Fortinet may be undervalued with strong growth indicators, but the 33 analysts following the company give it an rating of hold. Their target prices range from $66.0 to $120.0 per share, for an average of $88.25. At today's price of $82.47, Fortinet is trading -6.56% 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 15,015 full time employees. Fortinet has not offered a regular dividend during the last year.
Fortinet has a trailing twelve month P/E ratio of 33.9, 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 34.2.
Fortinet is also overpriced compared to its book value, since its P/B ratio of 83.3 is higher than the sector average of 4.19. The company's shares are currently 731.3% 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 | $58.53 | $83.66 |
| P/E Ratio | 43.28 | 42.86 | 67.58 | 56.78 | 40.09 | 36.53 |
| 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 |
