Fortinet
Market Cap
US$20.4b
Last Updated
2020/02/19 01:12 UTC
Data Sources
Company Financials +
Executive Summary
Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions worldwide.
Rewards
Risk Analysis
No risks detected for FTNT from our risk checks.
Snowflake Analysis
Flawless balance sheet with reasonable growth potential.
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
1.7%
FTNT
1.7%
US Software
0.5%
US Market
1 Year Return
42.4%
FTNT
42.9%
US Software
20.3%
US Market
Return vs Industry: FTNT underperformed the US Software industry which returned 43.7% over the past year.
Return vs Market: FTNT exceeded the US Market which returned 19.4% over the past year.
Shareholder returns
| FTNT | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.7% | 1.7% | 0.5% |
| 30 Day | 1.7% | 8.6% | 2.0% |
| 90 Day | 15.9% | 19.4% | 9.4% |
| 1 Year | 42.4%42.4% | 44.4%42.9% | 22.8%20.3% |
| 3 Year | 220.8%220.8% | 154.9%144.1% | 50.1%40.4% |
| 5 Year | 248.9%248.9% | 223.7%200.6% | 73.1%54.1% |
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
Fortinet, Inc. Just Recorded A 8.8% EPS Beat: Here's What Analysts Are Forecasting Next3 weeks ago | Simply Wall St
What Type Of Shareholder Owns Fortinet, Inc.'s (NASDAQ:FTNT)?1 month ago | Simply Wall St
At US$117, Is It Time To Put Fortinet, Inc. (NASDAQ:FTNT) On Your Watch List?Valuation
Is Fortinet undervalued compared to its fair value and its price relative to the market?
31.7%
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: FTNT ($119.45) is trading below our estimate of fair value ($174.87)
Significantly Below Fair Value: FTNT is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: FTNT is poor value based on its PE Ratio (62.6x) compared to the Software industry average (49.8x).
PE vs Market: FTNT is poor value based on its PE Ratio (62.6x) compared to the US market (18.3x).
Price to Earnings Growth Ratio
PEG Ratio: FTNT is poor value based on its PEG Ratio (4.2x)
Price to Book Ratio
PB vs Industry: FTNT is overvalued based on its PB Ratio (15.5x) compared to the US Software industry average (6x).
Next Steps
Future Growth
How is Fortinet forecast to perform in the next 1 to 3 years based on estimates from 26 analysts?
15.0%
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: FTNT's forecast earnings growth (15% per year) is above the savings rate (1.7%).
Earnings vs Market: FTNT's earnings (15% per year) are forecast to grow faster than the US market (14.2% per year).
High Growth Earnings: FTNT's earnings are forecast to grow, but not significantly.
Revenue vs Market: FTNT's revenue (12.9% per year) is forecast to grow faster than the US market (7.6% per year).
High Growth Revenue: FTNT's revenue (12.9% 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 (45%).
Next Steps
Past Performance
How has Fortinet performed over the past 5 years?
66.5%
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: FTNT has high quality earnings.
Growing Profit Margin: FTNT's current net profit margins (15.1%) are lower than last year (18.4%).
Past Earnings Growth Analysis
Earnings Trend: FTNT's earnings have grown significantly by 66.5% per year over the past 5 years.
Accelerating Growth: FTNT's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: FTNT had negative earnings growth (-1.7%) over the past year, making it difficult to compare to the Software industry average (18.4%).
Return on Equity
High ROE: FTNT's Return on Equity (24.7%) is considered high.
Return on Assets
Return on Capital Employed
Next Steps
Financial Health
How is Fortinet's financial position?
Financial Position Analysis
Short Term Liabilities: FTNT's short term assets ($2.8B) exceed its short term liabilities ($1.5B).
Long Term Liabilities: FTNT's short term assets ($2.8B) exceed its long term liabilities ($1.1B).
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: FTNT's debt is not covered by short term assets (assets are -66.6x debt).
Next Steps
Dividend
What is Fortinet's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Current dividend yield vs market & industry
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.
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?
2.5yrs
Average management tenure
CEO
Ken Xie (56yo)
19.3yrs
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 ($USD10.78M).
Compensation vs Earnings: Ken's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 19.3yrs | US$6.76m | 7.33% $1.5b | |
| Founder | 19yrs | US$3.47m | 6.9% $1.4b | |
| CFO & Chief Accounting Officer | 2yrs | US$2.26m | 0.0043% $878.6k | |
| Executive VP of Corporate Development & Strategic Alliances | 13.3yrs | US$2.40m | 0.00074% $150.9k | |
| Vice President of Investor Relations | 2yrs | no data | no data | |
| Senior Executive Vice President of Worldwide Sales & Support | 4.1yrs | no data | no data | |
| Chief Marketing Officer & Executive VP of Products | 1.1yrs | no data | no data | |
| Senior Vice President of Global Human Resources | 1.1yrs | no data | no data | |
| Senior Vice President of Marketing | 1.1yrs | no data | no data | |
| Chief Information Security Officer | 3.1yrs | no data | no data |
2.5yrs
Average Tenure
53yo
Average Age
Experienced Management: FTNT's management team is considered experienced (2.5 years average tenure).
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| Founder | 19.3yrs | US$6.76m | 7.33% $1.5b | |
| Founder | 19yrs | US$3.47m | 6.9% $1.4b | |
| Lead Independent Director | 1.8yrs | US$347.88k | 0.030% $6.2m | |
| Independent Director | 16yrs | US$357.70k | 0.044% $9.1m | |
| Independent Director | 6.8yrs | US$336.03k | 0.0031% $621.8k | |
| Independent Director | 4.4yrs | US$335.52k | 0.018% $3.6m | |
| Independent Director | 4.7yrs | US$333.27k | 0.013% $2.7m | |
| Director | 0.3yrs | no data | no data |
5.8yrs
Average Tenure
59.5yo
Average Age
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.
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$20.386b
- Shares outstanding: 171.03m
- 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, including firewall, intrusion prevention, anti-malware, virtual private network, application control, Web filtering, anti-spam, and wide area network acceleration; FortiSandbox technology that delivers proactive detection and mitigation services; and FortiSIEM family of software solutions, which offers a cloud-ready security information and event management solutions. The company also provides FortiSwitch product family that offers secure switching solutions for connecting customers end devices, such as computers and laptops, as well as an expanding field of Internet of things devices; FortiAnalyzer product family, which provides centralized network logging, analyzing, and reporting solutions; and FortiManager product family that provides central and scalable management solution for its FortiGate products, including software updates, configuration, policy settings, and security updates, as well as FortiAP product family, which provides secure wireless networking solutions. In addition, it provides security subscription, technical support, professional, and training services. The company sells its security solutions to channel partners; and directly to end-customers, including small and medium-sized businesses, large enterprises, and government organizations in a range of industries consisting of telecommunications, technology, government, financial services, education, retail, manufacturing, and healthcare. Fortinet, Inc. provides its products and services in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 2000 and is headquartered in Sunnyvale, California.
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2020/02/19 01:12 |
| End of Day Share Price | 2020/02/18 00:00 |
| Earnings | 2019/12/31 |
| 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.