FIVE9 INC (FIVN)

US3383071012 - Common Stock

62.11  -0.19 (-0.3%)

After market: 62.11 0 (0%)

Fundamental Rating

4

We assign a fundamental rating of 4 out of 10 to FIVN. FIVN was compared to 279 industry peers in the Software industry. FIVN scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. FIVN is valued quite expensive, but it does show an excellent growth.



2

1. Profitability

1.1 Basic Checks

FIVN had positive earnings in the past year.
In the past year FIVN had a positive cash flow from operations.
In the past 5 years FIVN always reported negative net income.
FIVN had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

FIVN has a Return On Assets of -5.46%. This is comparable to the rest of the industry: FIVN outperforms 58.27% of its industry peers.
FIVN has a Return On Equity (-15.18%) which is in line with its industry peers.
Industry RankSector Rank
ROA -5.46%
ROE -15.18%
ROIC N/A
ROA(3y)-5.84%
ROA(5y)-4.49%
ROE(3y)-23.62%
ROE(5y)-17.65%
ROIC(3y)N/A
ROIC(5y)N/A

1.3 Margins

Looking at the Gross Margin, with a value of 52.48%, FIVN is doing worse than 65.47% of the companies in the same industry.
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 52.48%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.58%
GM growth 5Y-2.51%

5

2. Health

2.1 Basic Checks

FIVN does not have a ROIC to compare to the WACC, probably because it is not profitable.
FIVN has more shares outstanding than it did 1 year ago.
FIVN has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, FIVN has an improved debt to assets ratio.

2.2 Solvency

FIVN has an Altman-Z score of 3.45. This indicates that FIVN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 3.45, FIVN is doing good in the industry, outperforming 60.79% of the companies in the same industry.
The Debt to FCF ratio of FIVN is 7.65, which is on the high side as it means it would take FIVN, 7.65 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 7.65, FIVN perfoms like the industry average, outperforming 57.55% of the companies in the same industry.
A Debt/Equity ratio of 1.38 is on the high side and indicates that FIVN has dependencies on debt financing.
FIVN has a Debt to Equity ratio of 1.38. This is in the lower half of the industry: FIVN underperforms 78.78% of its industry peers.
Industry RankSector Rank
Debt/Equity 1.38
Debt/FCF 7.65
Altman-Z 3.45
ROIC/WACCN/A
WACC8.66%

2.3 Liquidity

A Current Ratio of 5.53 indicates that FIVN has no problem at all paying its short term obligations.
The Current ratio of FIVN (5.53) is better than 89.93% of its industry peers.
A Quick Ratio of 5.53 indicates that FIVN has no problem at all paying its short term obligations.
The Quick ratio of FIVN (5.53) is better than 89.93% of its industry peers.
Industry RankSector Rank
Current Ratio 5.53
Quick Ratio 5.53

9

3. Growth

3.1 Past

FIVN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 38.26%, which is quite impressive.
Measured over the past years, FIVN shows a very strong growth in Earnings Per Share. The EPS has been growing by 27.98% on average per year.
Looking at the last year, FIVN shows a quite strong growth in Revenue. The Revenue has grown by 16.91% in the last year.
Measured over the past years, FIVN shows a very strong growth in Revenue. The Revenue has been growing by 28.72% on average per year.
EPS 1Y (TTM)38.26%
EPS 3Y27.67%
EPS 5Y27.98%
EPS growth Q2Q12.96%
Revenue 1Y (TTM)16.91%
Revenue growth 3Y27.93%
Revenue growth 5Y28.72%
Revenue growth Q2Q14.77%

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 19.30% yearly.
The Revenue is expected to grow by 25.37% on average over the next years. This is a very strong growth
EPS Next Y7.14%
EPS Next 2Y14.3%
EPS Next 3Y15.87%
EPS Next 5Y19.3%
Revenue Next Year15.98%
Revenue Next 2Y17.37%
Revenue Next 3Y18.4%
Revenue Next 5Y25.37%

3.3 Evolution

The estimated forward EPS growth is still strong, although it is decreasing when compared to the stronger growth in the past 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 stable.

3

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 30.15 indicates a quite expensive valuation of FIVN.
Based on the Price/Earnings ratio, FIVN is valued a bit cheaper than the industry average as 79.14% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 26.48. FIVN is around the same levels.
FIVN is valuated quite expensively with a Price/Forward Earnings ratio of 28.14.
FIVN's Price/Forward Earnings ratio is a bit cheaper when compared to the industry. FIVN is cheaper than 75.18% of the companies in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.79, FIVN is valued a bit more expensive.
Industry RankSector Rank
PE 30.15
Fwd PE 28.14

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of FIVN indicates a somewhat cheap valuation: FIVN is cheaper than 66.19% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 46.26
EV/EBITDA N/A

4.3 Compensation for Growth

The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates FIVN does not grow enough to justify the current Price/Earnings ratio.
A more expensive valuation may be justified as FIVN's earnings are expected to grow with 15.87% in the coming years.
PEG (NY)4.22
PEG (5Y)1.08
EPS Next 2Y14.3%
EPS Next 3Y15.87%

0

5. Dividend

5.1 Amount

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

FIVE9 INC

NASDAQ:FIVN (3/28/2024, 8:10:00 PM)

After market: 62.11 0 (0%)

62.11

-0.19 (-0.3%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap4.52B
Analysts
Price Target
Dividend
Industry RankSector 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)
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Avg EPS beat(8)
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EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
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Min Revenue beat(2)
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Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
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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 RankSector Rank
PE 30.15
Fwd PE 28.14
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)4.22
PEG (5Y)1.08
Profitability
Industry RankSector Rank
ROA -5.46%
ROE -15.18%
ROCE
ROIC
ROICexc
ROICexgc
OM N/A
PM (TTM) N/A
GM 52.48%
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 Turnover0.61
Health
Industry RankSector Rank
Debt/Equity 1.38
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio 5.53
Quick Ratio 5.53
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)38.26%
EPS 3Y27.67%
EPS 5Y
EPS growth Q2Q
EPS Next Y7.14%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)16.91%
Revenue growth 3Y27.93%
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