Palo Alto Networks Inc. (NASDAQ:PANW)

The financial data reveals distinct trends in the cash flow performance over the time span analyzed.

Net Cash Provided by Operating Activities

This metric exhibits a steady increase throughout the periods reported, beginning at approximately 1.04 billion USD and rising consistently year over year, reaching around 3.72 billion USD by the last period. This upward trend suggests enhanced operational efficiency or growth in core business activities generating cash inflow.

Free Cash Flow to Equity (FCFE)

In contrast to operating cash flow, FCFE shows greater volatility. The figure starts relatively high at approximately 2.8 billion USD, then drops significantly to roughly 1.39 billion USD a year later. The value oscillates in subsequent years with a notable trough near 939 million USD before rising again to around 2.5 billion USD in the most recent period. This volatility indicates fluctuations in the cash available to equity holders after accounting for capital expenditures and debt-related transactions, possibly reflecting varying investment activities or financing decisions over time.

Overall, while operating cash flow has experienced consistent growth, FCFE has undergone notable fluctuations, revealing divergent trends between operating cash generation and cash flow available to equity shareholders. The general increase in operating cash flow combined with the recovery in FCFE in later periods could suggest improved financial management or strategic shifts enhancing liquidity available to investors.

Share Price

The share price exhibits a consistent upward trajectory over the analyzed periods. Beginning at $39.28 in July 2020, it more than doubles to $78.04 by July 2021. This positive momentum continues annually, reaching $190.52 by July 2025. The growth indicates increasing market confidence and a strengthening valuation over time.

Free Cash Flow to Equity (FCFE) per Share

FCFE per share presents a less consistent pattern. It starts at $4.84 in July 2020 and experiences a significant drop to $2.37 in July 2021. A moderate recovery to $2.99 follows in July 2022, but a sharp decline to $1.52 occurs in July 2023. Subsequent years see improvements again, with FCFE rising to $3.17 in July 2024 and $3.74 in July 2025. This volatility suggests fluctuations in cash generation available to shareholders, with uncertain operational or financial influences.

Price to FCFE (P/FCFE) Ratio

The P/FCFE ratio demonstrates substantial variability. Initially at 8.11 in July 2020, it escalates sharply to 32.91 by July 2021 and remains elevated at 29.54 in July 2022. A pronounced spike occurs in July 2023, reaching 79.75, before declining marginally to 52.9 in July 2024 and 50.89 in July 2025. These elevated and fluctuating ratios indicate that the market price increasingly exceeds free cash flow per share, reflecting potentially heightened growth expectations or valuation adjustments in relation to cash flow generation.