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Fortinet

DB:FO8
Snowflake Description

Flawless balance sheet with reasonable growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FO8
DB
$12B
Market Cap
  1. Home
  2. DE
  3. Software
Company description

Fortinet, Inc. provides broad, automated, and integrated cybersecurity solutions worldwide. The last earnings update was 76 days ago. More info.


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FO8 Share Price and Events
7 Day Returns
-3.2%
DB:FO8
4.2%
DE Software
2.2%
DE Market
1 Year Returns
73.4%
DB:FO8
-1%
DE Software
-18.8%
DE Market
FO8 Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Fortinet (FO8) -3.2% 0.4% -15.1% 73.4% 149.7% 291.1%
DE Software 4.2% 7.3% -2.3% -1% 28.5% 65.7%
DE Market 2.2% 4.6% -1.1% -18.8% 6.6% 7.1%
1 Year Return vs Industry and Market
  • FO8 outperformed the Software industry which returned -1% over the past year.
  • FO8 outperformed the Market in Germany which returned -18.8% over the past year.
Price Volatility
FO8
Industry
5yr Volatility vs Market
Related Companies

FO8 Value

 Is Fortinet undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Fortinet to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Fortinet.

DB:FO8 Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 28 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year DE Government Bond Rate 0.2%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for DB:FO8
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year DE Govt Bond Rate 0.2%
Equity Risk Premium S&P Global 9.8%
Software Unlevered Beta Simply Wall St/ S&P Global 0.94
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 0.938 (1 + (1- 21%) (0%))
0.938
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
0.94
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 0.23% + (0.938 * 9.77%)
9.39%

Discounted Cash Flow Calculation for DB:FO8 using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Fortinet is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

DB:FO8 DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 632.90 792.64 911.10 1,049.60 1,195.80
Source Analyst x14 Analyst x9 Analyst x1 Analyst x1 Analyst x1
Present Value
Discounted (@ 9.39%)
578.57 662.39 696.02 732.99 763.40
Present value of next 5 years cash flows $3,433.36
DB:FO8 DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $1,195.80 × (1 + 0.23%) ÷ (9.39% – 0.23%)
$13,080.04
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $13,080.04 ÷ (1 + 9.39%)5
$8,350.27
DB:FO8 Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $3,433.36 + $8,350.27
$11,783.63
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $11,783.63 / 170.37
$60.22
DB:FO8 Discount to Share Price
Calculation Result
Non-primary Listing Adjustment Factor 1 share in DB:FO8 represents 0.87064x of NasdaqGS:FTNT
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.87064x
Value per Share
(Listing Adjusted, EUR)
= Value per Share (USD) x Listing Adjustment Factor
= $ 69.16 x 0.87064
€60.22
Value per share (EUR) From above. €60.22
Current discount Discount to share price of €61.38
= -1 x (€61.38 - €60.22) / €60.22
-1.9%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

  • The current share price of Fortinet is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Fortinet's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Fortinet's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
DB:FO8 PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-30) in USD $0.71
NasdaqGS:FTNT Share Price ** NasdaqGS (2019-01-22) in USD $70.5
Germany Software Industry PE Ratio Median Figure of 23 Publicly-Listed Software Companies 34.92x
Germany Market PE Ratio Median Figure of 418 Publicly-Listed Companies 17.55x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Fortinet.

DB:FO8 PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:FTNT Share Price ÷ EPS (both in USD)

= 70.5 ÷ 0.71

99.01x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fortinet is overvalued based on earnings compared to the DE Software industry average.
  • Fortinet is overvalued based on earnings compared to the Germany market.
Price based on expected Growth
Does Fortinet's expected growth come at a high price?
Raw Data
DB:FO8 PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 99.01x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 28 Analysts
15%per year
Germany Software Industry PEG Ratio Median Figure of 17 Publicly-Listed Software Companies 1.36x
Germany Market PEG Ratio Median Figure of 276 Publicly-Listed Companies 1.37x

*Line of best fit is calculated by linear regression .

