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 22.03% and Operating profit at 52.37%
3
Flat results in Jul 25
- ROCE(HY) Lowest at 17.45%
- NET PROFIT(Q) Lowest at USD 186.43 MM
- EPS(Q) Lowest at USD 0.36
4
With ROE of 17.77%, it has a very expensive valuation with a 18.41 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 -3.58%, its profits have fallen by -47.6%
5
High Institutional Holdings at 82.64%
- These investors have better capability and resources to analyse fundamentals of companies than most retail investors.
6
Underperformed the market in the last 1 year
- Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -3.58% returns
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, Medium Return
Absolute
Risk Adjusted
Volatility
Palo Alto Networks, Inc.
-0.31%
0.24
35.64%
S&P 500
13.22%
0.61
20.17%
Quality
Management Risk
Growth
Capital StructureQuality key factors
Factor
Value
Sales Growth (5y)
22.03%
EBIT Growth (5y)
52.37%
EBIT to Interest (avg)
76.80
Debt to EBITDA (avg)
0.15
Net Debt to Equity (avg)
-0.41
Sales to Capital Employed (avg)
1.36
Tax Ratio
6.43%
Dividend Payout Ratio
0
Pledged Shares
0
Institutional Holding
82.81%
ROCE (avg)
13.10%
ROE (avg)
18.02%
ValuationValuation Key Factors 
Factor
Value
P/E Ratio
104
Industry P/E
Price to Book Value
18.41
EV to EBIT
125.92
EV to EBITDA
68.60
EV to Capital Employed
30.26
EV to Sales
14.67
PEG Ratio
NA
Dividend Yield
NA
ROCE (Latest)
24.03%
ROE (Latest)
17.77%
TechnicalsTechnical key factors
Indicator
Weekly
Monthly
MACD
Mildly Bearish
Bullish
RSI
No Signal
Bullish
Bollinger Bands
Mildly Bearish
Mildly Bullish
Moving Averages
Mildly Bullish (Daily)
KST
Bullish
Bullish
Dow Theory
No Trend
Mildly Bullish
OBV
No Trend
Mildly Bullish
Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned 
Financial Trend9What is working for the Company
OPERATING CASH FLOW(Y)
Highest at USD 3,716 MM
INTEREST COVERAGE RATIO(Q)
The company hardly has any interest cost
RAW MATERIAL COST(Y)
Fallen by 0.78% (YoY
NET SALES(Q)
Highest at USD 2,536.3 MM
OPERATING PROFIT(Q)
Highest at USD 560.4 MM
PRE-TAX PROFIT(Q)
Highest at USD 434.7 MM
-12What is not working for the Company
ROCE(HY)
Lowest at 17.45%
NET PROFIT(Q)
Lowest at USD 186.43 MM
EPS(Q)
Lowest at USD 0.36
Here's what is working for Palo Alto Networks, Inc.
Operating Cash Flow
Highest at USD 3,716 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 2,536.3 MM
in the last five periodsMOJO Watch
Near term sales trend is positive
Net Sales (USD MM)
Operating Profit
Highest at USD 560.4 MM
in the last five periodsMOJO Watch
Near term Operating Profit trend is positive
Operating Profit (USD MM)
Pre-Tax Profit
Highest at USD 434.7 MM
in the last five periodsMOJO Watch
Near term Pre-Tax Profit trend is positive
Pre-Tax Profit (USD MM)
Raw Material Cost
Fallen by 0.78% (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
Here's what is not working for Palo Alto Networks, Inc.
Net Profit
At USD 186.43 MM has Fallen at -48.44%
Year on Year (YoY)MOJO Watch
Near term Net Profit trend is very negative
Net Profit (USD MM)
Net Profit
Lowest at USD 186.43 MM
in the last five periodsMOJO Watch
Near term Net Profit trend is negative
Net Profit (USD MM)
EPS
Lowest at USD 0.36
in the last five periodsMOJO Watch
Declining profitability; company has created lower earnings for shareholders
EPS (USD)
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