Fortinet, Inc.

Technology
Computer peripheral equipment
www.fortinet.com

Earnings Score
Safety Score

Market Cap $75.59B
PE 49
Debt $1.00B
Cash $2.49B
EV $74.10B
FCF $1.66B

Earnings

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Sales & Net Margins

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Earnings	$1.53B
EBIT	$1.65B
ROE	168%
ROA	19%
FCF	$1.66B
Equity	$908.10M
Growth Stability	100%
PE	49.41
PEG	1.37
PB	83.23
P/FCF	45.42
P/S	13.24
Price/Cash	0.03
Debt/Equity	1.1
Debt/FCF	0.6
Net Margins	28%
Gross Margins	80%
Op. Margins	29%
Earnings CAGR	81%
Sales Growth YoY	13%
Sales Growth QoQ	5%
Sales CAGR	23%
FCF CAGR	28%
Equity CAGR	-7%
Earnings Stability	0.83
Earnings Growth YoY	67%

Earnings Growth QoQ	42%
Earnings CAGR 5Y	36%
Sales CAGR 5Y	25%
FCF CAGR 5Y	22%
Equity CAGR 5Y	-16%
Earnings CAGR 3Y	22%
Sales CAGR 3Y	22%
FCF CAGR 3Y	18%
Equity CAGR 3Y	4%
Market Cap	$75.59B
Revenue	$5.71B
Assets	$8.85B
Total Debt	$1.00B
Cash	$2.49B
Shares Outstanding	761.88M
EV	74.1B
Earnings Score	95%
Safety Score	94%
Working Capital	1.34B
Current Ratio	1.34
Gross Profit	$4.55B
Shares Growth 3y	1%
Equity Growth QoQ	215%
Equity Growth YoY	1K%

Assets & ROA

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Stockholders Equity & ROE

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Fortinet is a cybersecurity vendor that sells products, support, and services to small and midsize businesses, enterprises, and government entities. Its products include unified threat management appliances, firewalls, network security, and its security platform, Security Fabric. Services revenue is primarily from FortiGuard security subscriptions and FortiCare technical support. At the end of 2021, products were 38% of revenue and services were 62% of sales. The California-based company sells products worldwide.

SEC Filings

Direct access to Fortinet, Inc. (FTNT) Annual Reports (10K) and Quarterly Reports (10Q) from the SEC website.

2024
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2023
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31
2022
- 10-K Dec 31
- 10-Q Sep 30
- 10-Q Jun 30
- 10-Q Mar 31

Sector Comparison

How does Fortinet, Inc. compare to its competitors?

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Peter Lynch's Chart

This chart shows the current pricing of Fortinet, Inc. compared to its past. The addition of the earnings trend line provides further insights into the company's earnings power.

CAGR 81%

Stability 83%

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Fortinet, Inc. Discounted Cash Flow

Fully customizable DCF calculator online for Fortinet, Inc..

Years

Calculation mode

= $118B

	0	1	2	3	4	5	6	7	8	9	10	TV
fcf	$1.7B	$2.1B	$2.7B	$3.5B	$4.5B	$5.7B	$7.3B	$9.4B	$12B	$15B	$20B	$197B
DCF		$1.9B	$2.3B	$2.6B	$3.1B	$3.6B	$4.1B	$4.8B	$5.6B	$6.5B	$7.6B	$76B
Value	$118B

Competitiveness and MOAT

High margins render the company resilient under dire circumstances, hence able to drive competitors out or acquire them. ROE and ROA measure the average flow generated by each invested dollar. Their marginal value is a forecast of future growth, and it is considered by Buffett and Munger the most important single indicator.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Net Margins	3%	1%	3%	2%	18%	15%	19%	18%	19%	22%	28%
ROA	-	1%	2%	5%	8%	10%	13%	11%	16%	19%	19%
ROE	-	1%	4%	5%	32%	24%	57%	76%	-304%	-248%	168%

Good Net Margins (28.38%)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Safety and Stability

Being debt the number one cause of investment losses and company death, the ratio Debt/FCF is of utmost importance to guarantee safety. On the other hand the Graham’s stability measures the drawdown of earnings, hence indicating the reliability of the flow generated by the company.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	TTM
Debt over FCF	-	-	-	-	-	-	0	0.83	0.69	0.58	0.6
Debt over Equity	-	-	-	-	-	-	0	1.25	-3.55	-2.16	1.1
Growth Stability	-	-	-	100%	100%	100%	100%	100%	100%	100%	100%

Good Debt/FCF ratio (0.6)

Net Margins are high enough to offer a good protection on the profits in case of higher costs or higher interests. Furthermore higher margins reduce earnings’ volatility.

Neutral Debt/Equity ratio (1.1)

The company has a balance between equity and debt that is not too good nor too bad.

Good Graham’s Stability (100%)

The company has a good stability in its earnings, which is a sign of a good competitive advantage.

Growth

Growth can be dangerous when forecasting, simply projecting the current growth is in general wrong. A company passes through multiple phases, from being young and unprofitable, to the first periods of profitability and high growth, until it arrives at a period of regime with limited growth. Identifying in which phase the company is in may help forecasting.

Years	12/2014	12/2015	12/2016	12/2017	12/2018	12/2019	12/2020	12/2021	12/2022	12/2023	CAGR 5Y
Revenue YoY growth	-	31%	26%	17%	20%	20%	20%	29%	32%	20%	25%
Earnings YoY growth	-	-68%	303%	-2%	958%	-2%	50%	24%	41%	34%	36%
Equity YoY growth	-	12%	11%	-30%	74%	31%	-36%	-7%	-135%	65%	-16%
FCF YoY growth	-	49%	14%	65%	28%	22%	34%	26%	20%	19%	22%