DB:FO8 PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 99.01x ÷ 15%

6.59x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fortinet is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Fortinet's assets?
Raw Data
DB:FO8 PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-30) in USD $5.24
NasdaqGS:FTNT Share Price * NasdaqGS (2019-01-22) in USD $70.5
Germany Software Industry PB Ratio Median Figure of 33 Publicly-Listed Software Companies 2.76x
Germany Market PB Ratio Median Figure of 566 Publicly-Listed Companies 1.79x
DB:FO8 PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:FTNT Share Price ÷ Book Value per Share (both in USD)

= 70.5 ÷ 5.24

13.47x

* Primary Listing of Fortinet.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Fortinet is overvalued based on assets compared to the DE Software industry average.
X
Value checks
We assess Fortinet's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Software industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Software industry average (and greater than 0)? (1 check)
  5. Fortinet has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

FO8 Future Performance

 How is Fortinet expected to perform in the next 1 to 3 years based on estimates from 28 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Fortinet expected to grow at an attractive rate?
  • Fortinet's earnings growth is expected to exceed the low risk savings rate of 0.2%.
Growth vs Market Checks
  • Fortinet's earnings growth is expected to exceed the Germany market average.
  • Fortinet's revenue growth is expected to exceed the Germany market average.
Annual Growth Rates Comparison
Raw Data
DB:FO8 Future Growth Rates Data Sources
Data Point Source Value (per year)
DB:FO8 Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 28 Analysts 15%
DB:FO8 Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 28 Analysts 10.6%
Germany Software Industry Earnings Growth Rate Market Cap Weighted Average 13.9%
Germany Software Industry Revenue Growth Rate Market Cap Weighted Average 8.8%
Germany Market Earnings Growth Rate Market Cap Weighted Average 9.9%
Germany Market Revenue Growth Rate Market Cap Weighted Average 5.3%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
DB:FO8 Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 28 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
DB:FO8 Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 2,910 1,277 1
2022-12-31 2,692 1,124 2
2021-12-31 2,484 984 2
2020-12-31 2,333 881 258 16
2019-12-31 2,054 765 227 28
2018-12-31 1,791 646 205 27
DB:FO8 Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-30 1,711 616 121
2018-06-30 1,631 602 89
2018-03-31 1,553 604 62
2017-12-31 1,495 594 31
2017-09-30 1,441 538 86
2017-06-30 1,383 452 65
2017-03-31 1,331 375 41
2016-12-31 1,275 346 32
2016-09-30 1,209 313 4
2016-06-30 1,153 302 6
2016-03-31 1,081 319 9
2015-12-31 1,009 283 8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Fortinet's earnings are expected to grow by 15% yearly, however this is not considered high growth (20% yearly).
  • Fortinet's revenue is expected to grow by 10.6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
DB:FO8 Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 28 Analyst Estimates (S&P Global) See Below

All data from Fortinet Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FO8 Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 1.41 1.58 1.25 4.00
2019-12-31 1.26 1.68 1.04 10.00
2018-12-31 1.20 1.27 1.16 10.00
DB:FO8 Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-30 0.71
2018-06-30 0.52
2018-03-31 0.36
2017-12-31 0.18
2017-09-30 0.49
2017-06-30 0.37
2017-03-31 0.24
2016-12-31 0.19
2016-09-30 0.03
2016-06-30 0.04
2016-03-31 0.05
2015-12-31 0.05

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Fortinet is expected to efficiently use shareholders’ funds in the future (Return on Equity greater than 20%).
X
Future performance checks
We assess Fortinet's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the Germany market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the Germany market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Fortinet has a total score of 4/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

FO8 Past Performance

  How has Fortinet performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Fortinet's growth in the last year to its industry (Software).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Fortinet has delivered over 20% year on year earnings growth in the past 5 years.
  • Fortinet's 1-year earnings growth exceeds its 5-year average (40.9% vs 24.1%)
  • Fortinet's earnings growth has exceeded the DE Software industry average in the past year (40.9% vs 6.6%).
Earnings and Revenue History
Fortinet's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Fortinet Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

