F5 INC (FFIV)
US3156161024 - Common Stock
Taking everything into account, FFIV scores 7 out of 10 in our fundamental rating. FFIV was compared to 54 industry peers in the Communications Equipment industry. FFIV gets an excellent profitability rating and is at the same time showing great financial health properties. FFIV may be a bit undervalued, certainly considering the very reasonable score on growth With these ratings, FFIV could be worth investigating further for value and quality investing!.
1. Profitability
1.1 Basic Checks
In the past year FFIV was profitable.
In the past year FFIV had a positive cash flow from operations.
Each year in the past 5 years FFIV has been profitable.
In the past 5 years FFIV always reported a positive cash flow from operatings.
1.2 Ratios
The Return On Assets of FFIV (9.26%) is better than 88.89% of its industry peers.
With an excellent Return On Equity value of 16.99%, FFIV belongs to the best of the industry, outperforming 88.89% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.70%, FFIV belongs to the top of the industry, outperforming 92.59% of the companies in the same industry.
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 9.46%.
The last Return On Invested Capital (13.70%) for FFIV is above the 3 year average (10.64%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.26% | ||
| ROE | 16.99% | ||
| ROIC | 13.7% |
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
FFIV's Profit Margin of 17.91% is amongst the best of the industry. FFIV outperforms 94.44% of its industry peers.
FFIV's Profit Margin has declined in the last couple of years.
FFIV's Operating Margin of 23.17% is amongst the best of the industry. FFIV outperforms 92.59% of its industry peers.
In the last couple of years the Operating Margin of FFIV has declined.
FFIV's Gross Margin of 79.88% is amongst the best of the industry. FFIV outperforms 100.00% of its industry peers.
FFIV's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 23.17% | ||
| PM (TTM) | 17.91% | ||
| GM | 79.88% |
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
FFIV has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is creating some value.
FFIV has less shares outstanding than it did 1 year ago.
The number of shares outstanding for FFIV has been reduced compared to 5 years ago.
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
An Altman-Z score of 4.18 indicates that FFIV is not in any danger for bankruptcy at the moment.
FFIV has a Altman-Z score of 4.18. This is amongst the best in the industry. FFIV outperforms 87.04% of its industry peers.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.18 |
ROIC/WACC1.49
WACC9.22%
2.3 Liquidity
A Current Ratio of 1.30 indicates that FFIV should not have too much problems paying its short term obligations.
With a Current ratio value of 1.30, FFIV is not doing good in the industry: 72.22% of the companies in the same industry are doing better.
A Quick Ratio of 1.25 indicates that FFIV should not have too much problems paying its short term obligations.
FFIV has a Quick ratio (1.25) which is comparable to the rest of the industry.
The current and quick ratio evaluation for FFIV is rather negative, while it does have excellent solvency and profitability. These ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.25 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 28.07% over the past year.
FFIV shows a small growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 3.39% yearly.
The Revenue has been growing slightly by 0.20% in the past year.
The Revenue has been growing slightly by 5.41% on average over the past years.
EPS 1Y (TTM)28.07%
EPS 3Y7.64%
EPS 5Y3.39%
EPS Q2Q%15.02%
Revenue 1Y (TTM)0.2%
Revenue growth 3Y6.17%
Revenue growth 5Y5.41%
Sales Q2Q%-3.11%
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 12.87% on average per year.
Based on estimates for the next years, FFIV will show a small growth in Revenue. The Revenue will grow by 1.97% on average per year.
EPS Next Y9.94%
EPS Next 2Y9.43%
EPS Next 3Y8.51%
EPS Next 5Y12.87%
Revenue Next Year-1.12%
Revenue Next 2Y1.47%
Revenue Next 3Y2.02%
Revenue Next 5Y1.97%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 12.84, which indicates a correct valuation of FFIV.
FFIV's Price/Earnings ratio is a bit cheaper when compared to the industry. FFIV is cheaper than 77.78% of the companies in the same industry.
FFIV's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 28.42.
Based on the Price/Forward Earnings ratio of 11.95, the valuation of FFIV can be described as reasonable.
Based on the Price/Forward Earnings ratio, FFIV is valued a bit cheaper than 66.67% of the companies in the same industry.
FFIV's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 20.02.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.84 | ||
| Fwd PE | 11.95 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FFIV indicates a somewhat cheap valuation: FFIV is cheaper than 75.93% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FFIV is valued cheaply inside the industry as 81.48% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.18 | ||
| EV/EBITDA | 11.73 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
The excellent profitability rating of FFIV may justify a higher PE ratio.
PEG (NY)1.29
PEG (5Y)3.78
EPS Next 2Y9.43%
EPS Next 3Y8.51%
5. Dividend
5.1 Amount
FFIV does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
F5 INC
NASDAQ:FFIV (6/14/2024, 7:07:50 PM)
After market: 167.58 0 (0%)167.58
-0.38 (-0.23%)
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 Cap9.82B
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)
Max EPS beat(4)
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)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
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 | 12.84 | ||
| Fwd PE | 11.95 | ||
| 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)1.29
PEG (5Y)3.78
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.26% | ||
| ROE | 16.99% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 23.17% | ||
| PM (TTM) | 17.91% | ||
| GM | 79.88% | ||
| 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 Turnover0.52
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.3 | ||
| Quick Ratio | 1.25 | ||
| 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)28.07%
EPS 3Y7.64%
EPS 5Y
EPS Q2Q%
EPS Next Y9.94%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)0.2%
Revenue growth 3Y6.17%
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