F5 (NasdaqGS:FFIV) - Share price, News & Analysis

FFIV fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	5/6
Past Performance	3/6
Financial Health	4/6
Dividends	0/6

FFIV Stock Overview

F5, Inc. provides multi-cloud application security and delivery solutions for the security, performance, and availability of network applications, servers, and storage systems.

Rewards

Trading at 73.7% below our estimate of its fair value

Earnings are forecast to grow 24.19% per year

Risk Analysis

Significant insider selling over the past 3 months

F5 Competitors

Price History & Performance

Summary of all time highs, changes and price drops for F5
Historical stock prices
Current Share Price	US$158.47
52 Week High	US$249.00
52 Week Low	US$147.47
Beta	1.18
1 Month Change	-2.38%
3 Month Change	-24.49%
1 Year Change	-16.49%
3 Year Change	8.82%
5 Year Change	24.72%
Change since IPO	2,030.69%

Recent News & Updates

Jun 20

We Think F5 (NASDAQ:FFIV) Can Manage Its Debt With Ease

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

May 22

Is Now The Time To Look At Buying F5, Inc. (NASDAQ:FFIV)?

F5, Inc. ( NASDAQ:FFIV ), is not the largest company out there, but it received a lot of attention from a substantial...

Shareholder Returns

	FFIV	US Communications	US Market
7D	5.2%	3.4%	6.6%
1Y	-16.5%	-15.0%	-18.5%

Return vs Industry: FFIV underperformed the US Communications industry which returned -15% over the past year.

Return vs Market: FFIV exceeded the US Market which returned -18.5% over the past year.

Price Volatility

Is FFIV's price volatile compared to industry and market?
FFIV volatility
FFIV Average Weekly Movement	6.3%
Communications Industry Average Movement	8.1%
Market Average Movement	8.0%
10% most volatile stocks in US Market	16.6%
10% least volatile stocks in US Market	3.1%

Stable Share Price: FFIV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: FFIV's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1996	6,420	Francois Locoh-Donou	https://www.f5.com

F5, Inc. provides multi-cloud application security and delivery solutions for the security, performance, and availability of network applications, servers, and storage systems. The company’s multi-cloud application security and delivery solutions enable its customers to develop, deploy, operate, secure, and govern applications in any architecture, from on-premises to the public cloud. It offers application security and delivery products, including BIG-IP appliances and VIPRION chassis and related software modules and software-only Virtual Editions; Local Traffic Manager and DNS Services; Advanced Firewall Manager and Policy Enforcement Manager that leverage the unique performance characteristics of its hardware and software architecture; Application Security Manager and Access Policy Manager; NGINX Plus and NGINX Controller; Shape Defense and Enterprise Defense; Secure Web Gateway, and Silverline DDoS and Application security offerings; and online fraud and abuse prevention solutions.

F5 Fundamentals Summary

How do F5's earnings and revenue compare to its market cap?
FFIV fundamental statistics
Market Cap	US$9.58b
Earnings (TTM)	US$350.12m
Revenue (TTM)	US$2.65b

27.4x

P/E Ratio

3.6x

P/S Ratio

Is FFIV overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
FFIV income statement (TTM)
Revenue	US$2.65b
Cost of Revenue	US$511.01m
Gross Profit	US$2.14b
Other Expenses	US$1.79b
Earnings	US$350.12m

Last Reported Earnings

Mar 31, 2022

Next Earnings Date

n/a

Earnings per share (EPS)	5.79
Gross Margin	80.75%
Net Profit Margin	13.19%
Debt/Equity Ratio	15.0%

How did FFIV perform over the long term?

See historical performance and comparison

We’ve recently updated our valuation analysis.

Valuation

Is FFIV undervalued compared to its fair value, analyst forecasts and its price relative to the market?

Valuation Score

3/6

Valuation Score 3/6

Price-To-Earnings vs Peers
Price-To-Earnings vs Industry
Price-To-Earnings vs Fair Ratio
Below Fair Value
Significantly Below Fair Value
PEG Ratio

Key Valuation Metric

Which metric is best to use when looking at relative valuation for FFIV?

Other financial metrics that can be useful for relative valuation.

The above table shows the n/a ratio for FFIV. This is calculated by dividing FFIV's market cap by their current preferred multiple.
What is FFIV's n/a Ratio?
n/a Ratio	0x
n/a	n/a
Market Cap	US$9.58b

FFIV key valuation metrics and ratios. From Price to Earnings, Price to Sales and Price to Book to Price to Earnings Growth Ratio, Enterprise Value and EBITDA.
Key Statistics
Enterprise Value/Revenue	3.5x
Enterprise Value/EBITDA	16.9x
PEG Ratio	1.1x

Price to Earnings Ratio vs Peers

How does FFIV's PE Ratio compare to its peers?

