NasdaqGS:FFIV

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

Flawless balance sheet and fair value.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

6.9%

FFIV

5.5%

US Communications

7.2%

US Market


1 Year Return

-33.6%

FFIV

-27.1%

US Communications

-10.4%

US Market

Return vs Industry: FFIV underperformed the US Communications industry which returned -28.7% over the past year.

Return vs Market: FFIV underperformed the US Market which returned -12.7% over the past year.


Shareholder returns

FFIVIndustryMarket
7 Day6.9%5.5%7.2%
30 Day-8.5%-1.6%-12.6%
90 Day-21.4%-16.4%-19.4%
1 Year-33.6%-33.6%-25.6%-27.1%-8.5%-10.4%
3 Year-21.2%-21.2%12.8%6.3%15.8%8.3%
5 Year-2.9%-2.9%43.6%28.1%35.8%21.0%

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?

46.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FFIV ($110.8) is trading below our estimate of fair value ($203.47)

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


Price To Earnings Ratio

PE vs Industry: FFIV is good value based on its PE Ratio (16.9x) compared to the Communications industry average (21.6x).

PE vs Market: FFIV is poor value based on its PE Ratio (16.9x) compared to the US market (13x).


Price to Earnings Growth Ratio

PEG Ratio: FFIV is poor value based on its PEG Ratio (1.5x)


Price to Book Ratio

PB vs Industry: FFIV is overvalued based on its PB Ratio (3.5x) compared to the US Communications industry average (1.3x).


Next Steps

Future Growth

How is F5 Networks forecast to perform in the next 1 to 3 years based on estimates from 18 analysts?

11.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FFIV's forecast earnings growth (11% per year) is above the savings rate (1.7%).

Earnings vs Market: FFIV's earnings (11% per year) are forecast to grow slower than the US market (12.3% per year).

High Growth Earnings: FFIV's earnings are forecast to grow, but not significantly.

Revenue vs Market: FFIV's revenue (4.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FFIV's revenue (4.9% 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 low in 3 years time (19.1%).


Next Steps

Past Performance

How has F5 Networks performed over the past 5 years?

6.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FFIV has high quality earnings.

Growing Profit Margin: FFIV's current net profit margins (17.4%) are lower than last year (22.7%).


Past Earnings Growth Analysis

Earnings Trend: FFIV's earnings have grown by 6.6% 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 (-20.3%) over the past year, making it difficult to compare to the Communications industry average (-13.2%).


Return on Equity

High ROE: FFIV's Return on Equity (20.5%) is considered high.


Next Steps

Financial Health

How is F5 Networks's financial position?


Financial Position Analysis

Short Term Liabilities: FFIV's short term assets ($1.7B) exceed its short term liabilities ($1.2B).

Long Term Liabilities: FFIV's short term assets ($1.7B) exceed its long term liabilities ($795.4M).


Debt to Equity History and Analysis

Debt Level: FFIV is debt free.

Reducing Debt: FFIV has not had any debt for past 5 years.

Debt Coverage: FFIV has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: FFIV has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

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

Debt Coverage by Assets: Insufficient data to determine if FFIV's debt is covered by short term assets.


Next Steps

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 payouts.

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

1.8yrs

Average management tenure


CEO

François Locoh-Donou (48yo)

2.83s

Tenure

US$9,473,457

Compensation

Mr. François 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: François's total compensation ($USD9.47M) is about average for companies of similar size in the US market ($USD7.36M).

Compensation vs Earnings: François's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
François Locoh-Donou
President2.83yrsUS$9.47m0.085% $5.7m
Francis Pelzer
Executive VP & CFO1.83yrsUS$2.89m0.018% $1.2m
Geng Lin
Executive VP & CTO0.67yrUS$3.80m0.00047% $31.4k
Scot Rogers
Executive VP6.17yrsUS$3.35m0.021% $1.4m
Mika Yamamoto
Executive VP0.83yrUS$4.26m0.00060% $40.1k
Mary Gardner
Chief Information Security Officer1.67yrsno datano data
Suzanne DuLong
VP, Investor Relationsno datano datano data
Chad Whalen
Executive Vice President of Worldwide Sales1.67yrsno data0.0053% $352.5k
Ana White
Executive VP & Chief Human Resources Officer2.17yrsUS$3.85m0.016% $1.1m
Mark Kramer
Senior Vice President of Customer Supportno datano datano data

1.8yrs

Average Tenure

48yo

Average Age

Experienced Management: FFIV's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
François Locoh-Donou
President2.83yrsUS$9.47m0.085% $5.7m
John McAdam
Director19.67yrsUS$310.14k0.020% $1.4m
Deborah Bevier
Independent Director13.67yrsUS$342.64k0.017% $1.1m
A. Ames
Independent Director15.67yrsUS$340.80k0.026% $1.7m
Alan Higginson
Independent Non-Executive Chairman4.25yrsUS$435.14k0.019% $1.3m
Michel Combes
Independent Director1.67yrsUS$322.64k0.0051% $340.5k
Sandra Bergeron
Independent Director7.17yrsUS$347.64k0.0088% $584.2k
Nikhil Mehta
Director1.17yrsUS$343.03k0.0032% $212.3k
Michael Dreyer
Independent Director7.42yrsUS$349.52k0.015% $988.2k
Peter Klein
Independent Director5yrsUS$341.14k0.014% $917.4k

6.1yrs

Average Tenure

58.5yo

Average Age

Experienced Board: FFIV's board of directors are considered experienced (6.1 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold 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$6.677b
  • Shares outstanding: 60.80m
  • Website: https://www.f5.com

Number of Employees


Location

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

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FFIVNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1999
FFVDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1999
FFVXTRA (XETRA Trading Platform)YesCommon StockDEEURJun 1999
FFIV *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1999
0IL6LSE (London Stock Exchange)YesCommon StockGBUSDJun 1999
F1FI34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 4 REPR 1 COMBRBRLJan 2020

Biography

F5 Networks, Inc. provides multi-cloud application services for the availability, security, performance, and availability of network applications, servers, and storage systems. The company’s primary application delivery technology is Traffic Management Operating System that enable company’s products to intercept, inspect, and act on the contents of traffic. It offers Local Traffic Manager; DNS solution for application security services; BIG-IP management and orchestration software; BIG-IP Virtual Edition and BIG-IP Cloud Edition software; Advanced Firewall Manager, a firewall software; and Application Security Manager and Access Policy Manager software products. The company also provides cloud-based managed services. In addition, it offers a range of professional services, including consulting, training, installation, maintenance, and other technical support services. The company sells its products to large enterprise businesses, public sector institutions, governments, and service providers through distributors, value-added resellers, managed service providers, and systems integrators in the Americas, Europe, the Middle East, Africa, Japan, and the Asia Pacific region. F5 Networks, Inc. has partnerships with public cloud providers, such as Amazon Web Services, Microsoft Azure, Google Cloud Platform, and Alibaba Cloud. The company was founded in 1996 and is headquartered in Seattle, Washington. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/31 00:53
End of Day Share Price2020/03/30 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.