ScoreWhy is Palo Alto Networks, Inc. ?
1
Strong ability to service debt as the company has a low Debt to EBITDA ratio of 0.15 times
2
Healthy long term growth as Net Sales has grown by an annual rate of 21.20% and Operating profit at 51.76%
3
Positive results in Jan 26
- OPERATING CASH FLOW(Y) Highest at USD 3,974.5 MM
- RAW MATERIAL COST(Y) Fallen by -0.18% (YoY)
- CASH AND EQV(HY) Highest at USD 8,759 MM
4
With ROE of 12.85%, it has a expensive valuation with a 14.55 Price to Book Value
- The stock is trading at a premium compared to its peers' average historical valuations
- Over the past year, while the stock has generated a return of -11.00%, its profits have fallen by -7.9%
5
High Institutional Holdings at 83.26%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Below par performance in long term as well as near term
- Along with generating -11.00% returns in the last 1 year, the stock has also underperformed S&P 500 in the last 3 years, 1 year and 3 months
Real-Time Research ReportHow much should you hold?
- Overall Portfolio exposure to Palo Alto Networks, Inc. should be less than 10%
- Overall Portfolio exposure to Software Products should be less than 30%
(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Software Products)
When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock
Is Palo Alto Networks, Inc. for you?
Medium Risk, Low Return
Absolute
Risk Adjusted
Volatility
Palo Alto Networks, Inc.
-11.0%
-0.13
36.54%
S&P 500
14.9%
0.77
19.33%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
21.20%
EBIT Growth (5y)
51.76%
EBIT to Interest (avg)
76.80
Debt to EBITDA (avg)
0.15
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
1.26
Tax Ratio
6.43%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
83.26%
ROCE (avg)
13.10%
ROE (avg)
18.02%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
113
Industry P/E
Price to Book Value
14.55
EV to EBIT
105.16
EV to EBITDA
61.71
EV to Capital Employed
27.22
EV to Sales
13.35
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
25.89%
ROE (Latest)
12.85%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Bearish
Mildly Bearish
RSI
No Signal
No Signal
Bollinger Bands
Bearish
Mildly Bearish
Moving Averages
Bearish (Daily)
KST
Bearish
Mildly Bearish
Dow Theory
Mildly Bullish
No Trend
OBV
Mildly Bullish
No Trend
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend14What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 3,974.5 MM
RAW MATERIAL COST(Y)
Fallen by -0.18% (YoY
CASH AND EQV(HY)
Highest at USD 8,759 MM
DEBT-EQUITY RATIO
(HY)
Lowest at -44.37 %
NET SALES(Q)
Highest at USD 2,594 MM
OPERATING PROFIT(Q)
Highest at USD 626 MM
OPERATING PROFIT MARGIN(Q)
Highest at 24.13 %
PRE-TAX PROFIT(Q)
Highest at USD 552 MM
NET PROFIT(Q)
Highest at USD 434.36 MM
EPS(Q)
Highest at USD 0.61
-2What is not working for the Company
ROCE(HY)
Lowest at 16.26%
Here's what is working for Palo Alto Networks, Inc.
Operating Cash Flow
Highest at USD 3,974.5 MM and Grown
In each year in the last three yearsMOJO Watch
The company has generated higher cash revenues from business operations
Operating Cash Flows (USD MM)
Net Sales
Highest at USD 2,594 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 626 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Operating Profit Margin
Highest at 24.13 %
in the last five periodsMOJO Watch
Company's profit margin has improved
Operating Profit to Sales
Pre-Tax Profit
Highest at USD 552 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Pre-Tax Profit
At USD 552 MM has Grown at 69.22%
Year on Year (YoY)MOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Net Profit
Highest at USD 434.36 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
Net Profit
At USD 434.36 MM has Grown at 61.8%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is positive
Net Profit (USD MM)
EPS
Highest at USD 0.61
in the last five periodsMOJO Watch
Increasing profitability; company has created higher earnings for shareholders
EPS (USD)
Cash and Eqv
Highest at USD 8,759 MM
in the last six Semi-Annual periodsMOJO Watch
Short Term liquidity is improving
Cash and Cash Equivalents
Debt-Equity Ratio
Lowest at -44.37 %
in the last five Semi-Annual periodsMOJO Watch
The company has been reducing its borrowing as compared to equity capital
Debt-Equity Ratio
Raw Material Cost
Fallen by -0.18% (YoY)
MOJO Watch
The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin
Raw Material Cost as a percentage of Sales
Depreciation
Highest at USD 226 MM
in the last five periodsMOJO Watch
The expenditure on assets done by the company may have gone into operation
Depreciation (USD MM)
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