F5 Networks, Inc. provides multi-cloud application services for the security, performance, and availability of network applications, servers, and storage systems. More Details
Excellent balance sheet with reasonable growth potential.
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.
7 Day Return
1 Year Return
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.
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
1 day ago | Simply Wall StHere's What's Concerning About F5 Networks' (NASDAQ:FFIV) Returns On Capital
3 weeks ago | Simply Wall StHave Insiders Been Buying F5 Networks, Inc. (NASDAQ:FFIV) Shares?
1 month ago | Simply Wall StWhen Should You Buy F5 Networks, Inc. (NASDAQ:FFIV)?
Is F5 Networks undervalued compared to its fair value and its price relative to the market?
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).
How is F5 Networks forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?
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%)
How has F5 Networks performed over the past 5 years?
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.
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 ($1.2B).
Debt to Equity History and Analysis
Debt Level: FFIV's debt to equity ratio (18.9%) is considered satisfactory.
Reducing Debt: Insufficient data to determine if FFIV's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: FFIV's debt is well covered by operating cash flow (158.7%).
Interest Coverage: FFIV earns more interest than it pays, so coverage of interest payments is not a concern.
What is F5 Networks's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FFIV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate FFIV's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FFIV's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FFIV's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of FFIV's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Francois Locoh-Donou (49 yo)
Mr. Francois Locoh-Donou has been Chief Executive Officer and President at F5 Networks, Inc. since April 2017. Mr. Locoh-Donou is a Co-Founder and Chairman of Cajou Espoir, a cashew-processing business in ...
CEO Compensation Analysis
Compensation vs Market: Francois's total compensation ($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.
Experienced Management: FFIV's management team is considered experienced (3.1 years average tenure).
Experienced Board: FFIV's board of directors are considered experienced (4.2 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
F5 Networks, Inc.'s company bio, employee growth, exchange listings and data sources
- 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
- F5 Networks, Inc.
- 801 5th Avenue
- United States
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
|Data||Last Updated (UTC time)|
|Company Analysis||2021/06/15 06:23|
|End of Day Share Price||2021/06/14 00:00|
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.