Is Fortinet Stock a Good Investment?
Fortinet Investment Advice | FTNT |
- Examine Fortinet's financial health by looking at its balance sheet, income statement, and cash flow statement. Analyze key financial ratios, such as Price-to-Earnings (P/E), Price-to-Sales (P/S), and Price-to-Book (P/B), to determine whether the stock is fairly valued or over/undervalued.
- Research Fortinet's leadership team and their track record. Good management can help Fortinet navigate difficult times and make strategic decisions that benefit shareholders and increases its net worth.
- Consider the overall health of the Systems Software space and any emerging trends that could impact Fortinet's business and its evolving consumer preferences.
- Compare Fortinet's performance and market position to its competitors. Analyze how Fortinet is positioned in terms of product offerings, innovation, and market share.
- Check if Fortinet pays a dividend and its dividend yield and payout ratio.
- Review what financial analysts are saying about Fortinet's stock and their price targets. However, remember that analysts' opinions can vary, and their predictions may not always be accurate.
It's important to note that investing in Fortinet stock, carries risks, and you should carefully consider your investment goals and risk tolerance before making any investment decisions. Also, remember that it's important for investors to have a long-term perspective and a well-diversified portfolio to manage the impact of stock market volatility on their investments. Below is a detailed guide on how to decide if Fortinet is a good investment.
Sell | Buy |
Strong Hold
Market Performance | Good | Details | |
Volatility | Very steady | Details | |
Hype Condition | Low key | Details | |
Current Valuation | Overvalued | Details | |
Odds Of Distress | Very Small | Details | |
Economic Sensitivity | Moves indifferently to market moves | Details | |
Investor Sentiment | Alarmed | Details | |
Analyst Consensus | Buy | Details | |
Financial Strenth (F Score) | Healthy | Details | |
Financial Leverage | Not Rated | Details | |
Reporting Quality (M-Score) | Unlikely Manipulator | Details |
Examine Fortinet Stock
Researching Fortinet's stock involves analyzing various aspects of the company and its industry to make an informed investment decision. The key areas to focus on are fundamentals, business model and competitive advantage. It is also important to analyze trends in revenue, net income, and cash flow, as well as key financial ratios, such as price-to-earnings (P/E), price-to-sales (P/S), and debt-to-equity (D/E). About 17.0% of the company shares are held by company insiders. The company has Price/Earnings To Growth (PEG) ratio of 1.71. Fortinet had not issued any dividends in recent years. The entity had 5:1 split on the 23rd of June 2022.
To determine if Fortinet is a good investment, evaluating the company's potential for future growth is also very important. This may include expanding into new markets, launching new products or services, or improving operational efficiency. Companies with strong growth prospects can be more attractive investments. This aspect of the research should be conducted in the context of the overall market and industry in which the company operates and should include an analysis of growth potential, competitive landscape, and any regulatory or economic factors that could impact the business. Some of the essential points regarding Fortinet's research are outlined below:
| Fortinet is unlikely to experience financial distress in the next 2 years | |
| About 69.0% of the company shares are owned by institutional investors | |
| Latest headline from news.google.com: Are You Looking for a Top Momentum Pick Why Fortinet is a Great Choice - Yahoo Finance |
Fortinet uses earnings reports to provide investors with an update of all three financial statements, including the income statement, the balance sheet, and the cash flow statement. Therefore, it is also crucial when considering investing in Fortinet. Every quarterly earnings report provides investors with an overview of sales, expenses, and net income for the most recent period. It also may provide a comparison to Fortinet's previous reporting period. The quarterly earnings reports are usually disseminated to the public via Form 10-Q, which is a legal document filed with the Securities and Exchange Commission every quarter.
| 6th of February 2024 Upcoming Quarterly Report | View | |
| 2nd of May 2024 Next Financial Report | View | |
| 31st of December 2023 Next Fiscal Quarter End | View | |
| 6th of February 2024 Next Fiscal Year End | View | |
| 30th of September 2023 Last Quarter Report | View | |
| 31st of December 2022 Last Financial Announcement | View |
Earnings surprises can significantly impact Fortinet's stock price both in the short term and over time. Negative earnings surprises usually result in a price decline. However, it has been seen that positive earnings surprises lead to an immediate rise in a stock's price and a gradual increase over time. This is why we often hear news about some companies beating earning projections. Financial analysts spend a large amount of time predicting earnings per share (EPS) along with other important future indicators. Many analysts use forecasting models, management guidance, and additional fundamental information to derive an EPS estimate. Below are the table of largest EPS Surprises Fortinet's investors have experienced.
