A Business at a Glance
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Table of Contents Palo Alto Networks, Inc. is a global cybersecurity provider and our vision is a world where each day is safer and more secure than the one before. We were incorporated in 2005 and are headquartered in Santa Clara, California. Our mission is to be the cybersecurity partner of choice for enterprises, organizations, service providers, and government entities to protect our digital way of life. Our cybersecurity platforms and services help secure enterprise users, networks, clouds, and endpoints by delivering comprehensive cybersecurity backed by artificial intelligence (“AI”) and automation. A key element of our strategy is to help our customers simplify their security architectures through consolidating disparate point products. We execute on this strategy by developing our capabilities and packaging our offerings into platforms which are able to cover many of our customers’ needs in the markets in which we operate.
| Metric | TTM | FY2025 | FY2024 | FY2023 | FY2022 | FY2021 |
|---|---|---|---|---|---|---|
| Revenue | 9.9B | 9.2B | 8.0B | 6.9B | 5.5B | 4.3B |
| Net Income | 1.3B | 1.1B | 2.6B | 440M | -267M | -499M |
| EPS | $1.80 | $1.60 | $1.82 | $0.64 | $-0.45 | $-0.86 |
| Free Cash Flow | 3.6B | 3.5B | 3.1B | 2.6B | 1.8B | 1.4B |
| ROIC | 20.1% | 18.1% | 49.9% | 5.4% | -6.9% | -21.7% |
| Gross Margin | 73.5% | 73.4% | 74.3% | 72.3% | 68.8% | 70.0% |
| Debt/Equity | 0.00 | 0.04 | 0.45 | 3.58 | 53.84 | 8.03 |
| Dividends/Share | $0.00 | - | - | - | - | - |
| Operating Income | 1.4B | 1.2B | 684M | 387M | -189M | -304M |
| Operating Margin | 14.4% | 13.5% | 8.5% | 5.6% | -3.4% | -7.1% |
| ROE | 13.6% | 17.5% | 49.9% | 25.1% | -127.1% | -78.6% |
| Shares Outstanding | 816M | 709M | 1,416M | 687M | 1,852M | 578M |
Palo Alto Networks Inc passes 5 of 9 quality checks, suggesting mixed fundamentals.
Palo Alto Networks Inc trades at 90.3x trailing earnings, compared to its 15-year median P/E of 44.9x, suggesting it is currently Expensive relative to its historical range. On a free-cash-flow basis, the stock trades at 37.2x vs a median of 28.3x. The company's 5-year average ROIC is 8.9% with a gross margin of 71.8%. At current prices, the estimated annualized return to fair value is +23.3%.
Palo Alto Networks Inc (PANW) has a current P/E ratio of 90.3, compared to its historical median P/E of 44.9. The stock is currently considered Expensive based on its historical valuation range.
Palo Alto Networks Inc (PANW) has a 5-year average return on invested capital (ROIC) of 8.9%. This is below average and may indicate limited pricing power.
Palo Alto Networks Inc (PANW) has a market capitalization of $132.6B. It is classified as a large-cap stock.
Palo Alto Networks Inc (PANW) does not currently pay a regular dividend.
Based on historical P/E analysis, Palo Alto Networks Inc (PANW) appears expensive. The current P/E of 90.3 is 101% above its historical median of 44.9. The estimated fair value CAGR (P/E method) is 107.2%.
Palo Alto Networks Inc (PANW) operates in the Computer Peripheral Equipment, Nec industry, within the Technology sector.
Palo Alto Networks Inc (PANW) reported annual revenue of $9.2 billion in its most recent fiscal year, based on SEC EDGAR filings.
Palo Alto Networks Inc (PANW) has a net profit margin of 12.3%. This is a healthy margin.
Palo Alto Networks Inc (PANW) generated $3.5 billion in free cash flow in its most recent fiscal year. Positive free cash flow supports dividends, buybacks, and debt reduction.
Palo Alto Networks Inc (PANW) has a debt-to-equity ratio of 0.04. This indicates a conservatively financed balance sheet.
Palo Alto Networks Inc (PANW) reported earnings per share (EPS) of $1.60 in its most recent fiscal year.
Palo Alto Networks Inc (PANW) has a return on equity (ROE) of 17.5%. This indicates the company generates strong returns for shareholders.
Palo Alto Networks Inc (PANW) has a 5-year average gross margin of 71.8%. This high margin suggests strong pricing power and a potential competitive moat.
The Ledger Terminal provides 15 years of financial data for Palo Alto Networks Inc (PANW), sourced directly from SEC EDGAR filings. This includes income statements, balance sheets, cash flow statements, and key financial ratios.
Palo Alto Networks Inc (PANW) has a book value per share of $11.04, based on its most recent annual SEC filing.