PANWPalo Alto Networks

$381.14+85% 1Y

RyuScore

Seven criteria, each scored 0 to 100 on a published scale, weighted into one number.

RyuScore 31 out of 100, Below average
Today's price. Only valuation depends on it.

Below average. Palo Alto Networks scores higher than 28% of the 2,231 companies Ryufin scores.

Carried by return on new capital and the balance sheet, held back by valuation and return on capital.

Technology median 46 · all companies 55

How the score has moved

At each fiscal year end, from the reports and price of the time
14
19
23
44
32
31
20212022202320252026today

The biggest move was up 21 points from 2023 to 2025, mostly return on new capital.

Valuation

26% of the score

0median 53

Palo Alto Networks is valued at 223x its operating profit before acquisition amortisation (EBITA), including debt: past the 60 times where this criterion gives nothing.

60x
50x
35x
25x
18x
12x
8x
223x
Full points at 8x or less, none from 60xfull points

Return on capital

18% of the score

9median 24

Over 7 years the business earned 3.3% a year after tax on the capital it uses.

2%
8%
15%
25%
3.3%
None at 2% or less, full points from 25%full points
Return on capital by year
7 years agolatest 1.9%

Return on new capital

16% of the score

100median 33

For every dollar of operating profit earned over 6 years, yearly profit grew by 43 cents. New capital earned 4%, and 1070% of profit went back into the business.

-5%
12%
43%
None at minus 5 cents, full points from 12 centsfull points

Capital allocation

14% of the score

0median 63

How management spends the money: shares bought back or issued, and whether assets grow faster than the business they serve.

Share countUp 5.7% a year over 5 years: new shares
0
5%
-3%
5.7%
0 pointsfull points
Assets against salesAssets grew 36% a year, sales 22%
0
12%
-2%
15%
0 pointsfull points

Cycle position

12% of the score

0median 63

Today's operating margin of 6% is 2.74x its normal 2.2%: near a peak, where margins tend to fall back. Normal is half the 10 year median, half the last four years, so a margin that has held is not taken for a peak.

2x
1.5x
1x
0.7x
2.7x
A trough earns points, a peak costs themfull points
Operating margin by year, against its normal level
10 years agonow 6%

Balance sheet

8% of the score

100median 50

What the debt weighs against the profit that has to carry it.

Net debt to EBITDAMore cash than debt
100
Interest coverNo interest to pay
100

Earnings quality

6% of the score

93median 90

Whether the reported profit arrives as cash, and whether the accounts show the usual signs of stretching.

Cash against profitOperating cash flow was 2.87x profit over 3 years
100
0.7x
1x
1.3x
2.9x
0 pointsfull points
AccrualsCash ran ahead of profit by 11.8% of assets
100
8%
0%
-8%
-12%
0 pointsfull points
Beneish M-score-2.58
79
-1.50
-1.78
-2.22
-3.00
-2.58
0 pointsfull points

How the RyuScore works

Each criterion earns 0 to 100 points on the scale drawn under it, and the RyuScore is their average weighted 26, 18, 16, 14, 12, 8 and 6. Scales bend in the company's favour between their ends, so an ordinary figure is never already near zero. Where a criterion cannot be measured from the filings it is taken out and the remaining weights scale up; a company needs 60% of the weight covered, and always a price, to get a score.

Built from the company's annual and quarterly filings with the SEC and today's share price. Banks, insurers and property trusts are not scored: their debt is their raw material, so these yardsticks mean something else there. Figures as of 2026-07-31, latest annual report FY2026.