NasdaqGM:FIVN

Stock Analysis Report

Executive Summary

Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally.

Snowflake

Fundamentals

Adequate balance sheet with limited growth.


Similar Companies

Share Price & News

How has Five9's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

1.8%

FIVN

0.5%

US Software

2.3%

US Market


1 Year Return

43.3%

FIVN

19.6%

US Software

5.6%

US Market

Return vs Industry: FIVN exceeded the US Software industry which returned 19.6% over the past year.

Return vs Market: FIVN exceeded the US Market which returned 5.6% over the past year.


Shareholder returns

FIVNIndustryMarket
7 Day1.8%0.5%2.3%
30 Day-1.6%0.05%-1.0%
90 Day17.4%-3.8%-0.7%
1 Year43.3%43.3%21.3%19.6%7.9%5.6%
3 Year291.0%291.0%120.2%111.6%45.6%36.3%
5 Year1180.9%1180.9%177.4%157.4%65.8%47.6%

Price Volatility Vs. Market

How volatile is Five9's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Five9 undervalued compared to its fair value and its price relative to the market?

20.28x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: FIVN ($55.72) is trading above our estimate of fair value ($21.8)

Significantly Undervalued: FIVN is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: FIVN is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: FIVN is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate FIVN's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FIVN is overvalued based on its PB Ratio (20.3x) compared to the US Software industry average (5.4x).


Next Steps

Future Growth

How is Five9 forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

96.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FIVN is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FIVN is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FIVN is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FIVN's revenue (15.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: FIVN's revenue (15.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FIVN's Return on Equity is forecast to be high in 3 years time (26.5%)


Next Steps

Past Performance

How has Five9 performed over the past 5 years?

49.2%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FIVN is unprofitable, but has reduced losses over the past 5 years at a rate of 49.2% per year.

Accelerating Growth: Unable to compare FIVN's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FIVN is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (19.1%).


Return on Equity

High ROE: FIVN has a negative Return on Equity (-0.81%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: FIVN is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: FIVN is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Five9's financial position?


Financial Position Analysis

Short Term Liabilities: FIVN's short term assets ($358.6M) exceeds its short term liabilities ($56.0M)

Long Term Liabilities: FIVN's short term assets (358.6M) exceeds its long term liabilities (213.2M)


Debt to Equity History and Analysis

Debt Level: FIVN's debt to equity ratio (121.9%) is considered high

Reducing Debt: FIVN's debt to equity ratio has increased from 68.5% to 121.9% over the past 5 years.


Balance Sheet

Inventory Level: FIVN has a low level of unsold assets or inventory.

Debt Coverage by Assets: FIVN's debt is covered by short term assets (assets are 1.766150x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable FIVN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FIVN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 77.6% per year.


Next Steps

Dividend

What is Five9's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate FIVN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FIVN's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if FIVN's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FIVN's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FIVN's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of Five9's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Rowan Trollope (46yo)

1.4yrs

Tenure

US$15,716,165

Compensation

Mr. Rowan M. Trollope has been the Chief Executive Officer and Director of Five9, Inc. since May 3, 2018. Mr. Trollope was Senior Vice President and General Manager of Internet of Things (IoT) and Applicat ...


CEO Compensation Analysis

Compensation vs. Market: Rowan has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

Compensation vs Earnings: Insufficient data to compare Rowan's compensation with company performance.


Management Age and Tenure

1.0yrs

Average Tenure

49yo

Average Age

Experienced Management: FIVN's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

5.8yrs

Average Tenure

55.5yo

Average Age

Experienced Board: FIVN's board of directors are considered experienced (5.8 years average tenure).


