4,018 1,660 206 17
2020-07-31 3,419 1,424 97 37
2019-07-31 2,869 1,078 -51 35
DB:5AP Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-01-31 2,593 1,046 -100
2018-10-31 2,427 1,015 -123
2018-07-31 2,273 1,037 -148
2018-04-30 2,124 999 -174
2018-01-31 1,988 969 -188
2017-10-31 1,865 939 -223
2017-07-31 1,762 869 -217
2017-04-30 1,653 816 -210
2017-01-31 1,567 775 -213
2016-10-31 1,479 715 -210
2016-07-31 1,379 659 -193
2016-04-30 1,262 583 -207

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Palo Alto Networks's earnings are expected to grow significantly at over 20% yearly.
  • Palo Alto Networks's revenue is expected to grow by 15.2% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:5AP Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 37 Analyst Estimates (S&P Global) See Below

All data from Palo Alto Networks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:5AP Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-07-31
2022-07-31
2021-07-31 2.01 2.85 1.50 4.00
2020-07-31 0.65 1.59 -0.79 11.00
2019-07-31 -0.56 -0.22 -1.14 10.00
DB:5AP Past Financials Data
Date (Data in USD Millions) EPS *
2019-01-31 -1.07
2018-10-31 -1.33
2018-07-31 -1.61
2018-04-30 -1.90
2018-01-31 -2.06
2017-10-31 -2.45
2017-07-31 -2.39
2017-04-30 -2.33
2017-01-31 -2.39
2016-10-31 -2.38
2016-07-31 -2.21
2016-04-30 -2.41

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Palo Alto Networks is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Palo Alto Networks's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Palo Alto Networks has a total score of 5/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

5AP Past Performance

  How has Palo Alto Networks performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Palo Alto Networks's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Palo Alto Networks does not make a profit even though their year on year earnings growth rate was positive over the past 5 years.
  • Unable to compare Palo Alto Networks's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Palo Alto Networks's 1-year growth to the DE Software industry average as it is not currently profitable.
Earnings and Revenue History
Palo Alto Networks's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Palo Alto Networks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:5AP Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 2,592.90 -100.00 1,451.20 451.60
2018-10-31 2,427.30 -123.00 1,403.80 419.90
2018-07-31 2,273.10 -147.90 1,317.00 400.70
2018-04-30 2,123.60 -173.70 1,241.60 377.70
2018-01-31 1,988.30 -187.90 1,177.40 364.10
2017-10-31 1,865.30 -222.90 1,139.20 357.40
2017-07-31 1,761.60 -216.60 1,096.50 347.40
2017-04-30 1,653.30 -209.80 1,052.10 336.60
2017-01-31 1,567.30 -213.00 1,010.30 324.60
2016-10-31 1,479.40 -209.70 953.00 308.70
2016-07-31 1,378.50 -192.70 881.60 284.20
2016-04-30 1,261.60 -207.30 827.30 260.80
2016-01-31 1,150.00 -189.10 756.00 235.20
2015-10-31 1,033.00 -174.80 689.20 208.20
2015-07-31 928.10 -131.30 590.60 185.80
2015-04-30 822.43 -151.06 553.14 165.53
2015-01-31 738.93 -251.75 489.45 144.97
2014-10-31 662.30 -248.69 436.12 122.22
2014-07-31 598.20 -226.50 404.50 104.80
2014-04-30 532.33 -210.23 342.45 89.61
2014-01-31 482.92 -70.93 310.74 77.82
2013-10-31 438.35 -33.59 269.42 69.06
2013-07-31 396.11 -29.25 242.49 62.48
2013-04-30 359.36 -13.45 215.38 56.60
2013-01-31 323.78 -6.13 189.33 51.02
2012-10-31 283.96 -3.52 165.56 44.03
2012-07-31 255.14 0.00 142.12 38.57
2012-04-30 219.72 -5.94 122.88 33.75

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if Palo Alto Networks has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Palo Alto Networks has efficiently used its assets last year compared to the DE Software industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Palo Alto Networks improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Palo Alto Networks's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Palo Alto Networks has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

5AP Health

 How is Palo Alto Networks's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Palo Alto Networks's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Palo Alto Networks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Palo Alto Networks's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Palo Alto Networks's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 2.2x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Palo Alto Networks Company Filings, last reported 2 months ago.

