(FFIV) F5 Networks - NASDAQ
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 21.749m USD | Total Return: 30.6% in 12m
Avg Turnover: 242M
EPS Trend: 98.5%
Qual. Beats: 8
Rev. Trend: 91.3%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
Shakeout
F5, Inc. is a Seattle-based provider of multicloud application security and delivery solutions, serving large enterprises, public sector institutions, governments, and service providers across the United States, EMEA, and Asia Pacific. Its offerings span unified security, networking, and application management products-including web application and API protection, multi-cloud networking, and content delivery-delivered through a software and systems portfolio that includes NGINX Plus, NGINX One Console, and the BIG-IP product family. The company also generates revenue from professional services such as maintenance, consulting, and training, and distributes primarily through indirect channels including value-added resellers, managed service providers, and systems integrators, with cloud partnerships involving Amazon Web Services, Microsoft Azure, and Google Cloud Platform.
F5 operates within the communications equipment sub-industry of the information technology sector, a category that includes providers of networking hardware, software, and services. Its business model reflects a shift in the networking industry toward software-centric and subscription-based revenue, as enterprise customers increasingly deploy applications across hybrid and multicloud environments rather than relying solely on traditional on-premises hardware.
- Software and SaaS revenue mix lifts gross margins
- Application security demand accelerates subscription revenue growth
- Hyperscaler native services pressure BIG-IP appliance revenue
| Net Income: 708.2m TTM > 0 and > 6% of Revenue |
| FCF/TA: 0.15 > 0.02 and ΔFCF/TA 0.69 > 1.0 |
| NWC/Revenue: 30.57% < 20% (prev 26.47%; Δ 4.10% < -1%) |
| CFO/TA 0.16 > 3% & CFO 1.02b > Net Income 708.2m |
| Net Debt (-1.18b) to EBITDA (941.4m): -1.26 < 3 |
| Current Ratio: 1.59 > 1.5 & < 3 |
| Outstanding Shares: last quarter (57.3m) vs 12m ago -2.49% < -2% |
| Gross Margin: 81.90% > 18% (prev 80.90%; Δ 1.00% > 0.5%) |
| Asset Turnover: 51.99% > 50% (prev 49.77%; Δ 2.22% > 0%) |
| Interest Coverage Ratio: 178.0 > 6 (EBIT TTM 845.0m / Interest Expense TTM 4.75m) |
| A: 0.15 (Total Current Assets 2.66b - Total Current Liabilities 1.68b) / Total Assets 6.50b |
| B: 0.56 (Retained Earnings 3.62b / Total Assets 6.50b) |
| C: 0.14 (EBIT TTM 845.0m / Avg Total Assets 6.20b) |
| D: 1.28 (Book Value of Equity 3.65b / Total Liabilities 2.85b) |
| Altman-Z'' = 5.07 = AAA |
| DSRI: 1.06 (Receivables 941.8m/807.6m, Revenue 3.22b/2.94b) |
| GMI: 0.99 (GM 80.90% / 81.90%) |
| AQI: 0.97 (AQ_t 0.53 / AQ_t-1 0.55) |
| SGI: 1.10 (Revenue 3.22b / 2.94b) |
| TATA: -0.05 (NI 708.2m - CFO 1.02b) / TA 6.50b) |
| Beneish M = -2.94 (Cap -4..+1) = A |
As of June 22, 2026, the stock is trading at USD 385.49 with a total of 1,652,100 shares traded. Over the past week, the price has changed by -2.12%, over one month by +0.47%, over three months by +33.04% and over the past year by +30.63%.
Current recommended Stop Loss: 30.90 (which is 92% or 27.8 ATR below the current price).
F5 Networks has received a consensus analysts rating of 3.46. Therefore, it is recommended to hold FFIV.
