Fortinet
Market Cap
US$20.8b
Last Updated
2020/10/20 00:35 UTC
Data Sources
Company Financials +
Executive Summary
Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions worldwide. More Details
Rewards
Risk Analysis
FTNT passed our risk checks.
Snowflake Analysis
Flawless balance sheet and fair value.
Similar Companies
Share Price & News
How has Fortinet's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: FTNT has not had significant price volatility in the past 3 months.
Market Performance
7 Day Return
-1.4%
FTNT
-2.5%
US Software
-2.4%
US Market
1 Year Return
67.2%
FTNT
64.1%
US Software
18.2%
US Market
Return vs Industry: FTNT exceeded the US Software industry which returned 64.1% over the past year.
Return vs Market: FTNT exceeded the US Market which returned 19.5% over the past year.
Shareholder returns
| FTNT | Industry | Market | |
|---|---|---|---|
| 7 Day | -1.4% | -2.5% | -2.4% |
| 30 Day | 9.8% | 9.6% | 4.2% |
| 90 Day | -4.1% | 9.8% | 6.3% |
| 1 Year | 67.2%67.2% | 65.3%64.1% | 20.9%18.2% |
| 3 Year | 222.1%222.1% | 147.3%139.0% | 41.2%31.8% |
| 5 Year | 280.9%280.9% | 256.2%235.2% | 84.8%63.9% |
Price Volatility Vs. Market
How volatile is Fortinet's share price compared to the market and industry in the last 5 years?
Simply Wall St News
2 days ago | Simply Wall St
Are Robust Financials Driving The Recent Rally In Fortinet, Inc.'s (NASDAQ:FTNT) Stock?2 weeks ago | Simply Wall St
Does Fortinet (NASDAQ:FTNT) Deserve A Spot On Your Watchlist?3 weeks ago | Simply Wall St
A Quick Analysis On Fortinet's (NASDAQ:FTNT) CEO CompensationValuation
Is Fortinet undervalued compared to its fair value and its price relative to the market?
28.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FTNT ($128.82) is trading below our estimate of fair value ($180.72)
Significantly Below Fair Value: FTNT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FTNT is good value based on its PE Ratio (52.9x) compared to the US Software industry average (63.5x).
PE vs Market: FTNT is poor value based on its PE Ratio (52.9x) compared to the US market (19x).
Price to Earnings Growth Ratio
PEG Ratio: FTNT is poor value based on its PEG Ratio (4.4x)
Price to Book Ratio
PB vs Industry: FTNT is overvalued based on its PB Ratio (38.3x) compared to the US Software industry average (7.4x).
Next Steps
Future Growth
How is Fortinet forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
12.1%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FTNT's forecast earnings growth (12.1% per year) is above the savings rate (2.2%).
Earnings vs Market: FTNT's earnings (12.1% per year) are forecast to grow slower than the US market (22.1% per year).
High Growth Earnings: FTNT's earnings are forecast to grow, but not significantly.
Revenue vs Market: FTNT's revenue (13.2% per year) is forecast to grow faster than the US market (10% per year).
High Growth Revenue: FTNT's revenue (13.2% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: FTNT's Return on Equity is forecast to be high in 3 years time (38.3%)
Next Steps
Past Performance
How has Fortinet performed over the past 5 years?
61.8%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FTNT has high quality earnings.
Growing Profit Margin: FTNT's current net profit margins (17.5%) are lower than last year (19.1%).
Past Earnings Growth Analysis
Earnings Trend: FTNT's earnings have grown significantly by 61.8% per year over the past 5 years.
Accelerating Growth: FTNT's earnings growth over the past year (10.2%) is below its 5-year average (61.8% per year).
Earnings vs Industry: FTNT earnings growth over the past year (10.2%) underperformed the Software industry 12.8%.
Return on Equity
High ROE: FTNT's Return on Equity (75.6%) is considered outstanding.
Next Steps
Financial Health
How is Fortinet's financial position?
Financial Position Analysis
Short Term Liabilities: FTNT's short term assets ($2.2B) exceed its short term liabilities ($1.6B).
Long Term Liabilities: FTNT's short term assets ($2.2B) exceed its long term liabilities ($1.2B).
Debt to Equity History and Analysis
Debt Level: FTNT is debt free.
Reducing Debt: FTNT has not had any debt for past 5 years.
