F5 INC (FFIV) Stock Fundamental Analysis
NASDAQ:FFIV - Nasdaq - US3156161024 - Common Stock - Currency: USD
Taking everything into account, FFIV scores 7 out of 10 in our fundamental rating. FFIV was compared to 50 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 has a correct valuation and a medium growth rate. These ratings could make FFIV a good candidate for 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.
FFIV had positive earnings in each of the past 5 years.
FFIV had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
FFIV has a Return On Assets of 10.52%. This is amongst the best in the industry. FFIV outperforms 90.00% of its industry peers.
FFIV's Return On Equity of 18.75% is amongst the best of the industry. FFIV outperforms 88.00% of its industry peers.
FFIV has a Return On Invested Capital of 13.55%. This is amongst the best in the industry. FFIV outperforms 86.00% of its industry peers.
The Average Return On Invested Capital over the past 3 years for FFIV is below the industry average of 13.82%.
The 3 year average ROIC (11.56%) for FFIV is below the current ROIC(13.55%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 18.75% | ||
| ROIC | 13.55% |
ROA(3y)7.91%
ROA(5y)7.39%
ROE(3y)15.09%
ROE(5y)14.61%
ROIC(3y)11.56%
ROIC(5y)10.98%
1.3 Margins
Looking at the Profit Margin, with a value of 21.14%, FFIV belongs to the top of the industry, outperforming 96.00% of the companies in the same industry.
FFIV's Profit Margin has been stable in the last couple of years.
With an excellent Operating Margin value of 24.82%, FFIV belongs to the best of the industry, outperforming 94.00% of the companies in the same industry.
In the last couple of years the Operating Margin of FFIV has remained more or less at the same level.
The Gross Margin of FFIV (80.90%) is better than 100.00% of its industry peers.
In the last couple of years the Gross Margin of FFIV has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 24.82% | ||
| PM (TTM) | 21.14% | ||
| GM | 80.9% |
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%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so FFIV is still creating some value.
Compared to 1 year ago, FFIV has less shares outstanding
FFIV has less shares outstanding than it did 5 years ago.
FFIV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
2.2 Solvency
FFIV has an Altman-Z score of 5.76. This indicates that FFIV is financially healthy and has little risk of bankruptcy at the moment.
FFIV has a better Altman-Z score (5.76) than 84.00% 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 | 5.76 |
ROIC/WACC1.34
WACC10.11%
2.3 Liquidity
FFIV has a Current Ratio of 1.53. 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 (1.53) than 62.00% of its industry peers.
FFIV has a Quick Ratio of 1.49. 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 Quick ratio (1.49) which is in line with its industry peers.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.49 |
3. Growth
3.1 Past
FFIV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 9.50%, which is quite good.
Measured over the past 5 years, FFIV shows a small growth in Earnings Per Share. The EPS has been growing by 5.19% on average per year.
The Revenue has been growing slightly by 5.61% in the past 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)9.5%
EPS 3Y7.18%
EPS 5Y5.19%
EPS Q2Q%17.53%
Revenue 1Y (TTM)5.61%
Revenue growth 3Y2.65%
Revenue growth 5Y4.66%
Sales Q2Q%7.3%
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 10.85% on average per year.
The Revenue is expected to grow by 6.91% on average over the next years.
EPS Next Y11.37%
EPS Next 2Y9.31%
EPS Next 3Y8.52%
EPS Next 5Y10.85%
Revenue Next Year7.95%
Revenue Next 2Y5.95%
Revenue Next 3Y5.21%
Revenue Next 5Y6.91%
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 accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
FFIV is valuated rather expensively with a Price/Earnings ratio of 20.60.
Compared to the rest of the industry, the Price/Earnings ratio of FFIV indicates a somewhat cheap valuation: FFIV is cheaper than 70.00% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of FFIV to the average of the S&P500 Index (27.15), we can say FFIV is valued slightly cheaper.
The Price/Forward Earnings ratio is 18.42, which indicates a rather expensive current valuation of FFIV.
FFIV's Price/Forward Earnings is on the same level as the industry average.
