FIVE9 INC (FIVN) Stock Fundamental Analysis
NASDAQ:FIVN - Nasdaq - US3383071012 - Common Stock - Currency: USD
FIVN gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. FIVN has a bad profitability rating. Also its financial health evaluation is rather negative. An interesting combination arises when we look at growth and value: FIVN is growing strongly while it also seems undervalued.
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.
Each year in the past 5 years FIVN had a positive operating cash flow.
1.2 Ratios
Looking at the Return On Assets, with a value of -0.25%, FIVN is in the better half of the industry, outperforming 63.12% of the companies in the same industry.
Looking at the Return On Equity, with a value of -0.77%, FIVN is in the better half of the industry, outperforming 64.54% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.25% | ||
| ROE | -0.77% | ||
| ROIC | N/A |
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
Looking at the Gross Margin, with a value of 54.50%, FIVN is doing worse than 65.25% of the companies in the same industry.
FIVN's Gross Margin has declined in the last couple of years.
FIVN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 54.5% |
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
FIVN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for FIVN has been increased compared to 1 year ago.
FIVN has more shares outstanding than it did 5 years ago.
FIVN has a worse debt/assets ratio than last year.
2.2 Solvency
Based on the Altman-Z score of 1.44, we must say that FIVN is in the distress zone and has some risk of bankruptcy.
FIVN has a Altman-Z score (1.44) which is comparable to the rest of the industry.
FIVN has a debt to FCF ratio of 9.58. This is a negative value and a sign of low solvency as FIVN would need 9.58 years to pay back of all of its debts.
FIVN has a Debt to FCF ratio of 9.58. This is comparable to the rest of the industry: FIVN outperforms 50.35% of its industry peers.
A Debt/Equity ratio of 1.12 is on the high side and indicates that FIVN has dependencies on debt financing.
FIVN has a worse Debt to Equity ratio (1.12) than 74.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 9.58 | ||
| Altman-Z | 1.44 |
ROIC/WACCN/A
WACC9.19%
2.3 Liquidity
A Current Ratio of 2.02 indicates that FIVN has no problem at all paying its short term obligations.
FIVN has a Current ratio of 2.02. This is in the better half of the industry: FIVN outperforms 62.06% of its industry peers.
A Quick Ratio of 2.02 indicates that FIVN has no problem at all paying its short term obligations.
The Quick ratio of FIVN (2.02) is better than 62.41% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 22.07% 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.
Looking at the last year, FIVN shows a quite strong growth in Revenue. The Revenue has grown by 14.44% in the last year.
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)22.07%
EPS 3Y28.48%
EPS 5Y24.27%
EPS Q2Q%29.17%
Revenue 1Y (TTM)14.44%
Revenue growth 3Y19.56%
Revenue growth 5Y26.01%
Sales Q2Q%13.24%
3.2 Future
Based on estimates for the next years, FIVN will show a quite strong growth in Earnings Per Share. The EPS will grow by 12.44% on average per year.
The Revenue is expected to grow by 9.83% on average over the next years. This is quite good.
EPS Next Y14.48%
EPS Next 2Y13.52%
EPS Next 3Y13.58%
EPS Next 5Y12.44%
Revenue Next Year10.74%
Revenue Next 2Y10.26%
Revenue Next 3Y9.94%
Revenue Next 5Y9.83%
3.3 Evolution
The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
FIVN is valuated reasonably with a Price/Earnings ratio of 10.23.
Compared to the rest of the industry, the Price/Earnings ratio of FIVN indicates a rather cheap valuation: FIVN is cheaper than 91.84% of the companies listed in the same industry.
The average S&P500 Price/Earnings ratio is at 27.30. FIVN is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 8.39 indicates a reasonable valuation of FIVN.
FIVN's Price/Forward Earnings ratio is rather cheap when compared to the industry. FIVN is cheaper than 94.68% of the companies in the same industry.
FIVN's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.76.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.23 | ||
| Fwd PE | 8.39 |
4.2 Price Multiples
70.57% of the companies in the same industry are more expensive than FIVN, based on the Enterprise Value to EBITDA ratio.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FIVN indicates a rather cheap valuation: FIVN is cheaper than 87.23% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.35 | ||
| EV/EBITDA | 38.13 |
4.3 Compensation for Growth
FIVN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as FIVN's earnings are expected to grow with 13.58% in the coming years.
