F5 Networks has liabilities of 239.56 million, with a Debt to Equity (D/E) ratio of 0.27, suggesting the company may not be fully leveraging its borrowing potential. The firm's Beta, or systematic risk, is 1.57, indicating a somewhat significant risk relative to the market. If the market rises, F5 Networks is expected to outperform. However, in a declining market, the company is likely to underperform. The expected return for F5 Networks is -0.0652%. It's important to confirm F5 Networks' potential upside and understand the relationship between the Jensen Alpha and the rate of daily change to predict if past performance will repeat in the future.
Top Findings
F5 Networks' current valuation of
$9.57B and market capitalization of
$10.2B presents a promising investment horizon for June 2024. The company's Price to Book ratio stands at 3.86X, showing a relatively undervalued status compared to other players in the Software - Infrastructure industry, while its Enterprise Value to Revenue ratio of 3.7447 suggests a potentially attractive valuation.
We determine the current worth of F5 Networks using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of F5 Networks based exclusively on its
fundamental and basic
technical indicators. By analyzing F5 Networks's
financials, quarterly and monthly indicators, and related drivers such as
dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of F5 Networks's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of F5 Networks. We calculate exposure to F5 Networks's
market risk, different
technical and
fundamental indicators, relevant financial multiples and ratios, and then
comparing them to F5 Networks's related companies.
F5 Networks Investment Alerts
FFIV investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring F5 Networks performance across your portfolios.Please check all
investment alerts for FFIV
F5 Networks Valuation Ratios as Compared to Competition
Our valuation model uses many indicators to compare FFIV value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across F5 Networks competition to find
correlations between indicators driving the intrinsic value of FFIV.
F5 Networks Gross Profit
F5 Networks Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing F5 Networks previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show F5 Networks Gross Profit growth over the last 10 years. Please check F5 Networks'
gross profit and other
fundamental indicators for more details.
Breaking down the case for F5 Networks
The entity reported the previous year's revenue of 2.81
B. Net Income was 394.95
M with profit before overhead, payroll, taxes, and interest of 2.22
B.
| 2021 | 2022 | 2023 | 2024 (projected) |
Days Sales Outstanding | 63.63 | 59.01 | 67.87 | 71.23 | Ptb Ratio | 3.53 | 3.45 | 3.96 | 6.67 |
Margins Breakdown
FFIV profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or F5 Networks itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of F5 Networks profit margins.
0.096
Operating Profit Margin
| Pretax Profit Margin | 0.16 |
| Operating Profit Margin | 0.096 |
| Net Profit Margin | 0.0694 |
| Gross Profit Margin | 0.63 |
F5 Networks Price To Sales Ratio is decreasing over the last 8 years. Further, F5 Networks Days Sales Outstanding is fairly stable at the moment.
F5 Networks Price To Sales Ratio is fairly stable at the moment. Further, F5 Networks Days Sales Outstanding is fairly stable at the moment. As Warren Buffet once said, "Price is what you pay, value is what you get." F5 Networks, a key player in the Software - Infrastructure industry, is showing promising signs of being a valuable investment. With a healthy current ratio of 1.04X and a low debt to equity ratio of 0.27%, the company demonstrates strong financial health. Despite a slight dip in quarterly revenue growth, the company's net income stands at a robust $394.95M, reflecting a profit margin of 0.18%. The company's book value per share is 50.05X, and with a price to book ratio of 3.86X, F5 Networks' stock appears to be undervalued, making it a potentially lucrative investment for June 2024..
FFIV is expecting lower volatility in June
Despite a slight dip in F5 Networks' (FFIV) Market Risk Adjusted Performance to -0.04, indicating a potential price drop, the company anticipates reduced volatility in June. This suggests a more stable trading environment for FFIV, potentially making it a safer investment. However, investors should monitor the stock's performance closely due to rapidly changing market conditions. F5 Networks displays low volatility with a skewness of -2.87 and kurtosis of 15.15. Understanding market volatility trends can help investors time the market. Using volatility indicators correctly allows traders to gauge F5 Networks' stock risk against market volatility during both bullish and bearish trends.
The increased volatility of bear markets can directly affect F5 Networks' stock price and stress investors as they see their shares' value decrease, often prompting them to rebalance their portfolios by purchasing different financial instruments as prices fall.In conclusion, the market's valuation of F5 Networks appears to be relatively fair, with a slight potential for upside. The current market valuation stands at
$174.13, which is closely aligned with the valuation real value of
$173.1. The analyst overall consensus is a 'Hold', with 12 holds, 1 buy, and 1 sell. The analyst target price estimated value is $168.75, which is slightly lower than the current market value. However, the possible upside price is $183.97, indicating potential for growth. Investors should keep a close eye on this stock as we approach the fiscal year end in September..
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Vlad Skutelnik is a Macroaxis Contributor. Vlad covers stocks, funds, cryptocurrencies, and ETFs that are traded in North America, focusing primarily on fundamentals, valuation and market volatility. He has many years of experience in fintech, predictive investment analytics, and risk management.
View Profile This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of F5 Networks. Please refer to our
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