F5 INC (FFIV) Stock Fundamental Analysis
NASDAQ:FFIV - Nasdaq - US3156161024 - Common Stock - Currency: USD
FFIV gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. Both the health and profitability get an excellent rating, making FFIV a very profitable company, without any liquidiy or solvency issues. FFIV is not valued too expensively and it also shows a decent growth rate. With these ratings, FFIV could be worth investigating further 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.
Each year in the past 5 years FFIV had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 10.91%, FFIV belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
FFIV has a Return On Equity of 19.22%. This is amongst the best in the industry. FFIV outperforms 85.42% of its industry peers.
FFIV has a Return On Invested Capital of 13.60%. This is amongst the best in the industry. FFIV outperforms 85.42% of its industry peers.
FFIV had an Average Return On Invested Capital over the past 3 years of 11.56%. This is below the industry average of 13.64%.
The 3 year average ROIC (11.56%) for FFIV is below the current ROIC(13.60%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.91% | ||
| ROE | 19.22% | ||
| ROIC | 13.6% |
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
FFIV has a Profit Margin of 22.06%. This is amongst the best in the industry. FFIV outperforms 95.83% of its industry peers.
FFIV's Profit Margin has been stable in the last couple of years.
FFIV has a better Operating Margin (25.21%) than 95.83% of its industry peers.
In the last couple of years the Operating Margin of FFIV has remained more or less at the same level.
FFIV has a Gross Margin of 81.03%. This is amongst the best in the industry. FFIV outperforms 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 | 25.21% | ||
| PM (TTM) | 22.06% | ||
| GM | 81.03% |
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
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.
FFIV has less shares outstanding than it did 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 6.08 indicates that FFIV is not in any danger for bankruptcy at the moment.
The Altman-Z score of FFIV (6.08) is better than 89.58% 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 | 6.08 |
ROIC/WACC1.36
WACC9.97%
2.3 Liquidity
FFIV has a Current Ratio of 1.60. This is a normal value and indicates that FFIV is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FFIV (1.60) is worse than 60.42% of its industry peers.
FFIV has a Quick Ratio of 1.56. 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 1.56, FFIV is in line with its industry, outperforming 58.33% 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 | 1.6 | ||
| Quick Ratio | 1.56 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 14.32% over the past year.
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 grown by 8.94% in the past year. This is quite good.
FFIV shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.66% yearly.
EPS 1Y (TTM)14.32%
EPS 3Y7.18%
EPS 5Y5.19%
EPS Q2Q%23.81%
Revenue 1Y (TTM)8.94%
Revenue growth 3Y2.65%
Revenue growth 5Y4.66%
Sales Q2Q%12.2%
3.2 Future
The Earnings Per Share is expected to grow by 10.85% on average over the next years. This is quite good.
Based on estimates for the next years, FFIV will show a small growth in Revenue. The Revenue will grow by 6.91% on average per year.
EPS Next Y11.48%
EPS Next 2Y9.24%
EPS Next 3Y8.52%
EPS Next 5Y10.85%
Revenue Next Year8.16%
Revenue Next 2Y6.17%
Revenue Next 3Y5.49%
Revenue Next 5Y6.91%
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 accelerating.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 21.08, which indicates a rather expensive current valuation of FFIV.
Based on the Price/Earnings ratio, FFIV is valued a bit cheaper than 66.67% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.41, FFIV is valued a bit cheaper.
Based on the Price/Forward Earnings ratio of 19.94, the valuation of FFIV can be described as rather expensive.
FFIV's Price/Forward Earnings is on the same level as the industry average.
FFIV is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 33.87, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 19.94 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FFIV is on the same level as its industry peers.
