F5 Inc
Exchange: NASDAQSector: TechnologyIndustry: Software - Infrastructure
F5 powers applications from development through their entire lifecycle, across any multi-cloud environment, so our customers—enterprise businesses, service providers, governments, and consumer brands—can deliver differentiated, high-performing, and secure digital experiences.
Did you know?
Earnings per share grew at a 5.9% CAGR.
Current Price
$303.35
+2.60%GoodMoat Value
$317.37
4.6% undervaluedProfile
Valuation (TTM)
Market Cap$17.62B
P/E24.96
EV$15.87B
P/B4.91
Shares Out58.09M
P/Sales5.60
Revenue$3.14B
EV/EBITDA17.58
F5 Inc (FFIV) Stock Analysis
GoodMoat Analysis
F5 Inc is a software infrastructure company with a moderate moat, driven by switching costs and niche dominance, but its current valuation appears marginal. The stock passes the initial quality gate but offers a minimal margin of safety, requiring a high-conviction view on its growth trajectory. Further investigation is warranted but with caution.
Read full analysis
F5 Inc operates in the software infrastructure sector, providing application security, delivery, and optimization solutions. Using the GoodMoat framework, the company demonstrates a moderate competitive moat, likely scoring in the 5-6 range. This is primarily driven by high switching costs, as its products are mission-critical for enterprise network management, and niche dominance in application delivery controllers. The business passes the initial Moat & Quality Gate, supported by strong financial indicators including a robust ROE of 19.7%, a healthy operating margin of 24.8%, and a manageable debt level. However, revenue growth of 7.3% YoY is modest for a technology firm. The valuation assessment is less compelling. With a P/E of 24.5x and the GoodMoat target price of $317.37, the implied upside is only about 6.5%. This falls into the 'Marginal' band (10-20% margin of safety) within the framework's valuation assessment. For a value investor, this suggests the price is close to fair value, offering little room for error. The decision framework would classify this as 'WITH CAUTION.' While the business is fundamentally sound, the minimal margin of safety and single-digit revenue growth mean further investigation requires a strong belief in the company's ability to re-accelerate growth or expand its moat. The free cash flow yield of 5.2% provides some support, but the overall picture is one of a stable, moat-protected business trading at a full price. Analysis based on data as of 2024-05-15.
Market Cap$17.62B
Current Price$303.35
P/E Ratio24.96
Forward P/E—
PEG Ratio2.63
EPS$11.80
Book Value$61.84
P/B Ratio4.91
FFIV Financial Charts
FCF vs CAPEX
FCFCAPEX
Forward estimates use 5.9% FCF growth (CAGR)
Cash vs Debt
Net Cash: 1.1B
Revenue
2.2B
FY19
2.4B
FY20
2.6B
FY21
2.7B
FY22
2.8B
FY23
2.8B
FY24
3.1B
FY25
Net Income
428M
FY19
307M
FY20
331M
FY21
322M
FY22
395M
FY23
567M
FY24
692M
FY25
FFIV 52-Week Range
$223.99
$343.17
50-Day MA: $280.77200-Day MA: $286.97
Did you know?
Earnings per share grew at a 5.9% CAGR.
F5 Inc (FFIV) Financial Summary
F5 Inc (FFIV) is a Technology company in the Software - Infrastructure industry, listed on NASDAQ. The stock currently trades at $303.35 with a market capitalization of $17.62B.
Key valuation metrics include a P/E ratio of 24.96, price-to-book ratio of 4.91, and EPS of $11.80. The company reports a profit margin of 22.5% and return on equity of 19.7%.
FFIV Key Financial Metrics
| Metric | Value |
|---|---|
| Market Cap | $17.62B |
| P/E Ratio | 24.96 |
| EPS | $11.80 |
| P/B Ratio | 4.91 |
| P/S Ratio | 5.60 |
| EV/EBITDA | 17.58 |
| Profit Margin | 22.5% |
| Return on Equity | 19.7% |
| Debt/Equity | 0.06 |
FFIV Revenue & Earnings History
| Year | Revenue | Net Income |
|---|---|---|
| FY19 | $2.24B | $427.73M |
| FY20 | $2.35B | $307.44M |
| FY21 | $2.60B | $331.24M |
| FY22 | $2.70B | $322.16M |
| FY23 | $2.81B | $394.95M |
| FY24 | $2.82B | $566.78M |
| FY25 | $3.09B | $692.38M |
F5 Inc (FFIV) Valuation
Based on GoodMoat's DCF model, F5 Inc has a fair value estimate of $317.37. At the current price of $303.35, the stock appears 4.4% undervalued relative to our intrinsic value estimate.
FFIV Quality Indicators
F5 Inc maintains a profit margin of 22.5% and an operating margin of 24.8%. Return on equity stands at 19.7%. The current ratio is 1.56. Debt-to-equity ratio is 0.06.
About F5 Inc
F5 powers applications from development through their entire lifecycle, across any multi-cloud environment, so our customers—enterprise businesses, service providers, governments, and consumer brands—can deliver differentiated, high-performing, and secure digital experiences.
FFIV Free Cash Flow
F5 Inc generated $906.41M in trailing twelve-month free cash flow, representing an FCF yield of 5.14%. This strong FCF yield suggests the company generates substantial cash relative to its market value.
FFIV Shares Outstanding
F5 Inc has 0.06 billion shares outstanding at a share price of $303.35, giving it a market capitalization of $17.62B.
FFIV Recent Insider Trades
Recent insider transactions at F5 Inc include:
| Insider | Type | Shares | Value |
|---|---|---|---|
| WHALEN CHAD MICHAEL (EVP, Worldwide Sales) | SELL | 688 | $190610.40 |
| Werner Edward Cooper (Chief Financial Officer) | SELL | 40 | $11128.40 |
| Locoh-Donou Francois (President, CEO & Director) | SELL | 120 | $33374.40 |