Fortinet, Inc. (FTNT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

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Comparison

Company

Score

Quality

Valuation

Financial

Technical

Workday, Inc.

Cisco Systems, Inc.

Fortinet, Inc.

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Nu Holdings Ltd.

Cognizant Technology Solutions Corp.

Accenture Plc

CDW Corp.

Block, Inc.

International Business Machines Corp.

Cloudflare, Inc.

Why is Fortinet, Inc. ?

Strong Long Term Fundamental Strength with an average Return on Equity (ROE) of 2,227.94%

Healthy long term growth as Net Sales has grown by an annual rate of 21.90% and Operating profit at 36.35%
Company has a low Debt to Equity ratio (avg) at times

The company has declared Positive results for the last 4 consecutive quarters

OPERATING CASH FLOW(Y) Highest at USD 2,400.9 MM
RAW MATERIAL COST(Y) Fallen by 0.19% (YoY)
CASH AND EQV(HY) Highest at USD 9,343.4 MM

With ROE of 95.20%, it has a fair valuation with a 40.92 Price to Book Value

The stock is trading at a premium compared to its peers' average historical valuations
Over the past year, while the stock has generated a return of -13.16%, its profits have risen by 55.7% ; the PEG ratio of the company is 0.8

High Institutional Holdings at 73.75%

These investors have better capability and resources to analyse fundamentals of companies than most retail investors.

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 12.33% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -13.16% returns

Real-Time Research Report

Verdict Report

How much should you hold?

Overall Portfolio exposure to Fortinet, Inc. should be less than 10%
Overall Portfolio exposure to Computers - Software & Consulting should be less than 30%

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Computers - Software & Consulting)

When to exit? - We will constantly monitor the company and suggest at the appropriate time to exit from the stock

Is Fortinet, Inc. for you?

High Risk, High Return

Absolute

Risk Adjusted

Volatility

Fortinet, Inc.

-10.61%

0.84

41.28%

S&P 500

13.22%

0.61

20.17%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

21.90%

EBIT Growth (5y)

36.35%

EBIT to Interest (avg)

100.00

Debt to EBITDA (avg)

Net Debt to Equity (avg)

-1.93

Sales to Capital Employed (avg)

4.29

Tax Ratio

15.27%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

73.75%

ROCE (avg)

ROE (avg)

2,227.94%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

40.92

EV to EBIT

39.73

EV to EBITDA

37.22

EV to Capital Employed

-41.99

EV to Sales

12.46

PEG Ratio

0.79

Dividend Yield

ROCE (Latest)

Negative Capital Employed

ROE (Latest)

95.20%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Mildly Bullish

Mildly Bearish

RSI

Bullish

No Signal

Bollinger Bands

Mildly Bearish

Bearish

Moving Averages

Bearish (Daily)

KST

Mildly Bullish

Mildly Bearish

Dow Theory

No Trend

Mildly Bullish

OBV

No Trend

Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 2,400.9 MM

RAW MATERIAL COST(Y)

Fallen by 0.19% (YoY

CASH AND EQV(HY)

Highest at USD 9,343.4 MM

DEBTORS TURNOVER RATIO(HY)

Highest at 5.51 times

-1What is not working for the Company

OPERATING PROFIT MARGIN(Q)

Lowest at 30.37 %

Here's what is working for Fortinet, Inc.

Operating Cash Flow

Highest at USD 2,400.9 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 9,343.4 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debtors Turnover Ratio

Highest at 5.51 times

in the last five Semi-Annual periods

MOJO Watch

Company has been able to sell its Debtors faster

Debtors Turnover Ratio

Raw Material Cost

Fallen by 0.19% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 38.3 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Fortinet, Inc.

Operating Profit Margin

Lowest at 30.37 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales