Is the business good?
How good a business is FFIV?
F5, Inc. earns 28% on the capital it employs against a 9.0% cost of capital, so the business is worth more the bigger it gets.
28%
Return on invested capital · cost of capital 9.0% · 19 points above what the capital costs: growth creates value
- Operating margin
- 25%
Operating margin · Software - Infrastructure median 6.1% · 12 months to Q2 2026
- Cash conversion
- 1.36×
Cash conversion · 1.34× a year ago · every dollar of reported profit arrived as cash, and more
- Share count, year on year
- −2.5%
Share count, year on year · bought back, each share owns more of the company
| Year | Operating margin |
|---|---|
| FY2020 | 17% |
| FY2021 | 15% |
| FY2022 | 15% |
| FY2023 | 17% |
| FY2024 | 23% |
| FY2025 | 25% |
Details›
- Gross margin12 months to Q2 2026
- 82%
- Operating margin12 months to Q2 2026
- 25%
- Net margin12 months to Q2 2026
- 22%
- Free cash flow margin
- 30%
- R&D as % of revenue
- 18%
- Revenue, trailing twelve months
- $3.22B
- Free cash flow, trailing twelve months
- $963M
- Net income, trailing twelve months
- $708M
- Return on invested capitaloperating profit after tax ÷ debt + equity − cash
- 28%
Margins, capital and share counts from the statements as filed with the SEC; cash conversion from the cash flow statement.
Software - Infrastructure
Ranks #31 of 78 by Smart Score