Stock Analysis
Palo Alto Networks, Inc. Common StockPANW
P/E 331.94×· not meaningful — TTM earnings temporarily depressed
Sector: Technology · Industry: Computer Peripheral Equipment, Nec
AnalystsStrong Buy63 analystsPrice is 72% of the way from the year's low to its high.
Cash covers 120% of debt · FY 2026.
PMP Verdict
Mixed fundamentals, expensive valuation
Strengths
- Financial Health81
- Quality67
Risks
- Valuation10
- Profitability35
Mixed fundamentals at a demanding price.
Market context
-7.6% today· Z 2.8σ· RVOL 1.6×· Cybersecurity stocks retreated from record highs despite analyst target raises.
Bull Case
- ✓Altman Z 7.8 — safe-zone balance sheet
- ✓Revenue CAGR 20.2% — durable top-line growth
- ✓Interest coverage 82.4× — debt well covered
Why is PANW moving?
SectorCybersecurity stocks retreated from record highs despite analyst target raises.
Profile
Strong financial health; valuation and profitability lag behind.
How is each axis scored?
- Valuation10/100 · Weak
- P/E vs own history (77th pct)5/25
- FCF yield (1.4%)5/25
- P/S (26.2x)0/25
- EV/EBIT (272.2x)0/25
- Growth50/100 · Moderate
- Revenue CAGR (20.2%)25/25
- Net income CAGR (n/a)0/25
- EPS CAGR 5Y (n/a)0/25
- Fwd implied growth (276.8%)25/25
- Profitability35/100 · Weak
- ROIC (3.0%)5/25
- ROE (3.1%)5/25
- Net margin (7.9%)13/25
- Operating margin (9.6%)12/25
- Financial Health81/100 · Strong
- Altman Z (7.77)25/25
- Current ratio (0.87)6/25
- Interest coverage (82.4x)25/25
- Net cash / debt (Net cash)25/25
- Quality67/100 · Moderate
- Piotroski F (3/9)5/25
- Beneish M (-3.53)25/25
- FCF conversion (450%)25/25
- Margin stability (σ 8.7%)12/25
- Moat63/100 · Moderate
- ROIC >12% years (3/6 yrs)13/25
- Median gross margin (71.9%)25/25
- FCF-positive years (10/10 yrs)25/25
- Worst-year net margin (worst -12.3%)0/25
Risk Flags
- ⚠SBC 15.7% of revenue — real dilution cost
- ⚠6 loss-making years in recent history
About Palo Alto Networks, Inc. Common Stock
Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. Show more
The California-based firm has more than 80,000 enterprise customers across the world, including more than three-fourths of the Global 2000.
Headquarters: SANTA CLARA, CA · Employees: 21,491 · Website ↗
Price History
Weekly Candlestick Chart — up to 5Y
Key Metrics
Financial snapshot · Tap any metric for its definition and grade
TTM Snapshot
trailing twelve months · YoYValuation
10EP/E (TTM)330xC
Grade C: DistortedTTM earnings are temporarily depressed — this multiple overstates expensiveness. Forward P/E is a better guide — vs own 5Y history: 40.7x–1964.7x · 77th pct
P/FCF73.6xD
Grade D: ExpensivePrice / Free Cash Flow per share (Finnhub). Inverse of FCF yield — negative when FCF is negative
FCF Yield1.4%C
Grade C: LowTTM (OCF − CapEx) / Market Cap — vs own 5Y history: 1.1%–6.0% · 3rd pct
P/S (TTM)26.23xD
Grade D: ExpensivePrice / TTM Revenue (own statements) — vs own 5Y history: 7.0x–32.4x · 96th pct
EV/EBIT272.2xD
Grade D: ExpensiveEnterprise value / TTM EBIT (D&A not in our data) — capital-structure neutral — vs own 5Y history: 69.2x–2949.6x · 75th pct
EV/Sales26.3xD
Grade D: Very expensiveEnterprise Value / TTM Revenue (Finnhub) — capital-structure neutral sales multiple
Forward P/E87.6xD
Grade D: ExpensivePrice / next-year EPS estimate — shows whether the TTM multiple is rich or just front-loading growth
P/B Ratio10.12xD
