Fortinet
Market Cap
US$13.1b
Last Updated
2019/10/20 00:19 UTC
Data Sources
Company Financials +
Executive Summary
Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions worldwide.
Snowflake
Fundamentals
Outstanding track record with flawless balance sheet.
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
Market Performance
7 Day Return
-3.3%
FTNT
-3.2%
US Software
0.4%
US Market
1 Year Return
-5.7%
FTNT
20.3%
US Software
6.9%
US Market
Return vs Industry: FTNT underperformed the US Software industry which returned 20.3% over the past year.
Return vs Market: FTNT underperformed the US Market which returned 6.9% over the past year.
Shareholder returns
| FTNT | Industry | Market | |
|---|---|---|---|
| 7 Day | -3.3% | -3.2% | 0.4% |
| 30 Day | -2.1% | -3.7% | -1.1% |
| 90 Day | -12.6% | -6.1% | -0.5% |
| 1 Year | -5.7%-5.7% | 22.0%20.3% | 9.3%6.9% |
| 3 Year | 140.7%140.7% | 112.1%103.8% | 45.8%36.4% |
| 5 Year | 197.5%197.5% | 163.1%144.1% | 62.9%45.1% |
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
1 week ago | Simply Wall St
At US$77.60, Is It Time To Put Fortinet, Inc. (NASDAQ:FTNT) On Your Watch List?2 weeks ago | Simply Wall St
Should You Be Worried About Insider Transactions At Fortinet, Inc. (NASDAQ:FTNT)?4 weeks ago | Simply Wall St
If You Like EPS Growth Then Check Out Fortinet (NASDAQ:FTNT) Before It's Too LateValuation
Is Fortinet undervalued compared to its fair value and its price relative to the market?
27.9%
Undervalued compared to fair value
Share Price vs. Fair Value
Undervalued: FTNT ($76.56) is trading below our estimate of fair value ($106.13)
Significantly Undervalued: FTNT is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FTNT is good value based on its PE Ratio (35x) compared to the Software industry average (46.8x).
PE vs Market: FTNT is poor value based on its PE Ratio (35x) compared to the US market (17.6x).
Price to Earnings Growth Ratio
Low PEG Ratio: FTNT is poor value based on its PEG Ratio (3x)
Price to Book Ratio
PB vs Industry: FTNT is overvalued based on its PB Ratio (11.7x) compared to the US Software industry average (5.3x).
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Future Growth
How is Fortinet forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
11.7%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FTNT's forecast earnings growth (11.7% per year) is above the savings rate (2.7%).
Earnings vs Market: FTNT's earnings (11.7% per year) are forecast to grow slower than the US market (14.6% per year).
High Growth Earnings: FTNT's earnings are forecast to grow, but not significantly.
Revenue vs Market: FTNT's revenue (10.3% per year) is forecast to grow faster than the US market (7.2% per year).
High Growth Revenue: FTNT's revenue (10.3% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
High Future ROE: FTNT's Return on Equity is forecast to be high in 3 years time (26.3%)
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Past Performance
How has Fortinet performed over the past 5 years?
65.7%
Historical annual earnings growth
Earnings and Revenue History
Past Earnings Growth Analysis
Earnings Trend: FTNT's earnings have grown significantly by 65.7% per year over the past 5 years.
Accelerating Growth: FTNT's earnings growth over the past year (320.8%) exceeds its 5-year average (65.7% per year).
Earnings vs Industry: FTNT earnings growth over the past year (320.8%) exceeded the Software industry 19.1%.
Return on Equity
High ROE: FTNT's Return on Equity (33.2%) is considered high.
Return on Assets
ROA vs Industry: FTNT has a higher Return on Assets than the Software industry average last year.
Return on Capital Employed
ROCE Improving: FTNT has significantly improved its Return on Capital Employed over the past 3 years.
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Financial Health
How is Fortinet's financial position?
