Stock in Focus: F5 Networks Inc. (FFIV)

Company Profile:

F5 Networks, Inc. provides multi-cloud application services for the availability, security, performance, and availability of network applications, servers, and storage systems. The company’s primary application delivery technology is Traffic Management Operating System that enable company’s products to intercept, inspect, and act on the contents of traffic. It offers Local Traffic Manager; DNS solution for application security services; BIG-IP management and orchestration software; BIG-IP Virtual Edition and BIG-IP Cloud Edition software; Advanced Firewall Manager, a firewall software; and Application Security Manager and Access Policy Manager software products. The company was founded in 1996 and is headquartered in Seattle, Washington.

Recent News:

On May 21, 2020, the company announced the appointment of Tom Fountain as Executive Vice President of Global Services and Chief Strategy Officer. In this role, he will head F5’s global support, professional consulting, educational services, customer success, manufacturing, and technology services operations.

The company reported GAAP revenue of $583.4 million for the second quarter of fiscal year 2020, 7% growth from $544.9 million in the second quarter of fiscal year 2019. GAAP net income for the second quarter of fiscal year 2020 was $61.4 million, or $1.00 per diluted share compared to second quarter fiscal year 2019 GAAP net income of $116.1 million, or $1.93 per diluted share.

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

FFIV’s strengths can be seen in its strong profitability, robust solvency and better efficiency compared with its peers. Its revenue has increased over recent several years. Technical indicators signal the bullish signs, as there is a bullish crossover in Stochastic oscillator, MACD is trying to cross back up and the RSI stands at 51.96 with positive bias. We rate F5 Networks Inc. (FFIV) a STRONG BUY.