F5, Inc. (FFIV) — Fundamental Analysis & Key Financial Ratios

Kaplio's reading: F5, Inc.

Updated on October 27, 2026 · accounts published on July 27, 2026

Reading of October 26, 2026: A highly profitable, cash-rich business with steady growth and a spotless balance sheet

F5 trades at a P/E of 36.8, 36 % above its ten-year median of 27.0, while EPS grew 24 % over the last 12 months with almost no debt.

• Is F5 expensive or cheap? Its P/E of 36.8 is 36 % above its ten-year median and higher than in 88 % of the last decade.
• How is the business doing? EPS grew 24 % over the last 12 months, more than twice the 10 % rise in revenue, with margins above the decade average.
• How strong is the balance sheet? Debt to equity is just 0.07 over the last 12 months, and net cash reached $14.71 per share in fiscal 2025.
• What to expect from the next earnings? F5 reports on October 27, 2026; analysts expect EPS of $4.26, and it has beaten estimates in each of the last 8 quarters.
• Does F5 grow with real cash or by diluting shareholders? Free cash flow was 29 % of revenue in fiscal 2025, while stock-based pay took 7.5 %, under the 10 % healthy threshold.

Is F5 expensive or cheap?

Over the last 12 months F5 trades at a P/E of 36.8, against a ten-year median of 27.0 and a decade range of 14.1 to 46.0. It has traded cheaper 88 % of the time in that decade, so today's multiple sits near the top of its own history. Against technology peers the gap is smaller: the sector median P/E is 32.0, leaving F5 15 % above. EV/EBITDA of 26.3× is well above its five-year average of 18.5×. With the stock up 55 % in 12 months and 4 % below its 52-week high of $479.83, the market is already paying for the improvement.

How is the business doing?

Revenue rose 9.7 % over the last 12 months while EPS climbed 23.6 %, so profits are growing faster than sales. The operating margin of 24.5 % over the last 12 months beats the 22.9 % average of fiscal 2014-2025 and is in line with the 24.8 % of fiscal 2025, a sign the gain is holding. Net margin stands at 22.0 % and ROE at 19.9 %. ROIC of 13.6 % over the last 12 months is 5.4 points above the sector median of 8.1 %, and it has stayed above 10 % in 7 of the last 10 fiscal years, with the weakest at 8.8 % in 2020.

How strong is the balance sheet?

F5 carries almost no debt: debt to equity of 0.07 over the last 12 months and net debt to EBITDA of −1.0× in fiscal 2025, meaning cash exceeds borrowings. Net cash of $14.71 per share ($23.22 of cash minus $8.51 of debt) equals only 3.2 % of the current price, so it cushions the balance sheet without changing the valuation picture. A current ratio of 1.66 covers short-term obligations comfortably, the Altman Z-score of 6.0 sits in the safe zone and the Piotroski score is a perfect 9 out of 9. Financial risk is not where the debate lies.

What to expect from the next earnings?

Analysts expect EPS of $4.26 for the quarter reported on October 27, 2026, below the $4.73 F5 delivered on July 27, 2026, when it beat the $4.00 estimate by 18 %. It has topped EPS estimates in 8 of the last 8 quarters, a record that sets a high bar for this report. Expectations are stable: the 2027 EPS consensus has held at $18.03 over the past 30 days among 8 analysts, and revenue estimates have barely moved. Of 61 analysts, 24 recommend buying, 33 holding and 3 selling, a cautious split for a stock up 55 % in a year.

Does F5 grow with real cash or by diluting shareholders?

In technology, reported earnings can flatter companies that pay staff in shares, so growth, pricing power and dilution say more than a plain P/E. F5 passes most tests in fiscal 2025: an 81 % gross margin, above the 70 % healthy mark for software, free cash flow of 29 % of revenue against a 20 % bar, and stock-based pay at 7.5 % of revenue, well below the 20 % toxic level. The weak spot is growth: revenue per share rose 6 % a year over fiscal 2022-2025, far from the 15 % the sector treats as healthy. The Rule of 40 reaches 35, right at the healthy line but short of elite.

How this was prepared: the data comes from companies' official filings, collected by a professional provider, and from Kaplio's analysis engine (trailing-12-month ratios, 10 years of history and sector medians computed across US-listed companies). The text is written from that data alone, every figure is checked against it before publication, and it is reviewed when the company reports results. This is not investment advice.