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Forescout Technologies

Nasdaq:FSCT
Snowflake Description

Excellent balance sheet with concerning outlook.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
FSCT
Nasdaq
$1B
Market Cap
  1. Home
  2. US
  3. Software
Company description

Forescout Technologies, Inc. provides network security products in the Americas, Europe, the Middle East, Africa, the Asia Pacific, and Japan. The last earnings update was 40 days ago. More info.


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  • Forescout Technologies has significant price volatility in the past 3 months.
FSCT Share Price and Events
7 Day Returns
1.5%
NasdaqGM:FSCT
-0.5%
US Software
0.3%
US Market
1 Year Returns
-9.6%
NasdaqGM:FSCT
20.8%
US Software
0.7%
US Market
FSCT Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Forescout Technologies (FSCT) 1.5% -4.3% -28% -9.6% - -
US Software -0.5% -0% 5.1% 20.8% 122.2% 149.6%
US Market 0.3% 0.4% 0.6% 0.7% 37.2% 37.4%
1 Year Return vs Industry and Market
  • FSCT underperformed the Software industry which returned 20.8% over the past year.
  • FSCT underperformed the Market in United States of America which returned 0.7% over the past year.
Price Volatility
Industry
5yr Volatility vs Market

FSCT Value

 Is Forescout Technologies 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 Forescout Technologies 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 Forescout Technologies.

NasdaqGM:FSCT Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

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 NasdaqGM:FSCT
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Software Unlevered Beta Simply Wall St/ S&P Global 1.14
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.136 (1 + (1- 21%) (2.85%))
1.108
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.11
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.108 * 5.96%)
9.34%

Discounted Cash Flow Calculation for NasdaqGM:FSCT using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Forescout Technologies is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGM:FSCT DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.34%)
2019 13.63 Analyst x4 12.46
2020 34.55 Analyst x4 28.90
2021 57.73 Analyst x3 44.17
2022 78.52 Est @ 36.01% 54.95
2023 98.96 Est @ 26.03% 63.34
2024 117.80 Est @ 19.04% 68.96
2025 134.47 Est @ 14.15% 71.99
2026 148.89 Est @ 10.72% 72.90
2027 161.28 Est @ 8.32% 72.23
2028 172.00 Est @ 6.65% 70.45
Present value of next 10 years cash flows $560.36
NasdaqGM:FSCT DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $172.00 × (1 + 2.73%) ÷ (9.34% – 2.73%)
$2,674.78
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $2,674.78 ÷ (1 + 9.34%)10
$1,095.62
NasdaqGM:FSCT Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $560.36 + $1,095.62
$1,655.98
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,655.98 / 45.23
$36.61
NasdaqGM:FSCT Discount to Share Price
Calculation Result
Value per share (USD) From above. $36.61
Current discount Discount to share price of $32.55
= -1 x ($32.55 - $36.61) / $36.61
11.1%

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

Current Discount
Amount off the current price Forescout Technologies is available for.
Intrinsic value
11%
Share price is $32.55 vs Future cash flow value of $36.61
Current Discount Checks
For Forescout Technologies to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Forescout Technologies's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Forescout Technologies's share price is below the future cash flow value, but not at a substantial discount (< 40%).
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 Forescout Technologies's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Forescout Technologies's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGM:FSCT PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-31) in USD $-1.91
NasdaqGM:FSCT Share Price ** NasdaqGM (2019-06-17) in USD $32.55
United States of America Software Industry PE Ratio Median Figure of 81 Publicly-Listed Software Companies 50.61x
United States of America Market PE Ratio Median Figure of 3,093 Publicly-Listed Companies 17.68x

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

** Primary Listing of Forescout Technologies.

NasdaqGM:FSCT PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGM:FSCT Share Price ÷ EPS (both in USD)

= 32.55 ÷ -1.91

-17.08x

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

  • Forescout Technologies is loss making, we can't compare its value to the US Software industry average.
  • Forescout Technologies is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does Forescout Technologies's expected growth come at a high price?
Raw Data
NasdaqGM:FSCT PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -17.08x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
31.3%per year
United States of America Software Industry PEG Ratio Median Figure of 67 Publicly-Listed Software Companies 3.02x
United States of America Market PEG Ratio Median Figure of 2,125 Publicly-Listed Companies 1.52x

*Line of best fit is calculated by linear regression .

