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FIVE9 INC (FIVN) Stock Fundamental Analysis

NASDAQ:FIVN - Nasdaq - US3383071012 - Common Stock - Currency: USD

22.25  +0.66 (+3.06%)

After market: 23 +0.75 (+3.37%)

Fundamental Rating

4

Taking everything into account, FIVN scores 4 out of 10 in our fundamental rating. FIVN was compared to 285 industry peers in the Software industry. Both the profitability and financial health of FIVN have multiple concerns. FIVN is growing strongly while it also seems undervalued. This is an interesting combination


Dividend Valuation Growth Profitability Health

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2

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.
FIVN had a positive operating cash flow in each of the past 5 years.
FIVN Yearly Net Income VS EBIT VS OCF VS FCFFIVN 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 0 50M -50M 100M

1.2 Ratios

With a decent Return On Assets value of -0.62%, FIVN is doing good in the industry, outperforming 60.70% of the companies in the same industry.
The Return On Equity of FIVN (-2.06%) is better than 60.35% of its industry peers.
Industry RankSector Rank
ROA -0.62%
ROE -2.06%
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
FIVN Yearly ROA, ROE, ROICFIVN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80

1.3 Margins

FIVN's Gross Margin of 54.17% is on the low side compared to the rest of the industry. FIVN is outperformed by 65.61% of its industry peers.
In the last couple of years the Gross Margin of FIVN has declined.
FIVN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 54.17%
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%
FIVN Yearly Profit, Operating, Gross MarginsFIVN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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2

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.
The number of shares outstanding for FIVN has been increased compared to 5 years ago.
FIVN has a worse debt/assets ratio than last year.
FIVN Yearly Shares OutstandingFIVN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M
FIVN Yearly Total Debt VS Total AssetsFIVN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

2.2 Solvency

Based on the Altman-Z score of 1.19, we must say that FIVN is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of FIVN (1.19) is comparable to the rest of the industry.
The Debt to FCF ratio of FIVN is 11.76, which is on the high side as it means it would take FIVN, 11.76 years of fcf income to pay off all of its debts.
FIVN's Debt to FCF ratio of 11.76 is in line compared to the rest of the industry. FIVN outperforms 48.77% of its industry peers.
A Debt/Equity ratio of 1.20 is on the high side and indicates that FIVN has dependencies on debt financing.
FIVN has a Debt to Equity ratio of 1.20. This is in the lower half of the industry: FIVN underperforms 76.14% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.2
Debt/FCF 11.76
Altman-Z 1.19
ROIC/WACCN/A
WACC9.15%
FIVN Yearly LT Debt VS Equity VS FCFFIVN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

FIVN has a Current Ratio of 1.95. This is a normal value and indicates that FIVN is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Current ratio, with a value of 1.95, FIVN is in line with its industry, outperforming 59.30% of the companies in the same industry.
FIVN has a Quick Ratio of 1.95. This is a normal value and indicates that FIVN is financially healthy and should not expect problems in meeting its short term obligations.
FIVN has a Quick ratio of 1.95. This is comparable to the rest of the industry: FIVN outperforms 59.30% of its industry peers.
Industry RankSector Rank
Current Ratio 1.95
Quick Ratio 1.95
FIVN Yearly Current Assets VS Current LiabilitesFIVN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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7

3. Growth

3.1 Past

FIVN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 19.42%, which is quite good.
The Earnings Per Share has been growing by 24.27% on average over the past years. This is a very strong growth
FIVN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.44%.
The Revenue has been growing by 26.01% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)19.42%
EPS 3Y28.48%
EPS 5Y24.27%
EPS Q2Q%29.51%
Revenue 1Y (TTM)14.44%
Revenue growth 3Y19.56%
Revenue growth 5Y26.01%
Sales Q2Q%16.56%

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 9.98% yearly.
The Revenue is expected to grow by 11.02% on average over the next years. This is quite good.
EPS Next Y7.92%
EPS Next 2Y11.13%
EPS Next 3Y11.89%
EPS Next 5Y9.98%
Revenue Next Year10.93%
Revenue Next 2Y10.82%
Revenue Next 3Y10.93%
Revenue Next 5Y11.02%

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
FIVN Yearly Revenue VS EstimatesFIVN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 500M 1B 1.5B 2B
FIVN Yearly EPS VS EstimatesFIVN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2016 2018 2020 2022 2024 2026 2028 2030 2032 0 2 -2 4 6

