F5 Networks Profit Margin vs. Price To Sales
| FFIV Stock | USD 252.25 1.84 0.73% |
F5 Networks Net Profit Margin |
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| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.63 | 0.802 |
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| Pretax Profit Margin | 0.16 | 0.247 |
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For F5 Networks profitability analysis, we use financial ratios and fundamental drivers that measure the ability of F5 Networks to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well F5 Networks utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between F5 Networks's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of F5 Networks over time as well as its relative position and ranking within its peers.
FFIV |
F5 Networks' Revenue Breakdown by Earning Segment
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Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of F5 Networks. If investors know FFIV will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about F5 Networks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth 0.102 | Earnings Share 9.56 | Revenue Per Share 47.958 | Quarterly Revenue Growth 0.056 | Return On Assets 0.0777 |
The market value of F5 Networks is measured differently than its book value, which is the value of FFIV that is recorded on the company's balance sheet. Investors also form their own opinion of F5 Networks' value that differs from its market value or its book value, called intrinsic value, which is F5 Networks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because F5 Networks' market value can be influenced by many factors that don't directly affect F5 Networks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between F5 Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if F5 Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, F5 Networks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
F5 Networks Price To Sales vs. Profit Margin Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining F5 Networks's current stock value. Our valuation model uses many indicators to compare F5 Networks value to that of its competitors to determine the firm's financial worth. F5 Networks is rated below average in profit margin category among its peers. It is rated below average in price to sales category among its peers fabricating about 26.08 of Price To Sales per Profit Margin. At this time, F5 Networks' Net Profit Margin is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value F5 Networks by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.FFIV Price To Sales vs. Profit Margin
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
F5 Networks |
| = | 0.20 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Price to Sales ratio is typically used for valuing equity relative to its own past performance as well as to performance of other companies or market indexes. In most cases, the lower the ratio, the better it is for investors. However, it is advisable for investors to exercise caution when looking at price-to-sales ratios across different industries.
F5 Networks |
| = | 5.25 X |
The most critical factor to remember is that the price of equity takes a firm's debt into account, whereas the sales indicators do not consider financial leverage. Generally speaking, Price to Sales ratio shows how much market values every dollar of the company's sales.
FFIV Price To Sales Comparison
F5 Networks is currently under evaluation in price to sales category among its peers.
F5 Networks Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in F5 Networks, profitability is also one of the essential criteria for including it into their portfolios because, without profit, F5 Networks will eventually generate negative long term returns. The profitability progress is the general direction of F5 Networks' change in net profit over the period of time. It can combine multiple indicators of F5 Networks, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -20.9 M | -19.9 M | |
| Operating Income | 675.5 M | 709.3 M | |
| Net Income | 566.8 M | 595.1 M | |
| Income Tax Expense | 128.7 M | 90.7 M | |
| Income Before Tax | 695.5 M | 730.2 M | |
| Total Other Income Expense Net | 20 M | 21 M | |
| Net Income Applicable To Common Shares | 454.2 M | 252.8 M | |
| Net Income From Continuing Ops | 566.8 M | 382.2 M | |
| Non Operating Income Net Other | -16.6 M | -15.7 M | |
| Interest Income | 38.9 M | 40.8 M | |
| Change To Netincome | 197.2 M | 173 M | |
| Net Income Per Share | 9.65 | 10.13 | |
| Income Quality | 1.40 | 1.29 | |
| Net Income Per E B T | 0.81 | 0.84 |
FFIV Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on F5 Networks. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of F5 Networks position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the F5 Networks' important profitability drivers and their relationship over time.
Use F5 Networks in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if F5 Networks position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in F5 Networks will appreciate offsetting losses from the drop in the long position's value.F5 Networks Pair Trading
F5 Networks Pair Trading Analysis
The ability to find closely correlated positions to F5 Networks could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace F5 Networks when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back F5 Networks - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling F5 Networks to buy it.
The correlation of F5 Networks is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as F5 Networks moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if F5 Networks moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for F5 Networks can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your F5 Networks position
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Additional Tools for FFIV Stock Analysis
When running F5 Networks' price analysis, check to measure F5 Networks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy F5 Networks is operating at the current time. Most of F5 Networks' value examination focuses on studying past and present price action to predict the probability of F5 Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move F5 Networks' price. Additionally, you may evaluate how the addition of F5 Networks to your portfolios can decrease your overall portfolio volatility.