NasdaqGS:FFIV

Stock Analysis Report

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Market Cap

US$11.4b

Last Updated

2021/06/15 06:23 UTC

Data Sources

Company Financials +

Executive Summary

F5 Networks, Inc. provides multi-cloud application services for the security, performance, and availability of network applications, servers, and storage systems. More Details


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has F5 Networks's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FFIV is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: FFIV's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

1.6%

FFIV

0.5%

US Communications

0.8%

US Market


1 Year Return

35.2%

FFIV

23.7%

US Communications

43.1%

US Market

Return vs Industry: FFIV exceeded the US Communications industry which returned 23.7% over the past year.

Return vs Market: FFIV underperformed the US Market which returned 43.1% over the past year.


Shareholder returns

FFIVIndustryMarket
7 Day1.6%0.5%0.8%
30 Day5.8%4.2%3.0%
90 Day-4.8%7.0%4.8%
1 Year35.2%35.2%27.0%23.7%45.5%43.1%
3 Year6.8%6.8%28.0%18.9%60.2%50.3%
5 Year60.7%60.7%97.3%74.8%126.4%101.0%

Long-Term Price Volatility Vs. Market

How volatile is F5 Networks's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is F5 Networks undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FFIV ($191.73) is trading below our estimate of fair value ($483.98)

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


Price To Earnings Ratio

PE vs Industry: FFIV is poor value based on its PE Ratio (42x) compared to the US Communications industry average (35.7x).

PE vs Market: FFIV is poor value based on its PE Ratio (42x) compared to the US market (19.7x).


Price to Earnings Growth Ratio

PEG Ratio: FFIV is poor value based on its PEG Ratio (1.9x)


Price to Book Ratio

PB vs Industry: FFIV is overvalued based on its PB Ratio (5.7x) compared to the US Communications industry average (2.6x).


Future Growth

How is F5 Networks forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

22.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFIV's forecast earnings growth (22.5% per year) is above the savings rate (2%).

Earnings vs Market: FFIV's earnings (22.5% per year) are forecast to grow faster than the US market (15.5% per year).

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

Revenue vs Market: FFIV's revenue (8% per year) is forecast to grow slower than the US market (9.3% per year).

High Growth Revenue: FFIV's revenue (8% 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 (25.7%)


Past Performance

How has F5 Networks performed over the past 5 years?

-2.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FFIV has high quality earnings.

Growing Profit Margin: FFIV's current net profit margins (11.3%) are lower than last year (14.8%).


Past Earnings Growth Analysis

Earnings Trend: FFIV's earnings have declined by 2.6% per year over the past 5 years.

Accelerating Growth: FFIV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: FFIV had negative earnings growth (-18.3%) over the past year, making it difficult to compare to the Communications industry average (89.3%).


Return on Equity

High ROE: FFIV's Return on Equity (13.9%) is considered low.


Financial Health

How is F5 Networks's financial position?


Financial Position Analysis

Short Term Liabilities: FFIV's short term assets ($1.3B) exceed its short term liabilities ($1.3B).

Long Term Liabilities: FFIV's short term assets ($1.3B) exceed its long term liabilities ($1.2B).


Debt to Equity History and Analysis

Debt Level: FFIV's debt to equity ratio (18.9%) is considered satisfactory.

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 (158.7%).

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


Balance Sheet


Dividend

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


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.


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 FFIV's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Francois Locoh-Donou (49 yo)

4.17yrs

Tenure

US$10,879,235

Compensation

Mr. Francois Locoh-Donou has been Chief Executive Officer and President at F5 Networks, Inc. since April 2017. Mr. Locoh-Donou is a Co-Founder and Chairman of Cajou Espoir, a cashew-processing business in ...


CEO Compensation Analysis

Compensation vs Market: Francois's total compensation ($USD10.88M) is about average for companies of similar size in the US market ($USD11.15M).

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 (3.1 years average tenure).


Board Members

Experienced Board: FFIV's board of directors are considered experienced (4.2 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.


Top Shareholders

Company Information

F5 Networks, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: F5 Networks, Inc.
  • Ticker: FFIV
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$11.430b
  • Shares outstanding: 59.61m
  • Website: https://www.f5.com

Number of Employees


Location

  • F5 Networks, Inc.
  • 801 5th Avenue
  • Seattle
  • Washington
  • 98104
  • United States

Listings


Biography

F5 Networks, Inc. provides multi-cloud application services for the security, performance, and availability of network applications, servers, and storage systems. The company’s multi-cloud application serv...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/06/15 06:23
End of Day Share Price2021/06/14 00:00
Earnings2021/03/31
Annual Earnings2020/09/30


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.