F5 INC (FFIV)
US3156161024 - Common Stock
FFIV gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 industry peers in the Communications Equipment industry. FFIV has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FFIV has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
FFIV had positive earnings in the past year.
In the past year FFIV had a positive cash flow from operations.
In the past 5 years FFIV has always been profitable.
Each year in the past 5 years FFIV had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FFIV (8.62%) is better than 88.89% of its industry peers.
FFIV has a better Return On Equity (16.11%) than 88.89% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.17%, FFIV belongs to the top of the industry, outperforming 88.89% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for FFIV is in line with the industry average of 10.47%.
The 3 year average ROIC (10.64%) for FFIV is below the current ROIC(13.17%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 16.11% | ||
| ROIC | 13.17% |
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 has a better Profit Margin (16.43%) than 92.59% of its industry peers.
FFIV's Profit Margin has declined in the last couple of years.
FFIV has a Operating Margin of 21.78%. This is amongst the best in the industry. FFIV outperforms 92.59% of its industry peers.
FFIV's Operating Margin has declined in the last couple of years.
Looking at the Gross Margin, with a value of 79.51%, FFIV belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
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 | 21.78% | ||
| PM (TTM) | 16.43% | ||
| GM | 79.51% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), FFIV is creating some value.
FFIV has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, FFIV has less shares outstanding
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
FFIV has an Altman-Z score of 4.09. This indicates that FFIV is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.09, FFIV belongs to the top of the industry, outperforming 87.04% of the companies in the same industry.
FFIV has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Altman-Z | 4.09 |
ROIC/WACC1.39
WACC9.45%
2.3 Liquidity
A Current Ratio of 1.29 indicates that FFIV should not have too much problems paying its short term obligations.
FFIV has a worse Current ratio (1.29) than 74.07% of its industry peers.
FFIV has a Quick Ratio of 1.26. This is a normal value and indicates that FFIV is financially healthy and should not expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 1.26, FFIV is in line with its industry, outperforming 42.59% of the companies in the same 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 | 1.29 | ||
| Quick Ratio | 1.26 |
3. Growth
3.1 Past
FFIV shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 29.42%, which is quite impressive.
The Earnings Per Share has been growing slightly by 3.39% on average over the past years.
The Revenue has been growing slightly by 3.55% in the past year.
FFIV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 5.41% yearly.
EPS 1Y (TTM)29.42%
EPS 3Y7.64%
EPS 5Y3.39%
EPS growth Q2Q38.87%
Revenue 1Y (TTM)3.55%
Revenue growth 3Y6.17%
Revenue growth 5Y5.41%
Revenue growth Q2Q-1.11%
3.2 Future
The Earnings Per Share is expected to grow by 7.10% on average over the next years.
The Revenue is expected to grow by 2.36% on average over the next years.
EPS Next Y9.72%
EPS Next 2Y9.92%
EPS Next 3Y9.49%
EPS Next 5Y7.1%
Revenue Next Year-0.84%
Revenue Next 2Y1.66%
Revenue Next 3Y1.98%
Revenue Next 5Y2.36%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last 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
FFIV is valuated correctly with a Price/Earnings ratio of 14.22.
Based on the Price/Earnings ratio, FFIV is valued a bit cheaper than the industry average as 70.37% of the companies are valued more expensively.
FFIV's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 25.20.
With a Price/Forward Earnings ratio of 12.74, FFIV is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of FFIV indicates a somewhat cheap valuation: FFIV is cheaper than 68.52% of the companies listed in the same industry.
FFIV is valuated rather cheaply 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 | 14.22 | ||
| Fwd PE | 12.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FFIV is valued a bit cheaper than the industry average as 72.22% of the companies are valued more expensively.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of FFIV indicates a somewhat cheap valuation: FFIV is cheaper than 75.93% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.96 | ||
| EV/EBITDA | 12.25 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
FFIV has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)1.46
PEG (5Y)4.19
EPS Next 2Y9.92%
EPS Next 3Y9.49%
5. Dividend
5.1 Amount
No dividends for FFIV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
F5 INC
NASDAQ:FFIV (4/23/2024, 7:00:00 PM)
After market: 180.23 0 (0%)180.23
+0.68 (+0.38%)
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 Cap9.75B
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)
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Min EPS beat(2)
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EPS beat(8)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(8)
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Revenue beat(16)
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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 | 14.22 | ||
| Fwd PE | 12.74 | ||
| 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)1.46
PEG (5Y)4.19
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 8.62% | ||
| ROE | 16.11% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 21.78% | ||
| PM (TTM) | 16.43% | ||
| GM | 79.51% | ||
| 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 | 1.29 | ||
| Quick Ratio | 1.26 | ||
| 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)
Growth
EPS 1Y (TTM)29.42%
EPS 3Y7.64%
EPS 5Y
EPS growth Q2Q
EPS Next Y9.72%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)3.55%
Revenue growth 3Y6.17%
Revenue growth 5Y
Revenue growth 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