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F5 INC (FFIV) Stock Fundamental Analysis

NASDAQ:FFIV - Nasdaq - US3156161024 - Common Stock

267.74  +3.79 (+1.44%)

After market: 268.35 +0.61 (+0.23%)

Fundamental Rating

7

We assign a fundamental rating of 7 out of 10 to FFIV. FFIV was compared to 51 industry peers in the Communications Equipment industry. FFIV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FFIV has a correct valuation and a medium growth rate. These ratings could make FFIV a good candidate for quality investing.


Dividend Valuation Growth Profitability Health

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8

1. Profitability

1.1 Basic Checks

FFIV had positive earnings in the past year.
FFIV had a positive operating cash flow in the past year.
Each year in the past 5 years FFIV has been profitable.
FFIV had a positive operating cash flow in each of the past 5 years.
FFIV Yearly Net Income VS EBIT VS OCF VS FCFFFIV Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M

1.2 Ratios

FFIV's Return On Assets of 10.10% is amongst the best of the industry. FFIV outperforms 88.24% of its industry peers.
The Return On Equity of FFIV (18.11%) is better than 86.27% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.17%, FFIV belongs to the top of the industry, outperforming 88.24% of the companies in the same industry.
FFIV had an Average Return On Invested Capital over the past 3 years of 11.56%. This is in line with the industry average of 11.02%.
The 3 year average ROIC (11.56%) for FFIV is below the current ROIC(13.17%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 10.1%
ROE 18.11%
ROIC 13.17%
ROA(3y)7.91%
ROA(5y)7.39%
ROE(3y)15.09%
ROE(5y)14.61%
ROIC(3y)11.56%
ROIC(5y)10.98%
FFIV Yearly ROA, ROE, ROICFFIV Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 10 20 30

1.3 Margins

FFIV has a Profit Margin of 20.13%. This is amongst the best in the industry. FFIV outperforms 98.04% of its industry peers.
In the last couple of years the Profit Margin of FFIV has remained more or less at the same level.
The Operating Margin of FFIV (23.69%) is better than 94.12% of its industry peers.
FFIV's Operating Margin has been stable in the last couple of years.
The Gross Margin of FFIV (80.20%) is better than 100.00% of its industry peers.
FFIV's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 23.69%
PM (TTM) 20.13%
GM 80.2%
OM growth 3Y11.57%
OM growth 5Y0.25%
PM growth 3Y16.52%
PM growth 5Y1.08%
GM growth 3Y-0.45%
GM growth 5Y-0.95%
FFIV Yearly Profit, Operating, Gross MarginsFFIV Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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9

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.
The number of shares outstanding for FFIV has been reduced compared to 1 year ago.
Compared to 5 years ago, FFIV has less shares outstanding
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.
FFIV Yearly Shares OutstandingFFIV Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
FFIV Yearly Total Debt VS Total AssetsFFIV Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 5.60 indicates that FFIV is not in any danger for bankruptcy at the moment.
The Altman-Z score of FFIV (5.60) is better than 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 RankSector Rank
Debt/Equity 0
Debt/FCF 0
Altman-Z 5.6
ROIC/WACC1.35
WACC9.76%
FFIV Yearly LT Debt VS Equity VS FCFFFIV Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

2.3 Liquidity

FFIV has a Current Ratio of 1.42. This is a normal value and indicates that FFIV is financially healthy and should not expect problems in meeting its short term obligations.
FFIV has a worse Current ratio (1.42) than 76.47% of its industry peers.
A Quick Ratio of 1.36 indicates that FFIV should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, FFIV is in line with its industry, outperforming 50.98% of the companies in the same industry.
FFIV does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.42
Quick Ratio 1.36
FFIV Yearly Current Assets VS Current LiabilitesFFIV Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

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5

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.
Looking at the last year, FFIV shows a small growth in Revenue. The Revenue has grown by 0.10% in the last year.
Measured over the past years, FFIV shows a small growth in Revenue. The Revenue has been growing by 4.66% on average per year.
EPS 1Y (TTM)14.18%
EPS 3Y7.18%
EPS 5Y5.19%
EPS Q2Q%4.86%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y2.65%
Revenue growth 5Y4.66%
Sales Q2Q%5.62%

3.2 Future

FFIV is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.22% yearly.
Based on estimates for the next years, FFIV will show a small growth in Revenue. The Revenue will grow by 5.40% on average per year.
EPS Next Y8.86%
EPS Next 2Y8.38%
EPS Next 3Y8.08%
EPS Next 5Y9.22%
Revenue Next Year5.29%
Revenue Next 2Y4.54%
Revenue Next 3Y4.22%
Revenue Next 5Y5.4%

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.
The Revenue growth rate is stable: in the next years the growth will be about the same than in the last years.
FFIV Yearly Revenue VS EstimatesFFIV Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 1B 2B 3B
FFIV Yearly EPS VS EstimatesFFIV Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 5 10 15 20

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5

4. Valuation

4.1 Price/Earnings Ratio

FFIV is valuated rather expensively with a Price/Earnings ratio of 20.03.
78.43% of the companies in the same industry are more expensive than FFIV, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 28.29. FFIV is valued slightly cheaper when compared to this.
FFIV is valuated rather expensively with a Price/Forward Earnings ratio of 18.40.
FFIV's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FFIV is cheaper than 68.63% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 24.44, FFIV is valued a bit cheaper.
Industry RankSector Rank
PE 20.03
Fwd PE 18.4
FFIV Price Earnings VS Forward Price EarningsFFIV Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, FFIV is valued a bit cheaper than 68.63% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, FFIV is valued a bit cheaper than 78.43% of the companies in the same industry.
Industry RankSector Rank
P/FCF 20.59
EV/EBITDA 18.88
FFIV Per share dataFFIV EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30 40 50

