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Fortinet, Inc.

FTNT

Computer Peripheral Equipment, NEC

Mkt Cap

$51.89B

PE

45.20

Debt

$1B

Cash

$1.398B

EV

$51.49B

FCF

$1.731B

Market Cap

$51.89B

P/E Ratio

45.20

Debt

$1B

Cash

$1.398B

EV

$51.49B

FCF

$1.731B
Charts data: {"Earnings":[{"time":"2014-12-30","value":25343000},{"time":"2015-12-30","value":7987000},{"time":"2016-12-30","value":32187000},{"time":"2017-12-30","value":31399000},{"time":"2018-12-30","value":332200000},{"time":"2019-12-30","value":326500000},{"time":"2020-12-30","value":488500000},{"time":"2021-12-30","value":606700000},{"time":"2022-12-30","value":856600000},{"time":"2023-12-30","value":1147800000}],"Sales":[{"time":"2014-12-30","value":770364000},{"time":"2015-12-30","value":1009268000},{"time":"2016-12-30","value":1275443000},{"time":"2017-12-30","value":1494930000},{"time":"2018-12-30","value":1801200000},{"time":"2019-12-30","value":2156200000},{"time":"2020-12-30","value":2594400000},{"time":"2021-12-30","value":3342200000},{"time":"2022-12-30","value":4417400000},{"time":"2023-12-30","value":5304800000}],"Net Margins":[{"time":"2014-12-30","value":0.03289743549802431},{"time":"2015-12-30","value":0.007913656234023073},{"time":"2016-12-30","value":0.025235937631081905},{"time":"2017-12-30","value":0.02100365903420227},{"time":"2018-12-30","value":0.1844326004885632},{"time":"2019-12-30","value":0.15142380113162043},{"time":"2020-12-30","value":0.18829016342892382},{"time":"2021-12-30","value":0.1815271378134163},{"time":"2022-12-30","value":0.19391497260832163},{"time":"2023-12-30","value":0.21637007992761273}],"Assets":[{"time":"2014-12-30","value":1424774000},{"time":"2015-12-30","value":1790510000},{"time":"2016-12-30","value":2139941000},{"time":"2017-12-30","value":2257916000},{"time":"2018-12-30","value":3078000000},{"time":"2019-12-30","value":3885500000},{"time":"2020-12-30","value":4044500000},{"time":"2021-12-30","value":5919100000},{"time":"2022-12-30","value":6228000000},{"time":"2023-12-30","value":7258900000}],"Stockholders Equity":[{"time":"2014-12-30","value":675966000},{"time":"2015-12-30","value":755377000},{"time":"2016-12-30","value":837681000},{"time":"2017-12-30","value":589377000},{"time":"2018-12-30","value":1025500000},{"time":"2019-12-30","value":1342400000},{"time":"2020-12-30","value":856000000},{"time":"2021-12-30","value":798400000},{"time":"2022-12-30","value":-281600000},{"time":"2023-12-30","value":-463400000}],"ROE":[{"time":"2014-12-30","value":0.037491530639114985},{"time":"2015-12-30","value":0.010573528185263782},{"time":"2016-12-30","value":0.038423934648153656},{"time":"2017-12-30","value":0.05327489874901803},{"time":"2018-12-30","value":0.32393954168698197},{"time":"2019-12-30","value":0.24322109654350418},{"time":"2020-12-30","value":0.570677570093458},{"time":"2021-12-30","value":0.7598947895791583},{"time":"2022-12-30","value":-3.041903409090909},{"time":"2023-12-30","value":-2.476909797151489}],"ROA":[{"time":"2014-12-30","value":0.041637480751333195},{"time":"2015-12-30","value":0.008308805870952968},{"time":"2016-12-30","value":0.020067842991932955},{"time":"2017-12-30","value":0.04863068422385952},{"time":"2018-12-30","value":0.07504873294346978},{"time":"2019-12-30","value":0.09759361729507142},{"time":"2020-12-30","value":0.13393497342069477},{"time":"2021-12-30","value":0.10988156983325167},{"time":"2022-12-30","value":0.1563102119460501},{"time":"2023-12-30","value":0.18662607282095084}]}

