Fortinet Stock Analysis (NASDAQ:FTNT)

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$36.38 $0.11 (0.3%) FTNT stock closing price Mar 23, 2017 (Closing)
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Fortinet
Updated on : Mar 23, 2017
previous close
FTNT 36.4 (0%)
NASDAQ 5817.7 (0%)
Closing Price On: Mar 23, 2017
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Integrated Systems
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2016-Q4
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
24.1%
Operating Profit
Operating Margin:
3.4%
Sector Average:
2.7%
5 Quarter Net Profit
Net Margins
2016-Q4
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$101M
Net Income:
$25.2M
PROS      CONS
Recent Growth
Long Term Growth
Cash Flow
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
FTNT PS :
4.9
Industry PS :
2.6
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Equity:
3.4%
Free Cash Flow Margin:
23.2%
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Fortinet Analysis Video

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View Fortinet stock analysis video. This is our FTNT analyst opinion covering the buy and sell arguments for FTNT stock.

Fortinet Inc Stock Rating (2.8/5)

Our Fortinet stock opinion is based on fundamentals of the company. This Fortinet stock analysis is based on latest Q4 earnings for 2016. The stock price analysis takes into account a company's valuation metrics.

Should you buy FTNT stock?

  • Fortinet sales grew by 22.4% year on year in 2016 Q4.
  • Revenue growth has been tremendous with a compounded annual growth of 24.1% over the last 5 years.
  • The company has an operating cash flow which is 4 times the net income. We see this as a positive signal.
  • The company has a healthy free cash flow margin of 23.2%.

Should you sell FTNT stock?

  • Trading at a PE ratio of 165.4, FTNT stock is overvalued in comparison to industry average multiple of 25.8.
  • The company is trading at a price to sales multiple of 4.9, which is higher in comparison to the Computer-Integrated Systems industry average of 2.6, making FTNT stock expensive.

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