DB:FO8 Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-30 1,710.83 120.60 859.89 233.71
2018-06-30 1,631.23 88.60 832.49 228.51
2018-03-31 1,553.33 62.30 804.39 218.51
2017-12-31 1,494.93 31.40 787.09 210.61
2017-09-30 1,441.13 85.57 755.22 201.49
2017-06-30 1,383.48 65.16 739.06 195.23
2017-03-31 1,331.47 40.77 735.34 189.53
2016-12-31 1,275.44 32.19 707.58 183.08
2016-09-30 1,209.14 4.49 684.11 180.31
2016-06-30 1,152.56 6.37 647.39 175.18
2016-03-31 1,080.96 8.55 592.86 167.07
2015-12-31 1,009.27 7.99 540.19 158.13
2015-09-30 936.71 17.33 488.36 148.41
2015-06-30 869.99 13.22 438.07 138.19
2015-03-31 814.30 18.51 390.69 134.24
2014-12-31 770.36 25.34 357.15 125.88
2014-09-30 723.75 30.55 322.90 120.53
2014-06-30 685.10 37.52 298.75 115.06
2014-03-31 648.43 40.42 280.97 106.78
2013-12-31 615.30 44.27 259.90 102.66
2013-09-30 589.11 53.76 243.89 95.44
2013-06-30 570.68 59.94 230.01 89.52
2013-03-31 552.21 64.91 215.25 84.75
2012-12-31 533.64 66.84 204.67 81.08
2012-09-30 503.34 61.82 197.90 76.13
2012-06-30 483.50 62.53 188.00 72.47
2012-03-31 457.56 63.08 179.25 68.02

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Fortinet has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Fortinet used its assets less efficiently than the DE Software industry average last year based on Return on Assets.
  • Fortinet has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Fortinet's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Software industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Fortinet has a total score of 4/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

FO8 Health

 How is Fortinet's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Fortinet's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Fortinet is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Fortinet's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Fortinet's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Fortinet has no debt, it does not need to be covered by short term assets.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Fortinet Company Filings, last reported 3 months ago.

DB:FO8 Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-30 891.60 0.00 1,634.20
2018-06-30 780.20 0.00 1,433.70
2018-03-31 693.50 0.00 1,303.90
2017-12-31 589.38 0.00 1,251.28
2017-09-30 902.23 0.00 1,275.76
2017-06-30 922.14 0.00 1,207.32
2017-03-31 898.25 0.00 1,198.67
2016-12-31 837.68 0.00 1,085.53
2016-09-30 823.09 0.00 1,030.42
2016-06-30 804.63 0.00 984.77
2016-03-31 742.40 0.00 952.60
2015-12-31 755.38 0.00 891.35
2015-09-30 795.39 0.00 908.16
2015-06-30 750.83 0.00 873.03
2015-03-31 719.75 0.00 803.96
2014-12-31 675.97 0.00 720.02
2014-09-30 649.23 0.00 660.59
2014-06-30 625.22 0.00 558.12
2014-03-31 610.09 0.00 561.05
2013-12-31 585.76 0.00 491.37
2013-09-30 599.95 0.00 513.02
2013-06-30 567.19 0.00 502.70
2013-03-31 547.71 0.00 460.38
2012-12-31 510.93 0.00 413.69
2012-09-30 478.47 0.00 374.65
2012-06-30 426.64 0.00 401.63
2012-03-31 398.33 0.00 428.07
  • Fortinet has no debt.
  • Fortinet has not taken on any debt in the past 5 years.
  • Fortinet has no debt, it does not need to be covered by operating cash flow.
  • Fortinet has no debt, therefore coverage of interest payments is not a concern.
X
Financial health checks
We assess Fortinet's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Fortinet has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

