Fortinet Inc (FTNT, Financial) has recently captured the attention of investors and financial analysts, thanks to its strong financial performance. With a current share price of $93.76 and a daily gain of 1.87%, coupled with a significant three-month increase of 34.01%, Fortinet Inc stands out in the market. A detailed analysis, supported by the GF Score, indicates that Fortinet Inc is poised for significant 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 comprehensive score ranging from 0 to 100, with 100 indicating the highest potential for outperformance. Fortinet Inc boasts a GF Score of 96, signaling strong future performance potential.
- Financial strength rank: 8/10
- Profitability rank: 10/10
- Growth rank: 10/10
- GF Value rank: 6/10
- Momentum rank: 6/10
Understanding Fortinet Inc's Business
Fortinet Inc, with a market cap of $71.72 billion and annual sales of $5.71 billion, operates as a leading platform-based cybersecurity vendor. The company's diverse product offerings span network security, cloud security, zero-trust access, and security operations. Predominantly, its revenue is derived from subscriptions and support-based services. Based in California, Fortinet Inc serves over 700,000 customers globally, showcasing its extensive market reach and operational scale.
Financial Strength Breakdown
Fortinet Inc's financial robustness is evident through its impressive Interest Coverage ratio of 78.77, significantly surpassing the benchmark set by investment guru Benjamin Graham. Additionally, its Altman Z-Score of 6.74 indicates a strong buffer against financial distress, and a Debt-to-Revenue ratio of 0.17 further confirms its prudent debt management.
Profitability and Growth Metrics
Fortinet Inc's profitability is highlighted by its Operating Margin, which has seen a consistent increase over the past five years, reaching 23.40% in 2023. This trend is complemented by a strong 3-Year Revenue Growth Rate of 29.6%, outperforming 85.15% of its peers in the software industry. The company's EBITDA growth also underscores its capacity for sustained growth and profitability.
Conclusion
Considering Fortinet Inc's strong financial strength, impressive profitability, and consistent growth metrics, the GF Score highlights the company's exceptional position for potential market outperformance. Investors looking for similar opportunities can explore more companies with strong GF Scores using 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.
