BusinessIn the world of cybersecurity, Fortinet, Inc. stands out as a comprehensive provider of advanced, seamlessly integrated security solutions. Spanning a global footprint that covers the Americas, Europe, the Middle East, Africa, and the Asia Pacific, Fortinet's offerings are a testament to its broad and automated approach to safeguarding digital assets and networks. Business activities covers.
Total Addressable Market: $150B, Growing to $208B by 2027Diving deeper into Fortinet's portfolio, the company also offers the FortiSwitch series, designed to provide secure switching solutions that facilitate the connection of end devices in a protected manner. For organizations seeking robust wireless networking solutions, Fortinet's FortiAP series comes into play, while the FortiExtender offers a hardware appliance dedicated to extending the reach of secure networks. On the analytics and management side, Fortinet introduces the FortiAnalyzer and FortiManager product families, aimed at centralizing network logging, analysis, reporting, and scalable management of its FortiGate products, respectively. Not stopping there, Fortinet's FortiWeb series caters to the need for web application firewall solutions, and the FortiMail series offers secure email gateway solutions. For proactive detection and mitigation, Fortinet's FortiSandbox technology is a game-changer, complemented by FortiClient's endpoint protection capabilities that include pattern-based anti-malware, behavior-based exploit protection, web filtering, and an application firewall. Ensuring secure access and authentication, Fortinet provides the FortiToken and FortiAuthenticator product families, alongside the FortiEDR/XDR for cutting-edge endpoint protection that combines comprehensive machine-learning anti-malware execution with real-time post-infection protection. Beyond product offerings, Fortinet prides itself on delivering top-notch
Key DataFortinet’s 1250 trading days - stock price fluctuationsHistorical daily share price chart and data for the Fortinet since 01-09-2020 adjusted for splits. The latest closing stock price for Fortinet as of March 01, 2024, is $70. The all-time high Fortinet stock closing price was $79 on 01 June 2023. Fortinet five years average stock price is $55, which is -21% lower than the current share price. ValuationsOn a trailing basis, Fortinet currently trades at multiples of 9.9x EV/sales, 35x EV/EBITDA, and 48x P/E. The Price-to-Earnings (P/E) ratio) for Fortinet Inc. stands out good valued when compared to its peers, positioned at approximately 48.00, which is considerably lower the median of its comparison group. This places Fortinet Inc.'s market valuation slightly lower than that of its peer group. However, when comparing the current P/E ratio of Fortinet Inc. to its own 10-year historical average of 154.0, it's observed to be significantly lower. This suggests that Fortinet Inc.'s current market valuation is in alignment with its historical valuation trend over the last five years. Fortinet Inc., renowned for its contributions to cybersecurity and the integration of networking and security solutions globally, showcases impressive financial strength. With a Return on Equity (ROE) reaching 845% and a Return on Assets (ROA) at 17%, these figures underscore the company's adeptness in utilizing its equity and assets to drive. profitability. Such performance not only reflects the company's current financial health but also indicates a strong potential for sustained growth in the future. Fortinet stands out in the cybersecurity field, achieving a notable profit margin of 21.64% and an operating margin of 27.15% over the trailing twelve months. These margins highlight Fortinet's efficiency in managing its operations and converting sales into net income, illustrating the company's financial health and operational excellence. Such performance is indicative of Fortinet's strong position in the market and its ability to maintain profitability, underscoring its potential for continued success. Financial HealthA table displaying the year-over-year percentage changes for both Total Assets and Total Liabilities Net Minority Interest from 2020 to TTM. Fortinet’s Platform Approach to Cyber Security 10 years - Fortinet Inc. Income StatementsFortinet Inc. has shown impressive revenue growth from 2013 to 2023, increasing from $0.61 billion to $5.30 billion. This growth highlights Fortinet's strong position and expanding market share in the cybersecurity sector. The company's annual revenue growth rate of 20.09% in 2023 indicates a consistent upward trajectory, emphasizing its success in responding to increasing cybersecurity demands. For detailed revenue history and growth analysis, visit Stock Analysis. Highly Diversified Business CompetitorsFinancial Risk Industry Average time from detection to remediation
This statistics highlight the significant challenges that organizations face in detecting, containing, investigating, and remediating cybersecurity incidents. These observation reflect a broader trend in cybersecurity operations and the critical importance of rapid response to mitigate the impact of cyberattack. Moreover, the recovery from a cyberattack can be a lengthy process, with an average of 277 days required to fix the damage from a cyber incident. Organizations that have experienced more than one data breach report that 57% have passed the incident costs onto their consumers, yet only 51% have increased security investments. This reflects a gap in response that could exacerbate vulnerabilities and costs associated with cyber incidents. The role of human error in cybersecurity breaches is significant, with 82% of breaches involving a human element. This emphasizes the need for comprehensive cybersecurity training and awareness programs to mitigate risks associated with phishing attacks, weak passwords, and sharing sensitive information over unsecured channels. Data breach response times and their impact on costs and reputation are critical considerations for organizations. The faster a data breach is identified and contained, the lower the costs associated with it. Companies with dedicated, trained teams and tested response plans respond faster and more effectively to cyber incidents. Security automation can decrease the average response time, while IoT devices have been found to increase the average cost of a data breach due to their vulnerabilities. New SEC Rule 4 Days to disclose material cybersecurity. The Securities and Exchange Commission (SEC) has introduced new rules aimed at enhancing and standardizing disclosures regarding cybersecurity risk management, strategy, governance, and incidents by public companies. These rules, adopted on July 26, 2023, are part of an effort to provide investors, companies, and the markets with more consistent, comparable, and decision-useful cybersecurity information. The main highlights of these new rules are as follows: By 2026, more than 60% of organizations will have more than one type of firewall deployment, which will prompt adoption of hybrid mesh firewalls.” SWOT AnalysisThe company exhibits strong foundational elements. It surpasses over 70% of other companies in terms of a balanced blend of growth, profitability, debt management, and market presence. However, from a short-term investment standpoint, the company's fundamental outlook has worsened.
ManagementKen Xie, 60, is the Founder, CEO, and Director of Fortinet, Inc., a role he has held since October 2000, with a tenure of 23.4 years and a compensation of US$14.2 million. He has a rich background in networking and security industries, including founding NetScreen Technologies and serving as President of Fortinet. Xie's contributions to the tech industry have earned him numerous accolades, including being named a Technology Pioneer by the World Economic Forum. He holds advanced degrees in electrical engineering from Tsinghua University and Stanford University. Xie's early entrepreneurship began with SIS in 1993, leading to significant recognition in the tech and engineering fields, including awards from the World Economic Forum and Ernst & Young. He holds degrees from Tsinghua University and Stanford University. OwnershipThe ownership structure of Fortinet Inc:
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