FFIV - Embedded Expectations Analysis - 2020 09 21
F5 Networks, Inc. (FFIV:USA) currently trades below corporate averages relative to UAFRS-based (Uniform) earnings, with a 13.7x Uniform P/E, implying bearish expectations for the firm. Moreover, management may be concerned about their application security products, software growth, and operating marginsSpecifically, management may have concerns about working remotely for the rest of the year, the sustainability of application security demand, and the ported chip capabilities on their Silverline service. In addition, they may lack confidence in their ability to meet their clients' application and business needs, protect their clients' different application behaviors, and sustain software growth through their adaptive applications. Furthermore, they may be overstating the potential of application telemetry in cloud analytics and the capabilities of their NGINX App Protect, and they may be concerned about their opportunities in the 5G market. Finally, management may lack confidence in their ability to capitalize on software-driven opportunities and increase their operating margins in Q4 2020
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.
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