Palo Alto Networks Inc Stock Research

Market Summary

USD211.70+3.72

Market Closed

1.79%

PANW Alerts

3 major insider sales recently.
Big jump in Earnings (Y/Y)

PANW Stock Price

PANW RSI Chart

PANW Valuation

Market Cap

64.7B

Price/Earnings (Trailing)

300.49

Price/Sales (Trailing)

9.97

EV/EBITDA

107.93

Price/Free Cashflow

22.41

PANW Price/Sales (Trailing)

PANW Profitability

EBT Margin

1.36%

Return on Equity

4.71%

Return on Assets

0.26%

Free Cashflow Yield

4.46%

PANW Fundamentals

PANW Revenue

Revenue (TTM)

6.5B

Revenue Y/Y

24.1%

Revenue Q/Q

3.98%

PANW Earnings

Earnings (TTM)

215.3M

Earnings Y/Y

247.27%

Earnings Q/Q

28.03%

Price Action

52 Week Range

132.22217.05

(Low)(High)

Last 7 days

12.2%

Last 30 days

15.2%

Last 90 days

13.4%

Trailing 12 Months

26.5%

PANW Financial Health

Current Ratio

0.64

PANW Investor Care

Shares Dilution (1Y)

2.28%

Diluted EPS (TTM)

0.63

Peers (Alternatives to Palo Alto Networks)

View All Peers In Detail

Name	Mkt Capsorted ascending	Revenue	Price %, 1M	Returns, 1Y	P/E	P/S	Rev 1-Yr	Inc 1-Yr
LARGE-CAP
MSFT	2.5T	207.6B	12.70%	25.81%	35.87	11.93	7.81%	-4.74%
ADBE	190.7B	18.0B	14.41%	1.66%	40.25	10.59	11.50%	-1.86%
PANW	64.7B	6.5B	15.19%	26.49%	300.49	9.97	25.52%	155.26%
FTNT	53.2B	4.7B	6.89%	15.14%	55	11.25	28.96%	51.50%
ZM	20.5B	4.4B	7.88%	-38.07%	198.13	4.68	7.15%	-92.46%
MID-CAP
TDC	4.7B	1.8B	22.86%	25.36%	143.41	2.64	-6.36%	-77.55%
BB	3.0B	656.0M	31.74%	-13.84%	-4.15	4.64	-8.64%	-6216.67%
SMALL-CAP
ATEN	1.1B	275.4M	5.64%	-2.66%	24.97	4.04	6.78%	-54.84%
MITK	444.0M	-	10.44%	12.33%	65.72	3.18	-	-
INS	258.0M	60.2M	-	-	18.58	3.7	-5.32%	-61.20%
AVYA	125.3M	-	-2.38%	-98.14%	-5.72	0.04	-	-
QUMU	16.1M	21.5M	1.30%	-53.31%	-1.29	0.75	-14.17%	24.35%
BKYI	6.9M	6.2M	9.47%	-56.60%	-0.96	1.11	18.17%	-59.80%

Financials for Palo Alto Networks

* denotes actual numbers (not divided by Millions)
Income Statement (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2023Q2	2023Q1	2022Q4	2022Q3	2022Q2
Revenue	5.4%	6,490	6,156	5,818	5,502	5,170
Gross Profit	7.0%	4,595	4,295	4,018	3,783	3,585
Operating Expenses	4.1%	4,446	4,272	4,108	3,972	3,850
S&GA Expenses	4.1%	2,451	2,355	2,258	2,149	2,068
R&D Expenses	3.9%	1,553	1,495	1,450	1,418	1,379
EBITDA	72.0%	396	230	103	14.00	-
EBITDA Margin	62.5%	0.06*	0.04*	0.02*	0.00*	-
Earnings Before Taxes	219.5%	267	84.00	-81.60	-207	-326
EBT Margin	196.8%	0.01*	-0.01*	-0.04*	-0.06*	-
Interest Expenses	3.6%	28.00	27.00	27.00	27.00	62.00
Net Income	527.7%	215	34.00	-143	-267	-389
Net Income Margin	122.6%	0.01*	-0.02*	-0.05*	-0.08*	-
Free Cahsflow	8.1%	2,845	2,633	1,985	1,787	-

Balance Sheet					(In Millions)
Description	(%) Q/Q	2023Q2	2023Q1	2022Q4	2022Q3	2022Q2
Assets	7.7%	14,171	13,163	12,544	12,254	11,100
Current Assets	18.6%	6,414	5,406	5,734	6,415	5,698
Cash Equivalents	48.6%	2,000	1,346	2,067	2,119	2,420
Net PPE	-0.9%	342	345	354	358	356
Goodwill	0.5%	2,927	2,912	2,748	2,748	2,731
Liabilities	4.1%	12,938	12,434	12,036	12,044	-
Current Liabilities	2.0%	8,641	8,475	8,195	8,306	7,677
Shareholder's Equity	69.1%	1,232	729	508	210	338
Retained Earnings	6.9%	-1,455	-1,562	-1,647	-1,667	-1,670
Shares Outstanding	1.1%	306	302	302	299	299

Cashflow (Last 12 Months)					(In Millions)
Description	(%) Q/Q	2023Q2	2023Q1	2022Q4	2022Q3	2022Q2
Cashflow From Operations	1.5%	2,887	2,845	2,633	1,985	1,787
Share Based Compensation	2.3%	1,060	1,036	1,018	1,011	1,002
Cashflow From Investing	1.5%	-2,868	-2,913	-2,023	-933	-463
Cashflow From Financing	12.2%	-444	-506	-814	-806	-789
Buy Backs	-3.7%	592	615	915	892	878

Risks for PANW

What is the probability of a big loss on PANW?

