F5 Networks Stock Analysis, Valuation (NASDAQ:FFIV)

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$181.55 $1.7 (0.95%) FFIV stock closing price Aug 14, 2018 (Closing)

Watch the robo advisor video of F5 Networks stock analysis on Amigobulls. This is our analyst opinion covering the buy and sell arguments for FFIV stock.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

F5 Networks, Inc. Stock Rating 4/5

We at Amigobulls use various financial measures including profit margins, revenue growth and dividends for FFIV stock analysis. F5 Networks valuation analysis is based on relative valuation multiples like PE ratio and price to sales ratio. F5 Networks stock rating encapsulates our opinion about the company based on the fundamentals.

Should you buy FFIV stock?

  • F5 Networks had a healthy average operating margin of 27.43 over the last 4 quarters.
  • Net margins came in at average 21.4% for F5 Networks over the last twelve months.
  • F5 Networks has an attractive ROIC (Return on Invested Capital) of 177.5
  • F5 Networks has a good Return On Equity (ROE) of 37.1.
  • F5 Networks has a healthy FCF (Free Cash Flow) margin of 29.9.

Should you sell FFIV stock?

  • F5 Networks had a low YoY revenue growth of 4.7% in the 2018-06.
  • FFIV stock is trading at a PS multiple of 5.1, which is a negative when compared to the Computer and Technology sector average multiple of 2.9.

Comments on this video and F5 Networks stock

Amigobulls F5 Networks stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of FFIV stock. Fundamental analysis of a company is the most often used approach to find the intrinsic value of a stock.

F5 Networks revenue growth is an indicator of the demand for a company's products while profit margin is indicative of company's pricing power and pricing strategy. Technical analysis comes in handy to check whether the market sentiment is in line with the fundamental picture of the company.