DB:5AP Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 1,071.80 1,555.80 2,830.00
2018-10-31 1,253.00 1,624.40 3,203.80
2018-07-31 966.40 1,920.10 3,403.40
2018-04-30 722.10 543.80 1,621.20
2018-01-31 633.10 537.40 1,635.70
2017-10-31 665.50 531.00 1,503.20
2017-07-31 759.60 524.70 1,375.00
2017-04-30 813.10 518.40 1,372.00
2017-01-31 870.60 512.30 1,354.40
2016-10-31 856.90 506.20 1,390.00
2016-07-31 894.90 500.20 1,285.60
2016-04-30 659.00 502.80 1,087.50
2016-01-31 592.80 497.50 964.60
2015-10-31 543.80 492.30 761.30
2015-07-31 487.90 487.10 789.00
2015-04-30 454.28 481.96 822.97
2015-01-31 516.06 476.87 675.06
2014-10-31 493.21 471.86 771.50
2014-07-31 468.58 466.88 772.50
2014-04-30 271.69 0.00 367.97
2014-01-31 284.44 0.00 438.21
2013-10-31 289.78 0.00 436.73
2013-07-31 272.42 0.00 419.62
2013-04-30 263.88 0.00 361.70
2013-01-31 243.52 0.00 337.44
2012-10-31 235.79 0.00 321.56
2012-07-31 229.07 0.00 322.64
2012-04-30 10.90 0.00 90.28
  • Palo Alto Networks's level of debt (145.2%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0% vs 145.2% today).
CASH RUNWAY ANALYSIS

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

  • Whilst loss making Palo Alto Networks has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.
  • Whilst loss making Palo Alto Networks has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -22% per year.
X
Financial health checks
We assess Palo Alto Networks's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Palo Alto Networks has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

5AP Dividends

 What is Palo Alto Networks's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Palo Alto Networks dividends. Estimated to be 0% next year.
If you bought €2,000 of Palo Alto Networks shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Palo Alto Networks's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Palo Alto Networks's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:5AP Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 37 Analyst Estimates (S&P Global) See Below
Germany Software Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 1.3%
Germany Market Average Dividend Yield Market Cap Weighted Average of 326 Stocks 3%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.8%
Germany Bottom 25% Dividend Yield 25th Percentile 1.4%
Germany Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:5AP Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-07-31
2022-07-31
2021-07-31 0.00 4.00
2020-07-31 0.00 6.00
2019-07-31 0.00 6.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Palo Alto Networks has not reported any payouts.
  • Unable to verify if Palo Alto Networks's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Palo Alto Networks's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Palo Alto Networks has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Palo Alto Networks's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Palo Alto Networks's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Palo Alto Networks afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Palo Alto Networks has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

5AP Management

 What is the CEO of Palo Alto Networks's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Nikesh Arora
COMPENSATION $125,951,573
AGE 50
TENURE AS CEO 0.8 years
CEO Bio

