Fortinet, Inc. (FTNT) 10-Year Financial Performance & Capital Metrics

FTNT • • Industrial / General

TechnologyInfrastructure SoftwareCybersecurity & Identity ManagementNetwork Security & Firewall

AboutFortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. It offers FortiGate hardware and software licenses that provide various security and networking functions, including firewall, intrusion prevention, anti-malware, virtual private network, application control, web filtering, anti-spam, and wide area network acceleration. The company also provides FortiSwitch product family that offers secure switching solutions for connecting customers their end devices; FortiAP product family, which provides secure wireless networking solutions; FortiExtender, a hardware appliance; FortiAnalyzer product family, which offers centralized network logging, analyzing, and reporting solutions; and FortiManager product family that provides central and scalable management solution for its FortiGate products. It offers FortiWeb product family provides web application firewall solutions; FortiMail product family that secure email gateway solutions; FortiSandbox technology that delivers proactive detection and mitigation services; FortiClient that provides endpoint protection with pattern-based anti-malware, behavior-based exploit protection, web-filtering, and an application firewall; FortiToken and FortiAuthenticator product families for multi-factor authentication to safeguard systems, assets, and data; and FortiEDR/XDR, an endpoint protection solution that provides both comprehensive machine-learning anti-malware execution and real-time post-infection protection. It provides security subscription, technical support, professional, and training services. It sells its security solutions to channel partners and directly to various customers in telecommunications, technology, government, financial services, education, retail, manufacturing, and healthcare industries. It has strategic alliance with Linksys. Fortinet, Inc. was incorporated in 2000 and is headquartered in Sunnyvale, California.Show more

Revenue $5.96B +12.3%
EBITDA $1.93B +42.2%
Net Income $1.75B +52.0%
EPS (Diluted) 2.26 +54.8%
Gross Margin 80.56% +5.1%
EBITDA Margin 32.34% +26.7%
Operating Margin 30.28% +29.4%
Net Margin 29.3% +35.4%
ROE 338.74%
ROIC -
Debt/Equity 0.67
Interest Coverage 90.17 +52.6%

Technical Analysis

Key Insights

Based on financial data analysis

✓Strengths

✓Excellent 3Y average ROE of 335.3%
✓Strong 5Y profit CAGR of 39.4%
✓Strong Piotroski F-Score: 8/9
✓FCF machine: 31.6% free cash flow margin
✓High quality earnings: Operating CF exceeds net income
✓Strong 5Y sales CAGR of 22.5%

✗Weaknesses

✗Trading more than 30% below 52-week high
✗Expensive at 39.4x book value

Price & Volume

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Growth Metrics

Revenue CAGR

10Y22.69%

5Y22.46%

3Y21.24%

TTM14.78%

Profit (Net Income) CAGR

10Y52.69%

5Y39.39%

3Y42.21%

TTM22.47%

EPS CAGR

10Y54.06%

5Y42.84%

3Y45.75%

TTM22.73%

ROCE

10Y Avg19.57%

5Y Avg30.03%

3Y Avg34.95%

Latest39.02%

Peer Comparison

Network Security & Firewall

Name	Market Cap	Current Price	P/E Ratio	Revenue Growth 1Y	Net Margin	ROE	FCF Yield	Debt/Equity
RDWRRadware Ltd.	1.07B	24.64	176	5.2%	5.66%	4.28%	6.2%	0.05
PANWPalo Alto Networks, Inc.	130.85B	187.73	117.33	14.87%	11.69%	12.89%	2.65%	0.04
FTNTFortinet, Inc.	56.76B	76.32	33.77	12.27%	28.58%	254.88%	3.31%	0.67
ATENA10 Networks, Inc.	1.26B	17.58	26.24	3.97%	17.78%	24.52%	6.2%	0.05
CHKPCheck Point Software Technologies Ltd.	20.24B	188.54	25.27	6.22%	37.62%	32.79%	5.08%	0.01
ALARAlarum Technologies Ltd.	67.12M	9.36	11.01	20.88%	3.28%	3.83%	13.1%	0.06
HUBCHUB Cyber Security Ltd.	9.93M	4.55	-0.30	-30.7%	-176.14%
INTZIntrusion Inc.	29.55M	1.47	-0.99	2.85%	-112.36%	-83.5%		0.44

