Fortinet Stock Analysis, Valuation (NASDAQ:FTNT)

Add to My Stocks
$59.17 $0.4 (0.68%) FTNT stock closing price May 23, 2018 (Closing)
Watch Robo Advisor Video of FTNT Stock Analysis
Fortinet
Updated on : May 23, 2018
previous close
FTNT 59.2 (0%)
NASDAQ 7426 (0%)
Closing Price On: May 23, 2018
stock rating
RATING: ★★★★★★★★★★ (0/5)
Industry :
Computer-Integrated Systems
Sector :
Computer and Technology
5 Quarter Revenue
Revenue Growth
2018-Q1
$million
%
YOY GROWTH
Compared to the industry
Long Term Growth
5 Year CAGR:
23%
Operating Profit
Operating Margin:
8.8%
Sector Average:
5.4%
5 Quarter Net Profit
Net Margins
2018-Q1
%
LTM Margin
Compared to the industry
Cash Flow
Operating cash flow:
$139.7M
Net Income:
$41.6M
PROS      CONS
Recent Growth
Long Term Growth
Operating Margins
Cash Flow
ROE
FCF Margin
PE Valuation
PS Valuation
Rating: ★★★★★★★★★★ (0/5)
Relative Valuation
FTNT PS :
6.4
Industry PS :
2.9
Sector:   Computer and Technology.   *PE adjusted for one time items.
Other Metrics
Return on Equity:
7.8%
Free Cash Flow Margin:
32.1%
Double Tap To Exit Full Screen
0:00
/

Fortinet Stock Analysis

516 6 3

Take a look at Amigobulls Fortinet stock analysis video. Our analyst opinion covering the buy and sell arguments for FTNT stock is shown in the video.

Note: Amigobulls stock rating is our opinion based on the historical performance of the company's fundamentals. It is not indicative of the future performance of the stock.

Fortinet Inc Stock Rating 2.7/5

Amigobulls FTNT stock analysis takes into account various financial ratios like relative valuation, Fortinet revenue, growth and return on equity based on latest quarter 2018 Q1 financial statements. We also check Fortinet dividend performance. We also use relative valuation metrics like PE ratio and price to sales ratio for Fortinet valuation analysis. Fortinet stock rating is our opinion about the business fundamentals of the company.

Should you buy FTNT stock?

  • The Year Over Year (YoY) revenue growth for Fortinet was 17.2% in 2018 Q1.
  • Long term revenue growth has been strong with a 5 year compounded annual growth of 23%.
  • Fortinet had a healthy average operating margin of 8.8% over the last 4 quarters.
  • The company has an operating cash flow which is 3.4 times the net income. We see this as a positive signal.
  • The LTM ROE of 7.8% for Fortinet is attractive.
  • Fortinet has a healthy FCF (Free Cash Flow) margin of 32.1%.

Should you sell FTNT stock?

  • FTNT stock is trading at a PE ratio of 89.7, which is worse than the industry average multiple of 24.8.
  • FTNT stock is trading at a PS multiple of 6.4, which is a negative when compared to the Computer-Integrated Systems industry average multiple of 2.9.

Comments on this video and Fortinet stock

Amigobulls Fortinet stock analysis helps in evaluating the financial statements of a company to arrive at a conclusion about the fair value of FTNT stock. Fundamentals of a company give detailed information which helps in making invesment decisions.

Fortinet revenue growth and profit or net income are the main underlying forces which could detremine the direction of the share price. Investors could make use of FTNT technical analysis to check whether the fundamental story is reflected in the market sentiment.