Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. More Details
Proven track record with adequate balance sheet.
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 less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.
Volatility Over Time: FTNT's weekly volatility (4%) has been stable over the past year.
7 Day Return
1 Year Return
Return vs Industry: FTNT exceeded the US Software industry which returned 33.6% over the past year.
Return vs Market: FTNT exceeded the US Market which returned 34.4% over the past year.
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
5 days ago | Simply Wall StThe Fortinet (NASDAQ:FTNT) Share Price Is Up 711% And Shareholders Are Delighted
2 weeks ago | Simply Wall StFortinet (NASDAQ:FTNT) Shareholders Will Want The ROCE Trajectory To Continue
4 weeks ago | Simply Wall StAre Investors Undervaluing Fortinet, Inc. (NASDAQ:FTNT) By 22%?
Is Fortinet undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FTNT ($297.76) is trading below our estimate of fair value ($317.42)
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 (94.1x) compared to the US Software industry average (50.7x).
PE vs Market: FTNT is poor value based on its PE Ratio (94.1x) compared to the US market (17.9x).
Price to Earnings Growth Ratio
PEG Ratio: FTNT is poor value based on its PEG Ratio (6.5x)
Price to Book Ratio
PB vs Industry: FTNT is overvalued based on its PB Ratio (46.3x) compared to the US Software industry average (6.8x).
How is Fortinet forecast to perform in the next 1 to 3 years based on estimates from 25 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FTNT's forecast earnings growth (14.4% per year) is above the savings rate (2%).
Earnings vs Market: FTNT's earnings (14.4% per year) are forecast to grow slower than the US market (15% per year).
High Growth Earnings: FTNT's earnings are forecast to grow, but not significantly.
Revenue vs Market: FTNT's revenue (16.4% per year) is forecast to grow faster than the US market (9.2% per year).
High Growth Revenue: FTNT's revenue (16.4% 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 very high in 3 years time (40.3%).
How has Fortinet performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FTNT has high quality earnings.
Growing Profit Margin: FTNT's current net profit margins (17.7%) are higher than last year (17.7%).
Past Earnings Growth Analysis
Earnings Trend: FTNT's earnings have grown significantly by 48.7% per year over the past 5 years.
Accelerating Growth: FTNT's earnings growth over the past year (23.3%) is below its 5-year average (48.7% per year).
Earnings vs Industry: FTNT earnings growth over the past year (23.3%) underperformed the Software industry 34.2%.
Return on Equity
High ROE: FTNT's Return on Equity (49%) is considered outstanding.
How is Fortinet's financial position?
Financial Position Analysis
Short Term Liabilities: FTNT's short term assets ($3.9B) exceed its short term liabilities ($2.0B).
Long Term Liabilities: FTNT's short term assets ($3.9B) exceed its long term liabilities ($2.5B).
Debt to Equity History and Analysis
Debt Level: FTNT's debt to equity ratio (88.7%) is considered high.
Reducing Debt: Insufficient data to determine if FTNT's debt to equity ratio has reduced over the past 5 years.
Debt Coverage: FTNT's debt is well covered by operating cash flow (134.4%).
Interest Coverage: FTNT earns more interest than it pays, so coverage of interest payments is not a concern.
What is Fortinet current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate FTNT's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate FTNT's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if FTNT's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if FTNT's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of FTNT's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Ken Xie (58 yo)
Mr. Ken Xie has been Founder, Chief Executive Officer and Director at Fortinet, Inc. since October 2000. Mr. Xie serves as an Advisor at WI Harper Group. He is a Strategic Advisor at ForgePoint Capital (fo...
CEO Compensation Analysis
Compensation vs Market: Ken's total compensation ($USD10.65M) is about average for companies of similar size in the US market ($USD11.16M).
Compensation vs Earnings: Ken's compensation has been consistent with company performance over the past year.
Experienced Management: FTNT's management team is considered experienced (3.5 years average tenure).
Experienced Board: FTNT's board of directors are considered experienced (4.8 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: FTNT insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Fortinet, Inc.'s company bio, employee growth, exchange listings and data sources
- Name: Fortinet, Inc.
- Ticker: FTNT
- Exchange: NasdaqGS
- Founded: 2000
- Industry: Systems Software
- Sector: Software
- Market Cap: US$48.630b
- Shares outstanding: 163.32m
- Website: https://www.fortinet.com
Number of Employees
- Fortinet, Inc.
- 899 Kifer Road
- United States
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||2021/08/03 23:44|
|End of Day Share Price||2021/08/03 00:00|
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.