NasdaqGM:FSCT

Stock Analysis Report

NOT FOR DISTRIBUTION
Header cover image

Executive Summary

Forescout Technologies, Inc. provides device visibility and control solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan.


Snowflake Analysis

Adequate balance sheet and overvalued.


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: FSCT's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

0%

FSCT

-3.9%

US Software

1.2%

US Market


1 Year Return

-21.7%

FSCT

39.4%

US Software

16.8%

US Market

Return vs Industry: FSCT underperformed the US Software industry which returned 42.6% over the past year.

Return vs Market: FSCT underperformed the US Market which returned 16.4% over the past year.


Shareholder returns

FSCTIndustryMarket
7 Day0%-3.9%1.2%
30 Day16.9%-3.2%4.9%
90 Day-3.9%15.6%20.0%
1 Year-21.7%-21.7%40.4%39.4%19.3%16.8%
3 Yearn/a146.6%138.1%43.7%34.4%
5 Yearn/a236.6%216.5%75.5%56.6%

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

Valuation

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

2.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FSCT ($28.98) is trading below our estimate of fair value ($29.86)

Significantly Below Fair Value: FSCT is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: FSCT is overvalued based on its PB Ratio (30.5x) compared to the US Software industry average (7.5x).


Next Steps

Future Growth

How is Forescout Technologies forecast to perform in the next 1 to 3 years based on estimates from 7 analysts?

71.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FSCT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FSCT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FSCT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FSCT's revenue (15.9% per year) is forecast to grow faster than the US market (9.4% per year).

High Growth Revenue: FSCT's revenue (15.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

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


Next Steps

Past Performance

How has Forescout Technologies performed over the past 5 years?

-22.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FSCT is currently unprofitable.

Growing Profit Margin: FSCT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FSCT is unprofitable, and losses have increased over the past 5 years at a rate of 22% per year.

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

Earnings vs Industry: FSCT is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (11.5%).


Return on Equity

High ROE: FSCT has a negative Return on Equity (-294.19%), as it is currently unprofitable.


Next Steps

Financial Health

How is Forescout Technologies's financial position?


Financial Position Analysis

Short Term Liabilities: FSCT's short term assets ($147.0M) do not cover its short term liabilities ($172.6M).

Long Term Liabilities: FSCT's short term assets ($147.0M) exceed its long term liabilities ($120.1M).


Debt to Equity History and Analysis

Debt Level: FSCT's debt to equity ratio (9.7%) is considered satisfactory.

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


Balance Sheet


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: FSCT has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if FSCT 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

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if FSCT'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 FSCT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

3.1yrs

Average management tenure


CEO

Mike DeCesare (55 yo)

5.42yrs

Tenure

US$7,361,857

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 ($USD7.36M) is above average for companies of similar size in the US market ($USD4.53M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Michael DeCesare
CEO, President & Director5.42yrsUS$7.36m1.16%
$ 16.7m
Christopher Harms
Chief Financial Officer7.42yrsUS$3.38m0.44%
$ 6.4m
Darren Milliken
Senior VP6.5yrsUS$1.03m0.063%
$ 908.8k
Pedro Abreu
Chief Product & Strategy Officer5.33yrsUS$3.43m0.15%
$ 2.2m
Nicholas Noviello
Chief Operating Officer0.083yrno datano data
Rob McNutt
Chief Technology Officer1.17yrsno datano data
Michelle Spolver
Chief Communications Officer3.67yrsno datano data
Neville Letzerich
Chief Marketing Officer0.67yrno datano data
Julie Cullivan
Chief Technology and People Officer2.58yrsno datano data
Ori Naishtein
Senior Vice President of Research and Developmentno datano datano data
Jason Pishotti
Chief Customer Officerno datano datano data
Steve Redman
Chief Revenue Officer1.58yrsno datano data

3.1yrs

Average Tenure

52.5yo

Average Age

Experienced Management: FSCT's management team is considered experienced (3.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Michael DeCesare
CEO, President & Director5.42yrsUS$7.36m1.16%
$ 16.7m
Theresia Ranzetta
Independent Chairman of the Board1.25yrsUS$227.67k0.18%
$ 2.6m
David DeWalt
Independent Vice Chairman5.17yrsUS$210.03k0.88%
$ 12.7m
Enrique Salem
Independent Director6.92yrsUS$212.00k0.64%
$ 9.2m
F. Leighton
Member of the Advisory Boardno datano datano data
Yehezkel Yeshurun
Co-Founder & Independent Director20.33yrsUS$219.02k0.65%
$ 9.3m
Shlomo Kramer
Member of the Advisory Boardno datano datano data
Yoav Shoham
Member of the Advisory Boardno datano datano data
James Beer
Independent Director4yrsUS$210.00k0.027%
$ 383.5k
Mark Jensen
Independent Director7.25yrsUS$220.00kno data
Elizabeth Hackenson
Independent Director1.25yrsUS$473.61kno data
Kathleen McElligott
Independent Director1.25yrsUS$470.37kno data

5.2yrs

Average Tenure

59yo

Average Age

Experienced Board: FSCT's board of directors are considered experienced (5.2 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 7.6%.


Top Shareholders

Company Information

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


Key Information

  • Name: Forescout Technologies, Inc.
  • Ticker: FSCT
  • Exchange: NasdaqGM
  • Founded: 2000
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$1.441b
  • Shares outstanding: 49.71m
  • 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 device visibility and control solutions in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. It provides software products, such as eyeSight, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/08/11 00:22
End of Day Share Price2020/08/10 00:00
Earnings2020/06/30
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.