Palo Alto Networks, Inc. cash flow to debt ratio of 1.10K% indicates that the company generates enough cash to cover a substantial portion of its debt. This level indicates very strong financial health.

Palo Alto Networks, Inc.'s free cash flow has increased 11.90% from $3.10B last year to $3.47B, signaling increasing performance

Palo Alto Networks, Inc.'s debt to equity ratio is 0.07, which means that the company's assets are healthy financed, signaling financial stability.

Palo Alto Networks, Inc.'s debt has decreased relative to shareholder equity from 0.26 last year to 0.07 today, signaling strengthened financials

Palo Alto Networks, Inc. has a net cash position, so leverage is healthy.

Palo Alto Networks, Inc. earns at least as much interest as it pays. Interest obligations are fully covered.

Palo Alto Networks, Inc.'s profit margin has decreased (75.25%) in the last year from 32.11% to 7.95%, signaling decreasing performance

Palo Alto Networks, Inc.'s short-term liabilities of $7.99B exceed its short-term assets of $7.10B, signaling financial risk

Palo Alto Networks, Inc.'s return on assets of 1.82% is lower than the 5.00% threshold, indicating inefficient asset utilization

Palo Alto Networks, Inc.'s return on equity of 6.30%, is lower than 15.00%, indicating bad performance

Palo Alto Networks, Inc.'s operating cash flow exceeds its net income, indicating high-quality earnings backed by actual cash generation

Palo Alto Networks, Inc. had positive net income in 3 out of 5 years, indicating stable and consistent earnings

Palo Alto Networks, Inc. has positive free cash flow, indicating the company generates cash after capital expenditures

Palo Alto Networks, Inc. has a free cash flow yield of 1.11%, which is below the 2.00% threshold, indicating limited cash return relative to market value

Palo Alto Networks, Inc.'s yearly earnings has decreased 56.01% since last year from $2.58B to $1.13B, signaling decreasing performance

Palo Alto Networks, Inc.'s yearly revenue has increased 14.87% since last year from $8.03B to $9.22B, signaling increasing performance

ROIC 1.67% (Source: FMP key-metrics). Below the 5% partial-credit threshold. Score: 0 of 2. The 5% and 10% cutoffs anchor to typical US weighted-average cost of capital. Below 5% indicates the company is not generating returns above its likely cost of capital under this definition of invested capital. Invested capital here includes equity, non-current liabilities (pension obligations, deferred taxes, lease obligations), and short-term debt. Cash is not subtracted. Companies with substantial float, lease portfolios, or cash holdings will score lower under this definition than under narrower operating-capital definitions. See methodology.

Palo Alto Networks, Inc.'s 3-year revenue CAGR of 18.79% is positive, indicating growing revenue over the past 3 years

Palo Alto Networks, Inc. had revenue growth in 5 out of 5 years, indicating consistent revenue performance

Palo Alto Networks, Inc. had positive ROE in 3 out of 5 years, indicating consistent and reliable returns on equity

Palo Alto Networks, Inc. is overvalued relative to its fair value price of 93.21 based on Discounted Cash Flow model

Palo Alto Networks, Inc. has an earnings yield of 0.30%, which is below the 4.00% threshold, indicating the stock may be expensive relative to its earnings

Palo Alto Networks, Inc. is overvalued relative to its fair value price of 22.77 based on EBITDA multiple model

Palo Alto Networks, Inc. has an EV/EBITDA ratio of 160.35x, which exceeds the 20.00x threshold, indicating the stock may be overvalued relative to its operating earnings

Palo Alto Networks, Inc. is overvalued relative to its fair value price of 12.05 based on Earnings Fair Value model

Palo Alto Networks, Inc. had non-positive diluted EPS five years ago; the PEG ratio is not meaningful and the check fails.

Palo Alto Networks, Inc. has a price-to-book ratio of 10.15x, which exceeds the 5.00x threshold, indicating the stock may be overvalued relative to its book value

Palo Alto Networks, Inc. has a price-to-sales ratio of 26.46x, which exceeds the 8.00x threshold, indicating the stock may be overvalued relative to its revenue