Fact based stock research
Palo Alto Networks (NYSE:PANW)

US6974351057

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

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Palo Alto Networks stock research in summary

paloaltonetworks.com

ANALYSIS: With an Obermatt Combined Rank of 71 (better than 71% compared with investment alternatives), Palo Alto Networks (Systems Software, USA) shares have above-average financial characteristics compared with similar stocks. Shares of Palo Alto Networks are low in value (priced high) with a consolidated Value Rank of 12 (worse than 88% of alternatives). But they show above-average growth (Growth Rank of 87) and are safely financed (Safety Rank of 66, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 71, is a buy recommendation based on Palo Alto Networks's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Palo Alto Networks exhibits low value (Obermatt Value Rank of 12), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 87). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 66) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	12
Growth Rank	87
Safety Rank	66
Combined Rank	71

Country	USA
Industry	Systems Software
Index	Diversity USA, Human Rights
Size class	Large

31-Jul-2025. Stock data may be delayed. Log in or sign up to get the most recent research.

Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Palo Alto Networks

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	19	14	11	12
GROWTH
GROWTH	95	53	87	87
SAFETY
SAFETY	7	51	89	66
SENTIMENT
SENTIMENT	71	90	98	^new
360° VIEW
360° VIEW	43	49	93	^new

Most recent update of the stock research: 31-Jul-2025. Financial reporting date used for calculating ranks: 30-Apr-2025. Stock research history is based on the Obermatt Method. The higher the rank, the better Palo Alto Networks is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2022	2023	2024	2025
VALUE
VALUE	19	14	11	12
GROWTH
GROWTH	95	53	87	87
SAFETY
SAFETY	7	51	89	66
COMBINED
COMBINED	19	23	75	71

Last update of combined financial performance: 31-Jul-2025. Stock analysis on combined financial performance: The higher the rank of Palo Alto Networks the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 12 (worse than 88% compared with alternatives), Palo Alto Networks shares are significantly more expensive than comparable stocks. The Value Rank is based on consolidating four value indicators, with all four indicators below average for Palo Alto Networks. Price-to-Sales is 15 which means that the stock price compared with what market professionals expect for future profits is higher than 85% of comparable companies, indicating a low value concerning Palo Alto Networks's sales levels. Price-to-Book Capital (also referred to as market-to-book ratio) also has a low Price-to-Book Rank of 14, which means that both reliable company size indicators, sales, and invested capital cannot explain the high stock price of Palo Alto Networks. In addition, the two profit-related value indicators, Price-to-Profit (also referred to as price-earnings, P/E) with a low rank of 20 and Dividend Yield, which is lower than 99% of comparable companies, also make the stock more expensive compared with investment alternatives. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 12, is a sell recommendation based on Palo Alto Networks's stock price compared with the company's operational size and dividend yields. How can market participants pay such a high price for Palo Alto Networks? One reason may be that the company is simply too popular. If enough people want a particular stock, its price can exceed reasonable levels. This is often the case for companies offering new and exciting products and everybody wants a piece of the action. Should you pay a lot for a hot stock such as Palo Alto Networks? It's risky, and even if the stock price continues to grow because of popular demand, it may return to more typical lower levels later. And that return can be sudden and quick, making it impossible for retail investors to exit on time. Sometimes, high prices are deserved. This is the case when it is justified to believe that the company will dominate a market with high profit margins. It has happened in the past for many technology companies and indeed for commercially successful pharmaceutical discoveries. Sometimes they last, sometimes, they get eaten alive. Palo Alto Networks may be such a type of stock. That would mean, retail investors should be careful, only considering investing a small part of their wealth in this exciting category and always being ready to lose more than half, if not all of the investment. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision, which is essential in this case, as the financial indicators are inconclusive. ...read more

VALUE METRICS	2022	2023	2024	2025
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	38	13	7	15
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	48	33	26	20
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	1	12	16	14
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	1
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	19	14	11	12

Last update of Value Rank: 31-Jul-2025. Stock analysis on value ratios: The higher the rank, the lower the value ratio of Palo Alto Networks; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 87 (better than 87% compared with alternatives) for 2025, Palo Alto Networks shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all four indicators above average for Palo Alto Networks. Sales Growth has a value of 70, which means that, currently, professionals expect the company to grow more than 70% of its competitors. The same is valid for Profit Growth with a value of 62 and for Capital Growth with 64. In addition, Stock Returns had an above-average rank value of 73, which means they have been higher than 73% of comparable investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 87, is a buy recommendation for growth and momentum investors. Since all Growth Ranks are positive, Palo Alto Networks exhibits above-average growth momentum. This could be due to a uniquely strong market position, proprietary technology, or an extensive corporate acquisition strategy. Growth investors will find this an attractive investment opportunity, unless they expect that the current phase is transitory and will deteriorate in the future. The current performance could also be a temporary recovery from a very low point, such as a turn-around situation. In the case of a turn-around, the current performance may or may not be followed by a continuing positive development. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2022	2023	2024	2025
REVENUE GROWTH
REVENUE GROWTH	51	69	74	70
PROFIT GROWTH
PROFIT GROWTH	69	46	59	62
CAPITAL GROWTH
CAPITAL GROWTH	78	32	83	64
STOCK RETURNS
STOCK RETURNS	99	95	81	73
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	95	53	87	87

Last update of Growth Rank: 31-Jul-2025. Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Palo Alto Networks.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 66 (better than 66% compared with alternatives), the company Palo Alto Networks has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Palo Alto Networks is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with two out of three indicators above average for Palo Alto Networks. Leverage is at a rank of 50, meaning the company has a below-average debt-to-equity ratio. It has less debt than 50% of its competitors. Liquidity is also good at a rank of 91, meaning the company generates more profit to service its debt than 91% of its competitors. This indicates that the company is on the safer side when it comes to debt service. But Refinancing is lower at a rank of 25, which means that the portion of the debt that is about to be refinanced is above-average. It has more debt in the refinancing stage than 75% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 66 (better than 66% compared with alternatives), Palo Alto Networks has a financing structure that is safer than that of its competitors. The refinancing issues could be a short-term problem, especially if the company has reputation issues. Banks and investors don't like to refinance debt if there are clouds on the horizon. For this reason, investors should look at the refinancing environment for Palo Alto Networks. Does it look safe that debt that is coming due can be covered with new debt? If that is the case, then the financing situation of the company is on the safer side. If not, it may be better to wait until refinancing has been completed and the Refinancing rank is good again. Investors may have a short-term debt challenge with Palo Alto Networks and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2022	2023	2024	2025
LEVERAGE
LEVERAGE	9	30	72	50
REFINANCING
REFINANCING	11	21	21	25
LIQUIDITY
LIQUIDITY	52	89	100	91
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	7	51	89	66

Last update of Safety Rank: 31-Jul-2025. Stock analysis on safety metrics: The higher the rank, the lower the leverage of Palo Alto Networks and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2022	2023	2024	2025
ANALYST OPINIONS
ANALYST OPINIONS	n/a	85	62	^new
OPINIONS CHANGE
OPINIONS CHANGE	40	50	95	^new
PRO HOLDINGS
PRO HOLDINGS	7	96	96	^new
MARKET PULSE
MARKET PULSE	90	77	65	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	71	90	98	^new

Last update of Sentiment Rank: 31-Jul-2025. Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Palo Alto Networks.
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