Insider Trading

Insider Buying: FIVN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$115,22613 Sep 19
Rowan Trollope
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares2,024
Max PriceUS$56.93
SellUS$248,89813 Sep 19
Barry Zwarenstein
EntityIndividual
Role
Chief Financial Officer
CFO & Corporate Secretary
Shares4,372
Max PriceUS$56.93
SellUS$314,53913 Sep 19
Daniel Burkland
EntityIndividual
Role
President
President
Shares5,571
Max PriceUS$56.46
SellUS$310,60009 Aug 19
Michael Burdiek
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$62.12
SellUS$1,392,50007 Aug 19
Robert Zollars
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares25,000
Max PriceUS$55.70
SellUS$560,60007 Aug 19
David Welsh
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares10,000
Max PriceUS$56.06
SellUS$441,80007 Aug 19
Kimberly Alexy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$55.75
SellUS$361,32812 Jun 19
Kimberly Alexy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares7,155
Max PriceUS$50.50
SellUS$267,38006 Jun 19
Daniel Burkland
EntityIndividual
Role
President
President
Shares5,739
Max PriceUS$46.59
SellUS$144,70606 Jun 19
Barry Zwarenstein
EntityIndividual
Role
Chief Financial Officer
CFO & Corporate Secretary
Shares3,118
Max PriceUS$46.41
SellUS$261,95030 May 19
Michael Burdiek
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,000
Max PriceUS$52.39
SellUS$4,995,47610 May 19
Michael Burkland
EntityIndividual
Role
Chairman of the Board
Executive Chairman
Shares100,000
Max PriceUS$50.35
SellUS$246,28106 Mar 19
Daniel Burkland
EntityIndividual
Role
President
President
Shares4,612
Max PriceUS$53.40
SellUS$3,970,84001 Mar 19
David DeWalt
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares74,000
Max PriceUS$53.66
SellUS$427,00028 Feb 19
Kimberly Alexy
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,000
Max PriceUS$53.50
SellUS$320,10026 Feb 19
Michael Burdiek
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,000
Max PriceUS$53.35
SellUS$1,508,50526 Feb 19
Robert Zollars
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares28,500
Max PriceUS$52.93
SellUS$317,76026 Feb 19
David Welsh
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares6,000
Max PriceUS$52.96
SellUS$434,56006 Dec 18
Daniel Burkland
EntityIndividual
Role
President
President
Shares10,222
Max PriceUS$42.85

Ownership Breakdown


Management Team

  • Barry Zwarenstein (70yo)

    CFO & Corporate Secretary

    • Tenure: 7.8yrs
    • Compensation: US$2.81m
  • Mike Burkland (56yo)

    Executive Chairman

    • Tenure: 1.8yrs
    • Compensation: US$792.72k
  • Jonathan Rosenberg (47yo)

    CTO & Head of AI

    • Tenure: 0.8yrs
  • Scott Welch (54yo)

    Executive Vice President of Cloud Operations

    • Tenure: 5.6yrs
    • Compensation: US$2.09m
  • Dan Burkland (54yo)

    President

    • Tenure: 1.8yrs
    • Compensation: US$3.40m
  • Rowan Trollope (46yo)

    CEO & Director

    • Tenure: 1.4yrs
    • Compensation: US$15.72m
  • Ryan Kam (49yo)

    Chief Marketing Officer

    • Tenure: 1yrs
    • Compensation: US$2.75m
  • James Doran (46yo)

    Executive Vice President of Strategy & Operations

    • Tenure: 0.9yrs
    • Compensation: US$3.16m
  • David Pickering (48yo)

    Executive Vice President of Engineering

    • Tenure: 0.8yrs
  • Tricia Yankovich

    Senior Vice President of Human Resources

    • Tenure: 0.8yrs

Board Members

  • Dave DeWalt (55yo)

    Independent Director

    • Tenure: 7.5yrs
    • Compensation: US$202.99k
  • Bob Zollars (62yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$212.99k
  • Michael Burdiek (60yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$212.49k
  • Dave Welsh (51yo)

    Lead Independent Director

    • Tenure: 5.7yrs
    • Compensation: US$222.49k
  • Mike Burkland (56yo)

    Executive Chairman

    • Tenure: 1.8yrs
    • Compensation: US$792.72k
  • Jack Acosta (71yo)

    Independent Director

    • Tenure: 8.5yrs
    • Compensation: US$219.99k
  • Kimberly Alexy (49yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$212.49k
  • Rowan Trollope (46yo)

    CEO & Director

    • Tenure: 1.4yrs
    • Compensation: US$15.72m

Company Information

Five9, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Five9, Inc.
  • Ticker: FIVN
  • Exchange: NasdaqGM
  • Founded: 2001
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$3.379b
  • Shares outstanding: 60.65m
  • Website: https://www.five9.com

Number of Employees


Location

  • Five9, Inc.
  • Bishop Ranch 8
  • Suite 400
  • San Ramon
  • California
  • 94583
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FIVNNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDApr 2014
1F9DB (Deutsche Boerse AG)YesCommon StockDEEURApr 2014
0TMVLSE (London Stock Exchange)YesCommon StockGBUSDApr 2014
FIVN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNApr 2014

Biography

Five9, Inc., together with its subsidiaries, provides cloud software for contact centers in the United States and internationally. The company offers virtual contact center cloud platform that delivers a s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 00:24
End of Day Share Price2019/10/16 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.