Profit & Loss

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Sales/Revenue+	1.01B	1.28B	1.49B	1.8B	2.16B	2.59B	3.34B	4.42B	5.3B	5.96B
Revenue Growth %	0.31%	0.26%	0.17%	0.21%	0.2%	0.2%	0.29%	0.32%	0.2%	0.12%
Cost of Goods Sold+	286.78M	337.8M	385.3M	450.4M	505.9M	570M	783M	1.08B	1.24B	1.16B
COGS % of Revenue	0.28%	0.26%	0.26%	0.25%	0.23%	0.22%	0.23%	0.25%	0.23%	0.19%
Gross Profit+	722.49M	937.6M	1.11B	1.35B	1.66B	2.02B	2.56B	3.33B	4.07B	4.8B
Gross Margin %	0.72%	0.74%	0.74%	0.75%	0.77%	0.78%	0.77%	0.75%	0.77%	0.81%
Gross Profit Growth %	0.34%	0.3%	0.18%	0.22%	0.22%	0.22%	0.26%	0.3%	0.22%	0.18%
Operating Expenses+	707.61M	894.7M	999.8M	1.12B	1.31B	1.49B	1.91B	2.36B	2.83B	2.99B
OpEx % of Revenue	0.7%	0.7%	0.67%	0.62%	0.6%	0.58%	0.57%	0.53%	0.53%	0.5%
Selling, General & Admin	541.88M	707.6M	788.9M	875.3M	1.03B	1.19B	1.49B	1.86B	2.22B	2.28B
SG&A % of Revenue	0.54%	0.55%	0.53%	0.49%	0.48%	0.46%	0.45%	0.42%	0.42%	0.38%
Research & Development	158.13M	183.1M	210.6M	244.5M	277.1M	341.4M	424.2M	512.4M	613.8M	716.8M
R&D % of Revenue	0.16%	0.14%	0.14%	0.14%	0.13%	0.13%	0.13%	0.12%	0.12%	0.12%
Other Operating Expenses	7.6M	4M	300K	0	0	-40.2M	-4.6M	-4.6M	-4.6M	-4.6M
Operating Income+	14.88M	42.9M	109.8M	234.4M	351M	531.8M	650.4M	969.6M	1.24B	1.8B
Operating Margin %	0.01%	0.03%	0.07%	0.13%	0.16%	0.2%	0.19%	0.22%	0.23%	0.3%
Operating Income Growth %	-0.75%	1.88%	1.56%	1.13%	0.5%	0.52%	0.22%	0.49%	0.28%	0.45%
EBITDA+	46.47M	91.4M	165.3M	290.1M	412.6M	600.6M	734.8M	1.07B	1.35B	1.93B
EBITDA Margin %	0.05%	0.07%	0.11%	0.16%	0.19%	0.23%	0.22%	0.24%	0.26%	0.32%
EBITDA Growth %	-0.43%	0.97%	0.81%	0.75%	0.42%	0.46%	0.22%	0.46%	0.26%	0.42%
D&A (Non-Cash Add-back)	31.59M	48.5M	55.5M	55.7M	61.6M	68.8M	84.4M	104.3M	113.4M	122.8M
EBIT	22.48M	46.9M	110.1M	234.4M	386M	541.7M	643.3M	973.5M	1.35B	2.08B
Net Interest Income+	5.29M	7.3M	13.5M	26.5M	42.5M	17.7M	-10.4M	-600K	98.7M	135.2M
Interest Income	5.29M	7.3M	13.5M	26.5M	42.5M	17.7M	4.5M	17.4M	119.7M	155.2M
Interest Expense	0	0	0	0	0	0	14.9M	18M	21M	20M
Other Income/Expense	2.13M	200K	14.2M	19.9M	35M	9.9M	-29.6M	-82.2M	50.5M	225.7M
Pretax Income+	17M	43.1M	124M	254.3M	386M	541.7M	620.8M	887.4M	1.29B	2.03B
Pretax Margin %	0.02%	0.03%	0.08%	0.14%	0.18%	0.21%	0.19%	0.2%	0.24%	0.34%
Income Tax+	9.02M	10.9M	92.6M	-80.6M	54.3M	53.2M	14.1M	30.8M	143.8M	283.9M
Effective Tax Rate %	0.47%	0.75%	0.25%	1.32%	0.86%	0.9%	0.98%	0.97%	0.89%	0.86%
Net Income+	7.99M	32.2M	31.4M	334.9M	331.7M	488.5M	606.8M	857.3M	1.15B	1.75B
Net Margin %	0.01%	0.03%	0.02%	0.19%	0.15%	0.19%	0.18%	0.19%	0.22%	0.29%
Net Income Growth %	-0.68%	3.03%	-0.02%	9.67%	-0.01%	0.47%	0.24%	0.41%	0.34%	0.52%
Net Income (Continuing)	7.99M	32.2M	31.4M	334.9M	331.7M	488.5M	606.7M	856.6M	1.15B	1.75B
Discontinued Operations	0	0	0	0	0	0	0	0	0	0
Minority Interest	0	0	0	0	0	0	16.7M	0	0	0
EPS (Diluted)+	0.01	0.04	0.04	0.38	0.38	0.58	0.73	1.06	1.46	2.26
EPS Growth %	-0.67%	2.6%	0%	9.56%	0%	0.53%	0.26%	0.45%	0.38%	0.55%
EPS (Basic)	0.01	0.04	0.04	0.39	0.39	0.60	0.74	1.08	1.47	2.28
Diluted Shares Outstanding	880.71M	881.5M	890.39M	871M	875M	838.5M	835.5M	805.3M	788.2M	771.9M
Basic Shares Outstanding	851.92M	863M	871.58M	845.5M	855M	821M	816M	791.4M	778.6M	764.4M
Dividend Payout Ratio	-	-	-	-	-	-	-	-	-	-