Grade D: Very expensivePrice to Book Value. Neg. equity = heavy buybacks
PEG Ratio—
Finnhub PEG — their P/E basis ÷ expected EPS growth. Suppressed when their P/E diverges >2× from our TTM P/E (different basis)
Dividend Yield—
TTM dividend yield (Finnhub) — annual dividends / price. None = no dividend; very high yield can signal distress
Payout Ratio—
Dividends / Net Income (Finnhub) — share of earnings paid out; >90% or negative = unsustainable
Profitability
35DROIC3.0%D
Grade D: LowNOPAT (EBIT less ~21% tax) / invested capital (equity + debt − cash). Flagship quality metric — durable >15% signals a moat
ROE3.1%D
Grade D: WeakReturn on Equity. Neg. equity = heavy buybacks
ROA0.9%D
Grade D: WeakReturn on Assets (Finnhub) — Net Income / Total Assets; how efficiently assets produce profit
Net Margin7.9%C
Grade C: AverageNet Income / Revenue
Operating Margin9.6%D
Grade D: LowTTM EBIT / TTM Revenue
Gross Margin71.9%A
Grade A: PremiumGross Profit / Revenue
FCF Margin35.8%A
Grade A: HighFCF / Revenue
True FCF Margin20.0%A
Grade A: HighTTM (OCF − CapEx − SBC) / TTM Revenue — SBC treated as a real cost
Growth
50CRevenue CAGR20.2%A
Grade A: HighCompound annual revenue growth (up to 5Y depending on data availability)
Net Income CAGR—
Compound annual net income growth (up to 5Y depending on data availability)
EPS CAGR (5Y)—
Compound annual EPS growth over up to 5Y of per-share earnings (own statements). Null when either endpoint EPS ≤ 0
Implied EPS Growth276.8%A
Grade A: HighAnalyst forward EPS (normalized basis) vs our GAAP TTM EPS — different bases, so extreme values usually mark cyclically depressed TTM earnings, not real growth
Dilution (5Y)+41.4%D
Grade D: DilutiveShare count change over 5Y
SBC / Net Income198.0%D
Grade D: HighStock-based comp/Net income. >30% = dilution risk
SBC / Revenue15.7%D
Grade D: HighTTM stock-based comp / TTM Revenue
Financial Health
81AAltman Z-Score7.77A
Grade A: SafeBankruptcy risk. >3 Safe, <1.8 Distress
Current Ratio0.87xD
Grade D: LowCurrent Assets/Liabilities
Quick Ratio0.79xC
Grade C: Ok(Current Assets − Inventory) / Current Liabilities (Finnhub) — stricter liquidity test, excludes inventory
Interest Coverage82.4xA
Grade A: StrongEBIT/Interest. >10 Strong
Debt RepaymentNet CashA
Grade A: FastYears to repay net debt via FCF
Net Debt/EBITNet CashA
Grade A: LowLeverage. <2x Low, >4x High
Debt/Equity0.09xA
Grade A: LowDebt / Equity: <1 Conservative, >2 Risky. Not meaningful with non-positive equity; shown as unavailable rather than low debt.
Cash / Debt1.20xA
Grade A: CoveredCash covers how much of total debt. >1 = could repay all debt from cash
Quality
67BPiotroski F-Score3/9D
Grade D: WeakFinancial strength 0–9. >7 Strong
Beneish M-Score-3.53A
Grade A: SafeEarnings manipulation risk. < -2.22 Safe
FCF Conversion450.1%A
Grade A: StrongFCF / Net Income
Margin Stability8.7%C
Grade C: AverageEBIT margin std deviation. Lower = stable
Capex / Revenue4.0%A
Grade A: Asset-lightTTM CapEx / TTM Revenue — high % = capital-hungry business
Asset Turnover0.32xD
Grade D: LowRevenue / Total Assets (Finnhub) — how efficiently the asset base generates sales
Insider Transactions
SEC Form 4 · 8 recordsP/S codes are the directional signal; grants, option exercises and tax withholding carry none. Form 4 doesn't flag 10b5-1 plans — scheduled sales may appear within open-market sells.