- StrongBuy: 2
- Buy: 3
- Hold: 7
- Sell: 1
- StrongSell: 0
| Analysts Target Price | 409 | 6.1% |
P/E Trailing = 31.6754
P/E Forward = 22.1729
P/S = 6.7447
P/B = 5.9648
P/EG = 1.6668
Revenue TTM = 3.22b USD
EBIT TTM = 845.0m USD
EBITDA TTM = 941.4m USD
Long Term Debt = 226.6m USD (estimated: total debt 259.9m - short term 33.3m)
Short Term Debt = 33.3m USD (from shortTermDebt, last quarter)
Debt = 259.9m USD (from shortLongTermDebtTotal, last quarter) (leases 259.9m already included)
Net Debt = -1.18b USD (calculated: Debt 259.9m - CCE 1.44b)
Enterprise Value = 20.6b USD (21.7b + Debt 259.9m - CCE 1.44b)
Interest Coverage Ratio = 178.0 (Ebit TTM 845.0m / Interest Expense TTM 4.75m)
EV/FCF = 21.36x (Enterprise Value 20.6b / FCF TTM 962.7m)
FCF Yield = 4.68% (FCF TTM 962.7m / Enterprise Value 20.6b)
FCF Margin = 29.85% (FCF TTM 962.7m / Revenue TTM 3.22b)
Net Margin = 21.96% (Net Income TTM 708.2m / Revenue TTM 3.22b)
Gross Margin = 81.90% ((Revenue TTM 3.22b - Cost of Revenue TTM 583.7m) / Revenue TTM)
Gross Margin QoQ = 82.82% (prev 81.55%)
Tobins Q-Ratio = 3.17 (Enterprise Value 20.6b / Total Assets 6.50b)
Interest Expense / Debt = 1.83% (Interest Expense 4.75m / Debt 259.9m)
Taxrate = 15.71% (132.0m / 840.2m)
NOPAT = 712.2m (EBIT 845.0m * (1 - 15.71%))
Current Ratio = 1.59 (Total Current Assets 2.66b / Total Current Liabilities 1.68b)
Debt / Equity = 0.07 (Debt 259.9m / totalStockholderEquity, last quarter 3.65b)
Debt / EBITDA = -1.26 (Net Debt -1.18b / EBITDA 941.4m)
Debt / FCF = -1.23 (Net Debt -1.18b / FCF TTM 962.7m)
Total Stockholder Equity = 3.56b (last 4 quarters mean from totalStockholderEquity)
RoA = 11.42% (Net Income 708.2m / Total Assets 6.50b)
RoE = 19.88% (Net Income TTM 708.2m / Total Stockholder Equity 3.56b)
RoCE = 22.30% (EBIT 845.0m / Capital Employed (Equity 3.56b + L.T.Debt 226.6m))
RoIC = 15.18% (NOPAT 712.2m / Invested Capital 4.69b)
WACC = 9.41% (E(21.7b)/V(22.0b) * Re(9.50%) + D(259.9m)/V(22.0b) * Rd(1.83%) * (1-Tc(0.16)))
Discount Rate = 9.50% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -1.77%
[DCF] Terminal Value 74.63% ; FCFF base≈911.3m ; Y1≈1.04b ; Y5≈1.54b
[DCF] Fair Price = 366.7 (EV 19.5b - Net Debt -1.18b = Equity 20.7b / Shares 56.4m; r=9.41% [WACC]; 5y FCF grow 15.0% → 2.50% )
EPS Correlation: 98.48 | EPS CAGR: 15.79% | SUE: 1.89 | # QB: 8
Revenue Correlation: 91.25 | Revenue CAGR: 5.48% | SUE: 1.29 | # QB: 4
EPS current Quarter (2026-06-30): EPS=4.00 | Chg30d=+0.02% | Revisions=+20% | Analysts=12
EPS current Year (2026-09-30): EPS=16.49 | Chg30d=+0.01% | Revisions=+14% | GrowthEPS=+4.3% | GrowthRev=+7.6%
EPS next Year (2027-09-30): EPS=17.69 | Chg30d=+1.20% | Revisions=+17% | GrowthEPS=+7.3% | GrowthRev=+6.5%
[Analyst] Revisions Ratio: +20%