FO8 Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Fortinet dividends. Estimated to be 0% next year.
If you bought €2,000 of Fortinet shares you are expected to receive €0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Fortinet's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Fortinet's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
DB:FO8 Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 28 Analyst Estimates (S&P Global) See Below
Germany Software Industry Average Dividend Yield Market Cap Weighted Average of 14 Stocks 1.5%
Germany Market Average Dividend Yield Market Cap Weighted Average of 329 Stocks 3.1%
Germany Minimum Threshold Dividend Yield 10th Percentile 0.9%
Germany Bottom 25% Dividend Yield 25th Percentile 1.6%
Germany Top 25% Dividend Yield 75th Percentile 4%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

DB:FO8 Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31
2020-12-31 0.00 3.00
2019-12-31 0.00 4.00
2018-12-31 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Fortinet has not reported any payouts.
  • Unable to verify if Fortinet's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Fortinet's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Fortinet has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Fortinet's dividends in 3 years as they are not expected to pay a notable one for Germany.
X
Income/ dividend checks
We assess Fortinet's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Fortinet afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Fortinet has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

FO8 Management

 What is the CEO of Fortinet's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Ken Xie
COMPENSATION $3,960,438
AGE 55
TENURE AS CEO 18.3 years
CEO Bio

Mr. Ken Xie founded Fortinet Inc., October 2000 and has been its Chief Executive Officer and Director since October 2000. Mr. Xie serves as an Advisor at WI Harper Group. He is a Strategic Advisor at Trident Capital Cybersecurity. He served as President at Fortinet Inc, from October 2000 to November 11, 2013. He founded NetScreen and Stanford Infosystems International, Inc and served as its President and Chief Executive Officer, which was acquired by Juniper Networks, Inc. in April 2004. He served as a Managing Partner of Jedi Venture. He served as Lead Security Architect of Healtheon Corporation (now WebMD) and Philips. He started his first company SIS in 1993. He has over 15 years of technical and management experience in the networking and security industries. Mr. Xie serves as the Chairman of Fortinet Inc. He has been an Independent Director of TeleNav, Inc. since July 2012. He serves as a Board Member of HuaYuan Science and Technologies Association. Additionally, Mr. Ken Xie was Chief Executive Officer of SIS, Inc. and is a member of the National Academy of Engineering. In 2006, he was named a Technology Pioneer by the World Economic Forum and Time Magazine and Northern California Entrepreneur of the Year by Ernst & Young. He was also recognized as a Top 5 Entrepreneur by Entrepreneur Magazine in 2005, top 25 Chinese-Americans in Business by Forbes in 2010, and "Father of UTM" in an InfoSecurity cover story in 2011. He is also a state registered Professional Engineer in Electrical and hold certificates of Advanced Project Management, Strategic Decision and Risk Management from Stanford University. Mr. Xie holds a B.S. and an M.S. in electrical engineering from Tsinghua University in China and an M.S. and doctorate in electrical engineering from Stanford University.

CEO Compensation
  • Ken's compensation has increased by more than 20% in the past year.
  • Ken's remuneration is about average for companies of similar size in Germany.
Management Team Tenure

Average tenure and age of the Fortinet management team in years:

2.5
Average Tenure
52
Average Age
  • The tenure for the Fortinet management team is about average.
Management Team

Ken Xie

TITLE
Founder
COMPENSATION
$4M
AGE
55
TENURE
18.3 yrs

Michael Xie

TITLE
Founder
COMPENSATION
$3M
AGE
49
TENURE
5.2 yrs

John Whittle

TITLE
VP of Corporate Development & Strategic Alliances
COMPENSATION
$2M
AGE
49
TENURE
12.3 yrs

Keith Jensen

TITLE
CFO & Chief Accounting Officer
AGE
59
TENURE
0.9 yrs

Peter Salkowski

TITLE
Vice President of Investor Relations
TENURE
0.9 yrs

Sandra Wheatley

TITLE
Senior Vice President of Global Corporate Communications
TENURE
1.6 yrs

Patrice Perche

TITLE
Senior Executive Vice President of Worldwide Sales & Support
TENURE
3 yrs

Stacey Wu

TITLE
Senior Vice President of Global Marketing
TENURE
2.1 yrs

Brian Almas

TITLE
Senior Vice President of Human Resources
TENURE
1.3 yrs

John Maddison

TITLE
Senior Vice President of Products & Solutions
TENURE
2.9 yrs
Board of Directors Tenure