FFIV PE Ratio vs Peers

The above table shows the PE ratio for FFIV vs its peers. Here we also display the market cap and forecasted growth for additional consideration.
Company	PE	Estimated Growth	Market Cap
Peer Average	27.7x

Forward PE

Price-To-Earnings vs Peers: FFIV is good value based on its Price-To-Earnings Ratio (27.4x) compared to the peer average (27.7x).

Price to Earnings Ratio vs Industry

How does FFIV's PE Ratio compare vs other companies in the U.S. Communications Industry?

Price-To-Earnings vs Industry: FFIV is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the US Communications industry average (21.9x)

Price to Earnings Ratio vs Fair Ratio

What is FFIV's PE Ratio compared to its Fair PE Ratio? This is the expected PE Ratio taking into account the company's forecast earnings growth, profit margins and other risk factors.

FFIV PE Ratio vs Fair Ratio.
Fair Ratio
Current PE Ratio	27.4x
Fair PE Ratio	26.5x

Price-To-Earnings vs Fair Ratio: FFIV is expensive based on its Price-To-Earnings Ratio (27.4x) compared to the estimated Fair Price-To-Earnings Ratio (26.5x).

Share Price vs Fair Value

What is the Fair Price of FFIV when looking at its future cash flows? For this estimate we use a Discounted Cash Flow model.

Below Fair Value: FFIV ($158.47) is trading below our estimate of fair value ($601.48)

Significantly Below Fair Value: FFIV is trading below fair value by more than 20%.

Price to Earnings Growth Ratio

PEG Ratio: FFIV is poor value based on its PEG Ratio (1.1x)

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Future Growth

How is F5 forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

Future Growth Score

5/6

Future Growth Score 5/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

24.2%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFIV's forecast earnings growth (24.2% per year) is above the savings rate (1.9%).

Earnings vs Market: FFIV's earnings (24.2% per year) are forecast to grow faster than the US market (14% per year).

High Growth Earnings: FFIV's earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: FFIV's revenue (9.6% per year) is forecast to grow faster than the US market (8.4% per year).

High Growth Revenue: FFIV's revenue (9.6% per year) is forecast to grow slower than 20% per year.

Earnings per Share Growth Forecasts

Future Return on Equity

Future ROE: FFIV's Return on Equity is forecast to be high in 3 years time (27.4%)

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Past Performance

How has F5 performed over the past 5 years?

Past Performance Score

3/6

Past Performance Score 3/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-7.6%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: FFIV has high quality earnings.

Growing Profit Margin: FFIV's current net profit margins (13.2%) are higher than last year (11.3%).

Past Earnings Growth Analysis

Earnings Trend: FFIV's earnings have declined by 7.6% per year over the past 5 years.

Accelerating Growth: FFIV's earnings growth over the past year (25.7%) exceeds its 5-year average (-7.6% per year).

Earnings vs Industry: FFIV earnings growth over the past year (25.7%) underperformed the Communications industry 35.7%.

Return on Equity

High ROE: FFIV's Return on Equity (14.6%) is considered low.

Discover strong past performing companies

Financial Health

How is F5's financial position?

Financial Health Score

4/6

Financial Health Score 4/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: FFIV's short term assets ($1.7B) do not cover its short term liabilities ($1.8B).

Long Term Liabilities: FFIV's short term assets ($1.7B) exceed its long term liabilities ($906.8M).

Debt to Equity History and Analysis

Debt Level: FFIV has more cash than its total debt.

Reducing Debt: Insufficient data to determine if FFIV's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: FFIV's debt is well covered by operating cash flow (165.9%).

Interest Coverage: FFIV earns more interest than it pays, so coverage of interest payments is not a concern.

Balance Sheet

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Dividend

What is F5 current dividend yield, its reliability and sustainability?

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

Dividend Yield vs Market

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

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

Stability and Growth of Payments

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

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

Earnings Payout to Shareholders

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

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as FFIV has not reported any payouts.

Discover strong dividend paying companies

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure

CEO

Francois Locoh-Donou (50 yo)

5.17yrs

Tenure

US$11,469,726

Compensation

Mr. Francois Locoh-Donou has been Chief Executive Officer and President at F5, Inc. (formally known as F5 Networks, Inc.) since April 2017. Mr. Locoh-Donou is a Co-Founder and Chairman of Cajou Espoir, a c...

CEO Compensation Analysis

Compensation vs Market: Francois's total compensation ($USD11.47M) is above average for companies of similar size in the US market ($USD8.44M).

Compensation vs Earnings: Francois's compensation has been consistent with company performance over the past year.

Leadership Team

Experienced Management: FFIV's management team is considered experienced (4 years average tenure).

Board Members

Experienced Board: FFIV's board of directors are considered experienced (3.4 years average tenure).

Ownership

Who are the major shareholders and have insiders been buying or selling?

Insider Trading Volume

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

Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.

Data	Last Updated (UTC time)
Company Analysis	2022/06/25 00:00
End of Day Share Price	2022/06/24 00:00
Earnings	2022/03/31
Annual Earnings	2021/09/30