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

2.5%

NasdaqGS:FFIV

3.4%

US Communications

2.1%

US Market


1 Year Return

-30.3%

NasdaqGS:FFIV

-1.9%

US Communications

-0.04%

US Market

FFIV underperformed the Communications industry which returned -0.3% over the past year.

FFIV underperformed the Market in United States of America which returned 0.2% over the past year.


Share holder returns

FFIVIndustryMarket
7 Day2.5%3.4%2.1%
30 Day-12.4%-14.6%-3.2%
90 Day-5.5%-9.1%2.8%
1 Year-30.3%-30.3%0.2%-1.9%2.2%-0.04%
3 Year4.0%4.0%52.1%42.4%41.5%32.3%
5 Year4.6%4.6%81.2%62.6%55.0%37.8%

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?

38%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

F5 Networks's share price is below the future cash flow value, and at a moderate discount (> 20%).

F5 Networks's share price is below the future cash flow value, but not at a substantial discount (< 40%).


Price Based on Earnings

F5 Networks is good value based on earnings compared to the US Communications industry average.

F5 Networks is good value based on earnings compared to the United States of America market.


Price Based on Expected Growth

F5 Networks is poor value based on expected growth next year.


Price Based on Value of Assets

F5 Networks is overvalued based on assets compared to the US Communications industry average.


Next Steps

Future Growth

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

1.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

F5 Networks's revenue is expected to grow by 3.9% yearly, however this is not considered high growth (20% yearly).

F5 Networks's earnings are expected to grow by 1.7% yearly, however this is not considered high growth (20% yearly).

F5 Networks's revenue growth is positive but not above the United States of America market average.

F5 Networks's earnings growth is positive but not above the United States of America market average.

F5 Networks's earnings growth is positive but not above the low risk savings rate of 2.7%.


Earnings per Share Growth Estimates


Future Return on Equity

F5 Networks is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).


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

F5 Networks's year on year earnings growth rate has been positive over the past 5 years.

F5 Networks's 1-year earnings growth is less than its 5-year average (2% vs 9.1%)

F5 Networks's earnings growth has not exceeded the US Communications industry average in the past year (2% vs 23.2%).


Return on Equity

F5 Networks has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).


Return on Assets

F5 Networks used its assets more efficiently than the US Communications industry average last year based on Return on Assets.


Return on Capital Employed

F5 Networks's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).


Next Steps

Financial Health

How is F5 Networks's financial position?


Financial Position Analysis

F5 Networks is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

F5 Networks's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

F5 Networks has no debt.

F5 Networks has not taken on any debt in the past 5 years.

F5 Networks has no debt, it does not need to be covered by operating cash flow.

F5 Networks has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Low level of unsold assets.

F5 Networks has no debt, it does not need to be covered by short term assets.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate F5 Networks's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate F5 Networks's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as F5 Networks has not reported any payouts.

Unable to verify if F5 Networks's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as F5 Networks has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of F5 Networks's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

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

1.6yrs

Average management tenure


CEO

François Locoh-Donou (48yo)

2.3yrs

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

François's remuneration is about average for companies of similar size in United States of America.

François's compensation has been consistent with company performance over the past year, both up more than 20%.


Management Age and Tenure

1.6yrs

Average Tenure

48yo

Average Age

The average tenure for the F5 Networks management team is less than 2 years, this suggests a new team.


Board Age and Tenure

5.5yrs

Average Tenure

58.5yo

Average Age

The tenure for the F5 Networks board of directors is about average.


Insider Trading

F5 Networks individual insiders have only sold shares in the past 3 months, but not in substantial volumes.


Recent Insider Transactions

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: 2.3yrs
    • Compensation: US$6.86m
  • Tom Fountain (42yo)

    Executive VP & Chief Strategy Officer

    • Tenure: 1.6yrs
    • Compensation: US$4.40m
  • Geng Lin

    Executive VP & CTO

    • Tenure: 0.1yrs
  • Frank Pelzer (49yo)

    Executive VP & CFO

    • Tenure: 1.3yrs
    • Compensation: US$6.14m
  • Scot Rogers (52yo)

    Executive VP & General Counsel

    • Tenure: 5.6yrs
    • Compensation: US$3.62m
  • Steve McMillan (48yo)

    Executive Vice President of Global Services

    • Tenure: 1.8yrs
    • Compensation: US$4.69m
  • Ana White (46yo)

    Executive VP & Chief Human Resources Officer

    • Tenure: 1.6yrs
    • Compensation: US$3.85m
  • Mary Gardner

    Chief Information Security Officer

    • Tenure: 1.1yrs
  • Suzanne DuLong

    VP, Investor Relations

    • Tenure: 0.0yrs
  • Renuka Nadkarni

    VP of Business Operations & Chief of Staff to the CEO

    • Tenure: 0.8yrs

Board Members

  • John McAdam (68yo)

    • Tenure: 19.1yrs
    • Compensation: US$310.08k
  • Debbie Bevier (67yo)

    Director

    • Tenure: 13.1yrs
    • Compensation: US$342.58k
  • A. Ames (74yo)

    Director

    • Tenure: 15.1yrs
    • Compensation: US$347.58k
  • Alan Higginson (71yo)

    Non-Executive Chairman

    • Tenure: 3.7yrs
    • Compensation: US$435.08k
  • Michel Combes (57yo)

    Director

    • Tenure: 1.1yrs
    • Compensation: US$265.41k
  • Sandra Bergeron (60yo)

    Director

    • Tenure: 6.6yrs
    • Compensation: US$347.58k
  • Nick Mehta (41yo)

    Director

    • Tenure: 0.6yrs
  • Mike Dreyer (55yo)

    Director

    • Tenure: 6.8yrs
    • Compensation: US$342.58k
  • Peter Klein (57yo)

    Director

    • Tenure: 4.4yrs
    • Compensation: US$330.08k
  • François Locoh-Donou (48yo)

    President

    • Tenure: 2.3yrs
    • 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$7.778b
  • 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 Analysis2019/08/22 23:36
End of Day Share Price2019/08/22 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.