Fortinet Z Score

FTNT
 Stock
  

USD 54.08  0.21  0.39%   

Altman Z Score is one of the simplest fundamental models to determine how likely your company is to fail. The module uses available fundamental data of a given equity to approximate the Altman Z score. Altman Z Score is determined by evaluating five fundamental price points available from the company's current public disclosure documents. Please check Fortinet Piotroski F Score and Fortinet Valuation analysis.
  
Fortinet Return on Invested Capital is comparatively stable at the moment as compared to the past year. Fortinet reported Return on Invested Capital of 0.24 in 2021. Invested Capital is likely to gain to about 3.3 B in 2022, whereas Capital Expenditure is likely to drop (303.7 M) in 2022. Fortinet Weighted Average Shares is comparatively stable at the moment as compared to the past year. Fortinet reported Weighted Average Shares of 816 Million in 2021. Weighted Average Shares Diluted is likely to gain to about 935 M in 2022, whereas Research and Development Expense is likely to drop slightly above 339.5 M in 2022.

Fortinet Z Score Analysis

Fortinet's Z-Score is a simple linear, multi-factor model that measures the financial health and economic stability of a company. The score is used to predict the probability of a firm going into bankruptcy within next 24 months or two fiscal years from the day stated on the accounting statements used to calculate it. The model uses five fundamental business ratios that are weighted according to algorithm of Professor Edward Altman who developed it in the late 1960s at New York University..
Z Score 
 = 
Sum Of  
 
5 Factors 
More About Z Score | All Equity Analysis

Current Fortinet Z Score

    
  6.8  
Most of Fortinet's fundamental indicators, such as Z Score, are part of a valuation analysis module that helps investors searching for stocks that are currently trading at higher or lower prices than their real value. If the real value is higher than the market price, Fortinet is considered to be undervalued, and we provide a buy recommendation. Otherwise, we render a sell signal.
First Factor
 = 
1.2 * (
Working Capital
/
Total Assets )
Second Factor
 = 
1.4 * (
Retained Earnings
/
Total Assets )
Thrid Factor
 = 
3.3 * (
EBITAD
/
Total Assets )
Fouth Factor
 = 
0.6 * (
Market Value of Equity
/
Total Liabilities )
Fifth Factor
 = 
0.99 * (
Revenue
/
Total Assets )

Fortinet Z Score Driver Correlations

Understanding the fundamental principles of building solid financial models for Fortinet is extremely important. It helps to project a fair market value of Ford stock properly, considering its historical fundamentals such as Z Score. Since Fortinet's main accounts across its financial reports are all linked and dependent on each other, it is essential to analyze all possible correlations between related accounts. However, instead of reviewing all of Fortinet's historical financial statements, investors can examine the correlated drivers to determine its overall health. This can be effectively done using a conventional correlation matrix of Fortinet's interrelated accounts and indicators.
To calculate Z-Score one would need to know current working capital of the company, its total assets, and liabilities, amount of latest retained earnings as well as earnings before interest and tax. Z-Score can be used to compare the odds of bankruptcy of companies in a similar line of business or firms operating in the same industry. Companies with Z-Scores above 3.1 are generally considered to be stable and healthy with a low probability of bankruptcy. Scores that fall between 1.8 and 3.1 lie in a so-called 'grey area' with scores of less than 1, indicating the high probability of distress. Z Score is used widely by financial auditors, accountants, money managers, loan processers, wealth advisers, as well as day traders. In the last 25 years, many financial models that utilize z score has been proved to be successful as a predictor of corporate bankruptcy.
Compare to competition

According to the company's disclosures, Fortinet has a Z Score of 6.8. This is 49.44% lower than that of the Technology sector and significantly higher than that of the Software—Infrastructure industry. The z score for all United States stocks is 22.02% higher than that of the company.

Fortinet Z Score Peer Comparison

Stock peer comparison is one of the most widely used and accepted methods of equity analyses. It analyses Fortinet's direct or indirect competition against its Z Score to detect undervalued stocks with similar characteristics or determine the stocks which would be a good addition to a portfolio. Peer analysis of Fortinet could also be used in its relative valuation, which is a method of valuing Fortinet by comparing valuation metrics of similar companies.
Fortinet is currently under evaluation in z score category among related companies.

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

Fortinet Fundamentals

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.

Be your own money manager

Our tools can tell you how much better you can do entering a position in Fortinet without increasing your portfolio risk or giving up expected return. As an individual investor, you need to find a reliable way to track all your investment portfolios. However, your requirements will often be based on how much of the process you decide to do yourself. In addition to allowing all investors analytical transparency into all their portfolios, our tools can evaluate.risk-adjusted returns of your individual positions relative to your overall portfolio.

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Please check Fortinet Piotroski F Score and Fortinet Valuation 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 Equity Forecasting module to use basic forecasting models to generate price predictions and determine price momentum.

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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.