Fortinet may be undervalued with strong growth indicators, but the 37 analysts following the company give it an rating of hold. Their target prices range from $83.0 to $135.0 per share, for an average of $109.88. At today's price of $101.97, Fortinet is trading -7.2% away from its average target price, suggesting there is an analyst consensus of some upside potential for the stock.
Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide. Based in Sunnyvale, CA, the Large-Cap Technology company has 14,556 full time employees. Fortinet has not offered a regular dividend during the last year.
Fortinet has a trailing twelve month P/E ratio of 42.0, compared to an average of 30.44 for the Technology sector. Considering its EPS guidance of $2.41, the company has a forward P/E ratio of 42.3.
Furthermore, Fortinet is overpriced compared to its book value, since its P/B ratio of 39.96 is higher than the sector average of 4.19. The company's shares are currently 927.9% below their Graham number, indicating that its shares have a margin of safety.
| 2019 | 2020 | 2021 | 2022 | 2023 | 2024 | |
|---|---|---|---|---|---|---|
| Revenue (M) | $2,163 | $2,594 | $3,342 | $4,417 | $5,305 | $5,956 |
| Gross Margins | 77% | 78% | 77% | 75% | 77% | 81% |
| Net Margins | 15% | 19% | 18% | 19% | 22% | 28% |
| Net Income (M) | $332 | $488 | $607 | $857 | $1,148 | $1,745 |
| Net Interest Expense (M) | -$8 | -$8 | $15 | $18 | $21 | $20 |
| Depreciation & Amort. (M) | $62 | $69 | $84 | $104 | $113 | $100 |
| Diluted Shares (M) | 875 | 838 | 835 | 805 | 788 | 772 |
| Earnings Per Share | $0.38 | $0.58 | $0.73 | $1.06 | $1.46 | $2.26 |
| EPS Growth | n/a | 52.63% | 25.86% | 45.21% | 37.74% | 54.79% |
| Avg. Price | $16.88 | $24.43 | $50.01 | $60.75 | $53.27 | $101.71 |
| P/E Ratio | 43.28 | 42.86 | 67.58 | 56.78 | 36.49 | 44.41 |
| Free Cash Flow (M) | $716 | $958 | $1,204 | $1,449 | $1,731 | $2,101 |
| CAPEX (M) | $92 | $126 | $296 | $281 | $204 | $157 |
| Current Ratio | 1.9 | 1.5 | 1.55 | 1.24 | 1.19 | 1.47 |
