(FFIV) F5 Networks - Ratings and Ratios
Application Delivery, Cloud Security, Load Balancer, DNS Services
Dividends
Currently no dividends paid| Risk via 10d forecast | |
|---|---|
| Volatility | 24.8% |
| Value at Risk 5%th | 37.7% |
| Relative Tail Risk | -7.59% |
| Reward TTM | |
|---|---|
| Sharpe Ratio | -0.04 |
| Alpha | -16.10 |
| CAGR/Max DD | 0.54 |
| Character TTM | |
|---|---|
| Hurst Exponent | 0.504 |
| Beta | 0.998 |
| Beta Downside | 1.127 |
| Drawdowns 3y | |
|---|---|
| Max DD | 34.73% |
| Mean DD | 6.54% |
| Median DD | 4.71% |
Description: FFIV F5 Networks October 16, 2025
F5, Inc. (NASDAQ:FFIV) delivers multicloud application security and delivery solutions across North America, Europe, the Middle East, Africa, and the Asia-Pacific. Its distributed-cloud platform lets customers run, protect, and manage applications whether they reside on-premises, in public clouds, or in hybrid environments, bundling networking, security, and application-management capabilities such as web-app/API protection, multi-cloud networking, DNS, CDN, and orchestration tools.
Beyond the platform, the company markets a portfolio that includes NGINX Plus, the NGINX Management Suite, NGINX Ingress Controller, NGINX App Protect, as well as BIG-IP hardware and software appliances. Professional services-maintenance, consulting, training, and technical support-augment these product lines. Sales are primarily indirect, through distributors, value-added resellers, managed service providers, systems integrators, and other channel partners, with strategic alliances to AWS, Microsoft Azure, and Google Cloud.
According to F5’s FY 2023 Form 10-K (filed February 2024), the firm generated ≈ $3.1 billion in revenue, a 6 % year-over-year increase driven largely by subscription and cloud-based services, which grew at ~14 % CAGR over the past three years. Operating margin stood at 31 %, reflecting the higher profitability of recurring software revenue versus legacy hardware. The company’s subscription-revenue run-rate now exceeds 55 % of total sales, a key KPI for evaluating its transition to a SaaS model.
Sector-wide, global spending on cloud security is projected by Gartner to rise to $44 billion in 2025, a ~12 % annual growth rate, fueled by accelerating multi-cloud adoption and tightening regulatory requirements (e.g., GDPR, CCPA). F5’s positioning as a “single-pane-of-glass” provider for both security and delivery gives it exposure to these macro trends, but competitive pressure from pure-play SaaS security vendors (e.g., Palo Alto Networks, Cloudflare) remains a material risk.
For a deeper, data-driven assessment of how F5’s valuation compares to peers and to quantify the impact of its subscription transition, you may find the analytics on ValueRay worth exploring.
Piotroski VR‑10 (Strict, 0-10) 6.5
| Net Income (692.4m TTM) > 0 and > 6% of Revenue (6% = 185.3m TTM) |
| FCFTA 0.14 (>2.0%) and ΔFCFTA 0.77pp (YES ≥ +1.0pp, WARN ≥ +0.5pp) |
| NWC/Revenue 29.34% (prev 22.01%; Δ 7.33pp) (YES ≤20% & Δ≤-1pp; WARN ≤25% & Δ≤0 oder ≤40% & Δ≤-3pp) |
| CFO/TA 0.15 (>3.0%) and CFO 949.7m > Net Income 692.4m (YES >=105%, WARN >=100%) |
| Net Debt (-1.11b) to EBITDA (879.3m) ratio: -1.27 <= 3.0 (WARN <= 3.5) |
| Current Ratio 1.56 (target 1.5–3.0; WARN 1.2–<1.5 or >3.0–5.0; CFO/TA gate active) |
| Outstanding Shares last Quarter (58.4m) change vs 12m ago -1.59% (target <= -2.0% for YES) |
| Gross Margin 81.74% (prev 80.20%; Δ 1.55pp) >=18% & Δ>=+0.5pp (WARN >=15% & Δ>=0) |
| Asset Turnover 51.76% (prev 50.17%; Δ 1.59pp) >=50% & Δ>=+2pp (WARN >=35% & Δ>=0) |
| Interest Coverage Ratio -36.34 (EBITDA TTM 879.3m / Interest Expense TTM -21.6m) >= 6 (WARN >= 3) |
Altman Z'' 5.05
| (A) 0.14 = (Total Current Assets 2.52b - Total Current Liabilities 1.61b) / Total Assets 6.32b |
| (B) 0.56 = Retained Earnings (Balance) 3.57b / Total Assets 6.32b |
| (C) 0.13 = EBIT TTM 786.7m / Avg Total Assets 5.97b |
| (D) 1.32 = Book Value of Equity 3.59b / Total Liabilities 2.73b |
| Total Rating: 5.05 = (6.56 * A) + (3.26 * B) + (6.72 * C) + (1.05 * D) |
ValueRay F-Score (Strict, 0-100) 92.04
| 1. Piotroski 6.50pt |
| 2. FCF Yield 7.11% |
| 3. FCF Margin 29.35% |
| 4. Debt/Equity 0.06 |
| 5. Debt/Ebitda -1.27 |
| 6. ROIC - WACC (= 10.90)% |
| 7. RoE 20.34% |
| 8. Rev. Trend 82.48% |
| 9. EPS Trend 85.32% |
What is the price of FFIV shares?
