Fastly, Inc. Fundamental Analysis (NASDAQ: FSLY)
Fastly, Inc. (NASDAQ: FSLY) shows moderate financial fundamentals with a PE ratio of -45.75, profit margin of -11.80%, and ROE of -8.46%. The company generates $0.7B in annual revenue with strong year-over-year growth of 14.78%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 23.8/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze FSLY's fundamental strength across five key dimensions:
Efficiency Score
WeakFSLY struggles to generate sufficient returns from assets.
Valuation Score
ExcellentFSLY trades at attractive valuation levels.
Growth Score
ExcellentFSLY delivers strong and consistent growth momentum.
Financial Health Score
ExcellentFSLY maintains a strong and stable balance sheet.
Profitability Score
WeakFSLY struggles to sustain strong margins.
Key Financial Metrics
Is FSLY Expensive or Cheap?
P/E Ratio
FSLY trades at -45.75 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, FSLY's PEG of -0.61 indicates potential undervaluation.
Price to Book
The market values Fastly, Inc. at 3.86 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 2709.25 times EBITDA. This signals the market has high growth expectations.
How Well Does FSLY Make Money?
Net Profit Margin
For every $100 in sales, Fastly, Inc. keeps $-11.80 as profit after all expenses.
Operating Margin
Core operations generate -11.93 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-8.46 in profit for every $100 of shareholder equity.
ROA
Fastly, Inc. generates $-5.39 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Fastly, Inc. produces operating cash flow of $120.85M, showing steady but balanced cash generation.
Free Cash Flow
Fastly, Inc. produces free cash flow of $42.69M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.27 in free cash annually.
FCF Yield
FSLY converts 1.09% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-45.75
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
-0.61
vs 25 benchmark
P/B Ratio
Price to book value ratio
3.86
vs 25 benchmark
P/S Ratio
Price to sales ratio
5.62
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.40
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.36
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.08
vs 25 benchmark
ROA
Return on assets percentage
-0.05
vs 25 benchmark
ROCE
Return on capital employed
-0.06
vs 25 benchmark
How FSLY Stacks Against Its Sector Peers
| Metric | FSLY Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -45.75 | 33.86 | Better (Cheaper) |
| ROE | -8.46% | 863.00% | Weak |
| Net Margin | -11.80% | -1938.00% (disorted) | Weak |
| Debt/Equity | 0.40 | 0.61 | Strong (Low Leverage) |
| Current Ratio | 3.36 | 12.88 | Strong Liquidity |
| ROA | -5.39% | 99.00% | Weak |
FSLY outperforms its industry in 3 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Fastly, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
51.22%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
10.59%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
434.27%
Industry Style: Growth, Innovation, High Beta
High Growth