| Reported | Fiscal Date | Estimated EPS | Reported EPS | Surprise | |||
|---|---|---|---|---|---|---|---|
2019-05-02 | 2019-03-31 | 0.08 | 0.09 | 0.01 | 12 | ||
2018-08-01 | 2018-06-30 | 0.07 | 0.08 | 0.01 | 14 | ||
2017-10-26 | 2017-09-30 | 0.05 | 0.06 | 0.01 | 20 | ||
2017-07-26 | 2017-06-30 | 0.04 | 0.05 | 0.01 | 25 | ||
2016-10-27 | 2016-09-30 | 0.03 | 0.04 | 0.01 | 33 | ||
2015-10-22 | 2015-09-30 | 0.02 | 0.03 | 0.01 | 50 | ||
2015-04-20 | 2015-03-31 | 0.01 | 0.02 | 0.01 | 100 | ||
2012-01-31 | 2011-12-31 | 0.02 | 0.03 | 0.01 | 50 |
Know Fortinet's Top Institutional Investors
Have you ever been surprised when a price of an equity instrument such as Fortinet is soaring high without any particular reason? This is usually happening because many institutional investors are aggressively trading Fortinet backward and forwards among themselves. Fortinet's institutional investor refers to the entity that pools money to purchase Fortinet's securities or originate loans. Institutional investors include commercial and private banks, credit unions, insurance companies, pension funds, hedge funds, endowments, and mutual funds. Operating companies that invest excess capital in these types of assets may also be included in the term and may influence corporate governance by exercising voting rights in their investments.
| Shares | Swedbank Ab | 2024-09-30 | 6.8 M | T. Rowe Price Investment Management,inc. | 2024-09-30 | 6.8 M | Amvescap Plc. | 2024-09-30 | 6.4 M | Two Sigma Advisers, Llc | 2024-09-30 | 6.3 M | D. E. Shaw & Co Lp | 2024-09-30 | 6.1 M | Ubs Asset Mgmt Americas Inc | 2024-09-30 | 5.8 M | Northern Trust Corp | 2024-09-30 | 5.5 M | Arrowstreet Capital Limited Partnership | 2024-09-30 | 5.5 M | First Trust Advisors L.p. | 2024-09-30 | 5.3 M | Vanguard Group Inc | 2024-09-30 | 67.4 M | Blackrock Inc | 2024-09-30 | 57 M |
Fortinet's market capitalization trends
The company currently falls under 'Large-Cap' category with a current market capitalization of 76.13 B.Market Cap |
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Fortinet's profitablity analysis
| Last Reported | Projected for Next Year | ||
| Return On Tangible Assets | 0.16 | 0.15 | |
| Return On Capital Employed | 0.32 | 0.33 | |
| Return On Assets | 0.14 | 0.15 | |
| Return On Equity | (2.85) | (2.71) |
Determining Fortinet's profitability involves analyzing its financial statements and using various financial metrics to determine if Fortinet is a good buy. For example, gross profit margin measures Fortinet's profitability after accounting for the cost of goods sold, while net profit margin measures profitability after accounting for all expenses. Other important metrics include return on assets, return on equity, and free cash flow. By reviewing multiple sources and metrics, you can gain a complete picture of Fortinet's profitability and make more informed investment decisions.
Fortinet's Earnings Breakdown by Geography
Please note, the imprecision that can be found in Fortinet's accounting process means that the reasonable investor should take a skeptical approach toward the financial statement analysis of Fortinet. Check Fortinet's Beneish M Score to see the likelihood of Fortinet's management manipulating its earnings.
Evaluate Fortinet's management efficiency
Fortinet has return on total asset (ROA) of 0.1232 % which means that it generated a profit of $0.1232 on every $100 spent on assets. This is way below average. Similarly, it shows a return on stockholder's equity (ROE) of 0.3115 %, meaning that it created $0.3115 on every $100 dollars invested by stockholders. Fortinet's management efficiency ratios could be used to measure how well Fortinet manages its routine affairs as well as how well it operates its assets and liabilities. At this time, Fortinet's Return On Capital Employed is comparatively stable compared to the past year. Return On Assets is likely to gain to 0.15 in 2025, whereas Return On Tangible Assets are likely to drop 0.15 in 2025. At this time, Fortinet's Total Current Liabilities is comparatively stable compared to the past year. Liabilities And Stockholders Equity is likely to gain to about 8.8 B in 2025, whereas Non Current Liabilities Other is likely to drop slightly above 92.3 M in 2025.| Last Reported | Projected for Next Year | ||
| Book Value Per Share | (0.54) | (0.51) | |
| Tangible Book Value Per Share | (0.92) | (0.88) | |
| Enterprise Value Over EBITDA | 27.74 | 29.20 | |
| Price Book Value Ratio | (113.09) | (107.44) | |
| Enterprise Value Multiple | 27.74 | 29.20 | |
| Price Fair Value | (113.09) | (107.44) | |
| Enterprise Value | 2.9 B | 2.6 B |
Leadership effectiveness at Fortinet is a strong indicator of its financial stability. We analyze various metrics to provide insights into the stock's investment viability.
