Fastly, Inc.

FSLY

Services-Prepackaged Software

Mkt Cap

$1.116B

PE

-8.46

Debt

$343.8M

Cash

$151M

EV

$1.309B

FCF

$11.27M

Market Cap

$1.116B

P/E Ratio

-8.46

Debt

$343.8M

Cash

$151M

EV

$1.309B

FCF

$11.27M

Charts data: {"Earnings":[{"time":"2017-12-30","value":-32450000},{"time":"2018-12-30","value":-30935000},{"time":"2019-12-30","value":-51550000},{"time":"2020-12-30","value":-95932000},{"time":"2021-12-30","value":-222697000},{"time":"2022-12-30","value":-190774000},{"time":"2023-12-30","value":-133088000}],"Sales":[{"time":"2017-12-30","value":104900000},{"time":"2018-12-30","value":144563000},{"time":"2019-12-30","value":200462000},{"time":"2020-12-30","value":290874000},{"time":"2021-12-30","value":354330000},{"time":"2022-12-30","value":432725000},{"time":"2023-12-30","value":505988000}],"Net Margins":[{"time":"2017-12-30","value":-0.30934223069590083},{"time":"2018-12-30","value":-0.2139897484141862},{"time":"2019-12-30","value":-0.25715596970996996},{"time":"2020-12-30","value":-0.32980603285271287},{"time":"2021-12-30","value":-0.6285016792255806},{"time":"2022-12-30","value":-0.4408666011901323},{"time":"2023-12-30","value":-0.2630260006166154}],"Assets":[{"time":"2018-12-30","value":162754000},{"time":"2019-12-30","value":320969000},{"time":"2020-12-30","value":1219951000},{"time":"2021-12-30","value":2159020000},{"time":"2022-12-30","value":1896113000},{"time":"2023-12-30","value":1525191000}],"Stockholders Equity":[{"time":"2017-12-30","value":-107006000},{"time":"2018-12-30","value":-131927000},{"time":"2019-12-30","value":257652000},{"time":"2020-12-30","value":1061865000},{"time":"2021-12-30","value":1013953000},{"time":"2022-12-30","value":955158000},{"time":"2023-12-30","value":979488000}],"ROE":[{"time":"2017-12-30","value":0.3032540231388894},{"time":"2018-12-30","value":0.23448573832498276},{"time":"2019-12-30","value":-0.20007607160045332},{"time":"2020-12-30","value":-0.0903429343654796},{"time":"2021-12-30","value":-0.21963246817160165},{"time":"2022-12-30","value":-0.19973030639956948},{"time":"2023-12-30","value":-0.1358750694240256}],"ROA":[{"time":"2018-12-30","value":-0.17726138835297442},{"time":"2019-12-30","value":-0.1427614504827569},{"time":"2020-12-30","value":-0.0867764361027615},{"time":"2021-12-30","value":-0.10144463691860196},{"time":"2022-12-30","value":-0.10056362674587432},{"time":"2023-12-30","value":-0.0874047906131101}]}

Fastly, Inc. operates an edge cloud platform for processing, serving, and securing its customer's applications in the United States, the Asia Pacific, Europe, and internationally. The edge cloud is a category of Infrastructure as a Service that enables developers to build, secure, and deliver digital experiences at the edge of the internet. It is a programmable platform designed for web and application delivery. The company offers Compute@Edge; network services to speed up and optimize the delivery of web and application traffic; device detection and geolocation; content delivery network, such as dynamic site acceleration, origin shield, instant purge, surrogate keys, programmatic control, content compression, reliability, and modern protocols and performance services; and streaming solutions and services, including live streaming and media shield. It also provides edge security solutions, such as DDoS protection, next-gen WAF, bot protection, API and ATO protection, advanced rate limiting, and compliance services; transport layer security (TLS) and platform TLS; and origin connect. In addition, the company offers edge applications, such as load balancers and image optimizers; video on demand; and edge delivery services. It serves customers operating in digital publishing, media and entertainment, technology, online retail and education, SaaS, travel and hospitality, and financial services industries. The company was formerly known as SkyCache, Inc. and changed its name to Fastly, Inc. in May 2012. Fastly, Inc. was incorporated in 2011 and is headquartered in San Francisco, California.

Sector

10-Q
9/30/23
10-Q
6/30/23
10-Q
3/31/23
10-K
12/31/22
10-Q
9/30/22
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6/30/22
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3/31/22
10-K
12/31/21
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9/30/21
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3/31/21
10-K
12/31/20
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9/30/20
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6/30/20
10-Q
3/31/20
10-K
12/31/19
10-Q
9/30/19
10-Q
6/30/19

DCF

Discounted Cash Flow Valuation of Fastly, Inc.

Calculate

Growth Years

Growth

Start

End

Discount

Start

End

Multiple

g\r	+10%	+11%	+12%	+13%	+14%
0%	10	9	8	8	7
+1%	11	10	9	8	8
+2%	13	11	10	9	8
+3%	14	13	11	10	9
+4%	17	14	12	11	10

Years	0	1	2	3	4	5	6	7	8	9	10	TV
FCF	$11.27M	$11.27M	$11.27M	$11.27M	$11.27M	$11.27M	$11.27M	$11.27M	$11.27M	$11.27M	$11.27M	$112.7M
DCF		$9.8M	$8.522M	$7.41M	$6.444M	$5.603M	$4.872M	$4.237M	$3.684M	$3.204M	$2.786M	$27.86M
Value	$84.42M

Chart P/E ratio

In the chart Earnings are multiplied by this value.

Earnings Growth -

Earnings Stability -

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

The Net Margin is too low to guarantee profitability in case of higher costs or higher interest rates. Furthermore lower margins cause higher earnings’ volatility.

Over time the ROA has been increasing indicating a higher marginal ROA with respect to the calculated one, giving a good sign for continued growth.

Years	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Net Margin	-31%	-21%	-26%	-33%	-63%	-44%	-26%	-25%
ROA	-	-18%	-14%	-8.7%	-10%	-10%	-8.7%	-8.8%
ROE	30%	23%	-20%	-9%	-22%	-20%	-14%	-13%

What is the average Net Margin?

The average Net Margin over the past 5 years is -35.56%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is -3.13%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is -11.6%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +1.6%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -10.19%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -5.66%.

Safety & Stabiliy

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

The company has high debt with respect to the cashflow it generates.

Data are missing

Years	12-2017	12-2018	12-2019	12-2020	12-2021	12-2022	12-2023	TTM
Debt FCF	-	-	-0.65	0.00	-12.94	-7.86	-32.36	30.51
Debt Equity	-	-0.39	0.12	0.00	0.94	0.74	0.35	0.35
MIN
Graham Stability	-	-	-	-	-	-	-	-

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 30.51.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is -7.13.

What is the Graham’s Stability?

Graham’s Stability measure stands at -.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Data are missing

Years	12-2018	12-2020	12-2022	Trend
Revenue	28%	20%	17%	-5.1%
Net Income	-	-	-	-
Stockholders Equity	-	-2.7%	2.5%	-93%
FCF	-	-	-	-

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +28.47%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -5.07%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +33.89%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -93%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is -20.63%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -.