Five9, Inc.
Five9, Inc. Fundamental Analysis
Five9, Inc. (FIVN) shows weak financial fundamentals with a PE ratio of 38.24, profit margin of 3.43%, and ROE of 5.36%. The company generates $1.2B in annual revenue with strong year-over-year growth of 14.44%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 44.8/100 based on profitability, valuation, growth, and balance sheet metrics. The D grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FIVN's fundamental strength across five key dimensions:
Efficiency Score
WeakFIVN struggles to generate sufficient returns from assets.
Valuation Score
ModerateFIVN shows balanced valuation metrics.
Growth Score
ExcellentFIVN delivers strong and consistent growth momentum.
Financial Health Score
ModerateFIVN shows balanced financial health with some risks.
Profitability Score
WeakFIVN struggles to sustain strong margins.
Key Financial Metrics
Is FIVN Expensive or Cheap?
P/E Ratio
FIVN trades at 38.24 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FIVN's PEG of 1.57 indicates fair valuation.
Price to Book
The market values Five9, Inc. at 1.92 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 9.03 times EBITDA. This is generally considered low.
How Well Does FIVN Make Money?
Net Profit Margin
For every $100 in sales, Five9, Inc. keeps $3.43 as profit after all expenses.
Operating Margin
Core operations generate 2.51 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $5.36 in profit for every $100 of shareholder equity.
ROA
Five9, Inc. generates $2.20 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Five9, Inc. produces operating cash flow of $194.21M, showing steady but balanced cash generation.
Free Cash Flow
Five9, Inc. generates strong free cash flow of $138.96M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.78 in free cash annually.
FCF Yield
FIVN converts 9.07% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
38.24
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
1.57
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.92
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.32
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.05
vs 25 benchmark
ROA
Return on assets percentage
0.02
vs 25 benchmark
ROCE
Return on capital employed
0.02
vs 25 benchmark
How FIVN Stacks Against Its Sector Peers
| Metric | FIVN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 38.24 | 35.19 | Neutral |
| ROE | 5.36% | 1155.00% | Weak |
| Net Margin | 3.43% | -127067.00% (disorted) | Weak |
| Debt/Equity | 1.02 | 0.41 | Weak (High Leverage) |
| Current Ratio | 4.51 | 4.71 | Strong Liquidity |
| ROA | 2.20% | -314918.00% (disorted) | Weak |
FIVN outperforms its industry in 1 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Five9, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
157.40%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-127.77%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
126.49%
Industry Style: Growth, Innovation, High Beta
High Growth