FASTLY INC - CLASS A (FSLY) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:FSLY - US31188V1008 - Common Stock

9.7 USD

+0.41 (+4.41%)

Last: 1/26/2026, 10:00:06 AM

Fundamental Rating

Overall FSLY gets a fundamental rating of 3 out of 10. We evaluated FSLY against 88 industry peers in the IT Services industry. FSLY has a bad profitability rating. Also its financial health evaluation is rather negative. FSLY is quite expensive at the moment. It does show a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year FSLY has reported negative net income.
In the past year FSLY had a positive cash flow from operations.
FSLY had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: FSLY reported negative operating cash flow in multiple years.

1.2 Ratios

FSLY's Return On Assets of -9.46% is on the low side compared to the rest of the industry. FSLY is outperformed by 69.32% of its industry peers.
FSLY has a worse Return On Equity (-14.84%) than 61.36% of its industry peers.

		Industry Rank	Sector Rank
ROA	-9.46%
ROE	-14.84%
ROIC	N/A

ROA(3y)-9.89%

ROA(5y)-9.57%

ROE(3y)-16.65%

ROE(5y)-16.19%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

With a decent Gross Margin value of 54.95%, FSLY is doing good in the industry, outperforming 78.41% of the companies in the same industry.
FSLY's Gross Margin has been stable in the last couple of years.
The Profit Margin and Operating Margin are not available for FSLY so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	54.95%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y0.98%

GM growth 5Y-0.53%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

FSLY does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, FSLY has more shares outstanding
Compared to 5 years ago, FSLY has more shares outstanding
FSLY has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.73, we must say that FSLY is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.73, FSLY is doing worse than 71.59% of the companies in the same industry.
The Debt to FCF ratio of FSLY is 9.90, which is on the high side as it means it would take FSLY, 9.90 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 9.90, FSLY is in line with its industry, outperforming 45.45% of the companies in the same industry.
A Debt/Equity ratio of 0.16 indicates that FSLY is not too dependend on debt financing.
The Debt to Equity ratio of FSLY (0.16) is better than 64.77% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.16
Debt/FCF	9.9
Altman-Z	0.73

ROIC/WACCN/A

WACC8.23%

2.3 Liquidity

A Current Ratio of 1.46 indicates that FSLY should not have too much problems paying its short term obligations.
FSLY has a Current ratio of 1.46. This is in the lower half of the industry: FSLY underperforms 60.23% of its industry peers.
FSLY has a Quick Ratio of 1.46. This is a normal value and indicates that FSLY is financially healthy and should not expect problems in meeting its short term obligations.
FSLY has a Quick ratio (1.46) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	1.46
Quick Ratio	1.46

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 55.56% over the past year.
Looking at the last year, FSLY shows a quite strong growth in Revenue. The Revenue has grown by 9.45% in the last year.
FSLY shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.08% yearly.

EPS 1Y (TTM)55.56%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%250%

Revenue 1Y (TTM)9.45%

Revenue growth 3Y15.34%

Revenue growth 5Y22.08%

Sales Q2Q%15.32%

3.2 Future

The Earnings Per Share is expected to grow by 27.82% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 7.25% on average over the next years.

EPS Next Y140.63%

EPS Next 2Y75.13%

EPS Next 3Y52.49%

EPS Next 5Y27.82%

Revenue Next Year13.12%

Revenue Next 2Y11.03%

Revenue Next 3Y9.82%

Revenue Next 5Y7.25%

3.3 Evolution

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.

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4. Valuation

4.1 Price/Earnings Ratio

FSLY reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
FSLY is valuated quite expensively with a Price/Forward Earnings ratio of 69.93.
FSLY's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 25.98. FSLY is valued rather expensively when compared to this.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	69.93

4.2 Price Multiples

Compared to the rest of the industry, the Price/Free Cash Flow ratio of FSLY is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	42.44
EV/EBITDA	N/A

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
FSLY's earnings are expected to grow with 52.49% in the coming years. This may justify a more expensive valuation.