Analyzing FTNT Stock Performance – Editor's Insights

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.

The above analysis is intended for educational purposes only and was performed on the basis of publicly available data. It is not to be construed as a recommendation to buy or sell any security. Any buy, sell, or other recommendations mentioned in the article are direct quotations of consensus recommendations from the analysts covering the stock, and do not represent the opinions of Market Inference or its writers. Past performance, accounting data, and inferences about market position and corporate valuation are not reliable indicators of future price movements. Market Inference does not provide financial advice. Investors should conduct their own review and analysis of any company of interest before making an investment decision.