Based on the Price/Free Cash Flow ratio, FFIV is valued a bit cheaper than 70.83% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.13 | ||
| EV/EBITDA | 19.99 |
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)1.84
PEG (5Y)4.06
EPS Next 2Y9.24%
EPS Next 3Y8.52%
5. Dividend
5.1 Amount
No dividends for FFIV!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
318.11
-3.66 (-1.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.49%
Inst Owner Change-1.55%
Ins Owners0.55%
Ins Owner Change-5.18%
Market Cap18.27B
Analysts69
Price Target330.81 (3.99%)
Short Float %2.94%
Short Ratio3.94
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)12.26%
Min EPS beat(2)8.01%
Max EPS beat(2)16.51%
EPS beat(4)4
Avg EPS beat(4)10.23%
Min EPS beat(4)4.33%
Max EPS beat(4)16.51%
EPS beat(8)7
Avg EPS beat(8)8.61%
EPS beat(12)11
Avg EPS beat(12)7.28%
EPS beat(16)15
Avg EPS beat(16)7.07%
Revenue beat(2)1
Avg Revenue beat(2)0.34%
Min Revenue beat(2)-0.29%
Max Revenue beat(2)0.97%
Revenue beat(4)3
Avg Revenue beat(4)1.48%
Min Revenue beat(4)-0.29%
Max Revenue beat(4)5.04%
Revenue beat(8)3
Avg Revenue beat(8)0.08%
Revenue beat(12)3
Avg Revenue beat(12)-0.42%
Revenue beat(16)3
Avg Revenue beat(16)-0.55%
PT rev (1m)12.17%
PT rev (3m)12.24%
EPS NQ rev (1m)3.96%
EPS NQ rev (3m)2.68%
EPS NY rev (1m)0%
EPS NY rev (3m)1.62%
Revenue NQ rev (1m)2%
Revenue NQ rev (3m)0.79%
Revenue NY rev (1m)0.1%
Revenue NY rev (3m)0.19%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 21.08 | ||
| Fwd PE | 19.94 | ||
| P/S | 6.04 | ||
| P/FCF | 19.13 | ||
| P/OCF | 18.49 | ||
| P/B | 5.26 | ||
| P/tB | 15.92 | ||
| EV/EBITDA | 19.99 |
EPS(TTM)15.09
EY4.74%
EPS(NY)15.96
Fwd EY5.02%
FCF(TTM)16.63
FCFY5.23%
OCF(TTM)17.21
OCFY5.41%
SpS52.67
BVpS60.45
TBVpS19.98
PEG (NY)1.84
PEG (5Y)4.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.91% | ||
| ROE | 19.22% | ||
| ROCE | 16.72% | ||
| ROIC | 13.6% | ||
| ROICexc | 19.8% | ||
| ROICexgc | 76.53% | ||
| OM | 25.21% | ||
| PM (TTM) | 22.06% | ||
| GM | 81.03% | ||
| FCFM | 31.57% |
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 Turnover0.49
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | 0 | ||
| Debt/EBITDA | 0 | ||
| Cap/Depr | 36.65% | ||
| Cap/Sales | 1.1% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 115.81% | ||
| Profit Quality | 143.13% | ||
| Current Ratio | 1.6 | ||
| Quick Ratio | 1.56 | ||
| Altman-Z | 6.08 |
F-Score8
WACC9.97%
ROIC/WACC1.36
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)14.32%
EPS 3Y7.18%
EPS 5Y5.19%
EPS Q2Q%23.81%
EPS Next Y11.48%
EPS Next 2Y9.24%
EPS Next 3Y8.52%
EPS Next 5Y10.85%
Revenue 1Y (TTM)8.94%
Revenue growth 3Y2.65%
Revenue growth 5Y4.66%
Sales Q2Q%12.2%
Revenue Next Year8.16%
Revenue Next 2Y6.17%
Revenue Next 3Y5.49%
Revenue Next 5Y6.91%
EBIT growth 1Y17.71%
EBIT growth 3Y14.53%
EBIT growth 5Y4.92%
EBIT Next Year21.89%
EBIT Next 3Y11.16%
EBIT Next 5YN/A
FCF growth 1Y67.35%
FCF growth 3Y7.43%
FCF growth 5Y3.41%
OCF growth 1Y59.91%
OCF growth 3Y7.09%
OCF growth 5Y1.17%