DB:F1O

Stock Analysis Report

Forescout Technologies

Executive Summary

Forescout Technologies, Inc. provides network security products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan.


Snowflake Analysis

Excellent balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has Forescout Technologies's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: F1O has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0%

F1O

-0.8%

DE Software

-0.9%

DE Market


1 Year Return

-11.1%

F1O

33.2%

DE Software

12.8%

DE Market

Return vs Industry: F1O underperformed the German Software industry which returned 33.2% over the past year.

Return vs Market: F1O underperformed the German Market which returned 12.8% over the past year.


Shareholder returns

F1OIndustryMarket
7 Day0%-0.8%-0.9%
30 Day7.1%-0.1%-0.4%
90 Day-6.3%3.7%2.3%
1 Year-11.1%-11.1%35.0%33.2%16.3%12.8%
3 Yearn/a55.2%49.0%15.8%5.7%
5 Yearn/a124.2%108.3%19.7%3.3%

Price Volatility Vs. Market

How volatile is Forescout Technologies's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Forescout Technologies undervalued compared to its fair value and its price relative to the market?

16.06x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: F1O (€30) is trading above our estimate of fair value (€22.36)

Significantly Below Fair Value: F1O is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: F1O is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: F1O is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate F1O's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: F1O is overvalued based on its PB Ratio (16.1x) compared to the DE Software industry average (3.2x).


Next Steps

Future Growth

How is Forescout Technologies forecast to perform in the next 1 to 3 years based on estimates from 9 analysts?

77.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: F1O is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (-0.4%).

Earnings vs Market: F1O is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: F1O's is expected to become profitable in the next 3 years.

Revenue vs Market: F1O's revenue (11.7% per year) is forecast to grow faster than the German market (5.2% per year).

High Growth Revenue: F1O's revenue (11.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: F1O is forecast to be unprofitable in 3 years.


Next Steps

Past Performance

How has Forescout Technologies performed over the past 5 years?

-25.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: F1O is currently unprofitable.

Growing Profit Margin: F1O is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: F1O is unprofitable, and losses have increased over the past 5 years at a rate of -25.1% per year.

Accelerating Growth: Unable to compare F1O's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: F1O is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.6%).


Return on Equity

High ROE: F1O has a negative Return on Equity (-121.52%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Forescout Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: F1O's short term assets ($212.6M) exceed its short term liabilities ($187.3M).

Long Term Liabilities: F1O's short term assets ($212.6M) exceed its long term liabilities ($131.4M).


Debt to Equity History and Analysis

Debt Level: F1O's debt to equity ratio (8.5%) is considered satisfactory.

Reducing Debt: F1O had negative shareholder equity 5 years ago, but is now positive and has therefore improved.


Balance Sheet

Inventory Level: F1O has a low level of unsold assets or inventory.

Debt Coverage by Assets: F1O's debt is covered by short term assets (assets are 25.8x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: F1O has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if F1O has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is Forescout Technologies's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.3%markettop25%3.6%industryaverage1.2%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate F1O's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate F1O's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if F1O's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if F1O's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of F1O's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.0yrs

Average management tenure


CEO

Mike DeCesare (54yo)

4.9yrs

Tenure

US$6,775,083

Compensation

Mr. Michael P. DeCesare, also known as Mike, has been the Chief Executive Officer and President of ForeScout Technologies, Inc. since March 2, 2015. Mr. DeCesare has more than 20 years of sales experience  ...


CEO Compensation Analysis

Compensation vs Market: Mike's total compensation ($USD6.78M) is above average for companies of similar size in the German market ($USD1.52M).

Compensation vs Earnings: Mike's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Michael DeCesare
CEO, President & Director4.9yrsUS$6.78m1.24% $18.1m
Christopher Harms
Chief Financial Officer6.9yrsUS$2.89m0.50% $7.3m
Darren Milliken
Senior VP6yrsUS$1.17m0.068% $995.0k
Pedro Abreu
Chief Product & Strategy Officer4.8yrsUS$2.60m0.20% $2.9m
Rob McNutt
Chief Technology Officer0.7yrsno datano data
Michelle Spolver
Chief Communications Officer3.2yrsno datano data
Neville Letzerich
Chief Marketing Officer0.2yrsno datano data
Julie Cullivan
Chief Technology and People Officer2.1yrsno datano data
Ori Naishtein
Senior Vice President of Research and Development0yrsno datano data
Jason Pishotti
Chief Customer Officer0yrsno datano data

4.0yrs

Average Tenure

53yo

Average Age

Experienced Management: F1O's management team is considered experienced (4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael DeCesare
CEO, President & Director4.9yrsUS$6.78m1.24% $18.1m
Theresia Ranzetta
Chairman of the Board0.8yrsUS$41.34k0.19% $2.8m
David DeWalt
Vice Chairman4.7yrsUS$54.50k0.91% $13.3m
Enrique Salem
Independent Director6.4yrsUS$45.93k0.67% $9.8m
F. Leighton
Member of the Advisory Board0yrsno datano data
Yehezkel Yeshurun
Co-Founder & Director19.8yrsUS$57.00k0.67% $9.7m
Shlomo Kramer
Member of the Advisory Board0yrsno datano data
Yoav Shoham
Member of the Advisory Board0yrsno datano data
James Beer
Independent Director3.5yrsUS$36.07k0.027% $401.6k
Mark Jensen
Independent Director6.8yrsUS$50.00k0.010% $148.3k

4.9yrs

Average Tenure

55yo

Average Age

Experienced Board: F1O's board of directors are considered experienced (4.9 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 12.1%.


Top Shareholders

Company Information

Forescout Technologies, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Forescout Technologies, Inc.
  • Ticker: F1O
  • Exchange: DB
  • Founded: 2000
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$1.587b
  • Listing Market Cap: US$1.461b
  • Shares outstanding: 48.15m
  • Website: https://www.forescout.com

Number of Employees


Location

  • Forescout Technologies, Inc.
  • 190 West Tasman Drive
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FSCTNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDOct 2017
F1ODB (Deutsche Boerse AG)YesCommon StockDEEUROct 2017
FSCT *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNOct 2017

Biography

Forescout Technologies, Inc. provides network security products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It offers CounterACT that provides for visibility and control capabilities across campus information technology and Internet of Things (IoT) devices, operational technology devices, data center physical and virtual devices, and cloud virtual devices; and SilentDefense, which offers visibility and control capabilities within the operational technology portion of the network. The company’s software products include CounterACT, Extended Modules, CounterACT Virtual Appliance, CounterACT Enterprise Manager Virtual Appliances, SilentDefense, and SilentDefense Command Center; and hardware products comprise hardware that is for use with CounterACT or SilentDefense, CounterACT Appliances, and CounterACT Enterprise Manager Appliances. Its products are used to protect organizations against the threats that exploit the billions of IoT devices connected to organizations’ networks. Forescout Technologies, Inc. sells its products and services through distributors and resellers. The company was founded in 2000 and is headquartered in San Jose, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/24 00:18
End of Day Share Price2020/02/21 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.