PEG (NY)0.71
PEG (5Y)0.42
EPS Next 2Y13.52%
EPS Next 3Y13.58%
5. Dividend
5.1 Amount
FIVN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
26.6
-1.26 (-4.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners114.99%
Inst Owner Change0%
Ins Owners0.84%
Ins Owner Change2.59%
Market Cap2.03B
Analysts78
Price Target37.53 (41.09%)
Short Float %9.61%
Short Ratio3.52
Dividend
| Industry Rank | Sector 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)18.38%
Min EPS beat(2)10.4%
Max EPS beat(2)26.36%
EPS beat(4)4
Avg EPS beat(4)16.52%
Min EPS beat(4)10.4%
Max EPS beat(4)26.36%
EPS beat(8)8
Avg EPS beat(8)20.29%
EPS beat(12)12
Avg EPS beat(12)29.31%
EPS beat(16)16
Avg EPS beat(16)31.65%
Revenue beat(2)2
Avg Revenue beat(2)1.34%
Min Revenue beat(2)0.67%
Max Revenue beat(2)2.01%
Revenue beat(4)4
Avg Revenue beat(4)1.25%
Min Revenue beat(4)0.67%
Max Revenue beat(4)2.01%
Revenue beat(8)7
Avg Revenue beat(8)0.87%
Revenue beat(12)9
Avg Revenue beat(12)1.04%
Revenue beat(16)13
Avg Revenue beat(16)1.86%
PT rev (1m)-0.49%
PT rev (3m)-34.08%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.28%
EPS NY rev (1m)0.01%
EPS NY rev (3m)6.02%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.34%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.17%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.23 | ||
| Fwd PE | 8.39 | ||
| P/S | 1.89 | ||
| P/FCF | 16.35 | ||
| P/OCF | 12.74 | ||
| P/B | 3.05 | ||
| P/tB | 8.59 | ||
| EV/EBITDA | 38.13 |
EPS(TTM)2.6
EY9.77%
EPS(NY)3.17
Fwd EY11.92%
FCF(TTM)1.63
FCFY6.12%
OCF(TTM)2.09
OCFY7.85%
SpS14.1
BVpS8.71
TBVpS3.1
PEG (NY)0.71
PEG (5Y)0.42
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.25% | ||
| ROE | -0.77% | ||
| ROCE | N/A | ||
| ROIC | N/A | ||
| ROICexc | N/A | ||
| ROICexgc | N/A | ||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 54.5% | ||
| FCFM | 11.54% |
ROA(3y)-4.57%
ROA(5y)-4.42%
ROE(3y)-15.93%
ROE(5y)-17.6%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
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%
F-ScoreN/A
Asset Turnover0.51
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 1.12 | ||
| Debt/FCF | 9.58 | ||
| Debt/EBITDA | 18.81 | ||
| Cap/Depr | 46.48% | ||
| Cap/Sales | 3.27% | ||
| Interest Coverage | N/A | ||
| Cash Conversion | 401.84% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.02 | ||
| Quick Ratio | 2.02 | ||
| Altman-Z | 1.44 |
F-ScoreN/A
WACC9.19%
ROIC/WACCN/A
Cap/Depr(3y)76.73%
Cap/Depr(5y)92.09%
Cap/Sales(3y)4.74%
Cap/Sales(5y)5.63%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)22.07%
EPS 3Y28.48%
EPS 5Y24.27%
EPS Q2Q%29.17%
EPS Next Y14.48%
EPS Next 2Y13.52%
EPS Next 3Y13.58%
EPS Next 5Y12.44%
Revenue 1Y (TTM)14.44%
Revenue growth 3Y19.56%
Revenue growth 5Y26.01%
Sales Q2Q%13.24%
Revenue Next Year10.74%
Revenue Next 2Y10.26%
Revenue Next 3Y9.94%
Revenue Next 5Y9.83%
EBIT growth 1Y60.05%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year64.31%
EBIT Next 3Y32.74%
EBIT Next 5Y25.35%
FCF growth 1Y183.45%
FCF growth 3YN/A
FCF growth 5Y25.8%
OCF growth 1Y70.16%
OCF growth 3Y70.27%
OCF growth 5Y22.82%