Fortinet Inc (FTNT, Financial) has recently captured the attention of investors and financial analysts alike, thanks to its solid financial standing and promising growth trajectory. Despite a slight daily decrease of 0.62% in its share price, currently at $82.36, Fortinet Inc has experienced a significant three-month appreciation of 38.2%. A detailed evaluation, anchored by the GF Score, positions Fortinet Inc for substantial future growth.
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 composite score ranging 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: 7/10
- Momentum rank: 10/10
Understanding Fortinet Inc's Business
Fortinet Inc, a leader in the cybersecurity sector, offers a comprehensive range of products including network security, cloud security, and zero-trust access. With a market cap of $62.998 billion and annual sales of $5.537 billion, the company maintains a robust operating margin of 26.13%. Fortinet's subscription and support-based business model has attracted over 700,000 customers globally, underscoring its significant market presence and reliability.
Financial Strength Breakdown
Fortinet Inc's financial resilience is evident through its impressive Interest Coverage ratio of 69.23, significantly surpassing the benchmark set by investment guru Benjamin Graham. Additionally, its Altman Z-Score of 6.2 indicates a low probability of financial distress, while a Debt-to-Revenue ratio of 0.18 reflects prudent debt management.
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 is complemented by a 3-Year Revenue Growth Rate of 29.6%, outperforming 85% of its peers in the software industry. The company's EBITDA growth further underscores its effective growth strategies and operational efficiency.
Conclusion
Considering Fortinet Inc's robust financial strength, impressive profitability, and consistent growth metrics, the GF Score effectively highlights the company's superior position for potential market outperformance. Investors seeking similar opportunities can explore more companies with strong GF Scores through the GF Score Screen.
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.