Financial Position Analysis
Short Term Liabilities: FTNT's short term assets ($2.4B) exceeds its short term liabilities ($1.3B)
Long Term Liabilities: FTNT's short term assets (2.4B) exceeds its long term liabilities (953.4M)
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
Inventory Level: FTNT has a low level of unsold assets or inventory.
Debt Coverage by Assets: Insufficient data to determine if FTNT's debt is covered by short term assets.
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Dividend
What is Fortinet's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
Stability and Growth of Payments
Notable Dividend: Unable to evaluate FTNT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate FTNT's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
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.
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Management
What is the CEO of Fortinet's salary, the management and board of directors tenure and is there insider trading?
2.6yrs
Average management tenure
CEO
Ken Xie (56yo)
19yrs
Tenure
US$6,761,686
Compensation
Mr. Ken Xie founded Fortinet Inc., October 2000 and has been its Chief Executive Officer and Director since October 2000. Mr. Xie serves as an Advisor at WI Harper Group. He is a Strategic Advisor at Tride ...
CEO Compensation Analysis
Compensation vs. Market: Ken's total compensation ($USD6.76M) is below average for companies of similar size in the US market ($USD11.18M).
Compensation vs Earnings: Ken's compensation has increased by more than 20% in the past year.
Management Age and Tenure
2.6yrs
Average Tenure
53yo
Average Age
Experienced Management: FTNT's management team is considered experienced (2.6 years average tenure).
Board Age and Tenure
6.5yrs
Average Tenure
63yo
Average Age
Experienced Board: FTNT's board of directors are considered experienced (6.5 years average tenure).
Insider Trading
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Recent Insider Transactions
| Entity | Individual |
| Shares | 2,000 |
| Max Price | US$74.26 |
Ownership Breakdown
Management Team
Michael Xie (50yo)
Founder
- Tenure: 18.7yrs
- Compensation: US$3.47m
Patrice Perche
Senior Executive Vice President of Worldwide Sales & Support
- Tenure: 3.8yrs
Ken Xie (56yo)
Founder
- Tenure: 19yrs
- Compensation: US$6.76m
John Whittle (50yo)
Executive VP of Corporate Development & Strategic Alliances
- Tenure: 13yrs
- Compensation: US$2.40m
Peter Salkowski
Vice President of Investor Relations
- Tenure: 1.7yrs
Keith Jensen (60yo)
CFO & Chief Accounting Officer
- Tenure: 1.7yrs
- Compensation: US$2.26m
John Maddison
Chief Marketing Officer & Executive VP of Products
- Tenure: 0.8yrs
Laurie Buzzell
Vice President of Human Resources
- Tenure: 0.8yrs
Stacey Wu
Senior Vice President of Global Marketing
- Tenure: 2.8yrs
Sandra Wheatley
Senior Vice President of Global Corporate Communications & Customer Marketing
- Tenure: 2.3yrs
Board Members
William Neukom (77yo)
Lead Independent Director
- Tenure: 1.5yrs
- Compensation: US$347.88k
Chris Paisley (66yo)
Independent Director
- Tenure: 15.7yrs
- Compensation: US$357.70k
Michael Xie (50yo)
Founder
- Tenure: 18.7yrs
- Compensation: US$3.47m
Ken Xie (56yo)
Founder
- Tenure: 19yrs
- Compensation: US$6.76m
Ming Hsieh (63yo)
Independent Director
- Tenure: 6.5yrs
- Compensation: US$336.03k
Gary Locke (69yo)
Independent Director
- Tenure: 4.1yrs
- Compensation: US$335.52k
Judith Sim (50yo)
Independent Director
- Tenure: 4.3yrs
- Compensation: US$333.27k
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$13.090b
- Shares outstanding: 170.99m
- 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 |
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 | 2019/10/20 00:19 |
| End of Day Share Price | 2019/10/18 00:00 |
| Earnings | 2019/06/30 |
| Annual Earnings | 2018/12/31 |
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.