FFIV is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.60, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 18.42 |
4.2 Price Multiples
64.00% of the companies in the same industry are more expensive than FFIV, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, FFIV is valued a bit cheaper than the industry average as 68.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 20.26 | ||
| EV/EBITDA | 18.98 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
FFIV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.81
PEG (5Y)3.97
EPS Next 2Y9.31%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
No dividends for FFIV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
294.32
-1.43 (-0.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners101.14%
Inst Owner Change1.25%
Ins Owners0.63%
Ins Owner Change-5.35%
Market Cap16.90B
Analysts54.44
Price Target294.92 (0.2%)
Short Float %3.17%
Short Ratio3.63
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)10.04%
Min EPS beat(2)8.01%
Max EPS beat(2)12.06%
EPS beat(4)4
Avg EPS beat(4)8.81%
Min EPS beat(4)4.33%
Max EPS beat(4)12.06%
EPS beat(8)7
Avg EPS beat(8)7.81%
EPS beat(12)11
Avg EPS beat(12)6.97%
EPS beat(16)15
Avg EPS beat(16)6.66%
Revenue beat(2)1
Avg Revenue beat(2)2.37%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)5.04%
Revenue beat(4)2
Avg Revenue beat(4)1.08%
Min Revenue beat(4)-0.61%
Max Revenue beat(4)5.04%
Revenue beat(8)2
Avg Revenue beat(8)-0.22%
Revenue beat(12)2
Avg Revenue beat(12)-0.58%
Revenue beat(16)3
Avg Revenue beat(16)-0.61%
PT rev (1m)0.06%
PT rev (3m)-5.12%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-1.45%
EPS NY rev (1m)0%
EPS NY rev (3m)1.47%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.61%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.42%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 20.6 | ||
| Fwd PE | 18.42 | ||
| P/S | 5.75 | ||
| P/FCF | 20.26 | ||
| P/OCF | 19.54 | ||
| P/B | 5.1 | ||
| P/tB | 18.75 | ||
| EV/EBITDA | 18.98 |
EPS(TTM)14.29
EY4.86%
EPS(NY)15.97
Fwd EY5.43%
FCF(TTM)14.53
FCFY4.94%
OCF(TTM)15.06
OCFY5.12%
SpS51.19
BVpS57.71
TBVpS15.7
PEG (NY)1.81
PEG (5Y)3.97
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.52% | ||
| ROE | 18.75% | ||
| ROCE | 16.65% | ||
| ROIC | 13.55% | ||
| ROICexc | 19.01% | ||
| ROICexgc | 83.54% | ||
| OM | 24.82% | ||
| PM (TTM) | 21.14% | ||
| GM | 80.9% | ||
| FCFM | 28.38% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 32.14% | ||
| Cap/Sales | 1.04% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 104.91% | ||
| Profit Quality | 134.28% | ||
| Current Ratio | 1.53 | ||
| Quick Ratio | 1.49 | ||
| Altman-Z | 5.76 |
F-Score8
WACC10.11%
ROIC/WACC1.34
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)9.5%
EPS 3Y7.18%
EPS 5Y5.19%
EPS Q2Q%17.53%
EPS Next Y11.37%
EPS Next 2Y9.31%
EPS Next 3Y8.52%
EPS Next 5Y10.85%
Revenue 1Y (TTM)5.61%
Revenue growth 3Y2.65%
Revenue growth 5Y4.66%
Sales Q2Q%7.3%
Revenue Next Year7.95%
Revenue Next 2Y5.95%
Revenue Next 3Y5.21%
Revenue Next 5Y6.91%
EBIT growth 1Y13.11%
EBIT growth 3Y14.53%
EBIT growth 5Y4.92%
EBIT Next Year21.27%
EBIT Next 3Y9.79%
EBIT Next 5YN/A
FCF growth 1Y72.85%
FCF growth 3Y7.43%
FCF growth 5Y3.41%
OCF growth 1Y64.95%
OCF growth 3Y7.09%
OCF growth 5Y1.17%