Fortinet
Market Cap
US$32.2b
Last Updated
2021/04/10 22:47 UTC
Data Sources
Company Financials +
Executive Summary
Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. More Details
Rewards
Risk Analysis
No risks detected for FTNT from our risk checks.
Snowflake Analysis
Flawless balance sheet with solid track record.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.
Volatility Over Time: FTNT's weekly volatility (5%) has been stable over the past year.
Market Performance
7 Day Return
6.0%
FTNT
4.2%
US Software
2.1%
US Market
1 Year Return
93.9%
FTNT
64.1%
US Software
56.3%
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 56.3% over the past year.
Shareholder returns
| FTNT | Industry | Market | |
|---|---|---|---|
| 7 Day | 6.0% | 4.2% | 2.1% |
| 30 Day | 5.4% | 4.6% | 2.4% |
| 90 Day | 33.4% | 6.6% | 6.1% |
| 1 Year | 93.9%93.9% | 65.3%64.1% | 59.1%56.3% |
| 3 Year | 253.9%253.9% | 145.3%138.0% | 65.7%55.1% |
| 5 Year | 566.7%566.7% | 303.9%281.4% | 122.3%97.6% |
Long-Term 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
Introducing Fortinet (NASDAQ:FTNT), The Stock That Soared 492% In The Last Five Years3 weeks ago | Simply Wall St
The 22% Return On Capital At Fortinet (NASDAQ:FTNT) Got Our Attention1 month ago | Simply Wall St
What Kind Of Shareholders Hold The Majority In Fortinet, Inc.'s (NASDAQ:FTNT) Shares?Valuation
Is Fortinet undervalued compared to its fair value and its price relative to the market?
5.3%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FTNT ($197.62) is trading below our estimate of fair value ($208.59)
Significantly Below Fair Value: FTNT is trading below fair value, but not by a significant amount.
Price To Earnings Ratio
PE vs Industry: FTNT is poor value based on its PE Ratio (66.4x) compared to the US Software industry average (53.8x).
PE vs Market: FTNT is poor value based on its PE Ratio (66.4x) compared to the US market (22.3x).
Price to Earnings Growth Ratio
PEG Ratio: FTNT is poor value based on its PEG Ratio (6.1x)
Price to Book Ratio
PB vs Industry: FTNT is overvalued based on its PB Ratio (37.5x) compared to the US Software industry average (8.8x).
Future Growth
How is Fortinet forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
10.9%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FTNT's forecast earnings growth (10.9% per year) is above the savings rate (2%).
Earnings vs Market: FTNT's earnings (10.9% per year) are forecast to grow slower than the US market (18.6% per year).
High Growth Earnings: FTNT's earnings are forecast to grow, but not significantly.
Revenue vs Market: FTNT's revenue (14.5% per year) is forecast to grow faster than the US market (9.9% per year).
High Growth Revenue: FTNT's revenue (14.5% 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 (37.5%)
Past Performance
How has Fortinet performed over the past 5 years?
56.1%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FTNT has high quality earnings.
Growing Profit Margin: FTNT's current net profit margins (18.8%) are higher than last year (15.3%).
Past Earnings Growth Analysis
Earnings Trend: FTNT's earnings have grown significantly by 56.1% per year over the past 5 years.
Accelerating Growth: FTNT's earnings growth over the past year (47.1%) is below its 5-year average (56.1% per year).
Earnings vs Industry: FTNT earnings growth over the past year (47.1%) exceeded the Software industry 16.3%.
Return on Equity
High ROE: FTNT's Return on Equity (57.1%) is considered outstanding.
Financial Health
How is Fortinet's financial position?
Financial Position Analysis
Short Term Liabilities: FTNT's short term assets ($2.7B) exceed its short term liabilities ($1.8B).
Long Term Liabilities: FTNT's short term assets ($2.7B) exceed its long term liabilities ($1.4B).
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
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?
3.2yrs
Average management tenure
CEO
Ken Xie (57 yo)
20.5yrs
Tenure
US$9,629,923
Compensation
Mr. Ken Xie founded Fortinet Inc., in October 2000 and has been its Chief Executive Officer and Director since October 2000. Mr. Xie serves as an Advisor at WI Harper Group. He is a Strategic Advisor at Fo...
CEO Compensation Analysis
Compensation vs Market: Ken's total compensation ($USD9.63M) is about average for companies of similar size in the US market ($USD10.98M).
Compensation vs Earnings: Ken's compensation has increased by more than 20% in the past year.
Leadership Team
Experienced Management: FTNT's management team is considered experienced (3.2 years average tenure).
Board Members
Experienced Board: FTNT's board of directors are considered experienced (5.8 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 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$32.250b
- Shares outstanding: 163.19m
- Website: https://www.fortinet.com
Number of Employees
Location
- Fortinet, Inc.
- 899 Kifer Road
- Sunnyvale
- California
- 94086
- United States
Listings
Biography
Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers FortiGate hardware and software licenses t...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/04/10 22:47 |
| End of Day Share Price | 2021/04/09 00:00 |
| Earnings | 2020/12/31 |
| Annual Earnings | 2020/12/31 |
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.