Balance Sheet

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Total Current Assets+	1.27B	1.54B	1.72B	2.22B	2.77B	2.74B	3.6B	3.81B	4.43B	5.97B
Cash & Short-Term Investments	891.35M	1.09B	1.25B	1.65B	2.07B	1.84B	2.55B	2.21B	2.44B	4.07B
Cash Only	543.28M	709M	811M	1.11B	1.22B	1.06B	1.32B	1.68B	1.4B	2.88B
Short-Term Investments	348.07M	376.52M	440.27M	537.2M	843.1M	775.5M	1.23B	528.1M	1.04B	1.19B
Accounts Receivable	259.56M	313M	348.19M	444.5M	544.3M	720M	807.7M	1.26B	1.4B	1.46B
Days Sales Outstanding	93.87	89.58	85.01	89.91	91.85	101.3	88.21	104.25	96.47	89.68
Inventory	83.87M	106.89M	77.3M	90M	117.9M	139.8M	175.8M	264.6M	484.8M	315.5M
Days Inventory Outstanding	106.74	115.49	73.23	72.94	85.06	89.52	81.95	89.02	143.03	99.48
Other Current Assets	0	0	0	0	0	0	0	73.1M	101.1M	126.1M
Total Non-Current Assets+	519.97M	601.23M	541.1M	857.1M	1.11B	1.3B	2.32B	2.42B	2.83B	3.79B
Property, Plant & Equipment	91.07M	137.25M	245.4M	271.4M	344.3M	448M	687.6M	898.5M	1.04B	1.35B
Fixed Asset Turnover	11.08x	9.29x	6.09x	6.65x	6.28x	5.79x	4.86x	4.92x	5.08x	4.41x
Goodwill	4.69M	14.55M	14.6M	38.2M	67.2M	93M	125.1M	128M	126.5M	235.4M
Intangible Assets	17.64M	24.83M	16.3M	22.1M	31.1M	31.6M	63.6M	56M	35.3M	115M
Long-Term Investments	272.96M	224.98M	98M	67M	144.3M	118.3M	440.8M	45.5M	0	0
Other Non-Current Assets	14.39M	16.87M	19.9M	203.4M	297M	368M	659.1M	720.2M	755.6M	756.1M
Total Assets+	1.79B	2.14B	2.26B	3.08B	3.88B	4.04B	5.92B	6.23B	7.26B	9.76B
Asset Turnover	0.56x	0.60x	0.66x	0.59x	0.56x	0.64x	0.56x	0.71x	0.73x	0.61x
Asset Growth %	0.26%	0.2%	0.06%	0.36%	0.26%	0.04%	0.46%	0.05%	0.17%	0.34%
Total Current Liabilities+	678.67M	829.44M	1.03B	1.26B	1.46B	1.83B	2.32B	3.08B	3.72B	4.06B
Accounts Payable	61.5M	56.73M	70M	86.4M	96.4M	141.6M	148.4M	243.4M	204.3M	190.9M
Days Payables Outstanding	78.28	61.3	66.31	70.02	69.55	90.67	69.18	81.89	60.27	60.19
