FCF Yield

A Free Cash Flow (FCF) Yield of 1.2% means for every dollar of PANW’s stock price, the company generates about 1.2 cents of free cash flow — cash left after operating and capital expenses — a measure of financial efficiency.

This yield sits well below the sector median of 4.2%, ranking PANW in the 18th percentile among its peers, indicating it offers much less cash return relative to its price than most competitors. The metric has been decreasing over the last eight quarters; the year-over-year change is not available, but the quarter-over-quarter change shows a decline of -7.7%. Combining a very low yield with a downward trend suggests heightened risk: the company’s cash generation is not only weak versus peers but also deteriorating, leaving little margin for error. This weak level and negative trend contrast with the overall NEUTRAL verdict, as the metric underperforms and weakens, yet the verdict likely incorporates offsetting factors such as growth prospects or valuation elsewhere.

Frequently Asked Questions

Closest Sector Peers