FORTINET

Analysis of Fortinet share price

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If you are interested in investing in shares in the American company Fortinet then you are undoubtedly looking for pertinent information to complete your analyses of this asset. In this dedicated article you will find information and data that will be extremely useful for this purpose. Here you will find information on this company’s activities and its sources of income as well as its major competitors in this market and recent partners and details of the information you should prioritise for your fundamental analysis of this company’s share price.

Elements that can influence the price of this asset:

Analysis N°1

Given that the Fortinet Group exercises its activities in the technological sector, we would monitor the development of new technical solutions as well as investments completed by this group in research and development.

Analysis N°2

The competitors’ activities and the arrival on the market of new innovative companies are also factors to be taken into consideration for your analyses of this asset. You should particularly pay attention to their pricing policies and innovations.

Analysis N°3

In much the same way, the strategic operations undertaken by Fortinet with the objective of developing new activities or attracting new clients should also be attentively followed as well as partnerships, acquisitions or mergers.

Analysis N°4

It is of course also important to monitor the financial results of this group and the changes over time. Particularly taking time to compare the annual and quarterly results with the objectives of the group and the analysts’ forecasts.

Analysis N°5

Of course, this fundamental analysis should not be used alone but as an accompaniment to a technical analysis of the same asset.

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General presentation of Fortinet

Before starting to implement an analysis of the Fortinet share price it is necessary to have a thorough understanding of this company and its activity sector. In fact by being knowledgeable about this group’s sources of revenue you will be better able to anticipate future movements in its share price through an understanding of the challenges facing this company and its growth capabilities.

Fortinet Inc. is an American group specialised in the technological and IT sectors. More precisely, this company is responsible for the development, marketing and sale of software and integrated cyber security equipment destined for the production of networks and IT system infrastructures and the protection of company and administrative data.

To better understand the activities of this group we note that service sales alone represent over 63.4% of this company’s turnover and the sale of products represents 36.6%.

It can also be advantageous to understand the geographical distribution of this group’s turnover as Fortinet currently generates only 32.2% of its turnover in the United States. Another 10.4% is generated by the rest of the American continent, 37.7% from the Middle East, Africa and Europe and 19.7% from Pacific Asia.

Analysis of Fortinet share price
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The major competitors of Fortinet

We shall continue with a more detailed study of the activity sector in which this company operates with information on its major adversaries in this market. Knowing the major players will be particularly useful for your analyses of this asset.

Cisco Systems 

This American company is specialised in servers and IT equipment and also develops cyber security solutions. It is currently one of the leaders in this sector.

Aruba Networks

This IT equipment supplier sells local Wi-Fi networks solutions to companies and employs around 1,200 people. It is a subsidiary of the HP Company since its acquisition in 2015.

Watchguard Technologies

This network security supplier is based in Seattle and designs IT network protection products against exterior threats.

SonicWall

The SonicWall Company is a private group based in Silicon Valley which was previously a subsidiary of the Dell Company from 2012 to 2016. It markets internet devices destined for the control of content and network security.


The major partners of Fortinet

We will now examine some of Fortinet’s partners with two particular examples of strategic alliances that the group has implemented in the recent past:

NTT Security

In 2015, the group notably signed a partnership agreement with the NTT Com Security Company in the IT and risk management sector. This partnership had the objective of supplying international organisations with security advice and dedicated solutions available through NTT Security for the protection of clients. These solutions included Cloud security solutions, firewalls, risk management networks, IT security management, SDN and virtualisation. Through this contract NTT Com Security could benefit from the expertise of Fortinet’s technical consultants to enlarge their services related to incident management for operational risks and assistance in the creation and implementation of complex architectures.

HP 

In 2007 Fortinet implemented a strategic partnership with ProCurve, part of HP. This partnership had the objective of ensuring the compatibility of the Fortinet platforms with the ProCurve network environments. Fortinet has also been integrated in the ProAcrive Defense security devices of ProCurve for the protection of company networks against internal and external threats. The products of these two partner companies have since received certifications and FortiGate ensures the protection of networks and content through various security applications and services including anti-virus and anti-spam software, anti-spyware, a firewall, a VPN, an intrusion prevention system, a web filter and a broadband optimisation module.

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Frequently Asked Questions

Who are the current shareholders of the Fortinet Company?

At the present time the stock market capital of the Fortinet Inc. company is owned by a number of private shareholders including The Vanguard Group with 10% of the shares, Ken Xie owns 7.42%, Michael Xie holds a 6.97% shareholding, SSgA Funds Management owns 3.42%, Renaissance Technologies with a 2.48% shareholding, BlackRock Fund Advisors owns 2.10%, Starboard Value holds 2.06%, Eminence Capital owns 1.83%, AQR Capital Management owns a 1.69% shareholding and Geode Capital Management owns 1.49%.

What type of products are developed by Fortinet?

The Fortinet Group develops various products and software related to network management and IT security including a range of security devices named FortiGate which consolidates numerous internet security functions. There are also other products including new generation firewalls, anti-virus, intrusion prevention systems, anti-spyware, VPNs, wireless security, application control, web filtering and others.

On which stock markets is the Fortinet share price quoted?

Given that Fortinet is an American company and exercises its activities in the technological sector, its share price is of course quoted on the Nasdaq market. More precisely, on the Nasdaq Global Select Market. It should also be noted that due to a high stock market capital it is also included in the composition of the Nasdaq 100 stock market index.

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