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Palo Alto Networks Inc PANW

Morningstar Rating
$336.50 +5.46 (1.65%)
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Company Report

Palo Alto Is Stepping Up Its Efforts to Build a Comprehensive Security Platform

We view Palo Alto Networks as a leader in multiple cybersecurity end markets, including network security, cloud security, and security operations. We believe the firm stands to materially benefit from secular tailwinds across its three key verticals as cloud migrations, shift to zero-trust security, and increased automation in cybersecurity increases Palo Alto’s value proposition to its clients. In our view, the firm’s sticky platforms, combined with a broad range of cybersecurity applications have helped Palo Alto build a wide economic moat around its business.

Price vs Fair Value

PANW is trading at a 169% premium.
Price
$331.04
Fair Value
$782.00
Uncertainty
High
1-Star Price
$794.90
5-Star Price
$543.40
Economic Moat
Sglq
Capital Allocation
Jskchshpx

Bulls Say, Bears Say

Bulls

Palo Alto has strong secular tailwinds behind its back as endpoint security, cloud security, and the convergence of networking and security are projected to grow rapidly.

Bears

Large public cloud vendors often offer their own cybersecurity solutions, which could hamper Palo Alto’s growth opportunities.

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News

Trading Information

Previous Close Price
$331.04
Day Range
$331.28338.20
52-Week Range
$201.17380.84
Bid/Ask
$336.15 / $337.00
Market Cap
$108.96 Bil
Volume/Avg
1.8 Mil / 3.5 Mil

Key Statistics

Price/Earnings (Normalized)
60.09
Price/Sales
15.30
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
0.52%

Company Profile

Palo Alto Networks is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, and security operations. The California-based firm has more than 85,000 customers across the world, including more than three fourths of the Global 2000.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Large Growth
Total Number of Employees
15,166

Competitors

Valuation

Metric
PANW
CSCO
CRWD
Price/Earnings (Normalized)
60.0911.69107.68
Price/Book Value
24.364.1235.53
Price/Sales
15.303.4427.75
Price/Cash Flow
49.6411.6473.18
Price/Earnings
PANW
CSCO
CRWD

Financial Strength

Metric
PANW
CSCO
CRWD
Quick Ratio
0.730.681.64
Current Ratio
0.840.891.80
Interest Coverage
97.9319.461.29
Quick Ratio
PANW
CSCO
CRWD

Profitability

Metric
PANW
CSCO
CRWD
Return on Assets (Normalized)
11.97%15.60%14.13%
Return on Equity (Normalized)
68.27%36.40%41.07%
Return on Invested Capital (Normalized)
31.97%26.89%25.53%
Return on Assets
PANW
CSCO
CRWD
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