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Fortinet Inc FTNT

Morningstar Rating
$57.00 −0.31 (0.54%)
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Company Report

Alphabet Acquisition: We See the Potential Wiz Acquisition as a Good Sign for the Security Space

Multiple news outlets have reported that Alphabet, the parent company of Google, is nearing a deal to acquire Wiz, a cloud security startup, for roughly $23 billion. Not only would this deal value Wiz around $11 billion higher than its most recent valuation in May 2024, but it also would be Alphabet's largest-ever acquisition, more than four times the size of the acquisition of Mandiant in 2022, which was the firm's last major cybersecurity acquisition. With increased vendor consolidation on the horizon, we view Alphabet's potential entry into security as a positive sign for the overall industry.

Price vs Fair Value

FTNT is trading at a 835% premium.
Price
$57.00
Fair Value
$88.00
Uncertainty
High
1-Star Price
$565.97
5-Star Price
$79.80
Economic Moat
Snvck
Capital Allocation
Wsryqnx

Bulls Say, Bears Say

Bulls

Fortinet has strong secular tailwinds as endpoint security, cloud security, and the convergence of networking and security are projected to grow rapidly.

Bears

Large public cloud vendors often offer their own cybersecurity solutions, which could hamper Fortinet’s growth opportunities.

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News

Trading Information

Previous Close Price
$57.31
Day Range
$56.8457.81
52-Week Range
$44.1278.58
Bid/Ask
$57.00 / $57.25
Market Cap
$43.54 Bil
Volume/Avg
4.2 Mil / 5.7 Mil

Key Statistics

Price/Earnings (Normalized)
32.96
Price/Sales
8.27
Dividend Yield (Trailing)
Dividend Yield (Forward)
Total Yield
3.36%

Company Profile

Fortinet is a platform-based cybersecurity vendor with product offerings covering network security, cloud security, zero-trust access, and security operations. The firm derives a majority of its revenue through sales of its subscriptions and support-based business. The California-based firm has more than 700,000 customers across the world.
Sector
Technology
Industry
Software - Infrastructure
Stock Style Box
Mid Growth
Total Number of Employees
13,522

Competitors

Valuation

Metric
FTNT
PANW
CSCO
Price/Earnings (Normalized)
32.9658.3611.97
Price/Book Value
23.664.22
Price/Sales
8.2714.863.52
Price/Cash Flow
24.1148.2111.92
Price/Earnings
FTNT
PANW
CSCO

Financial Strength

Metric
FTNT
PANW
CSCO
Quick Ratio
1.060.730.68
Current Ratio
1.200.840.89
Interest Coverage
60.5697.9319.46
Quick Ratio
FTNT
PANW
CSCO

Profitability

Metric
FTNT
PANW
CSCO
Return on Assets (Normalized)
18.38%11.97%15.60%
Return on Equity (Normalized)
68.27%36.40%
Return on Invested Capital (Normalized)
131.43%31.97%26.89%
Return on Assets
FTNT
PANW
CSCO
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