Stock Analysis on Net

Palo Alto Networks Inc. (NASDAQ:PANW)

$24.99

Net Profit Margin
since 2012

Microsoft Excel

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Calculation

Palo Alto Networks Inc., net profit margin, long-term trends, calculation

Microsoft Excel

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).

1 US$ in thousands


Revenue Trends
Revenue demonstrates a consistent and substantial upward trajectory throughout the observed period. Starting from approximately $255 million in 2012, revenue increased steadily year-over-year, reaching around $8 billion by 2024. This reflects strong growth and expansion in the company's operations over the 12-year span.
Net Income (Loss) Trends
Net income exhibits significant volatility and negative performance for the majority of the period. From a modest profit of about $0.7 million in 2012, the company experienced losses commencing in 2013, with the largest losses exceeding $498 million in 2021. Notably, in 2023 and 2024, net income reverses to positive figures, registering approximately $440 million and $2.58 billion respectively, indicating a strong turnaround in profitability.
Net Profit Margin Trends
The net profit margin aligns closely with the net income trends. Initially positive but very low at 0.29% in 2012, the margin turned negative through the following years, reaching a low of -37.86% in 2014. A gradual improvement is evident thereafter, with margins becoming less negative over time, culminating in a significant positive margin of 32.11% in 2024. The improvement suggests enhanced cost control or operational efficiency contributing to profitable growth.
Insights and Patterns
Despite robust revenue growth, profitability remained elusive for an extended period, likely reflective of high operating expenses, investments in growth initiatives, or other financial challenges. The sharp improvement in both net income and net profit margin in the latest two years signals a pivotal change in financial health. This may denote maturation of business operations, successful scaling, or improved market conditions. The correlation between accelerating revenue and the eventual improvement in profitability hints at increasing operational leverage or better margin management.

Comparison to Competitors

Palo Alto Networks Inc., net profit margin, long-term trends, comparison to competitors

Microsoft Excel

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).


Comparison to Sector (Software & Services)

Palo Alto Networks Inc., net profit margin, long-term trends, comparison to sector (software & services)

Microsoft Excel

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).


Comparison to Industry (Information Technology)

Palo Alto Networks Inc., net profit margin, long-term trends, comparison to industry (information technology)

Microsoft Excel

Based on: 10-K (reporting date: 2024-07-31), 10-K (reporting date: 2023-07-31), 10-K (reporting date: 2022-07-31), 10-K (reporting date: 2021-07-31), 10-K (reporting date: 2020-07-31), 10-K (reporting date: 2019-07-31), 10-K (reporting date: 2018-07-31), 10-K (reporting date: 2017-07-31), 10-K (reporting date: 2016-07-31), 10-K (reporting date: 2015-07-31), 10-K (reporting date: 2014-07-31), 10-K (reporting date: 2013-07-31), 10-K (reporting date: 2012-07-31).