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Arora Nikesh Filed | Arora Nikesh | SellJ | -500000 | |
Bawa Aparna Filed | Bawa Aparna | SellOpen market sale | -80 | |
Bawa Aparna Filed | Bawa Aparna | SellOpen market sale | -170 | |
Klarich Lee Filed | Klarich Lee | Gift | -60000 | |
Paul Josh D. Filed | Paul Josh D. | SellOpen market sale | -400 |
Show 3 more filingsShow fewer filings
| Trade date | Insider | Transaction | Shares | Filed |
|---|---|---|---|---|
Paul Josh D. Filed | Paul Josh D. | Tax withholding | -1308 | |
Klarich Lee Filed | Klarich Lee | Gift | -25000 | |
Golechha Dipak Filed | Golechha Dipak | SellOpen market sale | -100 |
More metrics — Moat, Per Share, Balance Sheet, MarketHide additional metrics
Moat
63BROIC >12% Years3/6 yrsC
Grade C: ModerateShare of completed fiscal years with ROIC > 12% — measures multi-year capital-return durability
Gross Margin (Med.)71.9%A
Grade A: DurableMedian annual gross margin across available fiscal years — pricing-power durability
FCF-Positive Years10/10 yrsA
Grade A: DurableShare of completed fiscal years with positive free cash flow
Net Margin Floor-12.3%D
Grade D: WeakWeakest annual net margin across completed fiscal years — recession/downcycle resilience
Per Share
EPS (TTM)$1.03
Own TTM net income / shares — same earnings basis as P/E
Cash / Share$3.77
Cash & short-term investments per share (Finnhub)
Book Value / Share$33.73
Shareholders' equity per share (Finnhub). Negative = accumulated losses / heavy buybacks
Balance Sheet
Total Debt$2.57B
Total debt obligations (short + long term)
Cash & Equiv.$3.07B
Cash and short-term investments
Net Debt$-504.00MA
Grade A: Net CashTotal Debt minus Cash. Negative = Net Cash position
Total Equity$27.49B
Shareholders' equity (book value)
Asset / Liability2.31xA
Grade A: SolidTotal Assets / Total Liabilities
Market
Market Cap$278.20B
Current Market Capitalization
Beta0.96B
Grade B: MarketPrice sensitivity vs the market (Finnhub) — 1.0 moves with market, >1.2 amplifies swings
How grades work: each metric is graded A–D against fixed thresholds (tap a row for the meaning). Card grades map the pillar score to A+–E — a card grade is that pillar's own score, not an average of the rows shown.
Financials as of Jul 2026 · Ratio snapshot Oct 17, 2026
Key Insights: Palo Alto Networks, Inc. Common Stock (PANW)
PANW is down 7.63% at the last close — Cybersecurity stocks retreated from record highs despite analyst target raises.. Palo Alto Networks, Inc. Common Stock meets only 3 of 9 Piotroski F-Score criteria — a sign of weak underlying fundamentals. Altman Z-Score of 7.77 sits comfortably in the safe zone (≥ 2.99), indicating low bankruptcy risk. Beneish M-Score of -3.53 suggests a low likelihood of earnings manipulation. Revenue has compounded at roughly 20% annually — a strong growth profile.
- Palo Alto Networks, Inc. Common Stock converts about 36% of revenue into free cash flow — strong cash generation.
- Company is effectively debt-free after netting cash.
- Palo Alto Networks, Inc. Common Stock posted a net loss in 6 of 10 available completed fiscal years (2017–2026).
