F5 Networks Story

FFIV -  USA Stock  

USD 181.27  1.95  1.09%

It appears F5 Networks may not have a good chance to recover from the latest fall as its shares fell again. The company's current daily volatility is 1.49 percent, with a beta of -0.29 and an alpha of -0.25 over DOW. While many traders are getting carried away by overanalyzing market volatility, it is reasonable to focus on F5 Networks based on how it reacts to the latest economic swings. Why are we still confident in our projection for a recovery.
Published over six months ago
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Is F5 Networks (NASDAQ:FFIV) stock way too aggressive for baby boomers?
F5 Networks currently holds roughly 1.09 B in cash with 691.08 M of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 17.88. Macroaxis provides trade advice on F5 Networks to complement and cross-verify current analyst consensus on F5 Networks. Our advice engine determines the company's potential to grow exclusively from the perspective of an investor's current risk tolerance and investing horizon.
Investing in F5 Networks, just like investing in any other equity instrument, is characterized by a strong risk-return correlation. High risks mean high returns and low risk means lower expected returns. Risk management is the act of identifying and assessing the potential risk and developing strategies to minimize these risks and earn maximum possible profits while holding F5 Networks along with other instruments in the same portfolio. Using conventional technical analysis and fundamental analysis to select individual securities into a portfolio complements risk management and adds value to overall investors' investing strategies.
Sophisticated investors, who have witnessed many market ups and downs, frequently view the market will even out over time. This tendency of F5 Networks' stock price to converge to an average value over time is called mean reversion. However, historically, high market prices usually discourage investors that believe in mean reversion to invest, while low prices are viewed as an opportunity to buy. Please use the tools below to analyze the current value of F5 Networks in the context of predictive analytics.
Please note, it is not enough to conduct a financial or market analysis of a single entity such as F5 Networks. Your research has to be compared to or analyzed against F5 Networks' peers to derive any actionable benefits. When done correctly, F5 Networks' competitive analysis will give you plenty of quantitative and qualitative data to validate your investment decisions or develop an entirely new strategy towards taking a position in F5 Networks.

How important is F5 Networks's Liquidity

F5 Networks financial leverage refers to using borrowed capital as a funding source to finance F5 Networks ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. F5 Networks financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between F5 Networks's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions.
It is good to see analyst projects for F5 Networks, but it might be worth checking our own buy vs. sell analysis

F5 Networks Correlation with Peers

Investors in F5 Networks can reduce exposure to individual asset risk by holding a diversified portfolio of assets in addition to a long position in F5 Networks. Diversification will allow for the same portfolio return with reduced risk. The correlation table of F5 Networks and its peers is a two-dimensional matrix that shows the correlation coefficient between pairs of securities F5 Networks is related in some way. The cells in the table are color-coded to highlight significantly positive and negative relationships. Each cell shows the correlation between one pair of equities and can be used to run pair trading strategies or create efficient portfolios with your current brokerage.
Please check volatility of F5 Networks for more details

Breaking down the case for F5 Networks

F5 Networks retains Efficiency (Sharpe Ratio) of -0.091, which denotes the company had -0.091% of return per unit of price deviation over the last month. Macroaxis outlook to predicting the risk of any stock is to look at both systematic and unsystematic factors of the business, including all available market data and technical indicators. F5 Networks exposes twenty-eight different technical indicators, which can help you to evaluate volatility that cannot be diversified away. Please be advised to confirm F5 Networks market risk adjusted performance of 0.9655, and Standard Deviation of 1.81 to check the risk estimate we provide.
Click cells to compare fundamentals   Check Volatility   Backtest Portfolio

Analysis of F5 Networks

Latest information ratio is at -0.21. As of the 26th of October, F5 Networks owns the market risk adjusted performance of 0.9655, and Standard Deviation of 1.81. F5 Networks technical analysis allows you to utilize past data patterns in order to determine a pattern that computes the direction of the entity's future prices. Strictly speaking, you can use this information to find out if the entity will indeed mirror its model of historical prices and volume patterns, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for F5 Networks, which can be compared to its peers in the sector. Please confirm F5 Networks coefficient of variation, as well as the relationship between the treynor ratio and semi variance to decide if F5 Networks is priced fairly, providing market reflects its prevailing price of 125.57 per share. Given that F5 Networks has jensen alpha of (0.25), we urge you to verify F5 Networks's latest market performance to make sure the company can sustain itself sooner or later.

Our Final Perspective on F5 Networks

While many other companies in the software?infrastructure industry are either recovering or due for a correction, F5 Networks may not be performing as strong as the other in terms of long-term growth potentials. To summarize, as of the 26th of October 2020, we believe that at this point, F5 Networks is very steady with low chance of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. Our up-to-date 30 days advice on the venture is Cautious Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of F5 Networks. Please refer to our Terms of Use for any information regarding our disclosure principles.

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