Mr. Nikesh Arora, C.F.A. serves as the Chairman and Chief Executive Officer of Palo Alto Networks, Inc. since joining it on June 06, 2018. Mr. Arora was an Advisor of SoftBank Group Corp. since July 1, 2016 through December 2017. From July 2014 through June 2015, Mr. Arora served as vice chairman and chief executive officer of SoftBank Internet and Media, a subsidiary of SoftBank. Mr. Arora has been a Senior Advisor at Silver Lake since 2007 and is part of the Value Creation group. He has extensive experience in scaling technology businesses, running very large organizations and operating globally. He served as the Chief Executive Officer of SB Group Us, Inc. since October 2014. Mr. Arora served as the Chief Business Officer and Senior Vice President of Google Inc. (now, Alphabet Inc.) from January 2011 to August 1, 2014 and also served as its Vice President of European Operations since December 2004, President of Europe, Middle East and Africa Operations (EMEA) and President of Global Sales Operations and Business Development from April 2009 to December 2010. He joined Google in December 2004 and has held several positions with Google until July 2014. In the U.S., Mr. Arora has held a number of senior positions in the finance and technology sectors Mr. Arora served as Vice President of Google UK Ltd. He served as the President and Chief Operating Officer of SoftBank Group Corp., from June 19, 2015 to June 22, 2016. Mr. Arora served as the Chief Marketing Officer and Member of the Management Board of T-Mobile International AG & Co. KG. He served as an Executive at Deutsche Telekom AG. In 1999, Mr. Arora started working with Telekom AG and founded T-Motion PLC. He was an Equity Analyst at Putnam Investments, focusing on the technology and telecom industries on a global basis in the asset management team and held a finance and technology management position at Fidelity Investments in Boston. Mr. Arora served as the Chairman of Yahoo Japan Corporation Deutsche from June 18, 2015 to June 22, 2016. He served as Vice Chairman of SoftBank Group Corp. since October 2014. Mr. Arora has been Non-Executive Director of Compagnie Financière Richemont SA since September 13, 2017. He has been Director of Jasper Infotech Private Limited since November 2014. Mr. Arora has been a Director of Hellas Telecommunications I S.àr.l. since January 2006 and Legend Pictures, LLC since October 2014. He served as a Director of Sprint Corporation from November 4, 2014 to June 22, 2016. Mr. Arora served as an Independent Director of Colgate-Palmolive Company from March 15, 2012 to September 10, 2014. He served as a Director of SoftBank Group Corp. from June 19, 2015 to June 22, 2016. Mr. Arora served as a Non-Executive Director of Bharti Airtel Limited from October 30, 2008 to March 13, 2014. He served as a Director of ANI Technologies Pvt. Ltd. since October 28, 2014. Mr. Arora served as a Director of TIM Hellas at Hellas Telecommunications II SCA (Hellas Telecommunications (Luxembourg) II) since January 2006. He served as a Director of WIND Hellas Telecommunications S.A. He served as an Independent Non-Executive Director of Aviva plc from July 1, 2007 to August 5, 2009. Mr. Arora is a Patron of the NSPCC Stop Organized Abuse Board. He has served on the Adjunct Faculty at both Boston College and Northeastern University, developing and teaching courses in business turnarounds, corporate workouts and financial management. From 2016 through 2018 Mr. Arora was an angel investor. Mr. Arora holds an MS in Finance from Boston College and an MBA/M.S. in Business Administration from Northeastern University, both of which were awarded with distinction. He holds the CFA designation. In 1989, he graduated from the Institute of Technology in Varanasi, India with a B.Tech in Electrical Engineering.

CEO Compensation
  • Insufficient data for Nikesh to compare compensation growth.
  • Nikesh's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Palo Alto Networks management team in years:

1.5
Average Tenure
50
Average Age
  • The average tenure for the Palo Alto Networks management team is less than 2 years, this suggests a new team.
Management Team

Nikesh Arora

TITLE
CEO & Chairman
COMPENSATION
$126M
AGE
50
TENURE
0.8 yrs

Kathy Bonanno

TITLE
CFO & Executive VP
COMPENSATION
$4M
AGE
56
TENURE
1.4 yrs

René Bonvanie

TITLE
Executive VP & Chief Marketing Officer
COMPENSATION
$6M
AGE
56
TENURE
7.4 yrs

Lee Klarich

TITLE
Executive VP & Chief Product Officer
COMPENSATION
$9M
AGE
43
TENURE
1.7 yrs

Mark Anderson

TITLE
COMPENSATION
$10M
AGE
56
TENURE
0.5 yrs

Amit Singh

TITLE
President
AGE
50
TENURE
0.4 yrs

Nir Zuk

TITLE
Co-Founder
COMPENSATION
$4M
AGE
46
TENURE
14.3 yrs

Yuming Mao

TITLE
Co-Founder & Chief Architect
TENURE
14.3 yrs

Rajiv Batra

TITLE
COMPENSATION
$980K
AGE
57
TENURE
14.3 yrs

Jean Compeau

TITLE
Chief Accounting Officer
AGE
48
TENURE
1.2 yrs
Board of Directors Tenure

Average tenure and age of the Palo Alto Networks board of directors in years:

6.3
Average Tenure
51.5
Average Age
  • The tenure for the Palo Alto Networks board of directors is about average.
Board of Directors

Mark McLaughlin

TITLE
Vice Chairman
COMPENSATION
$15M
AGE
52
TENURE
0.8 yrs

Nikesh Arora

TITLE
CEO & Chairman
COMPENSATION
$126M
AGE
50
TENURE
0.8 yrs

Nir Zuk

TITLE
Co-Founder
COMPENSATION
$4M
AGE
46
TENURE
14.1 yrs

Asheem Chandna

TITLE
Director
COMPENSATION
$335K
AGE
53
TENURE
14 yrs

Dan Warmenhoven

TITLE
Lead Independent Director
COMPENSATION
$380K
AGE
67
TENURE
7.1 yrs

Jim Goetz

TITLE
Director
AGE
51
TENURE
14 yrs

John Donovan

TITLE
Director
COMPENSATION
$320K
AGE
58
TENURE
6.6 yrs

Carl Eschenbach

TITLE
Director
COMPENSATION
$325K
AGE
51
TENURE
5.9 yrs

Rhett Hernandez

TITLE
Member of Public Sector Advisory Council
TENURE
4.2 yrs

Bruce McConnell

TITLE
Member of Public Sector Advisory Council
TENURE
4.2 yrs
Who owns this company?
Recent Insider Trading
  • Palo Alto Networks insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
09. Apr 19 Sell Jean Compeau Individual 08. Apr 19 08. Apr 19 -1,258 €211.82 €-266,470
26. Mar 19 Sell James Goetz Individual 22. Mar 19 22. Mar 19 -40,000 €215.36 €-8,595,516
05. Mar 19 Sell Jean Compeau Individual 05. Mar 19 05. Mar 19 -1,701 €208.30 €-354,319
04. Mar 19 Sell Carl Eschenbach Individual 04. Mar 19 04. Mar 19 -3,385 €213.67 €-723,274
15. Jun 18 Buy Nikesh Arora Individual 13. Jun 18 15. Jun 18 62,395 €186.70 €11,512,378
11. Jun 18 Buy Nikesh Arora Individual 07. Jun 18 08. Jun 18 33,255 €173.96 €5,632,842
X
Management checks
We assess Palo Alto Networks's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Palo Alto Networks has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

5AP News

Simply Wall St News

5AP Company Info

Description

Palo Alto Networks, Inc. provides security platform solutions worldwide. The company provides firewall appliances and software; Panorama, a security management solution for the control of appliances deployed on an end-customer’s network 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 offers subscription services covering the areas of threat prevention, uniform resource locator filtering, malware and persistent threat, laptop and mobile device protection, and firewall, as well as cyber-attack, threat intelligence, and content control. In addition, the company provides support services; and professional services, including application traffic management, solution design and planning, configuration, and firewall migration, as well as online and classroom-style education training 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 founded in 2005 and is headquartered in Santa Clara, California.

Details
Name: Palo Alto Networks, Inc.
5AP
Exchange: DB
Founded: 2005
$20,838,918,904
95,475,680
Website: http://www.paloaltonetworks.com
Address: Palo Alto Networks, Inc.
3000 Tannery Way,
Santa Clara,
California, 95054,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE PANW Common Stock New York Stock Exchange US USD 20. Jul 2012
DB 5AP Common Stock Deutsche Boerse AG DE EUR 20. Jul 2012
LSE 0KF5 Common Stock London Stock Exchange GB USD 20. Jul 2012
Number of employees
Current staff
Staff numbers
5,856
Palo Alto Networks employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/04/25 22:02
End of day share price update: 2019/04/25 00:00
Last estimates confirmation: 2019/04/19
Last earnings filing: 2019/02/27
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/07/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.