Fortinet, Inc. provides cybersecurity and networking 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. 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 centralized network logging, analyzing and reporting solutions. It offers FortiWeb product family provides web application firewall solutions; FortiMail product family that secure email gateway solutions; FortiSandbox technology that delivers proactive detection and mitigation services; FortiClient that provides endpoint protection with pattern-based anti-malware, behavior-based exploit protection, web-filtering, and an application firewall; FortiAuthenticator, a zero trust access solution; FortiGate VM, a network firewall virtual appliance; FortiToken, product family for multi-factor authentication to safeguard systems, assets, and data; and FortiEDR/XDR, an endpoint protection solution that provides both machine-learning anti-malware protection and remediation. It provides security subscription, technical support, professional, and training services. It sells its security solutions to channel partners and directly to various customers in telecommunications, technology, government, financial services, education, retail, manufacturing, and healthcare industries. It has strategic alliance with Linksys. The company was incorporated in 2000 and is headquartered in Sunnyvale, California.

Sector

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Growth

%

%

Discount

%

%

Multiple

g\r+10%+11%+12%+13%+14%
0%109887
+1%1110988
+2%13111098
+3%141311109
+4%1714121110
Years012345678910TV
FCF$1.731B$2.251B$2.864B$3.564B$4.336B$5.155B$5.985B$6.783B$7.499B$8.082B$8.486B$84.86B
DCF$1.957B$2.165B$2.343B$2.479B$2.563B$2.587B$2.55B$2.451B$2.297B$2.098B$20.98B
Value$44.47B

In the chart Earnings are multiplied by this value.

Earnings Growth 88%
Earnings Stability 85%


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.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Net Margin0.79%2.5%2.1%18%15%19%18%19%22%22%
ROA0.83%2%4.9%7.5%9.8%13%11%16%19%19%
ROE1.1%3.8%5.3%32%24%57%76%-300%-250%-250%

What is the average Net Margin?

The average Net Margin over the past 5 years is +18.6%.

What is the trend of Net Margin?

The trend of Net Margin over the past 5 years is +0.8%.

What is the average Return on Assets (ROA)?

The average ROA over the past 5 years is +12.66%.

What is the trend of Return on Assets (ROA)?

The trend of ROA over the past 5 years is +2.03%.

What is the average Return on Equity (ROE)?

The average ROE over the past 5 years is -60.35%.

What is the trend of Return on Equity (ROE)?

The trend of ROE over the past 5 years is -67.63%.


Safety & Stabiliy

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.

Years12-201512-201612-201712-201812-201912-202012-202112-202212-2023TTM
Debt FCF-----0.000.830.690.580.58
Debt Equity-----0.001.25-3.55-2.16-2.16
MIN
Graham Stability--100%100%100%100%100%100%100%100%

What is the Debt/FCF?

The Debt/FCF trailing twelve month is 0.58.

What is the trend of Debt/FCF?

The trend of Debt/FCF over the past 5 years is 0.16.

What is the Graham’s Stability?

Graham’s Stability measure stands at 1.00.


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.

Years12-201612-201812-202012-2022Trend
Revenue23%24%27%20%-0.054%
Net Income67%28%33%34%-21%
Stockholders Equity-----3.2%
FCF30%24%22%19%-2.8%

What is the 5 year Revenue CAGR?

The Revenue CAGR over the past 5 years is +24.11%.

What is the trend of Revenue growth?

The trend of Revenue growth rate over the past 5 years is -0.05%.

What is the 5 year Earnings CAGR?

The Earnings CAGR over the past 5 years is +28.14%.

What is the trend of Earnings growth?

The trend of Earnings growth rate over the past 5 years is -20.51%.

What is the 5 year Equity CAGR?

The Equity CAGR over the past 5 years is -.

What is the trend of Equity growth?

The trend of Equity growth rate over the past 5 years is -3.18%.

What is the 5 year FCF CAGR?

The FCF CAGR over the past 5 years is +24.2%.

What is the trend of FCF growth?

The trend of FCF growth rate over the past 5 years is -2.84%.