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
The excellent profitability rating of FFIV may justify a higher PE ratio.
PEG (NY)2.26
PEG (5Y)3.86
EPS Next 2Y8.38%
EPS Next 3Y8.08%

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0

5. Dividend

5.1 Amount

FFIV does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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F5 INC

NASDAQ:FFIV (1/21/2025, 8:00:00 PM)

After market: 268.35 +0.61 (+0.23%)

267.74

+3.79 (+1.44%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)10-28 2024-10-28/amc
Earnings (Next)01-28 2025-01-28/amc
Inst Owners100.9%
Inst Owner Change0.11%
Ins Owners0.56%
Ins Owner Change8.51%
Market Cap15.69B
Analysts54.74
Price Target246.96 (-7.76%)
Short Float %2.68%
Short Ratio3.05
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)7.59%
Min EPS beat(2)4.33%
Max EPS beat(2)10.85%
EPS beat(4)3
Avg EPS beat(4)6.36%
Min EPS beat(4)-0.43%
Max EPS beat(4)10.85%
EPS beat(8)7
Avg EPS beat(8)6.11%
EPS beat(12)11
Avg EPS beat(12)5.77%
EPS beat(16)15
Avg EPS beat(16)5.74%
Revenue beat(2)1
Avg Revenue beat(2)-0.2%
Min Revenue beat(2)-0.61%
Max Revenue beat(2)0.2%
Revenue beat(4)1
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-2.53%
Max Revenue beat(4)0.2%
Revenue beat(8)1
Avg Revenue beat(8)-1.24%
Revenue beat(12)1
Avg Revenue beat(12)-1.17%
Revenue beat(16)2
Avg Revenue beat(16)-1.06%
PT rev (1m)1.84%
PT rev (3m)19.42%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.45%
EPS NY rev (1m)0%
EPS NY rev (3m)0.95%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.16%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.14%
Valuation
Industry RankSector Rank
PE 20.03
Fwd PE 18.4
P/S 5.57
P/FCF 20.59
P/OCF 19.8
P/B 5.01
P/tB 22.24
EV/EBITDA 18.88
EPS(TTM)13.37
EY4.99%
EPS(NY)14.55
Fwd EY5.44%
FCF(TTM)13
FCFY4.86%
OCF(TTM)13.52
OCFY5.05%
SpS48.05
BVpS53.39
TBVpS12.04
PEG (NY)2.26
PEG (5Y)3.86
Profitability
Industry RankSector Rank
ROA 10.1%
ROE 18.11%
ROCE 16.18%
ROIC 13.17%
ROICexc 17.81%
ROICexgc 86.91%
OM 23.69%
PM (TTM) 20.13%
GM 80.2%
FCFM 27.06%
ROA(3y)7.91%
ROA(5y)7.39%
ROE(3y)15.09%
ROE(5y)14.61%
ROIC(3y)11.56%
ROIC(5y)10.98%
ROICexc(3y)15.29%
ROICexc(5y)15.03%
ROICexgc(3y)179.61%
ROICexgc(5y)210.71%
ROCE(3y)14.2%
ROCE(5y)13.49%
ROICexcg growth 3Y-16.59%
ROICexcg growth 5Y-22.41%
ROICexc growth 3Y9.92%
ROICexc growth 5Y-11.36%
OM growth 3Y11.57%
OM growth 5Y0.25%
PM growth 3Y16.52%
PM growth 5Y1.08%
GM growth 3Y-0.45%
GM growth 5Y-0.95%
F-Score8
Asset Turnover0.5
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF 0
Debt/EBITDA 0
Cap/Depr 28.42%
Cap/Sales 1.08%
Interest Coverage 250
Cash Conversion 102.35%
Profit Quality 134.45%
Current Ratio 1.42
Quick Ratio 1.36
Altman-Z 5.6
F-Score8
WACC9.76%
ROIC/WACC1.35
Cap/Depr(3y)35.19%
Cap/Depr(5y)38.93%
Cap/Sales(3y)1.42%
Cap/Sales(5y)1.6%
Profit Quality(3y)137.71%
Profit Quality(5y)158.83%
High Growth Momentum
Growth
EPS 1Y (TTM)14.18%
EPS 3Y7.18%
EPS 5Y5.19%
EPS Q2Q%4.86%
EPS Next Y8.86%
EPS Next 2Y8.38%
EPS Next 3Y8.08%
EPS Next 5Y9.22%
Revenue 1Y (TTM)0.1%
Revenue growth 3Y2.65%
Revenue growth 5Y4.66%
Sales Q2Q%5.62%
Revenue Next Year5.29%
Revenue Next 2Y4.54%
Revenue Next 3Y4.22%
Revenue Next 5Y5.4%
EBIT growth 1Y24.07%
EBIT growth 3Y14.53%
EBIT growth 5Y4.92%
EBIT Next Year18.14%
EBIT Next 3Y9.06%
EBIT Next 5YN/A
FCF growth 1Y27.17%
FCF growth 3Y7.43%
FCF growth 5Y3.41%
OCF growth 1Y21.28%
OCF growth 3Y7.09%
OCF growth 5Y1.17%