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F5 Networks

Nasdaq:FFIV
Snowflake Description

Flawless balance sheet with solid track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FFIV
Nasdaq
$8B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

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 last earnings update was 47 days ago. More info.


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FFIV Share Price and Events
7 Day Returns
-0.9%
NasdaqGS:FFIV
-1.3%
US Communications
1.2%
US Market
1 Year Returns
-22.3%
NasdaqGS:FFIV
15.8%
US Communications
2.3%
US Market
FFIV Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
F5 Networks (FFIV) -0.9% 1.4% -9.2% -22.3% 19.2% 29.9%
US Communications -1.3% 0.3% 1.1% 15.8% 76% 89.2%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • FFIV underperformed the Communications industry which returned 15.8% over the past year.
  • FFIV underperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
FFIV
Industry
5yr Volatility vs Market
Related Companies

FFIV Value

 Is F5 Networks undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of F5 Networks to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for F5 Networks.

NasdaqGS:FFIV Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.1%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:FFIV
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.1
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.097 (1 + (1- 21%) (0%))
1.065
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.07
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.065 * 5.96%)
9.08%

Discounted Cash Flow Calculation for NasdaqGS:FFIV using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for F5 Networks is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:FFIV DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.08%)
2019 633.08 Analyst x5 580.39
2020 695.66 Analyst x5 584.68
2021 741.30 Analyst x2 571.18
2022 763.04 Est @ 2.93% 538.99
2023 784.95 Est @ 2.87% 508.32
2024 807.16 Est @ 2.83% 479.20
2025 829.76 Est @ 2.8% 451.61
2026 852.81 Est @ 2.78% 425.53
2027 876.39 Est @ 2.76% 400.89
2028 900.52 Est @ 2.75% 377.65
Present value of next 10 years cash flows $4,918.43
NasdaqGS:FFIV DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $900.52 × (1 + 2.73%) ÷ (9.08% – 2.73%)
$14,570.97
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $14,570.97 ÷ (1 + 9.08%)10
$6,110.53
NasdaqGS:FFIV Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $4,918.43 + $6,110.53
$11,028.95
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $11,028.95 / 59.70
$184.75
NasdaqGS:FFIV Discount to Share Price
Calculation Result
Value per share (USD) From above. $184.75
Current discount Discount to share price of $141.44
= -1 x ($141.44 - $184.75) / $184.75
23.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price F5 Networks is available for.
Intrinsic value
23%
Share price is $141.44 vs Future cash flow value of $184.75
Current Discount Checks
For F5 Networks to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for F5 Networks's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are F5 Networks's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:FFIV PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $8.33
NasdaqGS:FFIV Share Price ** NasdaqGS (2019-06-19) in USD $141.44
United States of America Communications Industry PE Ratio Median Figure of 36 Publicly-Listed Communications Companies 27.86x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of F5 Networks.

NasdaqGS:FFIV PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:FFIV Share Price ÷ EPS (both in USD)

= 141.44 ÷ 8.33

16.98x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does F5 Networks's expected growth come at a high price?
Raw Data
NasdaqGS:FFIV PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 16.98x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
2%per year
United States of America Communications Industry PEG Ratio Median Figure of 21 Publicly-Listed Communications Companies 1.22x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

NasdaqGS:FFIV PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 16.98x ÷ 2%

8.53x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • F5 Networks is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on F5 Networks's assets?
Raw Data
NasdaqGS:FFIV PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $24.58
NasdaqGS:FFIV Share Price * NasdaqGS (2019-06-19) in USD $141.44
United States of America Communications Industry PB Ratio Median Figure of 70 Publicly-Listed Communications Companies 1.87x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NasdaqGS:FFIV PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:FFIV Share Price ÷ Book Value per Share (both in USD)

= 141.44 ÷ 24.58

5.75x

* Primary Listing of F5 Networks.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • F5 Networks is overvalued based on assets compared to the US Communications industry average.
X
Value checks
We assess F5 Networks's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. F5 Networks has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FFIV Future Performance

 How is F5 Networks expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is F5 Networks expected to grow at an attractive rate?
  • F5 Networks's earnings growth is positive but not above the low risk savings rate of 2.7%.
Growth vs Market Checks
  • F5 Networks's earnings growth is positive but not above the United States of America market average.
  • F5 Networks's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:FFIV Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:FFIV Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 2%
NasdaqGS:FFIV Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 4.6%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 15.8%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:FFIV Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:FFIV Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2021-09-30 2,451 812 517 3
2020-09-30 2,346 798 539 6
2019-09-30 2,234 779 506 6
NasdaqGS:FFIV Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 2,194 778 503
2018-12-31 2,182 769 496
2018-09-30 2,161 761 454
2018-06-30 2,137 770 457
2018-03-31 2,112 750 431
2017-12-31 2,097 741 415
2017-09-30 2,090 740 421
2017-06-30 2,077 731 394
2017-03-31 2,056 739 388
2016-12-31 2,022 697 370
2016-09-30 1,995 712 366
2016-06-30 1,971 691 354

