NYSE:PANW

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Executive Summary

Palo Alto Networks, Inc. provides cybersecurity platform solutions worldwide. More Details


Snowflake Analysis

High growth potential with mediocre balance sheet.


Similar Companies

Share Price & News

How has Palo Alto Networks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: PANW has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-4.0%

PANW

-2.6%

US Software

-0.8%

US Market


1 Year Return

5.3%

PANW

57.3%

US Software

18.0%

US Market

Return vs Industry: PANW underperformed the US Software industry which returned 59.2% over the past year.

Return vs Market: PANW underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

PANWIndustryMarket
7 Day-4.0%-2.6%-0.8%
30 Day-1.1%7.1%6.8%
90 Day-3.0%12.8%8.9%
1 Year5.3%5.3%58.3%57.3%20.7%18.0%
3 Year61.3%61.3%137.7%129.8%41.5%32.1%
5 Year46.9%46.9%255.5%234.8%84.6%63.8%

Price Volatility Vs. Market

How volatile is Palo Alto Networks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Palo Alto Networks undervalued compared to its fair value and its price relative to the market?

39.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: PANW ($237.6) is trading below our estimate of fair value ($388.51)

Significantly Below Fair Value: PANW is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: PANW is unprofitable, so we can't compare its PE Ratio to the US Software industry average.

PE vs Market: PANW is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate PANW's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: PANW is overvalued based on its PB Ratio (20.8x) compared to the US Software industry average (7.3x).


Next Steps

Future Growth

How is Palo Alto Networks forecast to perform in the next 1 to 3 years based on estimates from 34 analysts?

44.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: PANW is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

Earnings vs Market: PANW is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: PANW's is expected to become profitable in the next 3 years.

Revenue vs Market: PANW's revenue (13.5% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: PANW's revenue (13.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: PANW's Return on Equity is forecast to be high in 3 years time (30.9%)


Next Steps

Past Performance

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

4.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: PANW is currently unprofitable.

Growing Profit Margin: PANW is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: PANW is unprofitable, but has reduced losses over the past 5 years at a rate of 4.8% per year.

Accelerating Growth: Unable to compare PANW's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: PANW is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (12.8%).


Return on Equity

High ROE: PANW has a negative Return on Equity (-24.23%), as it is currently unprofitable.


Next Steps

Financial Health

How is Palo Alto Networks's financial position?


Financial Position Analysis

Short Term Liabilities: PANW's short term assets ($5.1B) exceed its short term liabilities ($2.7B).

Long Term Liabilities: PANW's short term assets ($5.1B) do not cover its long term liabilities ($5.3B).


Debt to Equity History and Analysis

Debt Level: PANW's debt to equity ratio (279.9%) is considered high.

Reducing Debt: PANW's debt to equity ratio has increased from 99.6% to 279.9% over the past 5 years.


Balance Sheet


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.

Stable Cash Runway: Whilst unprofitable PANW has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: PANW is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 22.4% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate PANW's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate PANW's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if PANW's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if PANW's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of PANW's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.9yrs

Average management tenure


CEO

Nikesh Arora (52 yo)

2.33yrs

Tenure

US$2,206,785

Compensation

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, 201 ...


CEO Compensation Analysis

Compensation vs Market: Nikesh's total compensation ($USD2.21M) is below average for companies of similar size in the US market ($USD11.20M).

Compensation vs Earnings: Nikesh's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Nikesh Arora
CEO & Chairman2.33yrsUS$2.21m0.22%
$ 48.3m
Amit Singh
President1.92yrsUS$5.53m0.14%
$ 32.4m
Nir Zuk
Founder15.58yrsUS$947.39k1.07%
$ 239.4m
Luis Visoso
CFO & Executive VP0.25yrUS$15.00mno data
Lee Klarich
Executive VP & Chief Product Officer3.17yrsUS$1.06m0.33%
$ 75.2m
Yuming Mao
Founder & Chief Architect15.75yrsno datano data
Rajiv Batra
15.75yrsUS$980.15kno data
Jean Compeau
Chief Accounting Officer2.67yrsno data0.025%
$ 5.7m
Naveen Zutshi
Senior VP & Chief Information Officer4.83yrsno datano data
David Niederman
Vice President of Investor Relationsno datano datano data
Mara Mort
Senior Director of Corporate Communicationsno datano datano data
Jean English
Chief Marketing Officer1.17yrsno datano data

2.9yrs

Average Tenure

51yo

Average Age

Experienced Management: PANW's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Nikesh Arora
CEO & Chairman2.33yrsUS$2.21m0.22%
$ 48.3m
Nir Zuk
Founder15.58yrsUS$947.39k1.07%
$ 239.4m
James Goetz
Independent Director15.5yrsno data0.18%
$ 39.8m
Daniel Warmenhoven
Independent Director8.75yrsUS$295.88k0.031%
$ 7.0m
Asheem Chandna
Independent Director15.5yrsUS$295.88k0.12%
$ 26.8m
Mark McLaughlin
Vice Chairman2.33yrsUS$14.36m0.30%
$ 67.4m
John Donovan
Lead Independent Director0.92yrUS$381.48k0.046%
$ 10.4m
Carl Eschenbach
Independent Director7.42yrsUS$300.62k0.0056%
$ 1.3m
Mary McCarthy
Independent Director4yrsUS$319.59k0.012%
$ 2.8m
Rhett Hernandez
Member of Public Sector Advisory Council5.67yrsno datano data
Bruce McConnell
Member of Public Sector Advisory Council5.67yrsno datano data
John Key
Independent Director1.5yrsUS$42.69k0.0020%
$ 440.3k

5.7yrs

Average Tenure

54.5yo

Average Age

Experienced Board: PANW's board of directors are considered experienced (5.7 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: PANW insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

Palo Alto Networks, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Palo Alto Networks, Inc.
  • Ticker: PANW
  • Exchange: NYSE
  • Founded: 2005
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$22.463b
  • Shares outstanding: 94.97m
  • Website: https://www.paloaltonetworks.com

Number of Employees


Location

  • Palo Alto Networks, Inc.
  • 3000 Tannery Way
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
PANWNYSE (New York Stock Exchange)YesCommon StockUSUSDJul 2012
5APDB (Deutsche Boerse AG)YesCommon StockDEEURJul 2012
0KF5LSE (London Stock Exchange)YesCommon StockGBUSDJul 2012
PANW *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJul 2012

Biography

Palo Alto Networks, Inc. provides cybersecurity platform solutions worldwide. The company provides firewall appliances and software; Panorama, a security management solution for the control of appliances a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/23 23:54
End of Day Share Price2020/10/23 00:00
Earnings2020/07/31
Annual Earnings2020/07/31


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.