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Palo Alto Networks

NYSE:PANW
Snowflake Description

High growth potential with adequate balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
PANW
NYSE
$22B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Palo Alto Networks, Inc. provides security platform solutions worldwide. The last earnings update was 19 days ago. More info.


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  • Palo Alto Networks has significant price volatility in the past 3 months.
PANW Share Price and Events
7 Day Returns
-0.5%
NYSE:PANW
3.8%
US Software
2.9%
US Market
1 Year Returns
28.8%
NYSE:PANW
22%
US Software
1.4%
US Market
PANW Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Palo Alto Networks (PANW) -0.5% 5.7% 35.3% 28.8% 54.8% 227.8%
US Software 3.8% 4.9% 16% 22% 107.4% 132.9%
US Market 2.9% 2.5% 10% 1.4% 38.3% 42%
1 Year Return vs Industry and Market
  • PANW outperformed the Software industry which returned 22% over the past year.
  • PANW outperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
PANW
Industry
5yr Volatility vs Market

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    Our intrinsic value calculation method has changed recently, learn more here.

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

NYSE:PANW Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 36 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NYSE:PANW
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
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))
= 1.139 (1 + (1- 21%) (6.92%))
1.135
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)
= 2.73% + (1.135 * 5.96%)
9.49%

Discounted Cash Flow Calculation for NYSE:PANW 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.

NYSE:PANW DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.49%)
2019 1,017.16 Analyst x18 928.96
2020 1,327.00 Analyst x18 1,106.86
2021 1,550.58 Analyst x7 1,181.20
2022 1,412.30 Analyst x2 982.58
2023 1,591.00 Analyst x1 1,010.93
2024 1,653.58 Est @ 3.93% 959.59
2025 1,712.66 Est @ 3.57% 907.70
2026 1,769.51 Est @ 3.32% 856.51
2027 1,825.12 Est @ 3.14% 806.83
2028 1,880.22 Est @ 3.02% 759.12
Present value of next 10 years cash flows $9,500.29
NYSE:PANW DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $1,880.22 × (1 + 2.73%) ÷ (9.49% – 2.73%)
$28,556.86
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $28,556.86 ÷ (1 + 9.49%)10
$11,529.53
NYSE:PANW Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $9,500.29 + $11,529.53
$21,029.82
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $21,029.82 / 93.73
$224.36
NYSE:PANW Discount to Share Price
Calculation Result
Value per share (USD) From above. $224.36
Current discount Discount to share price of $239.72
= -1 x ($239.72 - $224.36) / $224.36
-6.8%

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

  • The current share price of Palo Alto Networks is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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
NYSE:PANW 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 (2019-03-15) in USD $239.72
United States of America Software Industry PE Ratio Median Figure of 84 Publicly-Listed Software Companies 52.96x
United States of America Market PE Ratio Median Figure of 3,054 Publicly-Listed Companies 17.61x

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

** Primary Listing of Palo Alto Networks.

NYSE:PANW PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

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

= 239.72 ÷ -1.07

-223.3x

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 US Software industry average.
  • Palo Alto Networks is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Palo Alto Networks's expected growth come at a high price?
Raw Data
NYSE:PANW PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -223.3x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts
75.9%per year
United States of America Software Industry PEG Ratio Median Figure of 66 Publicly-Listed Software Companies 3.54x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.47x

*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
NYSE:PANW 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 (2019-03-15) in USD $239.72
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.71x
United States of America Market PB Ratio Median Figure of 5,152 Publicly-Listed Companies 1.87x
NYSE:PANW PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 239.72 ÷ 11.44

20.96x

* 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 US 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.

Future Performance

 How is Palo Alto Networks expected to perform in the next 1 to 3 years based on estimates from 36 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
75.9%
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 2.7%.
Growth vs Market Checks
  • Palo Alto Networks's earnings growth is expected to exceed the United States of America market average.
  • Palo Alto Networks's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:PANW Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:PANW Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 36 Analysts 75.9%
NYSE:PANW Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 36 Analysts 15.2%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 16.1%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 10.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*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
NYSE:PANW Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:PANW 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 4,017 1,691 214 16
2020-07-31 3,409 1,457 104 36
2019-07-31 2,868 1,090 -53 34
NYSE:PANW 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
NYSE:PANW Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 36 Analyst Estimates (S&P Global) See Below

All data from Palo Alto Networks Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PANW 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 2.18 2.85 1.84 3.00
2020-07-31 0.87 1.59 -0.43 9.00
2019-07-31 -0.52 0.03 -1.14 10.00
NYSE:PANW 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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.

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 US 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 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:PANW 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 US 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.

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 1 month ago.

NYSE:PANW 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.

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
NYSE:PANW 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 36 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 24 Stocks 1.6%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2005 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

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

NYSE:PANW 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 5.00
2019-07-31 0.00 5.00

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 United States of America.
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.

