Analyzing Palo Alto Networks – A Fundamental Review Before Investing

Shares of Computer Equipment company Palo Alto Networks jumped 3.2% today. With many investors piling into PANW without a second thought, it may be a good idea to take a closer look at the stock. Here are some quick facts to get you started:

  • Palo Alto Networks has moved 39.3% over the last year, and the S&P 500 logged a change of 26.6%

  • PANW has an average analyst rating of buy and is -17.64% away from its mean target price of $336.63 per share

  • Its trailing earnings per share (EPS) is $6.46

  • Palo Alto Networks has a trailing 12 month Price to Earnings (P/E) ratio of 42.9 while the S&P 500 average is 15.97

  • Its forward earnings per share (EPS) is $6.15 and its forward P/E ratio is 45.1

  • The company has a Price to Book (P/B) ratio of 20.53 in contrast to the S&P 500's average ratio of 2.95

  • Palo Alto Networks is part of the Technology sector, which has an average P/E ratio of 35.0 and an average P/B of 7.92

  • PANW has reported YOY quarterly earnings growth of 1856.0% and gross profit margins of 0.7%

  • The company has a free cash flow of $2.26 Billion, which refers to the total sum of all its inflows and outflows of cash over the last quarter

  • Palo Alto Networks, Inc. provides cybersecurity solutions worldwide. The company offers firewall appliances and software; and Panorama, a security management solution for the global control of network security platform as a virtual or a physical appliance. It also provides subscription services covering the areas of threat prevention, malware and persistent threat, URL filtering, laptop and mobile device protection, DNS security, Internet of Things security, SaaS security API, and SaaS security inline, as well as threat intelligence, and data loss prevention. In addition, the company offers cloud security, secure access, security operations, and threat intelligence and security consulting; professional services, including architecture design and planning, implementation, configuration, and firewall migration; education services, such as certifications, as well as online and in-classroom training; and support services. It sells its products and services through its channel partners, as well as directly to medium to large enterprises, service providers, and government entities operating in various industries, including education, energy, financial services, government entities, healthcare, Internet and media, manufacturing, public sector, and telecommunications. Palo Alto Networks, Inc. was incorporated in 2005 and is headquartered in Santa Clara, California.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.