- At a valuation score of 10/100, PANW trades at a premium to its historical multiples (P/E 330.1).
See how PANW ranks on the Capex Tracker — top 50 capital spenders compared.
Recent Market Moves
See all PANW moves →| Date | Session | Price | Move | Z-Score |
|---|---|---|---|---|
| Oct 16 | Regular | 341.82 | -7.68% | -2.67 |
| Oct 16 | After-hours | 340.10 | -8.15% | -2.83 |
| Oct 14 | After-hours | 373.00 | -6.05% | -2.32 |
Frequently Asked Questions about PANW
What is the current Palo Alto Networks, Inc. Common Stock (PANW) stock price?
PANW is trading at $342.00 at the last market close, down 7.63% on the session. PreMarketPrice tracks PANW pre-market, intraday and after-hours prices.
Is PANW stock a buy right now?
PreMarketPrice's quantitative model rates Palo Alto Networks, Inc. Common Stock's financial health at 81/100. This is a data-driven snapshot of fundamentals, not investment advice.
Is PANW stock overvalued?
Palo Alto Networks, Inc. Common Stock trades at a trailing P/E of 330.1 and our valuation score rates it 10/100 (higher = cheaper vs. its own history). See the Valuation History and Key Metrics sections for forward P/E, EV/EBITDA and PEG context.
When does Palo Alto Networks, Inc. Common Stock report earnings?
No confirmed earnings date is currently scheduled for PANW. The Earnings section lists recent reports and updates as dates are announced.
What sector does Palo Alto Networks, Inc. Common Stock operate in?
Palo Alto Networks, Inc. Common Stock operates in the Technology sector, within the Computer Peripheral Equipment, Nec industry. The Related Stocks section lists sector peers for comparison.
What does Palo Alto Networks, Inc. Common Stock do?
Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations.
About Palo Alto Networks, Inc. Common Stock (PANW) Stock
Palo Alto Networks, Inc. Common Stock (PANW) is a US-listed stock operating in the Technology sector, specifically the Computer Peripheral Equipment, Nec industry. As of the latest update, Palo Alto Networks, Inc. Common Stock is trading at $342.00, down 7.63% on the day with a market capitalization of $278.2 billion. The financial health score for PANW is 81/100, which indicates excellent financial strength based on profitability, leverage, liquidity, and growth metrics. This page provides real-time pre-market pricing, earnings calendar, financial health analysis, and valuation metrics for PANW stock.
PANW Stock Analysis & Key Metrics
On PreMarketPrice, you can track Palo Alto Networks, Inc. Common Stock (PANW) across multiple dimensions:
- Pre-market price & movement: Real-time PANW stock price with percentage change, updated continuously during pre-market and regular trading hours.
- Valuation & P/E history: Historical P/E, P/S, and P/B ratios for PANW with trend analysis and normalized valuation multiples.
- Financial statements: Revenue, net income, assets, liabilities, and equity for Palo Alto Networks, Inc. Common Stock across multiple reporting periods.
- Financial health score: A composite score of 81/100 based on Altman Z-Score, Piotroski F-Score, profitability, and leverage metrics for PANW.
- Sector peers: Compare PANW against 5 other technology stocks on key financial metrics.
Is PANW a Good Stock to Buy?
This page provides data-driven analysis to help you evaluate Palo Alto Networks, Inc. Common Stock (PANW) as an investment. The financial health score of 81/100 suggests excellent financial fundamentals. Valuation metrics show whether the stock is trading above or below its historical average.However, this is not financial advice — always do your own research before investing.
Data on this page is sourced from real-time market feeds, Polygon.io, and Finnhub.Palo Alto Networks, Inc. Common Stock (PANW) trades on NYSE/NASDAQ. Pre-market trading occurs 4:00 AM – 9:30 AM ET. Regular market hours are 9:30 AM – 4:00 PM ET.