Moin to the community 🤟🏽
Yesterday there was an analysis about Crowdstrike ($CRWD (-5,76%) ), today it will be about Fortinet ($FTNT (-4,65%) ).
The reason for this is that I wanted to take a closer look at the competitor and found it by chance in the portfolio of @Fabzy portfolio. That made me curious. 😄
Let's start right away:
1. course history:
We are in an uptrend with a current ATH at around €69 as well as a twelve-month low of €42.59. There was a significant jump in February 23 and a sell-off in November 22, which was quickly recovered and thus did not have a major impact.
2. the business model and the competition:
Fortinet is a leading provider of cybersecurity and networking solutions for enterprises, communications service providers, as well as government organizations. It also secures, via FortiOS, email and web, among other applications, and does so cloud-based.
Competitors are:
CheckPoint Software ($CHKP (-3,19%) ): 13.7 billion market cap, P/E of 18.1
Cloudflare Inc. ($NET (-9,11%) ): 21.3 billion euros market cap, P/E ratio of -119.8
Crowdstrike Holdings Inc. ($CRWD (-5,76%) ): 34.2 billion euros market cap, P/E ratio of -239.9
As explained in the Crowdstrike analysis, the industry itself is mMn. future-proof and a steady growth market.
3. fundamentals:
Sales(-growth): 4.72 billion euros (+16.6%)
Profit(-growth): 966.6 million euros (+30%)
Net margin: 20.46
Debt: 990.9 million euros
Liabilities: 6.82 billion euros
Assets: 6.83 billion euros
Cash: 2.88 billion euros
Market cap: 52.3 billion euros
For me, a good or healthy financial position, especially since the debt can be covered by the operating cash flow. In addition, the company has (albeit only just) more assets than liabilities. For a more detailed financial insight, please refer to the first source mentioned.
4. share valuation:
P/E RATIO: 56.5
PEG ratio: 3.4
Average target price: €69.30
The P/E ratio should be considered in relation to the industry, especially since 2/3 competitors have a negative balance sheet and therefore also a negative P/E ratio.
According to the PEG ratio (calculated on 16.6% projected earnings growth), the company is overvalued. However, according to SimplyWallstreet, the fair value of the stock is as high as €81.53.
Everyone can do what they want with this information.
Based on future forecasts and the current development of the company, I will stay with Crowdstrike, as I see more potential here, but I found it very exciting to take a closer look at the competition.
If Crowdstrike is too speculative for you, you should be well served by Fortinet's value.
If that is also too speculative, you should take a look at a cybersecurity ETF.
As always, no investment advice, especially since I've only had 2 years of stock market experience.
Beware of what I say! 😄🤟🏽
Hopefully the analysis helps one or the other something further.
I wish you all a nice day and happy investing!
Sources:
https://simplywall.st/stocks/de/software/fra-fo8/fortinet-shares/valuation
https://markets.traderfox.com/aktien/883300-fortinet-inc
https://charts.traderfox.com/883300
