Five9, Inc.
Five9, Inc. Fundamental Analysis
Five9, Inc. (FIVN) shows weak financial fundamentals with a PE ratio of 32.53, profit margin of 4.87%, and ROE of 7.37%. The company generates $1.2B in annual revenue with strong year-over-year growth of 10.28%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 45.7/100 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
ModerateFIVN shows steady but slowing expansion.
Financial Health Score
ExcellentFIVN maintains a strong and stable balance sheet.
Profitability Score
WeakFIVN struggles to sustain strong margins.
Key Financial Metrics
Is FIVN Expensive or Cheap?
P/E Ratio
FIVN trades at 32.53 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, FIVN's PEG of 0.01 indicates potential undervaluation.
Price to Book
The market values Five9, Inc. at 2.24 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 6.44 times EBITDA. This is generally considered low.
How Well Does FIVN Make Money?
Net Profit Margin
For every $100 in sales, Five9, Inc. keeps $4.87 as profit after all expenses.
Operating Margin
Core operations generate 4.68 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $7.37 in profit for every $100 of shareholder equity.
ROA
Five9, Inc. generates $3.07 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 $240.92M, showing steady but balanced cash generation.
Free Cash Flow
Five9, Inc. generates strong free cash flow of $205.54M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $2.68 in free cash annually.
FCF Yield
FIVN converts 11.16% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
32.53
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.01
vs 25 benchmark
P/B Ratio
Price to book value ratio
2.24
vs 25 benchmark
P/S Ratio
Price to sales ratio
1.58
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.96
vs 25 benchmark
Current Ratio
Current assets to current liabilities
4.51
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.07
vs 25 benchmark
ROA
Return on assets percentage
0.03
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How FIVN Stacks Against Its Sector Peers
| Metric | FIVN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 32.53 | 36.23 | Better (Cheaper) |
| ROE | 7.37% | 1013.00% | Weak |
| Net Margin | 4.87% | 5878932168.00% | Weak |
| Debt/Equity | 0.96 | 0.57 | Weak (High Leverage) |
| Current Ratio | 4.51 | 5.01 | Strong Liquidity |
| ROA | 3.07% | -294353.00% (disorted) | Weak |
FIVN outperforms its industry in 2 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
118.69%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
177.44%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
178.20%
Industry Style: Growth, Innovation, High Beta
High Growth