(FFIV) F5 Networks - Overview
Sector: Technology | Industry: Software - Infrastructure | Exchange: NASDAQ (USA) | Market Cap: 21.648m USD | Total Return: 38.4% in 12m
Avg Turnover: 251M
EPS Trend: 98.5%
Qual. Beats: 8
Rev. Trend: 91.3%
Qual. Beats: 4
Warnings
No concerns identified
Tailwinds
Confidence
F5, Inc. specializes in multicloud application security and delivery solutions, operating across North America, EMEA, and the Asia Pacific region. The company provides a suite of software and hardware products, including the BIG-IP and NGINX platforms, which facilitate application management, web API protection, and content delivery across on-premises and public cloud environments.
The business model relies on a mix of product sales and recurring professional services, such as maintenance and technical support. F5 distributes its technology through a global network of channel partners and maintains strategic integrations with major public cloud providers including AWS, Microsoft Azure, and Google Cloud.
In the communications equipment sector, companies are increasingly shifting from hardware-centric sales to software-as-a-service (SaaS) and subscription models to ensure consistent revenue streams. This transition addresses the growing enterprise demand for unified security protocols that can scale across fragmented cloud architectures.
Investors can evaluate the underlying fundamentals of this transition by reviewing the data on ValueRay. F5 remains a key player in the application delivery controller market, focusing on securing the traffic between end-users and server infrastructures.
- Transition from legacy hardware to high-margin software subscriptions drives recurring revenue growth
- Enterprise adoption of multi-cloud security solutions increases demand for distributed cloud services
- Global IT infrastructure spending cycles dictate demand for BIG-IP and NGINX products
- Cybersecurity threat landscape evolution forces increased corporate investment in web application protection
| 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 (891.3m): -1.33 < 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 0.81%; Δ 8.11k% > 0.5%) |
| Asset Turnover: 51.99% > 50% (prev 49.77%; Δ 2.22% > 0%) |
| Interest Coverage Ratio: error (cannot be calculated; needs correct EBITDA TTM and Interest Expense TTM) |
| 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: 0.13 (EBIT TTM 794.8m / Avg Total Assets 6.20b) |
| D: 1.28 (Book Value of Equity 3.65b / Total Liabilities 2.85b) |
| Altman-Z'' = 5.02 = AAA |
| DSRI: 1.06 (Receivables 941.8m/807.6m, Revenue 3.22b/2.94b) |
| GMI: 0.99 (GM 81.90% / 80.90%) |
| 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 = -2.98 (Cap -4..+1) = A |
As of May 23, 2026, the stock is trading at USD 383.70 with a total of 695,182 shares traded.
Over the past week, the price has changed by +8.56%,
over one month by +26.50%,
over three months by +46.05% and
over the past year by +38.37%.
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 | 361.9 | -5.7% |
P/E Forward = 24.1546
P/S = 6.7134
P/B = 5.9119
P/EG = 1.8181
Revenue TTM = 3.22b USD
EBIT TTM = 794.8m USD
EBITDA TTM = 891.3m 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 = 20.5b USD (21.6b + Debt 259.9m - CCE 1.44b)
Interest Coverage Ratio = unknown (Ebit TTM 794.8m / Interest Expense TTM 0.0)
EV/FCF = 21.26x (Enterprise Value 20.5b / FCF TTM 962.7m)
FCF Yield = 4.70% (FCF TTM 962.7m / Enterprise Value 20.5b)
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 = 3.15 (Enterprise Value 20.5b / Total Assets 6.50b)
Interest Expense / Debt = 0.0% (Interest Expense 0.0 / Debt 259.9m)
Taxrate = 21.91% (41.5m / 189.2m)
NOPAT = 620.7m (EBIT 794.8m * (1 - 21.91%))
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 = -1.33 (Net Debt -1.18b / EBITDA 891.3m)
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 = 20.97% (EBIT 794.8m / Capital Employed (Equity 3.56b + L.T.Debt 226.6m))
RoIC = 12.90% (NOPAT 620.7m / Invested Capital 4.81b)
WACC = 9.41% (E(21.6b)/V(21.9b) * Re(9.52%) + D(259.9m)/V(21.9b) * Rd(0.0%) * (1-Tc(0.22)))
Discount Rate = 9.52% (= CAPM, Blume Beta Adj.)
Shares (quarterly) Correlation: -95.56 | Cagr: -1.77%
[DCF] Terminal Value 74.62% ; 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: 3.07 | # 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=+3.39% | Revisions=+73% | Analysts=12
EPS current Year (2026-09-30): EPS=16.49 | Chg30d=+3.26% | Revisions=+75% | GrowthEPS=+4.3% | GrowthRev=+7.8%
EPS next Year (2027-09-30): EPS=17.48 | Chg30d=+4.10% | Revisions=+76% | GrowthEPS=+6.0% | GrowthRev=+4.7%
[Analyst] Revisions Ratio: +76%