87.3%

Probability that Palo Alto Networks stock will be more than 20% underwater in next one year

27.7%

Probability that Palo Alto Networks stock will be more than 30% underwater in next one year.

18.5%

Probability that Palo Alto Networks stock will be more than 40% underwater in next one year.

*Calculated based on probability distribution of losses observed in actual data in the last 5 years.

How does PANW drawdown profile look like?

Y-axis is the maximum loss one would have experienced if Palo Alto Networks was unfortunately bought at previous high price.

Drawdowns

Returns for PANW

Cumulative Returns on PANW

28.0%

10-Year Cumulative Returns

25.5%

7-Year Cumulative Returns

24.9%

5-Year Cumulative Returns

40.1%

3-Year Cumulative Returns

What are the long-term rolling returns for PANW?

FIve years rolling returns for Palo Alto Networks.

Annualized Returns

Which funds bought or sold PANW recently?

View All Details

Datesorted ascending	Fund Name	Type	% Chg	$ Change	$ Held	% Portfolio
2023-05-24	Old North State Trust, LLC	unchanged	-	-	1,000	-%
2023-05-23	Seaport Global Advisors, LLC	reduced	-19.82	27,759	215,719	0.68%
2023-05-23	Brookfield Corp /ON/	added	162	6,077,880	8,277,030	0.03%
2023-05-23	Toroso Investments, LLC	added	245	3,954,000	4,958,000	0.09%
2023-05-23	Capital Impact Advisors, LLC	sold off	-100	-226,473	-	-%
2023-05-22	AMERIPRISE FINANCIAL INC	added	17.81	402,527,000	988,715,000	0.32%
2023-05-22	FDx Advisors, Inc.	unchanged	-	-	658,000	0.03%
2023-05-22	American Trust	reduced	-16.33	94,308	571,256	0.04%
2023-05-22	PUTNAM INVESTMENTS LLC	reduced	-5.81	89,846,600	347,870,000	0.56%
2023-05-22	Raleigh Capital Management Inc.	added	174	25,305	33,956	0.02%

Latest Funds Activity

Are funds buying PANW calls or puts?

Calls

Puts

Are funds bullish or bearish(Calls - Puts)?

Net Call Options

No. of funds that own PANW

No. of Funds

Palo Alto Networks News

Schedule 13G FIlings of Palo Alto Networks

Date Filed	Name of Filer	Percent of Class	No. of Shares	Form Type
Feb 09, 2023	vanguard group inc	6.57%	19,851,052	SC 13G/A
Feb 07, 2023	blackrock inc.	5.6%	17,034,005	SC 13G/A
Feb 03, 2022	blackrock inc.	5.8%	5,702,391	SC 13G/A
Feb 11, 2021	renaissance technologies llc	3.20%	3,052,729	SC 13G/A
Feb 10, 2021	vanguard group inc	8.77%	8,376,791	SC 13G/A
Feb 05, 2021	blackrock inc.	6.2%	5,935,054	SC 13G/A
Feb 12, 2020	vanguard group inc	8.99%	8,811,876	SC 13G/A
Feb 12, 2020	renaissance technologies llc	5.78%	5,662,451	SC 13G
Feb 10, 2020	blackrock inc.	5.8%	5,638,604	SC 13G/A

PANW Fair Value

Recent SEC filings of Palo Alto Networks

View All Filings

Date Filed	Form Type	Document
May 26, 2023	4	Insider Trading
May 26, 2023	SD	SD
May 25, 2023	144	Notice of Insider Sale Intent
May 25, 2023	144	Notice of Insider Sale Intent
May 24, 2023	10-Q	Quarterly Report
May 23, 2023	4	Insider Trading
May 23, 2023	8-K	Current Report
May 09, 2023	4	Insider Trading
May 02, 2023	4	Insider Trading
May 02, 2023	4/A	Insider Trading

