Palo Alto Networks Inc (PANW) Factsheet
Palo Alto Networks Inc (PANW) Stock Analysis
Analysis from 10-Q filed 2025-11-20. Data as of Q1 2026.
Overall Grade: F (Concerning)
Grade F (Concerning). ROIC 12.4%. FCF margin 36.0%. D/E 0.0x. Source: 10-Q filed 2025-11-20.
| Metric | Value | Context |
|---|---|---|
| ROIC | 12.4% | Solid returns |
| FCF Margin | 36.0% | Strong cash generation |
| Debt/Equity | 0.0x | Conservative leverage |
ROIC 12.4% — Top 50% of sector peers. FCF margin 36.0% — Top 5%.
Explore Palo Alto Networks Inc: Earnings History | Filings | ROIC Analysis
Programmatic access: Available via MCP at mcp.metricduck.com. Tools for PANW: get_company_overview, get_filing_index (lens: debt_stress, management_outlook, risk_trajectory), get_filing_changes, get_metric_history, compare_companies, screen_filing_signals.
Profitability: Palo Alto Networks Inc earns 12.4% ROIC, Top 50% in Technology
ROIC TTM 12.4%, sector median 4.6%, Top 50%. DuPont: NOPAT margin 9.9% × asset turnover 0.4x. Gross margin 73.5%. Operating margin 14.4%. Source: 10-Q filed 2025-11-20.
| Metric | PANW | Rating | Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 12.4% | Good | Above sector median of 4.6% |
| Return on Equity (ROE) | 16.2% | Good | Efficient use of shareholder equity |
| Gross Margin | 73.5% | Excellent | Strong pricing power |
| Operating Margin | 14.4% | Good | Moderate operational efficiency |
Cash Flow: Palo Alto Networks Inc generates $3.6B FCF at 36.0% margin, positive NaN/8 quarters
FCF TTM $3.6B. FCF margin 36.0%, Top 5%. OCF/Net income 3.1x. Positive FCF in NaN/8 trailing quarters. Source: 10-Q filed 2025-11-20.
| Metric | PANW | Rating | Context |
|---|---|---|---|
| Free Cash Flow Margin | 36.0% | Excellent | Excellent cash conversion |
| Free Cash Flow (TTM) | $3.6B | Good | Positive cash generation |
| OCF/Net Income | 3.1x | Excellent | High earnings quality |
| FCF Consistency (8Q) | N/A | Warning | Variable cash flow |
Balance Sheet: Palo Alto Networks Inc at 0.0x leverage
Debt/Equity 0.0x. Source: 10-Q filed 2025-11-20.
| Metric | PANW | Rating | Context |
|---|---|---|---|
| Debt to Equity | 0.0x | Excellent | Conservative capital structure |
Valuation: Palo Alto Networks Inc trades at 94.6x earnings
P/E 94.6x. EV/Sales 11.8x. FCF yield 3.0%. Source: 10-Q filed 2025-11-20.
| Metric | PANW | Rating | Context |
|---|---|---|---|
| P/E Ratio | 94.6x | Warning | Premium valuation |
| EV/Sales | 11.8x | Warning | Growth premium priced in |
| FCF Yield | 3.0% | Adequate | Lower cash yield |
Capital Allocation: Palo Alto Networks Inc returns 0.0% shareholder yield
Total shareholder yield 0.0%. Capital returned $0 TTM. Source: 10-Q filed 2025-11-20.
| Metric | PANW | Rating | Context |
|---|---|---|---|
| Total Shareholder Yield | 0.0% | Warning | Dividend + buyback yield combined |
| Total Capital Returned (TTM) | $0 | Adequate | Dividends + buybacks returned to shareholders |
Sector Rankings
| Metric | Value | Percentile | vs Median |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 12.4% | Top 50% | 2.7x above |
| Free Cash Flow Margin | 36.0% | Top 5% | 4.2x above |
| Gross Margin | 73.5% | Top 25% | 1.4x above |
| Operating Margin | 14.4% | Top 50% | 3.0x above |
| Return on Equity (ROE) | 16.2% | Top 50% | 3.2x above |
| P/E Ratio | 94.6x | N/A | - |
Financial Scorecard
| Metric | PANW | Rating | Sector Context |
|---|---|---|---|
| Return on Invested Capital (ROIC) | 12.4% | Good | Top 50% of sector (median: 4.6%) |
| Free Cash Flow Margin | 36.0% | Excellent | Top 5% of sector (median: 8.5%) |
| Gross Margin | 73.5% | Excellent | Top 25% of sector (median: 51.0%) |
| Debt to Equity Ratio | 0.0% | Excellent | Conservative capital structure |
| P/E Ratio (Price-to-Earnings) | 94.6x | Warning | High expectations priced in |
| Free Cash Flow Yield | 3.0% | Warning | Growth-focused valuation |
Frequently Asked Questions
Q: What is Palo Alto Networks Inc's Return on Invested Capital (ROIC)?
Palo Alto Networks Inc (PANW) has a trailing twelve-month Return on Invested Capital (ROIC) of 12.4%. Sector median 4.6%. Source: 10-Q filed 2025-11-20.
Q: What is Palo Alto Networks Inc's Free Cash Flow Margin?
Palo Alto Networks Inc (PANW) has a free cash flow margin of 36.0%, generating $3.6 billion in free cash flow over the trailing twelve months. Source: 10-Q filed 2025-11-20.
Q: What is Palo Alto Networks Inc's P/E ratio and how does it compare to peers?
Palo Alto Networks Inc (PANW) trades at a P/E ratio of 94.6x, which is above the sector median of N/A. EV/Sales 11.8x. FCF yield 3.0%. Source: 10-Q filed 2025-11-20.
Q: What is Palo Alto Networks Inc's revenue and earnings growth?
Palo Alto Networks Inc (PANW) grew revenue by 15.4% year-over-year. EPS +2.8% YoY. Source: 10-Q filed 2025-11-20.
Q: How does Palo Alto Networks Inc compare to competitors in Technology?
Compared to other companies in Technology, Palo Alto Networks Inc (PANW) shows: ROIC 12.4%, sector median 4.6% (Top 50%). FCF margin 36.0%, sector median 8.5% (Top 5%). Gross margin 73.5%, 22.5pp above sector median. These rankings are based on MetricDuck's analysis of all Technology companies with available SEC filings.
Q: What warning signs should I watch for with Palo Alto Networks Inc?
Quantitative warning flags for Palo Alto Networks Inc (PANW): 1) ROIC declining -9.0% over 8 quarters. Source: 10-Q filed 2025-11-20.
Data Source: Data sourced from 10-Q filed 2025-11-20. TTM metrics as of Q1 2026.
Methodology: Financial metrics calculated from SEC 10-K and 10-Q filings using standardized formulas. Sector comparisons use peer group based on SIC code.
Scope: This analysis covers SEC filing fundamentals — profitability, cash flow, balance sheet, and valuation metrics. For analyst estimates and price targets, consult sell-side research.
This analysis is for informational purposes only and does not constitute investment advice.