NasdaqGS:FFIV

Stock Analysis Report

Executive Summary

F5 Networks, Inc. develops, markets, and sells application delivery networking products that optimize the security, performance, and availability of network applications, servers, and storage systems.

Snowflake

Fundamentals

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


Market Performance


7 Day Return

1.8%

FFIV

-1.4%

US Communications

1.0%

US Market


1 Year Return

-18.8%

FFIV

2.4%

US Communications

6.7%

US Market

Return vs Industry: FFIV underperformed the US Communications industry which returned 2.4% over the past year.

Return vs Market: FFIV underperformed the US Market which returned 6.7% over the past year.


Share holder returns

FFIVIndustryMarket
7 Day1.8%-1.4%1.0%
30 Day-3.0%-5.7%-1.8%
90 Day-7.4%-16.0%-1.8%
1 Year-18.8%-18.8%4.7%2.4%9.1%6.7%
3 Year16.6%16.6%51.6%42.1%46.1%36.6%
5 Year20.2%20.2%95.1%74.7%66.9%48.6%

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 based on future cash flows and its price relative to the stock market?

33%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Undervalued: FFIV ($135.67) is trading below our estimate of fair value ($203.78)

Significantly Undervalued: FFIV is trading below fair value, but not by a significant amount.


Price Based on Earnings

PE vs Industry: FFIV is good value based on its PE Ratio (17.5x) compared to the Communications industry average (30.1x).

PE vs Market: FFIV is good value based on its PE Ratio (17.5x) compared to the US market (17.5x).


Price Based on Expected Growth

Low PEG Ratio: FFIV is poor value based on its PEG Ratio (14.8x)


Price Based on Value of Assets

PB vs Industry: FFIV is overvalued based on its PB Ratio (5x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

How is F5 Networks expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

1.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

Earnings vs Savings Rate: FFIV's forecast earnings growth (1.2% per year) is below the savings rate (2.7%).

Earnings vs Market: FFIV's earnings (1.2% per year) are forecast to grow slower than the US market (14.5% per year).

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

Revenue vs Market: FFIV's revenue (3.9% per year) is forecast to grow slower than the US market (7.3% per year).

High Growth Revenue: FFIV's revenue (3.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Estimates


Future Return on Equity

High Future ROE: FFIV's Return on Equity is forecast to be high in 3 years time (22.7%)


Next Steps

Past Performance

How has F5 Networks performed over the past 5 years?

9.1%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FFIV's earnings have grown by 9.1% per year over the past 5 years.

Accelerating Growth: FFIV's earnings growth over the past year (2%) is below its 5-year average (9.1% per year).

Earnings vs Industry: FFIV earnings growth over the past year (2%) underperformed the Communications industry 22.8%.


Return on Equity

High ROE: FFIV's Return on Equity (28.7%) is considered high.


Return on Assets

ROA vs Industry: FFIV has a higher Return on Assets than the Communications industry average last year.


Return on Capital Employed

ROCE Improving: FFIV's Return on Capital Employed has declined over the past 3 years.


Next Steps

Financial Health

How is F5 Networks's financial position?


Financial Position Analysis

Short Term Liabilities: FFIV's short term assets ($1.5B) exceeds its short term liabilities ($1.1B)

Long Term Liabilities: FFIV's short term assets (1.5B) exceeds its long term liabilities (481.4M)


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

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage2.6%forecastin3Years0%

Current dividend yield vs market & industry


Dividend Yield and Payments Analysis

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.

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

What is the CEO of F5 Networks's salary, the management and board of directors tenure and is there insider trading?

1.8yrs

Average management tenure


CEO

François Locoh-Donou (48yo)

2.5yrs

Tenure

US$6,857,047

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 ($USD6.86M) is about average for companies of similar size in the US market ($USD6.81M).

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


Management Age and Tenure

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 Age and Tenure

5.7yrs

Average Tenure

58.5yo

Average Age

Experienced Board: FFIV's board of directors are considered experienced (5.7 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$224,34110 Sep 19
Alan Higginson
EntityIndividual
Role
Chairman of the Board
Non-Executive Chairman
Shares1,688
Max PriceUS$132.90
SellUS$33,93115 Aug 19
Thomas Fountain
EntityIndividual
Role
Senior Key Executive
Executive VP & Chief Strategy Officer
Shares260
Max PriceUS$130.50
SellUS$460,37506 Nov 18
Deborah Bevier
EntityIndividual
Role
Member of the Board of Directors
Director
Shares2,540
Max PriceUS$181.25

Ownership Breakdown


Management Team

  • François Locoh-Donou (48yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$6.86m
  • Tom Fountain (42yo)

    Executive VP & Chief Strategy Officer

    • Tenure: 1.8yrs
    • Compensation: US$4.40m
  • Geng Lin

    Executive VP & CTO

    • Tenure: 0.3yrs
  • Frank Pelzer (49yo)

    Executive VP & CFO

    • Tenure: 1.4yrs
    • Compensation: US$6.14m
  • Scot Rogers (52yo)

    Executive VP

    • Tenure: 5.8yrs
    • Compensation: US$3.62m
  • Steve McMillan (48yo)

    Executive Vice President of Global Services

    • Tenure: 2yrs
    • Compensation: US$4.69m
  • Ana White (46yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.8yrs
    • Compensation: US$3.85m
  • Mary Gardner

    Chief Information Security Officer

    • Tenure: 1.3yrs
  • Suzanne DuLong

    VP, Investor Relations

    • Tenure: 0yrs
  • Renuka Nadkarni

    VP of Business Operations & Chief of Staff to the CEO

    • Tenure: 1yrs

Board Members

  • John McAdam (68yo)

    • Tenure: 19.3yrs
    • Compensation: US$310.08k
  • Debbie Bevier (67yo)

    Director

    • Tenure: 13.3yrs
    • Compensation: US$342.58k
  • A. Ames (74yo)

    Director

    • Tenure: 15.3yrs
    • Compensation: US$347.58k
  • Alan Higginson (71yo)

    Non-Executive Chairman

    • Tenure: 3.8yrs
    • Compensation: US$435.08k
  • Michel Combes (57yo)

    Director

    • Tenure: 1.3yrs
    • Compensation: US$265.41k
  • Sandra Bergeron (60yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$347.58k
  • Nick Mehta (41yo)

    Director

    • Tenure: 0.8yrs
  • Mike Dreyer (55yo)

    Director

    • Tenure: 7yrs
    • Compensation: US$342.58k
  • Peter Klein (57yo)

    Director

    • Tenure: 4.6yrs
    • Compensation: US$330.08k
  • François Locoh-Donou (48yo)

    President

    • Tenure: 2.5yrs
    • Compensation: US$6.86m

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$8.158b
  • Shares outstanding: 60.13m
  • Website: https://www.f5.com

Number of Employees


Location

  • F5 Networks, Inc.
  • 401 Elliott Avenue West
  • Seattle
  • Washington
  • 98119
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FFIVNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 1999
FFVDB (Deutsche Boerse AG)YesCommon StockDEEURJun 1999
FFIV *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 1999
0IL6LSE (London Stock Exchange)YesCommon StockGBUSDJun 1999

Biography

F5 Networks, Inc. develops, markets, and sells application delivery networking products that optimize the security, performance, and availability of network applications, servers, and storage systems. The  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/14 01:17
End of Day Share Price2019/10/11 00:00
Earnings2019/06/30
Annual Earnings2018/09/30


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.

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