Beta 0.995 |
Basic technical analysis of Fortinet Stock
As of the 30th of January, Fortinet shows the Coefficient Of Variation of 625.84, mean deviation of 1.47, and Downside Deviation of 1.59. Fortinet technical analysis allows you to utilize historical prices and volume patterns in order to determine a pattern that computes the direction of the firm's future prices.Fortinet's insider trading activities
Some recent studies suggest that insider trading raises the cost of capital for securities issuers and decreases overall economic growth. Trading by specific Fortinet insiders, such as employees or executives, is commonly permitted as long as it does not rely on Fortinet's material information that is not in the public domain. Local jurisdictions usually require such trading to be reported in order to monitor insider transactions. In many U.S. states, trading conducted by corporate officers, key employees, directors, or significant shareholders must be reported to the regulator or publicly disclosed, usually within a few business days of the trade. In these cases Fortinet insiders are required to file a Form 4 with the U.S. Securities and Exchange Commission (SEC) when buying or selling shares of their own companies.
Fortinet's Outstanding Corporate Bonds
Fortinet issues bonds to finance its operations. Corporate bonds make up one of the largest components of the U.S. bond market, which is considered the world's largest securities market. Fortinet uses the proceeds from bond sales for a wide variety of purposes, including financing ongoing mergers and acquisitions, buying new equipment, investing in research and development, buying back their own stock, paying dividends to shareholders, and even refinancing existing debt. Most Fortinet bonds can be classified according to their maturity, which is the date when Fortinet has to pay back the principal to investors. Maturities can be short-term, medium-term, or long-term (more than ten years). Longer-term bonds usually offer higher interest rates but may entail additional risks.
| FORTIVE P 43 Corp BondUS34959JAH14 | View | |
| FORTIVE P 315 Corp BondUS34959JAG31 | View | |
| FORTIS INC 3055 Corp BondUS349553AM97 | View | |
| FTNT 22 15 MAR 31 Corp BondUS34959EAB56 | View | |
| FTNT 1 15 MAR 26 Corp BondUS34959EAA73 | View | |
| MGM Resorts International Corp BondUS552953CD18 | View |
Understand Fortinet's technical and predictive indicators
Using predictive indicators to make investment decisions involves analyzing Fortinet's various financial and market-based factors to help forecast future trends and identify investment opportunities. Select the indicators that are most relevant to your investment strategy. Each indicator has its own strengths and weaknesses, so it's essential to combine multiple indicators to get a more comprehensive view of the market and reduce the risk of making poor decisions based on limited data.
| Risk Adjusted Performance | 0.1402 | |||
| Market Risk Adjusted Performance | 1.07 | |||
| Mean Deviation | 1.47 | |||
| Semi Deviation | 1.22 | |||
| Downside Deviation | 1.59 | |||
| Coefficient Of Variation | 625.84 | |||
| Standard Deviation | 2.15 | |||
| Variance | 4.63 | |||
| Information Ratio | 0.1203 | |||
| Jensen Alpha | 0.31 | |||
| Total Risk Alpha | 0.1417 | |||
| Sortino Ratio | 0.1628 | |||
| Treynor Ratio | 1.06 | |||
| Maximum Drawdown | 14.35 | |||
| Value At Risk | (2.46) | |||
| Potential Upside | 3.57 | |||
| Downside Variance | 2.53 | |||
| Semi Variance | 1.49 | |||
| Expected Short fall | (1.69) | |||
| Skewness | 1.53 | |||
| Kurtosis | 5.54 |
| Risk Adjusted Performance | 0.1402 | |||
| Market Risk Adjusted Performance | 1.07 | |||
| Mean Deviation | 1.47 | |||
| Semi Deviation | 1.22 | |||
| Downside Deviation | 1.59 | |||
| Coefficient Of Variation | 625.84 | |||
| Standard Deviation | 2.15 | |||
| Variance | 4.63 | |||
| Information Ratio | 0.1203 | |||
| Jensen Alpha | 0.31 | |||
| Total Risk Alpha | 0.1417 | |||
| Sortino Ratio | 0.1628 | |||
| Treynor Ratio | 1.06 | |||
| Maximum Drawdown | 14.35 | |||
| Value At Risk | (2.46) | |||
| Potential Upside | 3.57 | |||
| Downside Variance | 2.53 | |||
| Semi Variance | 1.49 | |||
| Expected Short fall | (1.69) | |||
| Skewness | 1.53 | |||
| Kurtosis | 5.54 |
Consider Fortinet's intraday indicators
Fortinet intraday indicators are useful technical analysis tools used by many experienced traders. Just like the conventional technical analysis, daily indicators help intraday investors to analyze the price movement with the timing of Fortinet stock daily movement. By combining multiple daily indicators into a single trading strategy, you can limit your risk while still earning strong returns on your managed positions.
