PANW - Embedded Expectations Analysis - 2018 11 08
Palo Alto Networks, Inc. (PANW:USA) currently trades above corporate averages relative to UAFRS-based (Uniform) Earnings, with a 30.0x Uniform P/E. However, even at these levels, the market has bearish expectations for the firm, and management has concerns about their ability to counter cyber-criminals, Application Framework and Logging Service margins, and their ability to succeed as a product company in the industrySpecifically, management may have concerns about their ability to match
cyber-criminal's use of technology and data to prevent cyber-attacks, and to win in the cyber-security space as a product company. They may also have concerns about the impact that Application Framework and Logging Service might have on their gross margins, and about the strength of their sales coverage model. Finally, they may be exaggerating the loyalty of their customers across their product lines, and may lack confidence in their ability to meet their goal of retaining a common data set throughout their products while creating new offerings
Palo Alto Networks provides a platform that allows enterprises, service providers, and government entities to secure their organizations. The company's platform uses a traffic classification engine that identifies network traffic by application, user, and content and provides security across the network, endpoint, and cloud. The company's product, subscription, and support offerings include: firewall appliances and software; and Panorama, which is a centralized security management solution for global control of various firewall appliances and software deployed on an end-customer's network as well as in their instances in public or private cloud environments as a virtual appliance or a physical appliance.
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- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
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- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
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