Short-Term Debt	0	0	0	0	0	0	0	0	0	0
Deferred Revenue (Current)	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K	1000K
Other Current Liabilities	0	0	0	0	0	0	0	0	0	0
Current Ratio	1.87x	1.86x	1.67x	1.77x	1.90x	1.50x	1.55x	1.24x	1.19x	1.47x
Quick Ratio	1.75x	1.73x	1.60x	1.70x	1.82x	1.42x	1.48x	1.15x	1.06x	1.39x
Cash Conversion Cycle	122.34	143.77	91.93	92.82	107.36	100.14	100.98	111.38	179.22	128.97
Total Non-Current Liabilities+	356.46M	472.82M	641.3M	811.4M	1.08B	1.36B	2.8B	3.43B	4B	4.21B
Long-Term Debt	0	0	0	0	0	0	988.4M	990.4M	992.3M	994.3M
Capital Lease Obligations	0	0	0	0	0	0	0	0	0	0
Deferred Tax Liabilities	0	0	0	0	0	0	0	0	0	0
Other Non-Current Liabilities	79.81M	82.81M	98.8M	90.5M	127.7M	146.5M	138.7M	149.8M	124.7M	129.6M
Total Liabilities	1.04B	1.3B	1.67B	2.07B	2.54B	3.19B	5.12B	6.51B	7.72B	8.27B
Total Debt+	0	0	0	0	0	0	988.4M	990.4M	992.3M	994.3M
Net Debt	-543.28M	-709M	-811M	-1.11B	-1.22B	-1.06B	-330.7M	-692.5M	-405.6M	-1.88B
Debt / Equity	-	-	-	-	-	-	1.24x	-	-	0.67x
Debt / EBITDA	-	-	-	-	-	-	1.35x	0.92x	0.73x	0.52x
Net Debt / EBITDA	-11.69x	-7.76x	-4.91x	-3.83x	-2.96x	-1.77x	-0.45x	-0.64x	-0.30x	-0.98x
Interest Coverage	-	-	-	-	-	-	43.65x	53.87x	59.10x	90.17x
Total Equity+	755.38M	837.68M	589.4M	1.01B	1.34B	856M	798.4M	-281.6M	-463.4M	1.49B
Equity Growth %	0.12%	0.11%	-0.3%	0.71%	0.33%	-0.36%	-0.07%	-1.35%	-0.65%	4.22%
Book Value per Share	0.86	0.95	0.66	1.16	1.53	1.02	0.96	-0.35	-0.59	1.94
Total Shareholders' Equity	755.38M	837.68M	589.4M	1.01B	1.34B	856M	781.7M	-281.6M	-463.4M	1.49B
Common Stock	171K	173K	200K	200K	200K	200K	800K	800K	800K	800K
Retained Earnings	68.48M	37.62M	-319.6M	-57.5M	160.8M	-352.1M	-467.9M	-1.55B	-1.86B	-117.1M
Treasury Stock	0	0	0	0	0	0	0	0	0	0
Accumulated OCI	-933K	-765K	-800K	-800K	1.1M	700K	-4.8M	-20.2M	-18.9M	-26.1M
Minority Interest	0	0	0	0	0	0	16.7M	0	0	0