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

  • Unable to calculate PEG ratio for Forescout Technologies, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Forescout Technologies's assets?
Raw Data
NasdaqGM:FSCT PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-31) in USD $2.55
NasdaqGM:FSCT Share Price * NasdaqGM (2019-06-17) in USD $32.55
United States of America Software Industry PB Ratio Median Figure of 220 Publicly-Listed Software Companies 5.75x
United States of America Market PB Ratio Median Figure of 5,245 Publicly-Listed Companies 1.79x
NasdaqGM:FSCT PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGM:FSCT Share Price ÷ Book Value per Share (both in USD)

= 32.55 ÷ 2.55

12.78x

* Primary Listing of Forescout Technologies.

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

  • Forescout Technologies is overvalued based on assets compared to the US Software industry average.
X
Value checks
We assess Forescout Technologies'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. Forescout Technologies 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.

FSCT Future Performance

 How is Forescout Technologies expected to perform in the next 1 to 3 years based on estimates from 10 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
31.3%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Forescout Technologies expected to grow at an attractive rate?
  • Unable to compare Forescout Technologies's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.
Growth vs Market Checks
  • Unable to compare Forescout Technologies's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.
  • Forescout Technologies's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGM:FSCT Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGM:FSCT Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 31.3%
NasdaqGM:FSCT Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 17.8%
United States of America Software Industry Earnings Growth Rate Market Cap Weighted Average 17.6%
United States of America Software Industry Revenue Growth Rate Market Cap Weighted Average 11.7%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.8%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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
NasdaqGM:FSCT Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGM:FSCT Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-12-31 625 1
2021-12-31 533 73 -39 5
2020-12-31 449 48 -32 10
2019-12-31 371 24 -60 10
NasdaqGM:FSCT Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-31 314 -5 -81
2018-12-31 298 13 -75
2018-09-30 272 1 -115
2018-06-30 256 15 -108
2018-03-31 242 9 -95
2017-12-31 224 -3 -94
2017-09-30 211 -4 -63
2017-06-30 190 -27 -80
2017-03-31 176 -23 -84
2016-12-31 168 -38 -65
2016-09-30 168 -16 -55

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Forescout Technologies is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Forescout Technologies's revenue is expected to grow by 17.8% 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
NasdaqGM:FSCT Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Forescout Technologies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:FSCT Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-12-31
2021-12-31 -0.75 -0.65 -0.85 2.00
2020-12-31 -1.33 0.14 -4.50 5.00
2019-12-31 -2.20 -0.38 -4.77 4.00
NasdaqGM:FSCT Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-31 -1.91
2018-12-31 -1.83
2018-09-30 -3.09
2018-06-30 -3.83
2018-03-31 -4.85
2017-12-31 -8.20
2017-09-30 -10.53
2017-06-30 -13.60
2017-03-31 -14.48
2016-12-31 -11.67
2016-09-30 -10.18

*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.
  • Forescout Technologies is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Forescout Technologies'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 United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America 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.
Forescout Technologies has a total score of 1/6, 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.

FSCT Past Performance

  How has Forescout Technologies 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 Forescout Technologies'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.
  • Forescout Technologies does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Forescout Technologies's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Forescout Technologies's 1-year growth to the US Software industry average as it is not currently profitable.
Earnings and Revenue History
Forescout Technologies'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 Forescout Technologies Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGM:FSCT Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-31 313.52 -80.89 255.03 65.52
2018-12-31 297.65 -74.84 238.90 61.71
2018-09-30 272.29 -114.75 246.69 59.35
2018-06-30 256.01 -107.76 229.89 55.28
2018-03-31 241.93 -94.66 207.36 51.18
2017-12-31 224.40 -93.53 195.60 47.44
2017-09-30 210.93 -62.97 171.04 41.77
2017-06-30 190.33 -79.99 170.29 39.30
2017-03-31 175.50 -83.84 165.10 35.96
2016-12-31 167.55 -65.48 148.50 31.49
2016-09-30 167.77 -55.06 147.10 27.44
2015-12-31 125.96 -27.26 93.14 17.77
2014-12-31 71.11 -2.21 77.47 12.30

*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.
  • It is difficult to establish if Forescout Technologies has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Forescout Technologies has efficiently used its assets last year compared to the US Software industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if Forescout Technologies improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess Forescout Technologies'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.
Forescout Technologies has a total score of 0/6, 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.

FSCT Health

 How is Forescout Technologies'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 Forescout Technologies's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Forescout Technologies is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Forescout Technologies's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Forescout Technologies'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.
  • Debt is covered by short term assets, assets are 15.3x debt.
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 Forescout Technologies Company Filings, last reported 2 months ago.