Average tenure and age of the Fortinet board of directors in years:

4.7
Average Tenure
58.5
Average Age
  • The tenure for the Fortinet board of directors is about average.
Board of Directors

Michael Xie

TITLE
Founder
COMPENSATION
$3M
AGE
49
TENURE
17.9 yrs

Chris Paisley

TITLE
Director
COMPENSATION
$323K
AGE
65
TENURE
14.9 yrs

Ken Xie

TITLE
Founder
COMPENSATION
$4M
AGE
55
TENURE
18.3 yrs

Judith Sim

TITLE
Director
COMPENSATION
$248K
AGE
49
TENURE
3.6 yrs

Gary Locke

TITLE
Director
COMPENSATION
$247K
AGE
68
TENURE
3.3 yrs

William Neukom

TITLE
Lead Independent Director
COMPENSATION
$297K
AGE
76
TENURE
0.8 yrs

Ming Hsieh

TITLE
Director
COMPENSATION
$297K
AGE
62
TENURE
5.8 yrs

Peter Cohen

TITLE
Director
COMPENSATION
$601K
AGE
50
TENURE
1.5 yrs
Who owns this company?
Recent Insider Trading
  • Fortinet insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price (€) Value (€)
13. Nov 18 Sell Peter Cohen Individual 12. Nov 18 12. Nov 18 -2,000 €66.01 €-132,029
10. Sep 18 Sell Ming Hsieh Individual 07. Sep 18 07. Sep 18 -7,015 €73.84 €-517,984
11. May 18 Sell Judith Sim Individual 10. May 18 10. May 18 -7,500 €50.48 €-378,630
X
Management checks
We assess Fortinet's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Fortinet has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

FO8 News

Simply Wall St News

FO8 Company Info

Map
Description

Fortinet, Inc. provides broad, automated, and integrated cybersecurity solutions worldwide. It offers FortiGate hardware and software licenses that provide various security and networking functions, including firewall, intrusion prevention, anti-malware, virtual private network, application control, Web filtering, anti-spam, and WAN acceleration; and FortiSandbox technology that delivers proactive detection and mitigation services; and FortiSIEM family of products, which offers a cloud-ready security information and event management solution for enterprises and service providers. The company also provides FortiSwitch product family that offers secure switching solutions for connecting customers end devices, such as computers and laptops, as well as an expanding field of Internet of Things devices; and Fortinet Management and Analysis products consisting of FortiManager and FortiAnalyzer hardware and software products. In addition, it provides security subscription, technical support, professional, and training services. The company sells its security solutions to channel partners; and directly to end-customers, including small and medium-sized businesses, large enterprises, and government organizations in a range of industries consisting of telecommunications, technology, government, financial services, education, retail, manufacturing, and healthcare. Fortinet, Inc. was founded in 2000 and is headquartered in Sunnyvale, California.

Details
Name: Fortinet, Inc.
FO8
Exchange: DB
Founded: 2000
$10,573,370,848
170,370,205
Website: http://www.fortinet.com
Address: Fortinet, Inc.
899 Kifer Road,
Sunnyvale,
California, 94086,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS FTNT Common Stock Nasdaq Global Select US USD 18. Nov 2009
DB FO8 Common Stock Deutsche Boerse AG DE EUR 18. Nov 2009
LSE 0IR9 Common Stock London Stock Exchange GB USD 18. Nov 2009
Number of employees
Current staff
Staff numbers
5,639
Fortinet employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/01/22 21:24
End of day share price update: 2019/01/22 00:00
Last estimates confirmation: 2019/01/22
Last earnings filing: 2018/11/07
Last earnings reported: 2018/09/30
Last annual earnings reported: 2017/12/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.