Palo Alto Networks, Inc. [NYSE:PANW]: Analyst Rating and Earnings
Equities traders frequently stay up to date regarding what leading market analysts think about a possible stock buy. As it relates to Palo Alto Networks, Inc. [PANW], the latest mean analyst recommendation that’s publicly available is from the fiscal three-month period ending in July. On average, stock market experts give PANW an Outperform rating. Its stock price has been found in the range of 160.08 to 260.63. This is compared to its latest closing price of $200.79.
Wall Street analysts provide their ratings on a scale of 1 to 5, and the current average score for Palo Alto Networks, Inc. [PANW] is sitting at 1.76. This is compared to 1 month ago, when its average rating was 1.71.
For the quarter ending in Apr-19 Palo Alto Networks, Inc. [PANW] generated $0.73 billion in sales. That’s 3.21% higher than the average estimate of $0.7 billion as provided by Wall Street analysts. The three indicators above suggest that overall, this stock is demonstrating a mixed bag of positive appeal and some drawbacks, making it a somewhat risky investment that also has the potential to generate high ROI in the long run.
Stay on the lookout for the next quarterly financial report – the company is expected to release the following results on Thu 5 Sep (In 84 Days).
Fundamental Analysis of Palo Alto Networks, Inc. [PANW]
Now let’s turn to look at profitability: with a current Operating Margin for Palo Alto Networks, Inc. [PANW] sitting at -5.68 and its Gross Margin at +71.61, this company’s Net Margin is now -2.30%. These metrics indicate that this company is not generating as much profit, after accounting for expenses, compared to its market peers.
This company’s Return on Total Capital is -6.16, and its Return on Invested Capital has reached -4.80%. Its Return on Equity is -17.14, and its Return on Assets is -3.19. These metrics suggest that this Palo Alto Networks, Inc. does a poor job of managing its assets, and likely won’t be able to provide successful business outcomes for its investors in the near term.
Turning to investigate this organization’s capital structure, Palo Alto Networks, Inc. [PANW] has generated a Total Debt to Total Equity ratio of 200.95. Similarly, its Total Debt to Total Capital is 66.77, while its Total Debt to Total Assets stands at 33.35. Looking toward the future, this publicly-traded company’s Long-Term Debt to Equity is 144.00, and its Long-Term Debt to Total Capital is 47.85. This company is not leveraging its assets to take on debt, which stunts its growth and limits the ROI for investors.
What about valuation? This company’s Enterprise Value to EBITDA is -454.21. The Enterprise Value to Sales for this firm is now 6.29, and its Total Debt to Enterprise Value stands at 0.12. Palo Alto Networks, Inc. [PANW] has a Price to Book Ratio of 19.20, a Price to Cash Flow Ratio of 17.53.
Shifting the focus to workforce efficiency, Palo Alto Networks, Inc. [PANW] earns $425,037 for each employee under its payroll. Similarly, this company’s Receivables Turnover is 5.05 and its Total Asset Turnover is 0.49. This publicly-traded organization’s liquidity data is also interesting: its Quick Ratio is 1.93 and its Current Ratio is 1.93. This company, considering these metrics, has a healthy ratio between its short-term liquid assets and its short-term liabilities, making it a less risky investment.
Palo Alto Networks, Inc. [PANW] has 96.96M shares outstanding, amounting to a total market cap of $19.69B. Its stock price has been found in the range of 160.08 to 260.63. At its current price, it has moved by -22.09% from its 52-week high, and it has moved 26.84% from its 52-week low.
This stock’s Beta value is currently 0.94, which indicates that it is more volatile that the wider market. This stock’s Relative Strength Index (RSI) is at 37.03. This RSI score is good, suggesting this stock is neither overbought or oversold.
Conclusion: Is Palo Alto Networks, Inc. [PANW] a Reliable Buy?
Palo Alto Networks, Inc. [PANW] stock is presenting a less attractive investment opportunity when compared to similarly-sized corporations in the same industry. The price performance of these shares has not shown much promise, and the financial results that this company has recently delivered present a highly risky investment.