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7

4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 9.04, the valuation of FIVN can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of FIVN indicates a rather cheap valuation: FIVN is cheaper than 91.23% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FIVN to the average of the S&P500 Index (28.33), we can say FIVN is valued rather cheaply.
FIVN is valuated reasonably with a Price/Forward Earnings ratio of 8.38.
Based on the Price/Forward Earnings ratio, FIVN is valued cheaply inside the industry as 94.04% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of FIVN to the average of the S&P500 Index (21.37), we can say FIVN is valued rather cheaply.
Industry RankSector Rank
PE 9.04
Fwd PE 8.38
FIVN Price Earnings VS Forward Price EarningsFIVN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FIVN is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, FIVN is valued cheaply inside the industry as 83.86% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 16.83
EV/EBITDA 684.26
FIVN Per share dataFIVN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8 10

4.3 Compensation for Growth

FIVN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
PEG (NY)1.14
PEG (5Y)0.37
EPS Next 2Y11.13%
EPS Next 3Y11.89%

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0

5. Dividend

5.1 Amount

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

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FIVE9 INC

NASDAQ:FIVN (4/22/2025, 7:21:33 PM)

After market: 23 +0.75 (+3.37%)

22.25

+0.66 (+3.06%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)05-01 2025-05-01/amc
Inst Owners111.71%
Inst Owner Change0.77%
Ins Owners0.5%
Ins Owner Change2.43%
Market Cap1.70B
Analysts78.57
Price Target56.94 (155.91%)
Short Float %9.16%
Short Ratio4.15
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)11.62%
Min EPS beat(2)10.4%
Max EPS beat(2)12.83%
EPS beat(4)4
Avg EPS beat(4)15.79%
Min EPS beat(4)10.4%
Max EPS beat(4)23.42%
EPS beat(8)8
Avg EPS beat(8)25.03%
EPS beat(12)12
Avg EPS beat(12)32.13%
EPS beat(16)16
Avg EPS beat(16)34.48%
Revenue beat(2)2
Avg Revenue beat(2)1.77%
Min Revenue beat(2)1.54%
Max Revenue beat(2)2.01%
Revenue beat(4)4
Avg Revenue beat(4)1.31%
Min Revenue beat(4)0.78%
Max Revenue beat(4)2.01%
Revenue beat(8)7
Avg Revenue beat(8)1.16%
Revenue beat(12)9
Avg Revenue beat(12)1.39%
Revenue beat(16)13
Avg Revenue beat(16)2.46%
PT rev (1m)0%
PT rev (3m)6.1%
EPS NQ rev (1m)0.19%
EPS NQ rev (3m)1.71%
EPS NY rev (1m)2.21%
EPS NY rev (3m)2.32%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.43%
Valuation
Industry RankSector Rank
PE 9.04
Fwd PE 8.38
P/S 1.63
P/FCF 16.83
P/OCF 11.85
P/B 2.73
P/tB 8.88
EV/EBITDA 684.26
EPS(TTM)2.46
EY11.06%
EPS(NY)2.65
Fwd EY11.93%
FCF(TTM)1.32
FCFY5.94%
OCF(TTM)1.88
OCFY8.44%
SpS13.67
BVpS8.16
TBVpS2.51
PEG (NY)1.14
PEG (5Y)0.37
Profitability
Industry RankSector Rank
ROA -0.62%
ROE -2.06%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 54.17%
FCFM 9.67%
ROA(3y)-4.57%
ROA(5y)-4.42%
ROE(3y)-15.93%
ROE(5y)-17.6%
ROIC(3y)N/A
ROIC(5y)N/A
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-Score5
Asset Turnover0.51
Health
Industry RankSector Rank
Debt/Equity 1.2
Debt/FCF 11.76
Debt/EBITDA 464.13
Cap/Depr 80.12%
Cap/Sales 4.07%
Interest Coverage N/A
Cash Conversion 8936.83%
Profit Quality N/A
Current Ratio 1.95
Quick Ratio 1.95
Altman-Z 1.19
F-Score5
WACC9.15%
ROIC/WACCN/A
Cap/Depr(3y)87.17%
Cap/Depr(5y)98.35%
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)19.42%
EPS 3Y28.48%
EPS 5Y24.27%
EPS Q2Q%29.51%
EPS Next Y7.92%
EPS Next 2Y11.13%
EPS Next 3Y11.89%
EPS Next 5Y9.98%
Revenue 1Y (TTM)14.44%
Revenue growth 3Y19.56%
Revenue growth 5Y26.01%
Sales Q2Q%16.56%
Revenue Next Year10.93%
Revenue Next 2Y10.82%
Revenue Next 3Y10.93%
Revenue Next 5Y11.02%
EBIT growth 1Y47.91%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year57%
EBIT Next 3Y29.86%
EBIT Next 5Y24.7%
FCF growth 1Y3.25%
FCF growth 3YN/A
FCF growth 5Y25.8%
OCF growth 1Y11.12%
OCF growth 3Y70.27%
OCF growth 5Y22.82%