Debt Coverage: FTNT has no debt, therefore it does not need to be covered by operating cash flow.
Interest Coverage: FTNT has no debt, therefore coverage of interest payments is not a concern.
Balance Sheet
Next Steps
Dividend
What is Fortinet current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FTNT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate FTNT'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 FTNT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FTNT'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 FTNT'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?
2.7yrs
Average management tenure
CEO
Ken Xie (57 yo)
20yrs
Tenure
US$9,629,923
Compensation
Mr. Ken Xie founded Fortinet Inc., October 2000 and has been its Chief Executive Officer and Director since October 2000. Mr. Xie serves as an Advisor at WI Harper Group. He is a Strategic Advisor at Forge ...
CEO Compensation Analysis
Compensation vs Market: Ken's total compensation ($USD9.63M) is about average for companies of similar size in the US market ($USD11.20M).
Compensation vs Earnings: Ken's compensation has increased by more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 20yrs | US$9.63m | 7.75% $ 1.6b | |
| Founder | 19.67yrs | US$4.29m | 7.19% $ 1.5b | |
| CFO & Chief Accounting Officer | 2.67yrs | US$3.39m | 0.00049% $ 102.2k | |
| Executive VP of Corporate Development & Strategic Alliances | 14yrs | US$2.51m | 0.0019% $ 398.2k | |
| Vice President of Talent Management & Operations | 0.75yr | no data | no data | |
| Vice President of Investor Relations | 2.67yrs | no data | no data | |
| Senior Executive Vice President of Worldwide Sales & Support | 4.75yrs | no data | no data | |
| Chief Marketing Officer & Executive VP of Products | 1.75yrs | no data | no data | |
| Vice President of Talent Acquisition | 0.75yr | no data | no data | |
| Senior Vice President of Marketing | 1.75yrs | no data | no data | |
| Chief Information Security Officer | 3.75yrs | no data | no data | |
| President for Latin America and General Manager for Latin America | no data | no data | no data |
2.7yrs
Average Tenure
54yo
Average Age
Experienced Management: FTNT's management team is considered experienced (2.7 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 20yrs | US$9.63m | 7.75% $ 1.6b | |
| Founder | 19.67yrs | US$4.29m | 7.19% $ 1.5b | |
| Director | 0.17yr | US$369.22k | no data | |
| Lead Independent Director | 2.5yrs | US$337.06k | 0.033% $ 7.0m | |
| Independent Director | 16.67yrs | US$342.74k | 0.047% $ 9.8m | |
| Independent Director | 7.5yrs | US$330.50k | 0.0045% $ 940.2k | |
| Independent Director | 5.33yrs | US$333.28k | 0.015% $ 3.2m | |
| Independent Director | 1yr | US$225.10k | 0.0013% $ 275.2k | |
| Independent Director | 0.50yr | no data | 0.00054% $ 112.6k |
5.3yrs
Average Tenure
57yo
Average Age
Experienced Board: FTNT's board of directors are considered experienced (5.3 years average tenure).
Ownership
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FTNT insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
Ownership Breakdown
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Top Shareholders
Company Information
Fortinet, Inc.'s company bio, employee growth, exchange listings and data sources
Key Information
- Name: Fortinet, Inc.
- Ticker: FTNT
- Exchange: NasdaqGS
- Founded: 2000
- Industry: Systems Software
- Sector: Software
- Market Cap: US$20.847b
- Shares outstanding: 161.83m
- Website: https://www.fortinet.com
Number of Employees
Location
- Fortinet, Inc.
- 899 Kifer Road
- Sunnyvale
- California
- 94086
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| FTNT | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Nov 2009 |
| FO8 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Nov 2009 |
| 0IR9 | LSE (London Stock Exchange) | Yes | Common Stock | GB | USD | Nov 2009 |
| FTNT * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Nov 2009 |
| F1TN34 | BOVESPA (Bolsa de Valores de Sao Paulo) | BDR EACH 2 REPR 1 SHS UNSPON | BR | BRL | Jan 2020 |
Biography
Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions worldwide. It offers FortiGate hardware and software licenses that provide various security and networking functions, includ ...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/10/20 00:35 |
| End of Day Share Price | 2020/10/19 00:00 |
| Earnings | 2020/06/30 |
| Annual Earnings | 2019/12/31 |
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.