NasdaqGM:FSCT Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-31 114.93 42.01 126.93
2018-12-31 127.72 15.58 114.53
2018-09-30 125.24 17.40 210.32
2018-06-30 114.48 19.21 219.88
2018-03-31 117.05 21.02 223.02
2017-12-31 115.49 22.82 186.39
2017-09-30 -65.81 24.62 72.34
2017-06-30 -63.11 26.41 72.54
2017-03-31 -44.76 28.20 87.86
2016-12-31 -24.74 29.99 79.67
2016-09-30 -12.33 20.00 79.60
2015-12-31 27.11 19.45 126.85
2014-12-31 -43.18 18.97 42.62
  • Forescout Technologies's level of debt (12%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Forescout Technologies's debt level has increased without past 5-year debt data.
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.

  • Forescout Technologies has sufficient cash runway for more than 3 years based on current free cash flow.
  • Forescout Technologies has sufficient cash runway for more than 3 years if free cash flow continues to reduce at historical rates of -105.1% each year.
X
Financial health checks
We assess Forescout Technologies'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. Forescout Technologies has a total score of 5/6, 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.

FSCT Dividends

 What is Forescout Technologies'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 Forescout Technologies dividends. Estimated to be 0% next year.
If you bought $2,000 of Forescout Technologies 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 Forescout Technologies's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Forescout Technologies'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
NasdaqGM:FSCT 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 10 Analyst Estimates (S&P Global) See Below
United States of America Software Industry Average Dividend Yield Market Cap Weighted Average of 22 Stocks 1.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

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

NasdaqGM:FSCT Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-12-31
2021-12-31 0.00 2.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

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

  • Unable to perform a dividend volatility check as Forescout Technologies has not reported any payouts.
  • Unable to verify if Forescout Technologies's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Forescout Technologies's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Forescout Technologies has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Forescout Technologies's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Forescout Technologies's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - 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 Forescout Technologies afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Forescout Technologies 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.

FSCT Management

 What is the CEO of Forescout Technologies'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
Mike DeCesare
COMPENSATION $6,775,083
AGE 53
TENURE AS CEO 4.3 years
CEO Bio

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 at industry-leading technology companies. He served as the President at McAfee, Inc. He served as Co-President of McAfee, Inc. since October 2011. He served as an Executive Vice President of Global Operations at McAfee, Inc. until September 2011. He served as Senior Vice President of Worldwide Field Operations at EMC Software group at EMC Corporation and its Co-General Manager for EMC's Content Management and Archive business since March 5, 2007. He served as an Executive Vice President of Worldwide Sales Operations for McAfee, Inc. since October 2007. He was responsible for the management and growth of EMC's software operations overseeing Global Channels, Alliances and Partners, Global Product sales, Global Accounts and Field Business Operations. He served as the Vice President of Global Operations at McAfee and was responsible for leading global operations, including manufacturing, facilities, travel and information technology, as well as worldwide sales, channels, sales engineering, consulting services and education services. He served as an Executive Vice President of Worldwide Field Operations for EMC Documentum Inc. since January 2002 and also served as its Senior Vice President of Worldwide Field Operations from 2004 to 2007. He served as an Executive Vice President of Worldwide Field Operations for Documentum, Inc. since January 2002. He served as an Executive Vice President of Worldwide Sales & Alliances for Asera from March 2001 to January 2002. From June 1997 to February 2001, he served as Vice President of Field Sales for Oracle Corporation. He served various positions in sales management at Oracle from February 1989 to May 1997. He has been a Director of SecureAuth Corporation since March 24, 2015. He has been Director of ForeScout Technologies, Inc. since March 2, 2015. He ranked in the top five percent of Oracle's sales force throughout his career and was elected to Oracle's prestigious President's Club every year since its inception in the mid-1990s. Mr. DeCesare holds a Bachelor of Arts in Communications from Villanova University. He also attended the San Francisco Culinary Academy.

CEO Compensation
  • Mike's compensation has increased whilst company is loss making.
  • Mike's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Forescout Technologies management team in years:

4.8
Average Tenure
51
Average Age
  • The tenure for the Forescout Technologies management team is about average.
Management Team

Mike DeCesare

TITLE
CEO, President & Director
COMPENSATION
$7M
AGE
53
TENURE
4.3 yrs

Criss Harms

TITLE
Chief Financial Officer
COMPENSATION
$3M
AGE
52
TENURE
6.3 yrs

Darren Milliken

TITLE
Senior VP
COMPENSATION
$1M
AGE
48
TENURE
5.3 yrs

Pedro Abreu

TITLE
Chief Product & Strategy Officer
COMPENSATION
$3M
AGE
46
TENURE
4.2 yrs

Oded Comay

TITLE
Co-Founder & Chief Research Officer
TENURE
19.4 yrs

Dror Comay

TITLE
Co-Founder & Chief Architect
TENURE
19.4 yrs

Michelle Spolver

TITLE
Chief Communications Officer
TENURE
2.5 yrs

Steve Redman

TITLE
Chief Marketing Officer

Julie Cullivan

TITLE
Chief Technology and People Officer
AGE
51
TENURE
1.4 yrs

Ori Naishtein

TITLE
Senior Vice President of Research and Development
Board of Directors Tenure

