Morningstar Rating

Stock Research and Analysis

by Michael Hodel, CFA

Bulls Say

F5's ADCs are widely considered best in class, and we see no sign of this market leadership deteriorating.
F5's operating system, TMOS, allows users to easily create their own traffic management rules. We think this makes the firm's products more difficult to replace within the network.
By allowing outside vendors like Oracle to write specific tasks for its products, F5 has cultivated a powerful sales channel of enterprise software partners. Read more 

Bears Say

Cisco's partnership with Citrix could make Citrix a more formidable competitor over time.
Riverbed's recent acquisition of Zeus gives the firm a strong technology to attack the virtual ADC market. Juniper's recent decision to license and integrate Riverbed's ADC technology could validate Riverbed's ADC technology as a viable alternative to F5.
Technology disruption is an ever-present threat. New methods for steering data traffic, such as software-defined networking technologies, could obviate the need for traditional appliance-based ADCs for certain applications. Read more 


We view F5's stewardship of shareholder capital as standard. John McAdam, who previously ran IBM's Web server division, was brought in as president and CEO in 2000. CFO Andy Reinland has been with the firm since 1998. F5's long record of strong financial   Read more 


F5 Networks provides products that help manage growing network traffic, application complexity, and security concerns. F5's customer base has evolved from an initial focus   Read more 

Week Ahead: The First Reports of Earnings Season  
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