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • F5 Networks's earnings are expected to grow by 2% yearly, however this is not considered high growth (20% yearly).
  • F5 Networks's revenue is expected to grow by 4.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:FFIV Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from F5 Networks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FFIV Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2021-09-30 8.48 8.48 8.48 1.00
2020-09-30 9.34 10.72 7.95 3.00
2019-09-30 8.30 8.46 8.14 2.00
NasdaqGS:FFIV Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 8.33
2018-12-31 8.17
2018-09-30 7.41
2018-06-30 7.37
2018-03-31 6.89
2017-12-31 6.54
2017-09-30 6.56
2017-06-30 6.08
2017-03-31 5.92
2016-12-31 5.58
2016-09-30 5.43
2016-06-30 5.16

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if F5 Networks will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess F5 Networks's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
F5 Networks has a total score of 0/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FFIV Past Performance

  How has F5 Networks performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare F5 Networks's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • F5 Networks's year on year earnings growth rate has been positive over the past 5 years.
  • F5 Networks's 1-year earnings growth exceeds its 5-year average (16.5% vs 9.7%)
  • F5 Networks's earnings growth has exceeded the US Communications industry average in the past year (16.5% vs 14.9%).
Earnings and Revenue History
F5 Networks's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from F5 Networks Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FFIV Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 2,193.58 502.62 831.77 377.49
2018-12-31 2,181.99 496.17 823.40 372.23
2018-09-30 2,161.41 453.69 824.52 366.08
2018-06-30 2,136.70 456.55 822.24 356.49
2018-03-31 2,112.33 431.47 817.38 351.03
2017-12-31 2,097.27 414.97 810.85 349.20
2017-09-30 2,090.04 420.76 809.13 350.37
2017-06-30 2,077.39 393.95 802.62 348.63
2017-03-31 2,056.08 388.08 793.10 343.07
2016-12-31 2,021.51 370.36 781.66 340.13
2016-09-30 1,995.03 365.86 767.17 334.23
2016-06-30 1,970.99 353.96 765.16 328.15
2016-03-31 1,958.05 355.34 757.82 319.44
2015-12-31 1,946.52 365.65 748.72 307.67
2015-09-30 1,919.82 365.01 738.08 296.58
2015-06-30 1,883.79 362.00 717.13 284.32
2015-03-31 1,840.49 348.30 701.39 277.01
2014-12-31 1,788.39 332.21 685.51 269.72
2014-09-30 1,732.05 311.18 664.74 263.79
2014-06-30 1,662.11 293.39 640.65 252.86
2014-03-31 1,592.13 282.10 620.17 239.90
2013-12-31 1,522.32 275.87 598.80 225.21
2013-09-30 1,481.31 277.31 585.44 209.61
2013-06-30 1,448.54 268.80 579.41 202.88
2013-03-31 1,430.88 272.96 567.54 195.79
2012-12-31 1,420.27 278.19 556.40 186.83
2012-09-30 1,377.25 275.19 537.37 177.41
2012-06-30 1,329.30 275.08 519.87 166.23

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • F5 Networks has efficiently used shareholders’ funds last year (Return on Equity greater than 20%).
  • F5 Networks used its assets more efficiently than the US Communications industry average last year based on Return on Assets.
  • F5 Networks's use of capital deteriorated last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess F5 Networks's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
F5 Networks has a total score of 5/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FFIV Health

 How is F5 Networks's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up F5 Networks's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of F5 Networks's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • F5 Networks has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from F5 Networks Company Filings, last reported 2 months ago.

NasdaqGS:FFIV Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 1,467.41 0.00 1,313.78
2018-12-31 1,409.19 0.00 1,132.60
2018-09-30 1,285.49 0.00 1,039.41
2018-06-30 1,265.98 0.00 1,084.50
2018-03-31 1,226.61 0.00 1,024.67
2017-12-31 1,227.18 0.00 1,004.56
2017-09-30 1,229.39 0.00 1,016.93
2017-06-30 1,204.61 0.00 1,014.25
2017-03-31 1,184.61 0.00 1,014.62
2016-12-31 1,194.99 0.00 973.84
2016-09-30 1,185.26 0.00 882.40
2016-06-30 1,187.07 0.00 810.71
2016-03-31 1,180.99 0.00 775.01
2015-12-31 1,262.53 0.00 791.50
2015-09-30 1,316.73 0.00 774.34
2015-06-30 1,327.10 0.00 797.71
2015-03-31 1,321.40 0.00 666.47
2014-12-31 1,355.78 0.00 654.10
2014-09-30 1,369.31 0.00 645.38
2014-06-30 1,400.71 0.00 611.36
2014-03-31 1,414.94 0.00 623.76
2013-12-31 1,454.07 0.00 578.19
2013-09-30 1,538.71 0.00 542.14
2013-06-30 1,488.19 0.00 551.33
2013-03-31 1,428.18 0.00 522.85
2012-12-31 1,386.30 0.00 517.74
2012-09-30 1,329.40 0.00 532.15
2012-06-30 1,282.17 0.00 519.66
  • 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.
X
Financial health checks
We assess F5 Networks's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. F5 Networks has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FFIV Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from F5 Networks dividends. Estimated to be 0% next year.
If you bought $2,000 of F5 Networks shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:FFIV Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:FFIV Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2021-09-30 0.00 4.00
2020-09-30 0.00 5.00
2019-09-30 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of F5 Networks's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess F5 Networks's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can F5 Networks afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. F5 Networks has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FFIV Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
François Locoh-Donou
COMPENSATION $6,857,047
AGE 47
TENURE AS CEO 2.2 years
CEO Bio

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 rural Togo. He served as the Chief Operating Officer and Senior Vice President of Ciena Corporation from November 1, 2015 to March 23, 2017 and served as its Senior Vice President of Global Products Group from August 1, 2011 to November 1, 2015 and also as Vice President of International Sales until August 1 , 2011. He served as Vice President and General Manager of EMEA at Ciena Corporation from June 2005 to August 2011. Mr. Locoh-Donou served as Ciena's Vice President of Marketing and previously as Ciena's Country Director in Germany, where he built Ciena Corp. German sales operations, signing Ciena's first two contracts in the country. He served as Manager of Ciena's European Systems Engineering Group, based in London. Mr. Locoh-Donou worked as a Development Engineer with Photonetics (now GNNettest), where he developed novel fiber-optic sensors for high-temperature environments. He worked as a Product Manager at Level 3 Communications, focusing on the development of next-generation optical services. He has been a Director of Capital One Financial Corporation since March 1, 2019. He has been a Director at F5 Networks, Inc. since April 2017. He also serves on the Advisory Board of Jhpiego, a non-profit global health affiliate of Johns Hopkins University dedicated to providing high-quality healthcare for women and their families in developing countries. Mr. Locoh-Donou holds an M.B.A. from Stanford University, a 'Mastere' in Optical Telecommunications from the National Institute of Telecommunications of Paris (ENST), and a 'Diplome d'Ingenieur' in Physics Engineering from the National Institute of Physics in Marseille (ENSPM), France.

CEO Compensation
  • François's compensation has been consistent with company performance over the past year, both up more than 20%.
  • François's remuneration is about average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the F5 Networks management team in years:

1.4
Average Tenure
47
Average Age
  • The average tenure for the F5 Networks management team is less than 2 years, this suggests a new team.
Management Team

François Locoh-Donou

TITLE
President
COMPENSATION
$7M
AGE
47
TENURE
2.2 yrs

Frank Pelzer

TITLE
Executive VP & CFO
COMPENSATION
$6M
AGE
48
TENURE
1.1 yrs

Ana White

TITLE
Executive VP & Chief Human Resources Officer
COMPENSATION
$4M
AGE
45
TENURE
1.4 yrs

Steve McMillan

TITLE
Executive Vice President of Global Services
COMPENSATION
$5M
AGE
47
TENURE
1.7 yrs

Tom Fountain

TITLE
Executive VP & Chief Strategy Officer
COMPENSATION
$4M
AGE
41
TENURE
1.4 yrs

Renuka Nadkarni

TITLE
VP of Business Operations & Chief of Staff to the CEO
TENURE
0.7 yrs

Mary Gardner

TITLE
Chief Information Security Officer
TENURE
0.9 yrs

Suzanne DuLong

TITLE
VP, Investor Relation

Scot Rogers

TITLE
Executive VP & General Counsel
COMPENSATION
$4M
AGE
51
TENURE
5.4 yrs

Chad Whalen

TITLE
Executive Vice President of Worldwide Sales
AGE
46
TENURE
0.9 yrs
Board of Directors Tenure

Average tenure and age of the F5 Networks board of directors in years:

5.3
Average Tenure
57.5
Average Age
  • The tenure for the F5 Networks board of directors is about average.
Board of Directors

Alan Higginson

TITLE
Non-Executive Chairman
COMPENSATION
$435K
AGE
70
TENURE
3.5 yrs

François Locoh-Donou

TITLE
President
COMPENSATION
$7M
AGE
47
TENURE
2.2 yrs

Mika Yamamoto

TITLE
Executive VP
AGE
45
TENURE
0.2 yrs

Mike Dreyer

TITLE
Director
COMPENSATION
$343K
AGE
54
TENURE
6.7 yrs

Sandra Bergeron

TITLE
Director
COMPENSATION
$348K
AGE
59
TENURE
6.4 yrs

Peter Klein

TITLE
Director
COMPENSATION
$330K
AGE
56
TENURE
4.3 yrs

John McAdam

TITLE
Director
COMPENSATION
$310K
AGE
67
TENURE
18.9 yrs

A. Ames

TITLE
Director
COMPENSATION
$348K
AGE
73
TENURE
14.9 yrs

Debbie Bevier

TITLE
Director
COMPENSATION
$343K
AGE
66
TENURE
12.9 yrs

Michel Combes

TITLE
Director
COMPENSATION
$265K
AGE
56
TENURE
0.9 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
06. Nov 18 Sell Deborah Bevier Individual 06. Nov 18 06. Nov 18 -2,540 $181.25 $-460,375
23. Aug 18 Sell Michael Dreyer Individual 21. Aug 18 21. Aug 18 -5,679 $183.03 $-1,039,435
06. Aug 18 Sell Chad Whalen Individual 02. Aug 18 02. Aug 18 -119 $169.00 $-20,111
01. Aug 18 Sell Jonathan Chadwick Individual 30. Jul 18 30. Jul 18 -2,540 $170.64 $-433,427
X
Management checks
We assess F5 Networks's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. F5 Networks has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FFIV News

Simply Wall St News

Is F5 Networks, Inc.'s (NASDAQ:FFIV) 34% ROE Better Than Average?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for F5 Networks: 34% = US$503m ÷ US$1.5b (Based on the trailing twelve months to March 2019.) Most readers would understand what net profit is, but it’s worth explaining the concept of shareholders’ equity. … Combining F5 Networks's Debt And Its 34% Return On Equity F5 Networks is free of net debt, which is a positive for shareholders. … A company that can achieve a high return on equity without debt could be considered a high quality business.

Simply Wall St -

An Intrinsic Calculation For F5 Networks, Inc. (NASDAQ:FFIV) Suggests It's 27% Undervalued

Generally we assume that a dollar today is more valuable than a dollar in the future, and so the sum of these future cash flows is then discounted to today's value: 10-year free cash flow (FCF) forecast 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $622.60 $677.83 $741.30 $763.17 $785.18 $807.46 $830.11 $853.21 $876.82 $900.99 Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x2 Est @ 2.95% Est @ 2.88% Est @ 2.84% Est @ 2.81% Est @ 2.78% Est @ 2.77% Est @ 2.76% Present Value ($, Millions) Discounted @ 8.97% $571.33 $570.79 $572.83 $541.17 $510.92 $482.15 $454.86 $429.02 $404.58 $381.50 Present Value of 10-year Cash Flow (PVCF)= $4.92b "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … Terminal Value (TV) = FCF2029 × (1 + g) ÷ (r – g) = US$901m × (1 + 2.7%) ÷ (9% – 2.7%) = US$15b Present Value of Terminal Value (PVTV) = TV / (1 + r)10 = $US$15b ÷ ( 1 + 9%)10 = $6.28b The total value, or equity value, is then the sum of the present value of the future cash flows, which in this case is $11.20b. … NasdaqGS:FFIV Intrinsic value, June 5th 2019 Important assumptions Now the most important inputs to a discounted cash flow are the discount rate, and of course, the actual cash flows.

Simply Wall St -

Investors Who Bought F5 Networks (NASDAQ:FFIV) Shares Three Years Ago Are Now Up 36%

However, it's unlikely many shareholders are elated with the share price gain of 36% over that time, given the rising market. … F5 Networks was able to grow its EPS at 18% per year over three years, sending the share price higher. … A Different Perspective F5 Networks shareholders are down 16% for the year, but the market itself is up 5.2%.

Simply Wall St -

Need To Know: F5 Networks, Inc. (NASDAQ:FFIV) Insiders Have Been Selling Shares

But logic dictates you should pay some attention to whether insiders are buying or selling shares. … So what is clear is that an insider saw fit to sell at around the current price of US$154 … While we don't usually like to see insider selling, it's more concerning if the sales take price at a lower price

Simply Wall St -

Is F5 Networks, Inc.'s (NASDAQ:FFIV) Liquidity Good Enough?

