18.37 USD
-0.91 (-4.72%)
18.69 USD
+0.32 (+1.74%)
We assign a fundamental rating of 5 out of 10 to FIVN. FIVN was compared to 278 industry peers in the Software industry. FIVN has an average financial health and profitability rating. FIVN has both an excellent growth and valuation score. This means it is growing and it is still cheap. This is a rare combination!
1. Profitability
1.1 Basic Checks
- In the past year FIVN was profitable.
- FIVN had a positive operating cash flow in the past year.
- FIVN had negative earnings in each of the past 5 years.
- In the past 5 years FIVN always reported a positive cash flow from operatings.
1.2 Ratios
- FIVN has a Return On Assets of 1.77%. This is in the better half of the industry: FIVN outperforms 61.15% of its industry peers.
- The Return On Equity of FIVN (4.03%) is better than 65.47% of its industry peers.
- The Return On Invested Capital of FIVN (0.67%) is better than 60.79% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.77% | ||
| ROE | 4.03% | ||
| ROIC | 0.67% |
ROA(3y)-4.57%
ROA(5y)-4.42%
ROE(3y)-15.93%
ROE(5y)-17.6%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
- FIVN has a Profit Margin of 2.77%. This is in the better half of the industry: FIVN outperforms 60.79% of its industry peers.
- FIVN's Operating Margin of 1.17% is fine compared to the rest of the industry. FIVN outperforms 60.43% of its industry peers.
- The Gross Margin of FIVN (55.20%) is worse than 65.83% of its industry peers.
- FIVN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 1.17% | ||
| PM (TTM) | 2.77% | ||
| GM | 55.2% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-0.82%
GM growth 5Y-1.69%
2. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), FIVN is destroying value.
- The number of shares outstanding for FIVN has been increased compared to 1 year ago.
- Compared to 5 years ago, FIVN has more shares outstanding
- Compared to 1 year ago, FIVN has a worse debt to assets ratio.
2.2 Solvency
- Based on the Altman-Z score of 1.72, we must say that FIVN is in the distress zone and has some risk of bankruptcy.
- FIVN has a Altman-Z score of 1.72. This is comparable to the rest of the industry: FIVN outperforms 45.32% of its industry peers.
- The Debt to FCF ratio of FIVN is 4.57, which is a neutral value as it means it would take FIVN, 4.57 years of fcf income to pay off all of its debts.
- FIVN's Debt to FCF ratio of 4.57 is in line compared to the rest of the industry. FIVN outperforms 58.27% of its industry peers.
- FIVN has a Debt/Equity ratio of 0.96. This is a neutral value indicating FIVN is somewhat dependend on debt financing.
- FIVN's Debt to Equity ratio of 0.96 is on the low side compared to the rest of the industry. FIVN is outperformed by 75.18% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.96 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 1.72 |
ROIC/WACC0.07
WACC9.02%
2.3 Liquidity
- A Current Ratio of 4.61 indicates that FIVN has no problem at all paying its short term obligations.
- The Current ratio of FIVN (4.61) is better than 85.97% of its industry peers.
- FIVN has a Quick Ratio of 4.61. This indicates that FIVN is financially healthy and has no problem in meeting its short term obligations.
- Looking at the Quick ratio, with a value of 4.61, FIVN belongs to the top of the industry, outperforming 86.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.61 | ||
| Quick Ratio | 4.61 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 29.39% over the past year.
- Measured over the past years, FIVN shows a very strong growth in Earnings Per Share. The EPS has been growing by 24.27% on average per year.
- FIVN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.48%.
- Measured over the past years, FIVN shows a very strong growth in Revenue. The Revenue has been growing by 26.01% on average per year.
EPS 1Y (TTM)29.39%
EPS 3Y28.48%
EPS 5Y24.27%
EPS Q2Q%16.42%
Revenue 1Y (TTM)12.48%
Revenue growth 3Y19.56%
Revenue growth 5Y26.01%
Sales Q2Q%8.2%
3.2 Future
- FIVN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.64% yearly.
- The Revenue is expected to grow by 9.27% on average over the next years. This is quite good.
EPS Next Y21.83%
EPS Next 2Y14.91%
EPS Next 3Y13.83%
EPS Next 5Y8.64%
Revenue Next Year11.22%
Revenue Next 2Y10.31%
Revenue Next 3Y9.99%
Revenue Next 5Y9.27%
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 decreasing.
- The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 6.23 indicates a rather cheap valuation of FIVN.
- FIVN's Price/Earnings ratio is rather cheap when compared to the industry. FIVN is cheaper than 93.17% of the companies in the same industry.
- FIVN is valuated cheaply when we compare the Price/Earnings ratio to 28.82, which is the current average of the S&P500 Index.
- Based on the Price/Forward Earnings ratio of 5.65, the valuation of FIVN can be described as very cheap.
- Based on the Price/Forward Earnings ratio, FIVN is valued cheaply inside the industry as 93.88% of the companies are valued more expensively.
- Compared to an average S&P500 Price/Forward Earnings ratio of 25.95, FIVN is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.23 | ||
| Fwd PE | 5.65 |
4.2 Price Multiples
- FIVN's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. FIVN is cheaper than 82.01% of the companies in the same industry.
- FIVN's Price/Free Cash Flow ratio is rather cheap when compared to the industry. FIVN is cheaper than 93.88% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 8.74 | ||
| EV/EBITDA | 16.37 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- FIVN's earnings are expected to grow with 13.83% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.29
PEG (5Y)0.26
EPS Next 2Y14.91%
EPS Next 3Y13.83%
5. Dividend
5.1 Amount
- FIVN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FIVE9 INC / FIVN FAQ
What is the ChartMill fundamental rating of FIVE9 INC (FIVN) stock?
ChartMill assigns a fundamental rating of 5 / 10 to FIVN.
Can you provide the valuation status for FIVE9 INC?
ChartMill assigns a valuation rating of 9 / 10 to FIVE9 INC (FIVN). This can be considered as Undervalued.
What is the profitability of FIVN stock?
FIVE9 INC (FIVN) has a profitability rating of 4 / 10.
How financially healthy is FIVE9 INC?
The financial health rating of FIVE9 INC (FIVN) is 4 / 10.
What is the expected EPS growth for FIVE9 INC (FIVN) stock?
The Earnings per Share (EPS) of FIVE9 INC (FIVN) is expected to grow by 21.83% in the next year.