Fortinet logged a -2.9% change during today's evening session, and is now trading at a price of $59.15 per share.
Fortinet returned losses of -15.0% last year, with its stock price reaching a high of $81.24 and a low of $44.12. Over the same period, the stock underperformed the S&P 500 index by -39.7%. AThe company's 50-day average price was $61.97. Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide. Based in Sunnyvale, CA, the Large-Cap Technology company has 13,522 full time employees. Fortinet has not offered a dividend during the last year.
Wider Gross Margins Than the Industry Average of 45.23%:
| 2018 | 2019 | 2020 | 2021 | 2022 | 2023 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $1,127 | $2,163 | $2,594 | $3,342 | $4,417 | $5,305 |
| Gross Margins | n/a | 77.0% | 78.0% | 77.0% | 75.0% | 77.0% |
| Net Margins | 30% | 15% | 19% | 18% | 19% | 22% |
| Net Income (M) | $335 | $332 | $488 | $607 | $857 | $1,148 |
| Net Interest Expense (M) | -$7 | -$8 | -$8 | $15 | $18 | $21 |
| Depreciation & Amort. (M) | $56 | $62 | $69 | $84 | $104 | $113 |
| Diluted Shares (M) | 871 | 875 | 838 | 835 | 805 | 788 |
| Earnings Per Share | $0.38 | $0.38 | $0.58 | $0.73 | $1.06 | $1.46 |
| EPS Growth | n/a | 0.0% | 52.63% | 25.86% | 45.21% | 37.74% |
| Avg. Price | $13.05 | $16.88 | $24.43 | $50.01 | $60.75 | $59.15 |
| P/E Ratio | 32.62 | 43.28 | 42.86 | 67.58 | 56.78 | 40.51 |
| Free Cash Flow (M) | $586 | $716 | $958 | $1,204 | $1,449 | $1,731 |
| CAPEX (M) | $53 | $92 | $126 | $296 | $281 | $204 |
| Current Ratio | 1.77 | 1.9 | 1.5 | 1.55 | 1.24 | 1.19 |
Fortinet has rapidly growing revenues and increasing reinvestment in the business and exceptional EPS growth. Additionally, the company's financial statements display generally positive cash flows and wider gross margins than its peer group. Furthermore, Fortinet has just enough current assets to cover current liabilities, as shown by its current ratio of 1.19.
Fortinet's Valuation Is in Line With Its Sector Averages:
Fortinet has a trailing twelve month P/E ratio of 40.2, compared to an average of 32.54 for the Technology sector. Based on its EPS guidance of $1.96, the company has a forward P/E ratio of 31.6. Fortinet's PEG ratio is 2.56 on the basis of the 15.7% weighted average of the company and the broader market's EPS compound average growth rates. This suggests that the company's shares are overvalued.
Fortinet Has an Average Rating of Buy:
The 37 analysts following Fortinet have set target prices ranging from $54.0 to $91.5 per share, for an average of $71.8 with a buy rating. The company is trading -17.6% away from its average target price, indicating that there is an analyst consensus of some upside potential.
Fortinet has an average amount of shares sold short because 2.0% of the company's shares are sold short. Institutions own 70.4% of the company's shares, and the insider ownership rate stands at 17.5%, suggesting a large amount of insider shareholders. The largest shareholder is Vanguard Group Inc, whose 9% stake in the company is worth $4,025,304,709.
