FFIV - Embedded Expectations Analysis - 2019 06 17
F5 Networks, Inc. (FFIV:USA) currently trades below recent averages relative to UAFRS-based (Uniform) Earnings, with a 12.7x Uniform P/E, implying bearish expectations for the firm. Moreover, management may be concerned about their service capabilities, NGINX integration, and 5G and API management growth opportunities.Specifically, they may be exaggerating their service capabilities, the security of their applications, and the potential opportunities stemming from the 5G ramp-up. In addition, they may be concerned about the progress of their NGINX integration, their ability to enter the API management space, and the demand for their Advanced Web Application Firewall. Also, they may be exaggerating the efficacy of their services for communications providers, the progress of their HQ relocation, and enterprise license agreements' ability to drive growth in their multi-cloud application services.
F5 Networks is a provider of multi-cloud application services, which enable its customers to develop, deploy, operate, secure, and govern applications in any architecture, from on-premises to the public cloud. The company's application services are available as cloud-based, software-as-a-service, and software-only solutions supported for multi-cloud environments. In connection with its solutions, the company provides a range of services, including consulting, training, installation, maintenance, and other technical support services. The company's products and solutions include hardware platforms, software and software-as-a-service platforms, cloud-based managed services, and service provider solutions.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.