Summary: On Sale
This is a step-by-step stock review to answer the question, is Fortinet (FTNT) stock a good buy?
This article will teach you how to use the 4Ms of investing. This will be a detailed walkthrough to show you how the 4Ms work and why they are important. If you are interested, you can log into Tykr to use the 4M Confidence Booster (Powered by OpenAI) which will allow you to complete a 4M Analysis in less than 60 seconds.
What are the 4Ms?
- MOS (Margin of Safety) – The MOS is the math part of investing which includes the Summary, Score, and MOS (Margin of Safety).
- Meaning – The meaning is the business model and how scalable the revenue streams are.
- Moat – The moat is how the business compares to other companies in the same Sector and Industry.
- Management – The management is the track record of the CEO.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
Table of Contents
The following links will direct you to key topics to help answer the question, is Fortinet (FTNT) stock a good buy?
1. Fortinet Company History
When investing in stocks, it’s important to know the company’s history. This helps us understand the various revenue streams, if they acquired other companies, how they grew through difficult times, and how they separated themselves from the competition.
- Founded in 2000 by brothers Ken and Michael Xie, Fortinet is a leading cybersecurity company.
- Initial Goal: Provide high-performance, integrated network security solutions.
- First Product: FortiGate, a groundbreaking firewall device launched in 2002.
- Rapid Growth: Expanded product line to include secure Wi-Fi, endpoint security, and cloud security solutions.
- IPO Success: Went public in 2009, listed on NASDAQ under the ticker FTNT.
- Global Expansion: Established a presence in over 100 countries, with more than 500,000 customers worldwide.
- Innovations: Continuously evolved with new technologies like AI-driven threat detection and advanced network security.
- Awards and Recognition: Consistently ranked as a leader in the Gartner Magic Quadrant for Network Firewalls and recognized by industry experts.
- Acquisitions: Acquired several companies to enhance product offerings, including enSilo and Opaq Networks.
- Community Commitment: Supports cybersecurity education and training through initiatives like the NSE Training Institute.
- Mission: Protect people, devices, and data everywhere with the broadest, most integrated, and automated cybersecurity solutions.
- Future Focus: Continue pioneering in cybersecurity, ensuring safer digital environments for businesses and individuals.
2. MOS (Margin of Safety)
When investing in a company, the first step is to look at the financials. Fortunately, Tykr does this for us automatically. The higher the score, the stronger the financials and the safer the investment. The higher the MOS, the higher the potential returns you can make.
- Summary: on sale
- Score: 72/100
- MOS: 63%
To see the most up-to-date Summary, Score, and MOS, please log into Tykr.
3. Meaning
When investing in a company, it’s important to know how a company makes money. A mature business model has multiple streams of revenue which allow the company to weather downturns in the economy.
Here is how Fortinet (FTNT) makes money:
- Selling Products: Fortinet makes money by selling cybersecurity products like firewalls, antivirus software, and network security devices.
- Subscription Services: Offers subscription-based services for ongoing security updates, threat intelligence, and advanced protection features.
- Support and Maintenance: Charges for technical support, maintenance, and warranty services to keep products running smoothly.
- Professional Services: Provides consulting, training, and implementation services to help businesses set up and optimize their security systems.
- Cloud Security: Earns revenue from cloud-based security solutions that protect data and applications in the cloud.
- Managed Security Services: Offers managed security services where Fortinet experts monitor and manage security for clients.
- Licensing Fees: Charges fees for software licenses that allow businesses to use Fortinet’s security software.
- Partner Programs: Gains revenue through partnerships with resellers and service providers who sell Fortinet products and services.
- Training and Certification: Provides paid training programs and certification courses for IT professionals to become experts in using Fortinet products.
- Acquisitions: Increases revenue by acquiring other companies and expanding its product and service offerings.
4. Moat
When investing in a company, it’s important to understand how a company ranks against other companies in the same sector and industry. Based on the Score, here is how Fortinet (FTNT) stacks up against other companies.
- SPS Commerce, Inc. (SPSC) – 95
- Payoneer Global Inc. (PAYO) – 94
- Payoneer Global Inc. (PAYOW) – 94
- GigaCloud Technology Inc. (GCT) – 89
- Qualys, Inc. (QLYS) – 89
- Fortinet, Inc. (FTNT) – 72
To see the most up-to-date Summary, Score, and MOS and each stock, please log into Tykr.
5. Management
When investing in a company, it’s important to understand who the CEO is, what they have accomplished in the past, and how they have helped this company grow. Good leaders typically have stronger cultures, less turnover, and better returns in the stock market.
- Founding Fortinet: Ken Xie started Fortinet in 2000, focusing on developing innovative security solutions.
- Creating FortiGate: He led the development of the FortiGate firewall, which became a flagship product for the company, known for its performance and security features.
- Pioneering Unified Threat Management (UTM): Xie’s vision helped establish Fortinet as a leader in UTM, integrating various security features into a single platform.
- Expanding Market Reach: Under his leadership, Fortinet grew rapidly, becoming one of the largest cybersecurity companies globally.
- Innovating Security Technology: Ken Xie emphasized research and development, leading to advancements in cybersecurity technology, including AI and machine learning for threat detection.
- Public Listing: He guided Fortinet to go public in 2009, which helped increase its global presence and credibility in the cybersecurity industry.
- Building a Strong Company Culture: Xie fostered an innovative and employee-centric culture, which attracted top talent and promoted continuous growth and innovation.
6. 4M Score
All of our homework on this company leads up to the 4M Score. A lot of investors only look at the numbers. Yes, it’s important to look at the first M (MOS) which is the math part of investing but it’s also important to look past the numbers and also look at the Meaning, Moat, and Management. If all 4Ms pass, we should have high confidence in buying this stock.
What 4M score are we going for?
- 80-100 = High confidence – Yay! You should have high confidence buying this stock. It passes all 4M!
- 60-79 = Moderate confidence – Alert! There may be better stocks in the market. Only buy this stock if you truly believe the company will improve!
- 0-59 = Low confidence – Warning! There are better stocks in the market. Due to the low score, you should consider looking at other stocks.
👉 The 4M Score of Fortinet (FTNT) is 82/100.
To see the most up-to-date 4M Score, please log into Tykr.
7. Is Fortinet (FTNT) stock a good buy?
Some of the top questions investors can have is Fortinet (FTNT) stock a good buy or should I buy Fortinet (FTNT) stock?
Fortinet stands out as a strong investment choice for several reasons. First, it is a leader in cybersecurity, a rapidly growing industry crucial for protecting businesses from evolving threats. Fortinet’s innovative products like FortiGate firewalls and advanced threat detection solutions have garnered a global customer base. The company’s commitment to research and development ensures it stays ahead of competitors, driving continuous growth and innovation.
Financially, Fortinet has shown robust performance with consistent revenue growth and profitability. Its global expansion strategy further enhances its market reach and potential for future gains. Additionally, the increasing demand for cybersecurity solutions in an increasingly digital world supports Fortinet’s long-term growth prospects.
However, investors should consider market volatility and the competitive landscape, which can impact the company’s stock performance. Overall, Fortinet’s strong market position, innovative technology, and solid financials make it a compelling investment opportunity
—
To truly know if Fortinet is a good stock to buy or sell, we recommend you log into Tykr. Within seconds you can see the Summary, Score, MOS, and 4M Score.
If you found this stock review interesting, you may also like this review on Nova.