Cash Flow

	Dec 2015	Dec 2016	Dec 2017	Dec 2018	Dec 2019	Dec 2020	Dec 2021	Dec 2022	Dec 2023	Dec 2024
Cash from Operations+	282.55M	345.7M	594.4M	638.9M	808M	1.08B	1.5B	1.73B	1.94B	2.26B
Operating CF Margin %	0.28%	0.27%	0.4%	0.35%	0.37%	0.42%	0.45%	0.39%	0.36%	0.38%
Operating CF Growth %	0.44%	0.22%	0.72%	0.07%	0.26%	0.34%	0.38%	0.15%	0.12%	0.17%
Net Income	7.99M	32.2M	31.4M	334.9M	331.7M	488.5M	606.7M	856.6M	1.15B	1.75B
Depreciation & Amortization	31.59M	48.5M	55.5M	55.7M	61.6M	68.8M	84.4M	104.3M	113.4M	122.8M
Stock-Based Compensation	95.09M	122.4M	137.2M	162.9M	174.1M	191.7M	207.9M	217.3M	249M	257.9M
Deferred Taxes	0	0	0	0	0	0	0	0	0	0
Other Non-Cash Items	10.85M	7.4M	6.3M	89.4M	107.6M	144.7M	198.3M	319.4M	299.2M	152.8M
Working Capital Changes	137.03M	135.2M	364M	-4M	133M	190M	402.4M	233M	126.1M	-20.6M
Change in Receivables	-66.46M	-57.9M	-38.4M	-82M	-96.7M	-176.4M	-72.5M	-456.7M	-146.4M	-45.4M
Change in Inventory	-19.09M	-43M	9.4M	-33.4M	-48.5M	-42.2M	-19.4M	-109.1M	-253.5M	131.2M
Change in Payables	-2.52M	100K	13.1M	14.6M	7.7M	37.4M	-13.1M	105.2M	-43.1M	-10.2M
Cash from Investing+	-967K	-74.1M	-76.8M	-134.9M	-502.3M	-72.8M	-1.33B	763.9M	-649.3M	-727.4M
Capital Expenditures	-37.36M	-67.2M	-135.3M	-53M	-92.2M	-125.9M	-295.9M	-281.2M	-204.1M	-378.9M
CapEx % of Revenue	0.04%	0.05%	0.09%	0.03%	0.04%	0.05%	0.09%	0.06%	0.04%	0.06%
Acquisitions	-	-	-	-	-	-	-	-	-	-
Investments	-	-	-	-	-	-	-	-	-	-
Other Investing	0	0	0	0	0	1.3M	400K	0	300K	100K
Cash from Financing+	-21.56M	-105.9M	-415.6M	-202.6M	-195.6M	-1.17B	82.8M	-2.13B	-1.57B	-50.1M
Debt Issued (Net)	-	-	-	-	-	-	-	-	-	-
Equity Issued (Net)	-	-	-	-	-	-	-	-	-	-
Dividends Paid	0	0	0	0	0	0	0	0	0	0
Share Repurchases	-	-	-	-	-	-	-	-	-	-
Other Financing	-28.87M	-38.3M	-45.1M	-67.2M	-96.3M	-109.5M	-171.3M	-165.2M	-113.7M	-112.6M
Net Change in Cash	-	-	-	-	-	-	-	-	-	-
Free Cash Flow+	245.19M	278.5M	459.1M	585.9M	715.8M	957.8M	1.2B	1.45B	1.73B	1.88B
FCF Margin %	0.24%	0.22%	0.31%	0.32%	0.33%	0.37%	0.36%	0.33%	0.33%	0.32%
FCF Growth %	0.49%	0.14%	0.65%	0.28%	0.22%	0.34%	0.26%	0.2%	0.19%	0.09%
FCF per Share	0.28	0.32	0.52	0.67	0.82	1.14	1.44	1.80	2.20	2.43
FCF Conversion (FCF/Net Income)	35.38x	10.74x	18.93x	1.91x	2.44x	2.22x	2.47x	2.02x	1.69x	1.29x
Interest Paid	0	0	0	0	0	0	0	0	0	0
Taxes Paid	18.89M	26.6M	32.2M	41.4M	58.7M	39.7M	127.4M	260.2M	426.3M	578.9M

