Fortinet Piotroski F Score

FTNT
 Stock
  

USD 54.29  1.77  3.37%   

This module uses fundamental data of Fortinet to approximate its Piotroski F score. Fortinet F Score is determined by combining nine binary scores representing 3 distinct fundamental categories of Fortinet. These three categories are profitability, efficiency, and funding. Some research analysts and sophisticated value traders use Piotroski F Score to find opportunities outside of the conventional market and financial statement analysis.They believe that some of the new information about Fortinet financial position does not get reflected in the current market share price suggesting a possibility of arbitrage. Please check Fortinet Altman Z Score, Fortinet Correlation, Fortinet Valuation, as well as analyze Fortinet Alpha and Beta and Fortinet Hype Analysis.
  
Fortinet Issuance Repayment of Debt Securities is comparatively stable at the moment as compared to the past year. Fortinet reported Issuance Repayment of Debt Securities of 967.5 Million in 2021. Debt to Equity Ratio is likely to gain to 7.07 in 2022, whereas Total Debt is likely to drop slightly above 884.4 M in 2022. Fortinet Cash Flow Per Share is comparatively stable at the moment as compared to the past year. Fortinet reported Cash Flow Per Share of 1.85 in 2021. Total Assets Per Share is likely to gain to 7.88 in 2022, whereas EBITDA Margin is likely to drop 0.21 in 2022.
At this time, it appears that Fortinet's Piotroski F Score is Strong. Although some professional money managers and academia have recently criticized Piotroski F-Score model, we still consider it an effective method of predicting the state of the financial strength of any organization that is not predisposed to accounting gimmicks and manipulations. Using this score on the criteria to originate an efficient long-term portfolio can help investors filter out the purely speculative stocks or equities playing fundamental games by manipulating their earnings..
7.0
Piotroski F Score - Strong
1
Current Return On AssetsPositiveFocus
2
Change in Return on AssetsDecreasedFocus
3
Cash Flow Return on AssetsPositiveFocus
4
Current Quality of Earnings (accrual)ImprovingFocus
5
Asset Turnover GrowthIncreaseFocus
6
Current Ratio ChangeIncreaseFocus
7
Long Term Debt Over Assets ChangeLower LeverageFocus
8
Change In Outstending SharesIncreaseFocus
9
Change in Gross MarginIncreaseFocus

Fortinet Piotroski F Score Drivers

The critical factor to consider when applying the Piotroski F Score to Fortinet is to make sure Fortinet is not a subject of accounting manipulations and runs a healthy internal audit department. So, if Fortinet's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back. Below are the main accounts that are used in the Piotroski F Score model. By analyzing the historical trends of the mains drivers, investors can determine if Fortinet's financial numbers are properly reported.
Current ValueLast YearChange From Last Year 10 Year Trend
Weighted Average Shares908.9 M816 M
Moderately Up
Increasing
Slightly volatile
Weighted Average Shares Diluted935 M835.5 M
Moderately Up
Increasing
Slightly volatile
Net Cash Flow from Operations1.6 B1.5 B
Significantly Up
Increasing
Slightly volatile
Total Assets6.4 B5.9 B
Significantly Up
Increasing
Slightly volatile
Total Liabilities5.5 B5.1 B
Significantly Up
Increasing
Slightly volatile
Current Assets2.9 B3.6 B
Significantly Down
Increasing
Slightly volatile
Current Liabilities2.5 B2.3 B
Significantly Up
Increasing
Slightly volatile
Total Debt884.4 M889.6 M
Slightly Down
Decreasing
Slightly volatile
Return on Average Assets0.09470.107
Fairly Down
Increasing
Slightly volatile
Gross Margin0.830.766
Significantly Up
Increasing
Slightly volatile
Asset Turnover0.670.588
Fairly Up
Increasing
Stable

Fortinet F Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to project the various growth rates. Understanding the correlation between Fortinet's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Fortinet in a much-optimized way.

About Fortinet Piotroski F Score

F-Score is one of many stock grading techniques developed by Joseph Piotroski, a professor of accounting at the Stanford University Graduate School of Business. It was published in 2002 under the paper titled Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers. Piotroski F Score is based on binary analysis strategy in which stocks are given one point for passing 9 very simple fundamental tests, and zero point otherwise. According to Mr. Piotroski's analysis, his F-Score binary model can help to predict the performance of low price-to-book stocks.

