F5 Networks Net Income vs. Gross Profit

FFIV Stock  USD 250.35  0.28  0.11%   
Based on F5 Networks' profitability indicators, F5 Networks is yielding more profit at this time then in previous quarter. It has a moderate probability of reporting better profitability numbers in January. Profitability indicators assess F5 Networks' ability to earn profits and add value for shareholders.
 
Net Income  
First Reported
1998-12-31
Previous Quarter
144.1 M
Current Value
165.3 M
Quarterly Volatility
45.1 M
 
Dot-com Bubble
 
Housing Crash
 
Credit Downgrade
 
Yuan Drop
 
Covid
At this time, F5 Networks' Price To Sales Ratio is fairly stable compared to the past year. Days Sales Outstanding is likely to climb to 77.01 in 2024, whereas Operating Cash Flow Sales Ratio is likely to drop 0.18 in 2024. At this time, F5 Networks' Operating Income is fairly stable compared to the past year. Net Income is likely to climb to about 595.1 M in 2024, whereas Income Tax Expense is likely to drop slightly above 90.7 M in 2024.
Current ValueLast YearChange From Last Year 10 Year Trend
Gross Profit Margin0.630.802
Significantly Down
Slightly volatile
Pretax Profit Margin0.160.247
Way Down
Slightly volatile
For F5 Networks profitability analysis, we use financial ratios and fundamental drivers that measure the ability of F5 Networks to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well F5 Networks utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between F5 Networks's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of F5 Networks over time as well as its relative position and ranking within its peers.
  

F5 Networks' Revenue Breakdown by Earning Segment

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Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of F5 Networks. If investors know FFIV will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about F5 Networks listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
0.102
Earnings Share
9.54
Revenue Per Share
47.958
Quarterly Revenue Growth
0.056
Return On Assets
0.0777
The market value of F5 Networks is measured differently than its book value, which is the value of FFIV that is recorded on the company's balance sheet. Investors also form their own opinion of F5 Networks' value that differs from its market value or its book value, called intrinsic value, which is F5 Networks' true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because F5 Networks' market value can be influenced by many factors that don't directly affect F5 Networks' underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between F5 Networks' value and its price as these two are different measures arrived at by different means. Investors typically determine if F5 Networks is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, F5 Networks' price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.

F5 Networks Gross Profit vs. Net Income Fundamental Analysis

Comparative valuation techniques use various fundamental indicators to help in determining F5 Networks's current stock value. Our valuation model uses many indicators to compare F5 Networks value to that of its competitors to determine the firm's financial worth.
F5 Networks is rated # 2 in net income category among its peers. It is rated # 3 in gross profit category among its peers fabricating about  3.92  of Gross Profit per Net Income. At this time, F5 Networks' Net Income is fairly stable compared to the past year. Comparative valuation analysis is a catch-all technique that is used if you cannot value F5 Networks by discounting back its dividends or cash flows. It compares the stock's price multiples to nearest competition to determine if the stock is relatively undervalued or overvalued.

FFIV Gross Profit vs. Net Income

Net income is the profit of a company for the reporting period, which is derived after taking revenues and gains and subtracting all expenses and losses. Net income is one of the most-watched numbers by money managers as well as individual investors.

F5 Networks

Net Income

 = 

(Rev + Gain)

-

(Exp + Loss)

 = 
566.78 M
Because income is reported on the Income Statement of a company and is measured in dollars some investors prefer to use Profit Margin, which measures income as a percentage of sales.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.

F5 Networks

Gross Profit

 = 

Revenue

-

Cost of Revenue

 = 
2.22 B
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.

FFIV Gross Profit Comparison

F5 Networks is currently under evaluation in gross profit category among its peers.

F5 Networks Profitability Projections

The most important aspect of a successful company is its ability to generate a profit. For investors in F5 Networks, profitability is also one of the essential criteria for including it into their portfolios because, without profit, F5 Networks will eventually generate negative long term returns. The profitability progress is the general direction of F5 Networks' change in net profit over the period of time. It can combine multiple indicators of F5 Networks, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Last ReportedProjected for Next Year
Accumulated Other Comprehensive Income-20.9 M-19.9 M
Operating Income675.5 M709.3 M
Net Income566.8 M595.1 M
Income Tax Expense128.7 M90.7 M
Income Before Tax695.5 M730.2 M
Total Other Income Expense Net20 M21 M
Net Income Applicable To Common Shares454.2 M252.8 M
Net Income From Continuing Ops566.8 M382.2 M
Non Operating Income Net Other-16.6 M-15.7 M
Interest Income38.9 M40.8 M
Change To Netincome197.2 M173 M
Net Income Per Share 9.65  10.13 
Income Quality 1.40  1.29 
Net Income Per E B T 0.81  0.84 

FFIV Profitability Driver Comparison

Profitability drivers are factors that can directly affect your investment outlook on F5 Networks. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of F5 Networks position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the F5 Networks' important profitability drivers and their relationship over time.

Use F5 Networks in pair-trading

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if F5 Networks position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in F5 Networks will appreciate offsetting losses from the drop in the long position's value.

F5 Networks Pair Trading

F5 Networks Pair Trading Analysis

The ability to find closely correlated positions to F5 Networks could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace F5 Networks when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back F5 Networks - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling F5 Networks to buy it.
The correlation of F5 Networks is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as F5 Networks moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if F5 Networks moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for F5 Networks can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching

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Additional Tools for FFIV Stock Analysis

When running F5 Networks' price analysis, check to measure F5 Networks' market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy F5 Networks is operating at the current time. Most of F5 Networks' value examination focuses on studying past and present price action to predict the probability of F5 Networks' future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move F5 Networks' price. Additionally, you may evaluate how the addition of F5 Networks to your portfolios can decrease your overall portfolio volatility.