Fortinet Inc (FTNT, Financial) has recently captured the attention of investors and financial analysts with its strong financial performance. With a current share price of $71.07 and a daily gain of 1.98%, Fortinet Inc has shown a significant three-month change of 22.76%. A detailed analysis, supported by the GF Score, indicates that Fortinet Inc is poised for substantial growth in the foreseeable future.
What Is the GF Score?
The GF Score is a proprietary stock performance ranking system developed by GuruFocus. It evaluates stocks based on five key aspects: financial strength, profitability, growth, GF Value, and momentum. These aspects are weighted differently to calculate a total score, which ranges from 0 to 100, with 100 indicating the highest potential for outperformance. Fortinet Inc boasts a GF Score of 99, signaling exceptional potential for market outperformance.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 9/10
- Momentum rank: 7/10
Understanding Fortinet Inc's Business
Fortinet Inc, a leading platform-based cybersecurity vendor, offers a wide range of products covering network security, cloud security, zero-trust access, and security operations. With a market cap of $54.36 billion and annual sales of $5.54 billion, Fortinet Inc maintains an impressive operating margin of 26.13%. The company, headquartered in California, serves over 700,000 customers worldwide, primarily through its subscription and support-based business model.
Financial Strength Breakdown
Fortinet Inc's financial strength is evident in its robust balance sheet and impressive financial ratios. The company's Interest Coverage ratio stands at 69.23, significantly above the benchmark set by Benjamin Graham. Additionally, with an Altman Z-Score of 5.43, Fortinet Inc demonstrates strong defense against financial distress. The strategic management of its debt, reflected in a Debt-to-Revenue ratio of 0.18, further solidifies its financial health.
Profitability and Growth Metrics
Fortinet Inc's profitability is highlighted by its Operating Margin, which has consistently improved over the past five years, reaching 23.40% in 2023. This trend underscores the company's efficient operational management and strong market position. In terms of growth, Fortinet Inc's 3-Year Revenue Growth Rate of 29.6% outperforms 84.6% of its peers in the software industry. The company's EBITDA growth further emphasizes its capacity for sustained expansion.
Conclusion
Considering Fortinet Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the firm's unparalleled position for potential outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using the GF Score Screen available to GuruFocus Premium members.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