Common characteristics for these big stocks are their strong balance sheet and high market liquidity, which means there's plenty of stocks available to the public for trading. … In times of low liquidity in the market, these firms won’t be left high and dry. … Today I will analyse the latest financial data for FFIV to determine is solvency and liquidity and whether the stock is a sound investment.

Simply Wall St -

Is Now The Time To Put F5 Networks (NASDAQ:FFIV) On Your Watchlist?

Some have more dollars than sense, they say, so even companies that have no revenue, no profit, and a record of falling short, can easily find investors. … Therefore, there are plenty of investors who like to buy shares in companies that are growing EPS. … Careful consideration of revenue growth and earnings before interest and taxation (EBIT) margins can help inform a view on the sustainability of the recent profit growth.

Simply Wall St -

Read This Before You Buy F5 Networks, Inc. (NASDAQ:FFIV) Because Of Its P/E Ratio

This article is for investors who would like to improve their understanding of price to earnings ratios (P/E ratios). … We'll look at F5 Networks, Inc.'s (NASDAQ:FFIV) P/E ratio and reflect on what it tells us about the company's share price. … Price to Earnings Ratio = Price per Share ÷ Earnings per Share (EPS)

Simply Wall St -

Is F5 Networks, Inc. (NASDAQ:FFIV) Potentially Undervalued?

received a lot of attention from a substantial price movement on the NASDAQGS over the last few months, increasing to $176.54 at one point, and dropping to the lows of $150.17. … Some share price movements can give investors a better opportunity to enter into the stock, and potentially buy at a lower price? … Let’s take a look at F5 Networks’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Estimating The Intrinsic Value Of F5 Networks, Inc. (NASDAQ:FFIV)

In this article I am going to calculate the intrinsic value of F5 Networks, Inc. … by projecting its future cash flows and then discounting them to today's value. … Anyone interested in learning a bit more about intrinsic value should have a read of the Simply Wall St analysis model.

Simply Wall St -

Why You Should Like F5 Networks, Inc.’s (NASDAQ:FFIV) ROCE

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Return On Capital Employed (ROCE): What is it? … ROCE is a measure of a company's yearly pre-tax profit (its return), relative to the capital employed in the business.

Simply Wall St -

FFIV Company Info

Description

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’s primary application delivery technology is Traffic Management Operating System (TMOS) that enable company’s products to intercept, inspect, and act on the contents of traffic from virtually each type of Internet Protocol-enabled application. It offers Local Traffic Manager, which provides intelligent load-balancing, traffic management, and application health checking; BIG-IP DNS that automatically directs users to the closest or best-performing physical, virtual, or cloud environment; Advanced Firewall Manager, a network firewall; and Application Security Manager, an Web application firewall that provides comprehensive, proactive, and application-layer protection against generalized and targeted attacks. The company also provides Access Policy Manager, which provides secure, granular, and context-aware access to networks and applications; Carrier-Grade Network Address Translation, which offers a set of tools that enables service providers to migrate to IPv6 while continuing to support and interoperate with existing IPv4 devices and content; and Policy Enforcement Manager that offers traffic classification capabilities to identify the specific applications and services to service providers, as well as Link Controller. In addition, it offers cloud-based and other subscription services; BIG-IP appliances; VIPRION chassis-based systems; BIG-IP Virtual Edition software platform; and management and orchestration software platform. The company sells its products to enterprise customers and service providers through distributors, value-added resellers, and systems integrators in the Americas, Europe, the Middle East, Africa, Japan, and the Asia Pacific Region. F5 Networks, Inc. was founded in 1996 and is headquartered in Seattle, Washington.

Details
Name: F5 Networks, Inc.
FFIV
Exchange: NasdaqGS
Founded: 1996
$8,443,294,179
59,695,236
Website: http://www.f5.com
Address: F5 Networks, Inc.
401 Elliott Avenue West,
Seattle,
Washington, 98119,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS FFIV Common Stock Nasdaq Global Select US USD 04. Jun 1999
DB FFV Common Stock Deutsche Boerse AG DE EUR 04. Jun 1999
LSE 0IL6 Common Stock London Stock Exchange GB USD 04. Jun 1999
BMV FFIV * Common Stock Bolsa Mexicana de Valores MX MXN 04. Jun 1999
Number of employees
Current staff
Staff numbers
4,694
F5 Networks employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/19 23:38
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/19
Last earnings filing: 2019/05/03
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/09/30


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.