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 United States of America.
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
1.3 yrs

René Bonvanie

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

Lee Klarich

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

Mark Anderson

TITLE
COMPENSATION
$10M
AGE
56
TENURE
0.4 yrs

Amit Singh

TITLE
President
AGE
50
TENURE
0.3 yrs

Nir Zuk

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

Yuming Mao

TITLE
Co-Founder & Chief Architect
TENURE
14.2 yrs

Rajiv Batra

TITLE
COMPENSATION
$980K
AGE
57
TENURE
14.2 yrs

Jean Compeau

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

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

6.2
Average Tenure
52
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 yrs

Asheem Chandna

TITLE
Director
COMPENSATION
$335K
AGE
53
TENURE
13.9 yrs

Dan Warmenhoven

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

Jim Goetz

TITLE
Director
AGE
52
TENURE
13.9 yrs

John Donovan

TITLE
Director
COMPENSATION
$320K
AGE
58
TENURE
6.5 yrs

Carl Eschenbach

TITLE
Director
COMPENSATION
$325K
AGE
51
TENURE
5.8 yrs

Rhett Hernandez

TITLE
Member of Public Sector Advisory Council
TENURE
4.1 yrs

Bruce McConnell

TITLE
Member of Public Sector Advisory Council
TENURE
4.1 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 ($) Value ($)
05. Mar 19 Sell Jean Compeau Individual 05. Mar 19 05. Mar 19 -1,701 $235.37 $-400,360
04. Mar 19 Sell Carl Eschenbach Individual 04. Mar 19 04. Mar 19 -3,385 $241.90 $-818,832
15. Jun 18 Buy Nikesh Arora Individual 13. Jun 18 15. Jun 18 62,395 $216.99 $13,380,263
11. Jun 18 Buy Nikesh Arora Individual 07. Jun 18 08. Jun 18 33,255 $204.59 $6,624,535
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.

News

Simply Wall St News

Do Institutions Own Palo Alto Networks, Inc. (NYSE:PANW) Shares?

The big shareholder groups in Palo Alto Networks, Inc. … With a market capitalization of US$22b, Palo Alto Networks is rather large. … Check out our latest analysis for Palo Alto Networks

Simply Wall St -

Is Palo Alto Networks, Inc. (NYSE:PANW) A Financially Sound Company?

the health of the financials determines whether the company continues to succeed. … Today we will look at Palo Alto Networks’s financial liquidity and debt levels, which are strong indicators for whether the company can weather economic downturns or fund strategic acquisitions for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself

Simply Wall St -

Market Sentiment Around Loss-Making Palo Alto Networks, Inc. (NYSE:PANW)

Palo Alto Networks, Inc.'s (NYSE:PANW):. … The US$17b market-cap company’s loss lessens since it announced a -US$147.9m bottom-line in the full financial year, compared to the latest trailing-twelve-month loss of -US$123.0m, as it approaches breakeven? … Check out our latest analysis for Palo Alto Networks.

Simply Wall St -

Did Palo Alto Networks, Inc. (NYSE:PANW) Insiders Buy Up More Shares?

We often see insiders buying up shares in companies that perform well over the long term. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … The Last 12 Months Of Insider Transactions At Palo Alto Networks.

Simply Wall St -

How Many Palo Alto Networks Inc (NYSE:PANW) Shares Do Institutions Own?

Institutions often own shares in more established companies, while it's not unusual to see insiders own a fair bit of smaller companies. … Palo Alto Networks has a market capitalization of US$16b, so it's too big to fly under the radar. … See our latest analysis for Palo Alto Networks

Simply Wall St -

What You Must Know About Palo Alto Networks Inc's (NYSE:PANW) Major Investors

I am going to take a deep dive into Palo Alto Networks Inc’s (NYSE:PANW) most recent ownership structure, not a frequent subject of discussion among individual investors. … When it comes to ownership structure of a company, the impact has been observed in both the long-and short-term performance of shares. … The effect of an active institutional investor with a similar ownership as a passive pension-fund can be vastly different on a company's corporate governance and accountability to shareholders.

Simply Wall St -

Palo Alto Networks Inc's (NYSE:PANW) Most Important Factor To Consider

I will take you through Palo Alto Networks’s cash flow health and the risk-return concept based on the stock’s cash flow yield, using the most recent financial data. … Free cash flow (FCF) is the amount of cash Palo Alto Networks has left after it pays off its expenses, including its net capital expenditures, which is what the company needs to spend each year to maintain or grow its business operations … There are two methods I will use to evaluate the quality of Palo Alto Networks’s FCF: firstly, I will measure its FCF yield relative to the market index yield; secondly, I will examine whether its operating cash flow will continue to grow into the future, which will give us a sense of sustainability.

Simply Wall St -

Is Palo Alto Networks Inc (NYSE:PANW) Worth US$0207.59 Based On Intrinsic Value?

by projecting its future cash flows and then discounting them to today's value. … discounted cash flows (DCF). … If you want to learn more about discounted cash flow, the basis for my calcs can be read in detail in the Simply Wall St analysis model

Simply Wall St -

When Will Palo Alto Networks Inc (NYSE:PANW) Breakeven?

Palo Alto Networks Inc's (NYSE:PANW):. … Check out our latest analysis for Palo Alto Networks … According to the industry analysts covering PANW, breakeven is near.

Simply Wall St -

What Investors Should Know About Palo Alto Networks Inc's (NYSE:PANW) Financial Strength

Check out our latest analysis for Palo Alto Networks Does PANW produce enough cash relative to debt? … At this current level of debt, PANW currently has US$1.38B remaining in cash and short-term investments , ready to deploy into the business. … On top of this, PANW has produced cash from operations of US$868.50M during the same period of time, resulting in an operating cash to total debt ratio of 165.52%, meaning that PANW’s operating cash is sufficient to cover its debt.

Simply Wall St -

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.
PANW
Exchange: NYSE
Founded: 2005
$22,469,663,493
93,732,953
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: 2019/03/18 00:27
End of day share price update: 2019/03/15 00:00
Last estimates confirmation: 2019/03/12
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.