In efforts to supercharge my portfolio with some growth stocks I recently added Fortinet to the lineup:
Fortinet is a Cybersecurity company with some nice fundamentals. They do the usual firewall security stuff; however, one of their hot-ticket items is SD-WAN (Software-defined wide Area Networks). They have even surpassed Cisco with sales in SD-WAN.
Their Security Fabric Architecture is based on the ZERO-TRUST POLICY; this is increasingly needed in a world of growing cyber threats.
Who are its Competitors?
Cyberark, Cisco, and Palo Alto are two that come to mind.
Who are its Costumers?
The list is long but here are a few:
Yedpay, Siemens, Sonic, Alibaba Cloud, Steelcase, Alaska Airlines, Government of Canada, University of South Carolina, Financial Institutions and Banks, Schools and much more. They have more than 320,000 customers. Over 21K global customers for its SD-WAN package.
Recently it has increased its relationship with Google Cloud. Allowing those who use Google Cloud to better navigate the move to the cloud with their data.
Okay, so what about the companies books?
First and foremost, You won’t find any serious long-term debt on this companies balance sheet.
Return on Equity is 37.66%. This shows you that Fortinet is making great use of its money.
The profit margin is 19.23%. In a time where margins for many companies are decreasing, this is super important to me.
Quarter to Quarter EPS growth was a whopping 35.90%, QtQ Revenue growth was 20.6%. So yeah some serious growth here with Fortinet.
I will say the stock does trade at a rich valuation, the P/E is 51.13. While this seems high, historically it’s about where you expect it given the growth/revenue increases.
This company has a huge cash flow, just another reason I’m loving the books.
Fortinet has an earnings report on Feb 6th (This Thursday!), can’t wait to see how it goes.
As with any stock investment, Fortinet carries considerable risks. This is not a recommendation, I am not a financial advisor, simply an archive of my new purchases and thoughts on stocks currently in my portfolio.