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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


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

FTNTIndustryMarket
7 Day6.0%4.2%2.1%
30 Day5.4%4.6%2.4%
90 Day33.4%6.6%6.1%
1 Year93.9%93.9%65.3%64.1%59.1%56.3%
3 Year253.9%253.9%145.3%138.0%65.7%55.1%
5 Year566.7%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

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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/04/10 22:47
End of Day Share Price2021/04/09 00:00
Earnings2020/12/31
Annual Earnings2020/12/31


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.