Book Value per Share

1.03

Fortinet Book Value per Share is comparatively stable at the moment as compared to the past year. Fortinet reported Book Value per Share of 0.96 in 2021

Fortinet Current Valuation Drivers

We derive many important indicators used in calculating different scores of Fortinet from analyzing Fortinet's financial statements. These drivers represent accounts that assess Fortinet's ability to generate profits relative to its revenue, operating costs, and shareholders' equity. Below are some of Fortinet's important valuation drivers and their relationship over time.
201720182019202020212022 (projected)
Net Income Per Employee6.2 K56.84 K46.1 K59.14 K59.52 K64.22 K
Revenue Per Employee295.09 K308.16 K304.46 K314.07 K327.83 K291.81 K
Average Assets2.32 B2.7 B3.5 B3.54 B5.68 B6.13 B
Earnings Before Interest Taxes and Depreciation Amortization EBITDA179.5 M310 M447.6 M610.5 M720.2 M777.06 M
Earnings Before Interest Taxes and Depreciation Amortization USD179.5 M310 M447.6 M610.5 M720.2 M777.06 M
Earnings before Tax124 M254.3 M386 M541.7 M620.9 M669.92 M
Average Equity828 M843.88 M1.18 B662.35 M982.7 M939.79 M
Enterprise Value6.69 B10.83 B17.08 B23.23 B57.92 B62.49 B
Free Cash Flow459.1 M585.9 M715.8 M957.8 M1.2 B1.3 B
Invested Capital388.8 M648.9 M1.1 B1.03 B3.08 B3.32 B
Invested Capital Average518.1 M516.4 M938.75 M911.98 M2.69 B2.9 B
Market Capitalization7.6 B12 B18.26 B24.11 B58.76 B63.4 B
Tangible Asset Value2.23 B3.02 B3.78 B3.92 B5.73 B6.18 B
Working Capital689.6 M964.5 M1.31 B910.9 M1.28 B1.09 B

Fortinet ESG Sustainability

Some studies have found that companies with high sustainability scores are getting higher valuations than competitors with lower social-engagement activities. While most ESG disclosures are voluntary and do not directly affect the long term financial condition, Fortinet's sustainability indicators can be used to identify proper investment strategies using environmental, social, and governance scores that are crucial to Fortinet's managers, analysts, and investors.
Environment Score
Governance Score
Social Score

About Fortinet Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Fortinet's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Fortinet using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Fortinet based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. Fortinet, Inc. was incorporated in 2000 and is headquartered in Sunnyvale, California. Fortinet operates under SoftwareInfrastructure classification in the United States and is traded on NASDAQ Exchange. It employs 10860 people.

Fortinet Investors Sentiment

The influence of Fortinet's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Fortinet. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Fortinet's public news can be used to forecast risks associated with investment in Fortinet. The trend in average sentiment can be used to explain how an investor holding Fortinet can time the market purely based on public headlines and social activities around Fortinet. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Fortinet's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Fortinet's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Fortinet's news discussions. The higher the estimate score, the more favorable is the investor's outlook on Fortinet.

Fortinet Implied Volatility

    
  35.6  
Fortinet's implied volatility exposes the market's sentiment of Fortinet stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Fortinet's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Fortinet stock will not fluctuate a lot when Fortinet's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Fortinet in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Fortinet's short interest history, or implied volatility extrapolated from Fortinet options trading.

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Please check Fortinet Altman Z Score, Fortinet Correlation, Fortinet Valuation, as well as analyze Fortinet Alpha and Beta and Fortinet Hype Analysis. Note that the Fortinet information on this page should be used as a complementary analysis to other Fortinet's statistical models used to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try Fundamentals Comparison module to compare fundamentals across multiple equities to find investing opportunities.

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When running Fortinet price analysis, check to measure Fortinet's market volatility, profitability, liquidity, solvency, efficiency, growth potential, financial leverage, and other vital indicators. We have many different tools that can be utilized to determine how healthy Fortinet is operating at the current time. Most of Fortinet's value examination focuses on studying past and present price action to predict the probability of Fortinet's future price movements. You can analyze the entity against its peers and financial market as a whole to determine factors that move Fortinet's price. Additionally, you may evaluate how the addition of Fortinet to your portfolios can decrease your overall portfolio volatility.
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Is Fortinet's industry expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Fortinet. If investors know Fortinet will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Fortinet listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth YOY
0.31
Market Capitalization
42.8 B
Quarterly Revenue Growth YOY
0.29
Return On Assets
0.0833
Return On Equity
2.01
The market value of Fortinet is measured differently than its book value, which is the value of Fortinet that is recorded on the company's balance sheet. Investors also form their own opinion of Fortinet's value that differs from its market value or its book value, called intrinsic value, which is Fortinet's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Fortinet's market value can be influenced by many factors that don't directly affect Fortinet's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Fortinet's value and its price as these two are different measures arrived at by different means. Investors typically determine Fortinet value by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Fortinet's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.