Why Has F5 Networks Stock Risen Almost 1.5x Since 2019?

+14.24%
Upside
146
Market
166
Trefis
FFIV: F5 logo
FFIV
F5

F5 Networks Inc. (NASDAQ: FFIV) stock price gained 44% from $139 in 2019 end, to around $200 currently, primarily due to favorable changes in its P/S multiple. Additionally, the company witnessed a rise in revenue over this period, and revenue per share has increased, despite a rise in the outstanding share count.

In our interactive dashboard, Why F5 Networks Stock Moved: FFIV Stock Has Gained 44% Since 2019, we break down the factors behind this move.

(A) FFIV’s Total Revenue has grown 19% from $2.2 billion in 2019 to $2.7 billion on an LTM basis

  • FFIV’s total revenue steadily rose from $2.2 billion in FY ’19 to $2.6 billion in FY ’21, and currently stands at $2.7 billion on an LTM basis (FFIV’s fiscal year ends in September).
  • F5 derives its revenues almost evenly from both, products and services, with the products segment defining more of the company’s overall growth during the past few years.
  • For details about FFIV revenues and comparison to peers, see F5 Networks (FFIV) Revenue Comparison
Relevant Articles
  1. What’s Next For F5 Stock After A 40% Fall Since 2021?
  2. F5 Inc. Stock Set For Bounce After Dismal Post-Earnings Performance?
  3. F5 Networks Stock Has Failed To Outperform the S&P Despite Steady Revenue Growth
  4. Why Has F5 Networks Stock Underperformed The S&P Since 2019?
  5. Here’s What Makes ViaSat Inc. Stock A Smart Bet
  6. F5 Networks Stock Seems Poised To Build On Recent Gains

(B) Revenue per share (RPS) increased 18% from $37.33 in 2019 to $43.88 currently

  • FFIV revenue rose from $2.2 billion in 2019 to $2.7 billion currently, while the outstanding share count increased from 60.1 million in 2019 to 60.8 million currently.
  • Due to this, RPS has risen from $37.33 in FY ’19 to $43.88 currently.

(C) Price-To-Sales (P/S) multiple for FFIV rose from 3.8x in FY ’19 to 5.7x in FY ’21 but has pulled back to 4.6x currently, still higher than its FY ’19 level

  • Due to FFIV’s consistent performance since 2019-end, its P/S multiple rose steadily from 3.8x in FY ’19 to 5.7x in FY ’21.
  • However, amidst current geopolitical tensions dragging down the broader markets, the P/S multiple has pulled back and currently stands at around 4.6x.
  • For additional details about the company’s historical returns and comparison to peers, see F5 Networks (FFIV) Stock Return.

What if you’re looking for a more balanced portfolio instead? Here’s a high-quality portfolio that’s beaten the market consistently since the end of 2016.

Returns Mar 2022
MTD [1]
2022
YTD [1]
2017-22
Total [2]
 FFIV Return 2% -17% 41%
 S&P 500 Return 2% -7% 98%
 Trefis MS Portfolio Return 2% -8% 261%

[1] Month-to-date and year-to-date as of 3/18/2022
[2] Cumulative total returns since the end of 2016

 

Invest with Trefis Market Beating Portfolios

See all Trefis Price Estimates