F5 INC (FFIV)
US3156161024 - Common Stock
FFIV gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 industry peers in the Communications Equipment industry. While FFIV has a great profitability rating, there are some minor concerns on its financial health. FFIV is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year FFIV was profitable.
FFIV had a positive operating cash flow in the past year.
FFIV had positive earnings in 4 of the past 5 years.
Of the past 5 years FFIV 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FFIV (10.22%) is better than 90.20% of its industry peers.
FFIV has a better Return On Equity (18.39%) than 88.24% of its industry peers.
The Return On Invested Capital of FFIV (13.49%) is better than 90.20% of its industry peers.
FFIV had an Average Return On Invested Capital over the past 3 years of 10.64%. This is in line with the industry average of 10.16%.
The 3 year average ROIC (10.64%) for FFIV is below the current ROIC(13.49%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.22% | ||
| ROE | 18.39% | ||
| ROIC | 13.49% |
ROA(3y)6.75%
ROA(5y)7.89%
ROE(3y)13.73%
ROE(5y)15.85%
ROIC(3y)10.64%
ROIC(5y)12.24%
1.3 Margins
Looking at the Profit Margin, with a value of 19.94%, FFIV belongs to the top of the industry, outperforming 98.04% of the companies in the same industry.
FFIV's Profit Margin has declined in the last couple of years.
The Operating Margin of FFIV (23.34%) is better than 94.12% of its industry peers.
FFIV's Operating Margin has declined in the last couple of years.
With an excellent Gross Margin value of 80.01%, FFIV belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
FFIV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.34% | ||
| PM (TTM) | 19.94% | ||
| GM | 80.01% |
OM growth 3Y1.88%
OM growth 5Y-7.47%
PM growth 3Y2.39%
PM growth 5Y-7.73%
GM growth 3Y-1.53%
GM growth 5Y-1.07%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FFIV is creating some value.
There is no outstanding debt for FFIV. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
2.2 Solvency
FFIV has an Altman-Z score of 5.35. This indicates that FFIV is financially healthy and has little risk of bankruptcy at the moment.
FFIV's Altman-Z score of 5.35 is amongst the best of the industry. FFIV outperforms 88.24% of its industry peers.
FFIV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 5.35 |
ROIC/WACC1.44
WACC9.36%
2.3 Liquidity
A Current Ratio of 1.36 indicates that FFIV should not have too much problems paying its short term obligations.
The Current ratio of FFIV (1.36) is worse than 80.39% of its industry peers.
FFIV has a Quick Ratio of 1.31. This is a normal value and indicates that FFIV is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.31, FFIV is not doing good in the industry: 62.75% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.31 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.18% over the past year.
The Earnings Per Share has been growing slightly by 5.19% on average over the past years.
EPS 1Y (TTM)14.18%
EPS 3Y7.18%
EPS 5Y5.19%
EPS Q2Q%4.86%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%5.62%
3.2 Future
Based on estimates for the next years, FFIV will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.55% on average per year.
The Revenue is expected to grow by 6.36% on average over the next years.
EPS Next Y8.86%
EPS Next 2Y8.38%
EPS Next 3Y8.08%
EPS Next 5Y12.55%
Revenue Next Year5.29%
Revenue Next 2Y4.54%
Revenue Next 3Y4.21%
Revenue Next 5Y6.36%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 18.27 indicates a rather expensive valuation of FFIV.
Based on the Price/Earnings ratio, FFIV is valued a bit cheaper than the industry average as 78.43% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 28.96. FFIV is valued slightly cheaper when compared to this.
The Price/Forward Earnings ratio is 16.78, which indicates a correct valuation of FFIV.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FFIV indicates a somewhat cheap valuation: FFIV is cheaper than 66.67% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.82, FFIV is valued a bit cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 16.78 |
4.2 Price Multiples
68.63% of the companies in the same industry are more expensive than FFIV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FFIV is valued a bit cheaper than 74.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.39 | ||
| EV/EBITDA | 17.41 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FFIV has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)2.06
PEG (5Y)3.52
EPS Next 2Y8.38%
EPS Next 3Y8.08%
5. Dividend
5.1 Amount
No dividends for FFIV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
F5 INC
NASDAQ:FFIV (11/21/2024, 8:00:00 PM)
Premarket: 241.09 -3.2 (-1.31%)244.29
+2.27 (+0.94%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap14.19B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
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EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 18.27 | ||
| Fwd PE | 16.78 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)2.06
PEG (5Y)3.52
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.22% | ||
| ROE | 18.39% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.34% | ||
| PM (TTM) | 19.94% | ||
| GM | 80.01% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.31 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)14.18%
EPS 3Y7.18%
EPS 5Y
EPS Q2Q%
EPS Next Y8.86%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y