Latest Insider Trading transactions for PANW

Filter Transactions

Datesorted ascending	Name	Buy/Sell	$ Value	Avg. Price	# Shares	Title
2023-05-20	Jenkins William D Jr	back to issuer	-	-	-5,742	president
2023-05-05	Klarich Lee	sold	-8,240,290	183	-45,000	evp, chief product officer
2023-05-05	Klarich Lee	acquired	2,902,650	64.5033	45,000	evp, chief product officer
2023-05-01	ZUK NIR	sold	-6,572,440	182	-36,000	evp, chief technology officer
2023-04-20	Klarich Lee	sold (taxes)	-1,471,350	195	-7,533	evp, chief product officer
2023-04-20	Arora Nikesh	back to issuer	-	-	-54,234	chief executive officer
2023-04-20	Arora Nikesh	back to issuer	-	-	-27,117	chief executive officer
2023-04-17	Arora Nikesh	sold	-2,779,650	201	-13,800	chief executive officer
2023-04-05	Klarich Lee	sold	-8,729,620	193	-45,000	evp, chief product officer
2023-04-05	Klarich Lee	acquired	2,902,650	64.5033	45,000	evp, chief product officer

About Palo Alto Networks

PANW Income Statement

2023-04-30

CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS - USD ($) shares in Millions, $ in Millions	3 Months Ended		9 Months Ended
	Apr. 30, 2023	Apr. 30, 2022	Apr. 30, 2023	Apr. 30, 2022
Revenue:
Revenue:	$ 1,720.9	$ 1,386.7	$ 4,939.4	$ 3,951.0
Cost of revenue:
Cost of revenue:	474.8	440.5	1,402.9	1,226.4
Total gross profit	1,246.1	946.2	3,536.5	2,724.6
Operating expenses:
Research and development	413.7	355.4	1,189.6	1,053.9
Sales and marketing	639.5	543.6	1,880.0	1,578.3
General and administrative	114.2	94.8	333.1	296.6
Total operating expenses	1,167.4	993.8	3,402.7	2,928.8
Operating income (loss)	78.7	(47.6)	133.8	(204.2)
Interest expense	(7.8)	(6.8)	(21.5)	(20.5)
Other income, net	60.1	1.9	137.5	0.2
Income (loss) before income taxes	131.0	(52.5)	249.8	(224.5)
Provision for income taxes	23.2	20.7	37.8	45.8
Net income (loss)	$ 107.8	$ (73.2)	$ 212.0	$ (270.3)
Net income (loss) per share, basic (in usd per share)	$ 0.35	$ (0.25)	$ 0.70	$ (0.92)
Net income (loss) per share, diluted (in usd per share)	$ 0.31	$ (0.25)	$ 0.63	$ (0.92)
Weighted-average shares used to compute net income (loss) per share, basic (in shares)	303.9	296.7	302.0	294.7
Weighted-average shares used to compute net income (loss) per share, diluted (in shares)	344.7	296.7	338.1	294.7
Product
Revenue:
Revenue:	$ 388.1	$ 351.5	$ 1,071.0	$ 955.0
Cost of revenue:
Cost of revenue:	93.4	126.0	314.0	312.7
Subscription and support
Revenue:
Revenue:	1,332.8	1,035.2	3,868.4	2,996.0
Cost of revenue:
Cost of revenue:	$ 381.4	$ 314.5	$ 1,088.9	$ 913.7

PANW Balance Sheet

2023-04-30

CONDENSED CONSOLIDATED BALANCE SHEETS - USD ($) $ in Millions	Apr. 30, 2023	Jul. 31, 2022
Current assets:
Cash and cash equivalents	$ 1,992.9	$ 2,118.5
Short-term investments	1,965.3	1,516.0
Accounts receivable, net of allowance for credit losses of $8.6 and $8.9 at April 30, 2023 and July 31, 2022, respectively	1,443.6	2,142.5
Short-term deferred contract costs	317.3	317.7
Prepaid expenses and other current assets	694.5	320.2
Total current assets	6,413.6	6,414.9
Property and equipment, net	341.7	357.8
Operating lease right-of-use assets	248.3	242.0
Long-term investments	2,709.8	1,051.9
Long-term deferred contract costs	503.6	550.1
Goodwill	2,926.8	2,747.7
Intangible assets, net	340.6	384.5
Other assets	686.1	504.7
Total assets	14,170.5	12,253.6
Current liabilities:
Accounts payable	91.6	128.0
Accrued compensation	344.7	461.1
Accrued and other liabilities	376.1	399.2
Deferred revenue	4,146.7	3,641.2
Convertible senior notes, net	3,682.1	3,676.8
Total current liabilities	8,641.2	8,306.3
Long-term deferred revenue	3,942.9	3,352.8
Long-term operating lease liabilities	264.5	276.1
Other long-term liabilities	89.5	108.4
Liabilities	12,938.1	12,043.6
Commitments and contingencies (Note 10)
Stockholders’ equity:
Preferred stock; $0.0001 par value; 100.0 shares authorized; none issued and outstanding at April 30, 2023 and July 31, 2022	0.0	0.0
Common stock and additional paid-in capital; $0.0001 par value; 1,000.0 shares authorized; 305.6 and 298.8 shares issued and outstanding at April 30, 2023 and July 31, 2022, respectively	2,708.2	1,932.7
Accumulated other comprehensive loss	(20.7)	(55.6)
Accumulated deficit	(1,455.1)	(1,667.1)
Total stockholders’ equity	1,232.4	210.0
Total liabilities and stockholders’ equity	$ 14,170.5	$ 12,253.6