F5, Inc. (FFIV) stock analysis

P/E below its 5-year median

F5's P/E of 25.5 is below its own 5-year median of 27.4.

P/E below the industry

F5's P/E of 25.5 is below the Computer and Office Equipment median of 26.0.

EV/EBITDA above its 5-year median

F5's EV/EBITDA of 18.2 is above its 5-year median of 16.9.

P/S above the industry

F5's price-to-sales of 5.48 is above the Computer and Office Equipment median of 2.52 (book value is negative, so we use sales).

Trading above fair value

The share price of $320.01 is above our fair value estimate of $297.72.

Margin of safety under 20%

The price is 7.5% above fair value, so there is no margin of safety.

Revenue growing under 10% a year

Revenue grew 4.6% a year over the last three fiscal years, short of the 10% we look for.

EPS growing 10%+ a year

Diluted EPS grew 30.8% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 8.9% over the last twelve months, against a 5-year average of 17.6% a year.

Growing slower than the industry

Revenue grew 9.4% over the last twelve months; the Computer and Office Equipment median is 11.2%.

Guidance raised

F5 raised its fiscal year 2026 revenue growth outlook on Jul 27, 2026.

Gross margin improving

Gross margin was 81.9% over the last twelve months, against 81.0% a year earlier.

Return on equity

Needs positive equity and five years of results.

Return on invested capital

Needs operating income and invested capital.

Return on equity against the industry

Needs positive equity.

Earnings grew over 5 years

Net income grew 17.6% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 22.0% over the last twelve months, against a 5-year average of 16.3%.

Net margin above the industry

F5's net margin of 22.0% is above the Computer and Office Equipment median of 3.8%.

No debt

F5 has no borrowings on its latest balance sheet.

Debt not rising

With no debt today, leverage cannot have risen.

Debt covered by cash flow

There is no debt to cover.

Interest well covered

No meaningful interest expense to cover.

Short-term assets cover short-term debts

Current assets are 1.66 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 5.52; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

F5 has not paid a dividend in the last twelve months.

Yield against Treasuries

No dividend.

Yield against the market

No dividend.

Dividend stability

No dividend.

Earnings cover

No dividend.

Cash-flow cover

No dividend.