Average tenure and age of the Forescout Technologies board of directors in years:

4.3
Average Tenure
54
Average Age
  • The tenure for the Forescout Technologies board of directors is about average.
Board of Directors

Theresia Ranzetta

TITLE
Chairman of the Board
COMPENSATION
$41K
AGE
50
TENURE
0.1 yrs

Mike DeCesare

TITLE
CEO, President & Director
COMPENSATION
$7M
AGE
53
TENURE
4.3 yrs

Dave DeWalt

TITLE
Vice Chairman
COMPENSATION
$55K
AGE
54
TENURE
4 yrs

Hezy Yeshurun

TITLE
Co-Founder & Director
COMPENSATION
$57K
AGE
68
TENURE
19.2 yrs

Mark Jensen

TITLE
Director
COMPENSATION
$50K
AGE
68
TENURE
6.1 yrs

Enrique Salem

TITLE
Director
COMPENSATION
$46K
AGE
52
TENURE
5.8 yrs

Shlomo Kramer

TITLE
Member of the Advisory Board
AGE
52

Yoav Shoham

TITLE
Member of the Advisory Board

Tom Leighton

TITLE
Member of the Advisory Board
AGE
61

James Beer

TITLE
Director
COMPENSATION
$36K
AGE
57
TENURE
2.8 yrs
Who owns this company?
Recent Insider Trading
  • Forescout Technologies insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
17. May 19 Sell Michael DeCesare Individual 15. May 19 16. May 19 -15,227 $35.10 $-534,304
12. Mar 19 Sell Christopher Harms Individual 11. Mar 19 11. Mar 19 -5,182 $42.45 $-219,966
02. Mar 19 Sell Pitango Venture Capital Company 27. Feb 19 27. Feb 19 -78,039 $41.30 $-3,222,777
21. Feb 19 Sell Pitango Venture Capital Company 19. Feb 19 19. Feb 19 -300,000 $38.18 $-11,454,900
20. Feb 19 Sell Pitango Venture Capital Company 14. Feb 19 15. Feb 19 -378,039 $38.06 $-14,378,532
24. Sep 18 Sell Amadeus Capital Partners Limited Company 20. Sep 18 20. Sep 18 -47,000 $39.19 $-1,841,836
20. Sep 18 Sell Amadeus Capital Partners Limited Company 18. Sep 18 19. Sep 18 -117,609 $38.87 $-4,569,816
18. Sep 18 Sell Amadeus Capital Partners Limited Company 14. Sep 18 17. Sep 18 -277,204 $38.55 $-10,520,306
14. Sep 18 Sell Amadeus Capital Partners Limited Company 12. Sep 18 13. Sep 18 -399,812 $38.76 $-15,046,887
13. Sep 18 Sell Amadeus Capital Partners Limited Company 11. Sep 18 11. Sep 18 -44,102 $37.32 $-1,645,997
07. Jul 18 Sell Christopher Harms Individual 05. Jul 18 05. Jul 18 -16,023 $4.94 $-79,154
X
Management checks
We assess Forescout Technologies'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. Forescout Technologies 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.

FSCT News

Simply Wall St News

Estimating The Intrinsic Value Of Forescout Technologies, Inc. (NASDAQ:FSCT)

Today, we will estimate the stock's intrinsic value by estimating the company's future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) estimate 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 Levered FCF ($, Millions) $13.63 $34.55 $57.73 $78.52 $98.96 $117.80 $134.47 $148.89 $161.28 $172.00 Growth Rate Estimate Source Analyst x4 Analyst x4 Analyst x3 Est @ 36.01% Est @ 26.03% Est @ 19.04% Est @ 14.15% Est @ 10.72% Est @ 8.32% Est @ 6.65% Present Value ($, Millions) Discounted @ 9.34% $12.46 $28.90 $44.17 $54.95 $63.33 $68.95 $71.99 $72.90 $72.22 $70.44 Present Value of 10-year Cash Flow (PVCF)= $560.31m "Est" = FCF growth rate estimated by Simply Wall St We now need to calculate the Terminal Value, which accounts for all the future cash flows after this ten year period. … We discount the terminal cash flows to today's value at a cost of equity of 9.3%.

