Credit Sussie Downgrades F5 Networks Inc.(FFIV:NSD) to a Neutral rating

Credit Sussie Downgrades F5 Networks Inc to a Neutral rating and lowers the target price to $167 from $225 on the company’s stock.

JP Morgan Downgrades F5 Networks Inc to a Neutral rating with a target price of $178.

Based on the F5 Networks Inc stock forecasts from 12 analysts, the average analyst target price for F5 Networks Inc is USD 233.80 over the next 12 months. F5 Networks Inc’s average analyst rating is Buy . Stock Target Advisor’s own stock analysis of F5 Networks Inc is Slightly Bullish , which is based on 8 positive signals and 4 negative signals. At the last closing, F5 Networks Inc’s stock price was USD 149.39F5 Networks Inc’s stock price has changed by -3.86% over the past week, -0.66% over the past month and -19.42% over the last year.

What we like:

High market capitalization

This is one of the largest entities in its sector and is among the top quartile. Such companies tend to be more stable.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior capital utilization

The company management has delivered better return on invested capital in the most recent 4 quarters than its peers, placing it in the top quartile.

Superior return on assets

The company management has delivered better return on assets in the most recent 4 quarters than its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What we don’t like:

Below median dividend returns

The company’s average income yield over the past 5 years has been low compared to its peers. However, it is not a problem if you are not looking for income.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Overpriced on free cash flow basis

The stock is trading high compared to its peers on a price to free cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Low Revenue Growth

This stock has shown below median revenue growth in the previous 5 years compared to its sector