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FTNT

FortinetNasdaqGS:FTNT Stock Report

Market Cap

US$54.3b

7D

1.4%

1Y

170.8%

Updated

01 Dec, 2021

Data

Company Financials +
FTNT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth4/6
Past Performance3/6
Financial Health5/6
Dividends0/6

FTNT Stock Overview

Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

Fortinet Competitors

Microsoft

NasdaqGS:MSFT

US$2.5t

ServiceNow

NYSE:NOW

US$128.9b

Palo Alto Networks

NasdaqGS:PANW

US$54.0b

CrowdStrike Holdings

NasdaqGS:CRWD

US$49.5b

Price History & Performance

Summary of all time highs, changes and price drops for Fortinet
Historical stock prices
Current Share PriceUS$332.11
52 Week HighUS$355.35
52 Week LowUS$120.37
Beta1.12
1 Month Change-1.26%
3 Month Change7.66%
1 Year Change170.80%
3 Year Change352.59%
5 Year Change1,009.62%
Change since IPO3,896.51%

Recent News & Updates

Oct 23
Returns Are Gaining Momentum At Fortinet (NASDAQ:FTNT)

Returns Are Gaining Momentum At Fortinet (NASDAQ:FTNT)

If you're looking for a multi-bagger, there's a few things to keep an eye out for. Firstly, we'll want to see a proven...

Shareholder Returns

FTNTUS SoftwareUS Market
7D1.4%-1.4%-2.8%
1Y170.8%34.2%20.0%

Return vs Industry: FTNT exceeded the US Software industry which returned 34.2% over the past year.

Return vs Market: FTNT exceeded the US Market which returned 20% over the past year.

Price Volatility

Is FTNT's price volatile compared to industry and market?
FTNT volatility
FTNT Average Weekly Movement4.6%
Software Industry Average Movement7.5%
Market Average Movement6.0%
10% most volatile stocks in US Market15.0%
10% least volatile stocks in US Market2.3%

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.

About the Company

FoundedEmployeesCEOWebsite
20009,700Ken Xiehttps://www.fortinet.com

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 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. The company also provides FortiSwitch product family that offers secure switching solutions for connecting customers their end devices; FortiAP product family, which provides secure wireless networking solutions; FortiExtender, a hardware appliance; FortiAnalyzer product family, which offers centralized network logging, analyzing, and reporting solutions; and FortiManager product family that provides central and scalable management solution for its FortiGate products.

Fortinet Fundamentals Summary

How do Fortinet's earnings and revenue compare to its market cap?
FTNT fundamental statistics
Market CapUS$54.30b
Earnings (TTM)US$554.50m
Revenue (TTM)US$3.13b

97.9x

P/E Ratio

17.4x

P/S Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
FTNT income statement (TTM)
RevenueUS$3.13b
Cost of RevenueUS$721.70m
Gross ProfitUS$2.40b
ExpensesUS$1.85b
EarningsUS$554.50m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)3.39
Gross Margin76.92%
Net Profit Margin17.73%
Debt/Equity Ratio88.6%

How did FTNT perform over the long term?

See historical performance and comparison

Valuation

Is Fortinet undervalued compared to its fair value and its price relative to the market?

16.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FTNT ($332.11) is trading below our estimate of fair value ($396.16)

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 (97.9x) compared to the US Software industry average (44.3x).

PE vs Market: FTNT is poor value based on its PE Ratio (97.9x) compared to the US market (16.8x).


Price to Earnings Growth Ratio

PEG Ratio: FTNT is poor value based on its PEG Ratio (6.6x)


Price to Book Ratio

PB vs Industry: FTNT is overvalued based on its PB Ratio (48.6x) compared to the US Software industry average (6.3x).


Future Growth

How is Fortinet forecast to perform in the next 1 to 3 years based on estimates from 27 analysts?

14.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FTNT's forecast earnings growth (14.9% per year) is above the savings rate (2%).

Earnings vs Market: FTNT's earnings (14.9% 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 (15.6% per year) is forecast to grow faster than the US market (10.1% per year).

High Growth Revenue: FTNT's revenue (15.6% 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 (30.8%)


Past Performance

How has Fortinet performed over the past 5 years?

45.0%

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 lower than last year (18.7%).


Past Earnings Growth Analysis

Earnings Trend: FTNT's earnings have grown significantly by 45% per year over the past 5 years.

Accelerating Growth: FTNT's earnings growth over the past year (20.5%) is below its 5-year average (45% per year).

Earnings vs Industry: FTNT earnings growth over the past year (20.5%) underperformed the Software industry 20.5%.


Return on Equity

High ROE: FTNT's Return on Equity (48.8%) is considered outstanding.


Financial Health

How is Fortinet's financial position?


Financial Position Analysis

Short Term Liabilities: FTNT's short term assets ($4.0B) exceed its short term liabilities ($2.2B).

Long Term Liabilities: FTNT's short term assets ($4.0B) exceed its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: FTNT has more cash than its total debt.

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 (142.1%).

Interest Coverage: FTNT's interest payments on its debt are well covered by EBIT (122.5x coverage).


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?

3.8yrs

Average management tenure


CEO

Ken Xie (58 yo)

21.08yrs

Tenure

US$10,654,631

Compensation

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 serves as an Advisor at ForgePoint Capital Manag...


CEO Compensation Analysis

Compensation vs Market: Ken's total compensation ($USD10.65M) is about average for companies of similar size in the US market ($USD11.14M).

Compensation vs Earnings: Ken's compensation has been consistent with company performance over the past year.


Leadership Team

Experienced Management: FTNT's management team is considered experienced (3.8 years average tenure).


Board Members

Experienced Board: FTNT's board of directors are considered experienced (3.6 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 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$54.300b
  • Shares outstanding: 163.50m
  • Website: https://www.fortinet.com

Number of Employees


Location

  • Fortinet, Inc.
  • 899 Kifer Road
  • Sunnyvale
  • California
  • 94086
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/12/01 00:02
End of Day Share Price2021/11/30 00:00
Earnings2021/09/30
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.