Over the past week, the price has changed by +3.75%, over one month by +0.66%, over three months by -21.45% and over the past year by -3.47%.
Is FFIV a buy, sell or hold?
- Strong Buy: 0
- Buy: 1
- Hold: 11
- Sell: 1
- Strong Sell: 0
What are the forecasts/targets for the FFIV price?
| Issuer | Target | Up/Down from current |
|---|---|---|
| Wallstreet Target Price | 291.5 | 17.5% |
| Analysts Target Price | 291.5 | 17.5% |
| ValueRay Target Price | 239.5 | -3.5% |
FFIV Fundamental Data Overview December 03, 2025
P/E Trailing = 20.2349
P/E Forward = 16.0
P/S = 4.4877
P/B = 3.8677
P/EG = 1.8833
Beta = 0.988
Revenue TTM = 3.09b USD
EBIT TTM = 786.7m USD
EBITDA TTM = 879.3m USD
Long Term Debt = 261.8m USD (from capitalLeaseObligations, last quarter)
Short Term Debt = 30.4m USD (from shortTermDebt, two quarters ago)
Debt = 230.7m USD (from shortLongTermDebtTotal, last quarter)
Net Debt = -1.11b USD (from netDebt column, last quarter)
Enterprise Value = 12.74b USD (13.86b + Debt 230.7m - CCE 1.34b)
Interest Coverage Ratio = -36.34 (Ebit TTM 786.7m / Interest Expense TTM -21.6m)
FCF Yield = 7.11% (FCF TTM 906.4m / Enterprise Value 12.74b)
FCF Margin = 29.35% (FCF TTM 906.4m / Revenue TTM 3.09b)
Net Margin = 22.42% (Net Income TTM 692.4m / Revenue TTM 3.09b)
Gross Margin = 81.74% ((Revenue TTM 3.09b - Cost of Revenue TTM 563.7m) / Revenue TTM)
Gross Margin QoQ = 82.24% (prev 82.27%)
Tobins Q-Ratio = 2.02 (Enterprise Value 12.74b / Total Assets 6.32b)
Interest Expense / Debt = 3.22% (Interest Expense 7.44m / Debt 230.7m)
Taxrate = 11.43% (24.6m / 215.1m)
NOPAT = 696.8m (EBIT 786.7m * (1 - 11.43%))
Current Ratio = 1.56 (Total Current Assets 2.52b / Total Current Liabilities 1.61b)
Debt / Equity = 0.06 (Debt 230.7m / totalStockholderEquity, last quarter 3.59b)
Debt / EBITDA = -1.27 (Net Debt -1.11b / EBITDA 879.3m)
Debt / FCF = -1.23 (Net Debt -1.11b / FCF TTM 906.4m)
Total Stockholder Equity = 3.40b (last 4 quarters mean from totalStockholderEquity)
RoA = 10.96% (Net Income 692.4m / Total Assets 6.32b)
RoE = 20.34% (Net Income TTM 692.4m / Total Stockholder Equity 3.40b)
RoCE = 21.46% (EBIT 786.7m / Capital Employed (Equity 3.40b + L.T.Debt 261.8m))
RoIC = 20.47% (NOPAT 696.8m / Invested Capital 3.40b)
WACC = 9.58% (E(13.86b)/V(14.09b) * Re(9.69%) + D(230.7m)/V(14.09b) * Rd(3.22%) * (1-Tc(0.11)))
Discount Rate = 9.69% (= CAPM, Blume Beta Adj.)
Shares Correlation 3-Years: -100.0 | Cagr: -1.04%
[DCF Debug] Terminal Value 76.28% ; FCFE base≈848.6m ; Y1≈1.05b ; Y5≈1.79b
Fair Price DCF = 390.9 (DCF Value 22.70b / Shares Outstanding 58.1m; 5y FCF grow 25.0% → 3.0% )
EPS Correlation: 85.32 | EPS CAGR: 11.79% | SUE: 2.51 | # QB: 6
Revenue Correlation: 82.48 | Revenue CAGR: 4.49% | SUE: 0.90 | # QB: 2
EPS next Quarter (2026-03-31): EPS=3.38 | Chg30d=-0.276 | Revisions Net=-10 | Analysts=11
EPS current Year (2026-09-30): EPS=15.03 | Chg30d=-1.273 | Revisions Net=-11 | Growth EPS=-5.0% | Growth Revenue=+1.8%
EPS next Year (2027-09-30): EPS=16.20 | Chg30d=-1.271 | Revisions Net=-6 | Growth EPS=+7.8% | Growth Revenue=+4.0%
Additional Sources for FFIV Stock
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Fund Manager Positions: Dataroma | Stockcircle