Simply Wall St -

What Kind Of Shareholder Appears On The Forescout Technologies, Inc.'s (NASDAQ:FSCT) Shareholder Register?

The big shareholder groups in Forescout Technologies, Inc. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … See our latest analysis for Forescout Technologies

Simply Wall St -

Can You Imagine How Forescout Technologies's (NASDAQ:FSCT) Shareholders Feel About The 33% Share Price Increase?

We'll need to follow Forescout Technologies for a while to get a better sense of its share price trend, since it hasn't been listed for particularly long. … Given that Forescout Technologies didn't make a profit in the last twelve months, we'll focus on revenue growth to form a quick view of its business development. … If revenue stays on trend, there may be plenty more share price gains to come.

Simply Wall St -

Have Insiders Been Selling Forescout Technologies, Inc. (NASDAQ:FSCT) Shares?

But logic dictates you should pay some attention to whether insiders are buying or selling shares. … All up, insiders sold more shares in Forescout Technologies than they bought, over the last year … It's not ideal to see that insiders have sold at around the current price

Simply Wall St -

ForeScout Technologies, Inc. (NASDAQ:FSCT): What Does The Future Look Like?

Help shape the future of investing tools and receive a $20 prize! … ForeScout Technologies, Inc.'s (NASDAQ:FSCT) announced its latest earnings update in December 2018, which … that losses became smaller relative to the prrior year's level

Simply Wall St -

Is ForeScout Technologies Inc (NASDAQ:FSCT) Worth US$27.15 Based On Intrinsic Value?

Does the December share price for ForeScout Technologies Inc (NASDAQ:FSCT) reflect it's really worth? … by taking the expected future cash flows and discounting them to today's value. … If you are reading this and its not December 2018 then I highly recommend you check out the latest calculation for ForeScout Technologies by following the link below

Simply Wall St -

Do Directors Own ForeScout Technologies Inc (NASDAQ:FSCT) Shares?

The big shareholder groups in ForeScout Technologies Inc (NASDAQ:FSCT) have power over the company. … Insiders often own a large chunk of younger, smaller, companies while huge companies tend to have institutions as shareholders. … ForeScout Technologies has a market capitalization of US$1.2b, so we would expect some institutional investors to have noticed the stock.

Simply Wall St -

Interested In Tech? Why ForeScout Technologies Inc (NASDAQ:FSCT) May Be The Entry Point

The past two decades have experienced unprecedented changes in technology, and the next decade looks equally drastic … While mobile and cloud computing become ubiquitous, there is a new wave of advancement emerging from innovations such as machine learning, robotics and augmented reality … Tech analysts are forecasting for the entire software tech industry,

Simply Wall St -

Breakeven On The Horizon For ForeScout Technologies Inc (NASDAQ:FSCT)

The US$1.34b market-cap posted a loss in its most recent financial year of -US$104.01m and a latest trailing-twelve-month loss of -US$105.14m leading to an even wider gap between loss and breakeven. … As path to profitability is the topic on FSCT’s investors mind, I’ve decided to gauge market sentiment … In this article, I will touch on the expectations for FSCT’s growth and when analysts expect the company to become profitable.

Simply Wall St -

Does ForeScout Technologies Inc's (NASDAQ:FSCT) Past Performance Indicate A Weaker Future?

See our latest analysis for ForeScout Technologies Commentary On FSCT's Past Performance I use data from the most recent 12 months, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data. … For ForeScout Technologies, its latest trailing-twelve-month earnings is -US$105.14M, which, in comparison to last year’s level, has become more negative. … This shows that any uplift the industry is benefiting from, ForeScout Technologies has not been able to reap as much as its industry peers.What does this mean?

Simply Wall St -

FSCT Company Info

Description

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.

Details
Name: Forescout Technologies, Inc.
FSCT
Exchange: NasdaqGM
Founded: 2000
$1,472,246,753
45,230,315
Website: http://www.forescout.com
Address: Forescout Technologies, Inc.
190 West Tasman Drive,
San Jose,
California, 95134,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGM FSCT Common Stock Nasdaq Global Market US USD 27. Oct 2017
DB F1O Common Stock Deutsche Boerse AG DE EUR 27. Oct 2017
Number of employees
Current staff
Staff numbers
1,107
Forescout Technologies employees.
Industry
Systems Software
Software
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/18 01:03
End of day share price update: 2019/06/17 00:00
Last estimates confirmation: 2019/06/14
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/31
Last annual earnings reported: 2018/12/31


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.