| Accumulation Distribution | 62605.69 | |||
| Daily Balance Of Power | (0.25) | |||
| Rate Of Daily Change | 0.99 | |||
| Day Median Price | 99.21 | |||
| Day Typical Price | 99.25 | |||
| Price Action Indicator | (0.12) | |||
| Period Momentum Indicator | (0.50) |
Fortinet Corporate Filings
8K | 22nd of January 2025 An amendment to a previously filed Form 8-K | ViewVerify |
F4 | 17th of January 2025 The report filed by a party regarding the acquisition or disposition of a company's common stock, as well as derivative securities such as options, warrants, and convertible securities | ViewVerify |
F3 | 18th of November 2024 The report used by insiders such as officers, directors, and major shareholders (beneficial owners holding more than 10% of any class of the company's equity securities) to declare their ownership of a company's stock | ViewVerify |
10Q | 8th of November 2024 Quarterly performance report mandated by Securities and Exchange Commission (SEC), to be filed by publicly traded corporations | ViewVerify |
Fortinet Stock media impact
Far too much social signal, news, headlines, and media speculation about Fortinet that are available to investors today. That information is available publicly through Fortinet media outlets and privately through word of mouth or via Fortinet internal channels. However, regardless of the origin, that massive amount of Fortinet data is challenging to quantify into actionable patterns, especially for investors that are not very sophisticated with ever-evolving tools and techniques used in the investment management field.
A primary focus of Fortinet news analysis is to determine if its current price reflects all relevant headlines and social signals impacting the current market conditions. A news analyst typically looks at the history of Fortinet relative headlines and hype rather than examining external drivers such as technical or fundamental data. It is believed that price action tends to repeat itself due to investors' collective, patterned thinking related to Fortinet's headlines and news coverage data. This data is often completely overlooked or insufficiently analyzed for actionable insights to drive Fortinet alpha.
Fortinet Sentiment by Major News Outlets
Investor sentiment, mood or attitude towards Fortinet can have a significant impact on its stock price or the market as a whole. This sentiment can be positive or negative, and various factors, such as economic indicators, news events, or market trends, can influence it. When investor sentiment is positive, investors are more likely to buy stocks, increasing demand and increasing the stock price. Positive investor sentiment can be driven by good news about the company or the broader market, such as solid earnings reports or positive economic data.
Note that negative investor sentiment can cause investors to sell stocks, leading to a decrease in demand and a drop in the stock price. Negative sentiment can be driven by factors such as poor earnings reports, negative news about the company or industry, or broader economic concerns. It's important to note that investor sentiment is just one of many factors that can affect stock prices. Other factors, such as company performance, industry trends, and global economic conditions, can also play a significant role in determining the value of a stock.
Fortinet Historical Investor Sentiment
Investor biases related to Fortinet's public news can be used to forecast risks associated with an investment in Fortinet. The trend in average sentiment can be used to explain how an investor holding Fortinet can time the market purely based on public headlines and social activities around Fortinet. Please note that most equities that are difficult to arbitrage are affected by market sentiment the most.
Fortinet's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Fortinet and other traded tickers. The bigger the bubble, the more accurate the estimated score. Higher bars for a given day show more participation in the average Fortinet news discussions. The higher the estimate score, the more favorable the investor's outlook on Fortinet.
Fortinet Maximum Pain Price Across April 17th 2025 Option Contracts
Fortinet's options can also be used to analyze investors' bias and current market sentiment in the context of behavioral finance. For example, Max pain usually refers to a trading concept that asserts that market manipulation can cause the market price of Fortinet close to the expiration of its current option contract to expire worthlessly. According to most research, about 35% of options are not executed, with roughly 50% traded out before expiration. So, Max pain occurs when market makers reach a net favorable position across all options at a strike price where option holders stand to lose the most money. By contrast, option sellers may reap the most after selling more options than buying, causing them to expire worthlessly. Please continue to view the detailed analysis of Fortinet's options.
Fortinet Corporate Management
| John Whittle | VP of Corporate Devel. and Strategic Alliances and General Counsel | Profile | |
| Carl Windsor | Chief Officer | Profile | |
| Chris Perna | Vice Acquisition | Profile | |
| Matthew Pley | Executive Sales | Profile |
Additional Tools for Fortinet Stock Analysis
When running Fortinet's price analysis, check to measure Fortinet's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fortinet is operating at the current time. Most of Fortinet's value examination focuses on studying past and present price action to predict the probability of Fortinet's future price movements. You can analyze the entity against its peers and the financial market as a whole to determine factors that move Fortinet's price. Additionally, you may evaluate how the addition of Fortinet to your portfolios can decrease your overall portfolio volatility.