Key Ratios

Metric	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Return on Equity (ROE)	1.12%	4.04%	4.4%	41.87%	28.2%	44.44%	73.36%	331.77%	-	338.74%
Return on Invested Capital (ROIC)	3.69%	18.88%	-	-	2974.58%	-	372.51%	-	-	-
Gross Margin	71.59%	73.51%	74.23%	75.04%	76.61%	78.03%	76.57%	75.44%	76.68%	80.56%
Net Margin	0.79%	2.52%	2.1%	18.56%	15.34%	18.83%	18.16%	19.41%	21.64%	29.3%
Debt / Equity	-	-	-	-	-	-	1.24x	-	-	0.67x
Interest Coverage	-	-	-	-	-	-	43.65x	53.87x	59.10x	90.17x
FCF Conversion	35.38x	10.74x	18.93x	1.91x	2.44x	2.22x	2.47x	2.02x	1.69x	1.29x
Revenue Growth	31.01%	26.37%	17.21%	20.72%	19.86%	19.94%	28.82%	32.17%	20.09%	12.27%

Revenue by Segment

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Security Subscription	-	-	-	606.1M	750.9M	918.7M	1.13B	1.43B	1.9B	2.32B
Security Subscription Growth	-	-	-	-	23.89%	22.35%	22.46%	26.84%	33.01%	22.05%
Product	-	-	-	-	788.5M	916.4M	1.25B	1.78B	1.93B	1.91B
Product Growth	-	-	-	-	-	16.22%	36.95%	41.87%	8.24%	-0.97%
Technical Support and Other	-	-	-	520.7M	616.8M	759.3M	962.2M	1.21B	1.48B	1.73B
Technical Support and Other Growth	-	-	-	-	18.46%	23.10%	26.72%	25.74%	22.27%	16.97%

Revenue by Geography

	2015	2016	2017	2018	2019	2020	2021	2022	2023	2024
Americas	435.28M	536.71M	642.33M	762.9M	917.3M	1.08B	1.36B	1.78B	2.18B	2.44B
Americas Growth	-	23.30%	19.68%	18.77%	20.24%	17.43%	26.14%	31.37%	21.86%	12.27%
Europe, Middle East and Africa	366.02M	477.39M	554.57M	678M	813.9M	991.9M	1.28B	1.69B	2.07B	2.4B
Europe, Middle East and Africa Growth	-	30.43%	16.17%	22.26%	20.04%	21.87%	28.63%	32.60%	22.53%	15.60%
Asia Pacific and Japan	207.97M	261.34M	298.03M	360.3M	425M	525.3M	707.5M	940.6M	1.06B	1.12B
Asia Pacific and Japan Growth	-	25.67%	14.04%	20.89%	17.96%	23.60%	34.68%	32.95%	12.34%	5.74%

Frequently Asked Questions

Valuation & Price

Fortinet, Inc. (FTNT) has a price-to-earnings (P/E) ratio of 33.8x. This suggests investors expect higher future growth.

Growth & Financials

Fortinet, Inc. (FTNT) reported $6.55B in revenue for fiscal year 2024. This represents a 1412% increase from $433.6M in 2011.

Fortinet, Inc. (FTNT) grew revenue by 12.3% over the past year. This is steady growth.

Yes, Fortinet, Inc. (FTNT) is profitable, generating $1.87B in net income for fiscal year 2024 (29.3% net margin).

Dividend & Returns

Fortinet, Inc. (FTNT) has a return on equity (ROE) of 338.7%. This is excellent, indicating efficient use of shareholder capital.

Fortinet, Inc. (FTNT) generated $2.03B in free cash flow for fiscal year 2024. Positive FCF indicates the company can fund dividends, buybacks, or reinvestment.

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