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Here's How Much a $1000 Investment in Fortinet Made 10 Years Ago Would Be Worth Today
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How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Fortinet (FTNT - Free Report) ten years ago? It may not have been easy to hold on to FTNT for all that time, but if you did, how much would your investment be worth today?
Fortinet's Business In-Depth
With that in mind, let's take a look at Fortinet's main business drivers.
Headquartered in Sunnyvale, CA, Fortinet, Inc. is a provider of network security appliances and Unified Threat Management (UTM) network security solutions to enterprises, service providers and government entities worldwide.
Its solutions are designed to integrate multiple levels of security protection, including firewall, virtual private networking (VPN), antivirus, intrusion prevention (IP), web filtering, anti-spam and wide area network (WAN) acceleration.
Through its products and subscription services, the company provides integrated protection against dynamic security threats while simplifying the IT security infrastructure. Its solutions incorporate application-specific integrated circuits, hardware architecture, operating system, and associated security and networking functions to defend against multiple categories of IT security attacks without impacting network performance.
The company’s network security gateways protect customer data, reduce security complexities and lower the total cost of ownership. Customers are able to implement their security policies on traffic between internal networks and the Internet, as well as between internal and private networks shared with partners.
Its flagship UTM solution consists of the FortiGate appliance product line and FortiGuard security subscription services.
Its products and services are sold through a network of more than 20,000 channel partners worldwide, including distributors, resellers, value-added resellers and managed service providers. The company caters to more than 450,000 customers worldwide that includes most of the Fortune 100 companies.
The company derives a significant portion of total sales from the top 10 biggest distributors, of which Exclusive Networks Group has the highest share and accounted for 31% of 2021 total revenues followed by Ingram Micro’s 12%.
Fortinet reported revenues of $4.42 billion in 2022, which increased 32.2% from 2021. Product revenue was $1.78 billion, up 41.9% while Service revenue of $2.64 billion improved 26.3% year over year in 2022.
The company faces significant competition with Palo Alto Networks, CyberArk, Qualys and Cisco in the network security as well as cloud security space.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Fortinet a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $19,531.95, or a 1,853.20% gain, as of July 14, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 168.42% and gold's return of 46.63% over the same time frame.
Going forward, analysts are expecting more upside for FTNT.
Fortinet is benefiting from rising demand for security and networking products amid growing hybrid working trend. It is also benefiting from robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network (SD-WAN) offerings. Continued deal wins, especially those of high value, are a key driver. Higher IT spending on cybersecurity is further expected to aid Fortinet to grow faster than the security market. Focus on enhancing its unified threat management (UTM) portfolio through product development and acquisitions is a tailwind for Fortinet. Our estimates suggest Fortinet’s revenues to grow at a CAGR of 20.6% through 2023-2025. However, intensifying competition due to increasing consolidation in the security industry poses concerns. Increased hiring and mergers & acquisitions spends remain overhangs on margin.
Over the past four weeks, shares have rallied 6.33%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.
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Here's How Much a $1000 Investment in Fortinet Made 10 Years Ago Would Be Worth Today
How much a stock's price changes over time is a significant driver for most investors. Not only can price performance impact your portfolio, but it can help you compare investment results across sectors and industries as well.
FOMO, or the fear of missing out, also plays a role in investing, particularly with tech giants and popular consumer-facing stocks.
What if you'd invested in Fortinet (FTNT - Free Report) ten years ago? It may not have been easy to hold on to FTNT for all that time, but if you did, how much would your investment be worth today?
Fortinet's Business In-Depth
With that in mind, let's take a look at Fortinet's main business drivers.
Headquartered in Sunnyvale, CA, Fortinet, Inc. is a provider of network security appliances and Unified Threat Management (UTM) network security solutions to enterprises, service providers and government entities worldwide.
Its solutions are designed to integrate multiple levels of security protection, including firewall, virtual private networking (VPN), antivirus, intrusion prevention (IP), web filtering, anti-spam and wide area network (WAN) acceleration.
Through its products and subscription services, the company provides integrated protection against dynamic security threats while simplifying the IT security infrastructure. Its solutions incorporate application-specific integrated circuits, hardware architecture, operating system, and associated security and networking functions to defend against multiple categories of IT security attacks without impacting network performance.
The company’s network security gateways protect customer data, reduce security complexities and lower the total cost of ownership. Customers are able to implement their security policies on traffic between internal networks and the Internet, as well as between internal and private networks shared with partners.
Its flagship UTM solution consists of the FortiGate appliance product line and FortiGuard security subscription services.
Its products and services are sold through a network of more than 20,000 channel partners worldwide, including distributors, resellers, value-added resellers and managed service providers. The company caters to more than 450,000 customers worldwide that includes most of the Fortune 100 companies.
The company derives a significant portion of total sales from the top 10 biggest distributors, of which Exclusive Networks Group has the highest share and accounted for 31% of 2021 total revenues followed by Ingram Micro’s 12%.
Fortinet reported revenues of $4.42 billion in 2022, which increased 32.2% from 2021. Product revenue was $1.78 billion, up 41.9% while Service revenue of $2.64 billion improved 26.3% year over year in 2022.
The company faces significant competition with Palo Alto Networks, CyberArk, Qualys and Cisco in the network security as well as cloud security space.
Bottom Line
Anyone can invest, but building a successful investment portfolio takes a combination of a few things: research, patience, and a little bit of risk. So, if you had invested in Fortinet a decade ago, you're probably feeling pretty good about your investment today.
According to our calculations, a $1000 investment made in July 2013 would be worth $19,531.95, or a 1,853.20% gain, as of July 14, 2023. Investors should keep in mind that this return excludes dividends but includes price appreciation.
Compare this to the S&P 500's rally of 168.42% and gold's return of 46.63% over the same time frame.
Going forward, analysts are expecting more upside for FTNT.
Fortinet is benefiting from rising demand for security and networking products amid growing hybrid working trend. It is also benefiting from robust growth in Fortinet Security Fabric, cloud and Software-defined Wide Area Network (SD-WAN) offerings. Continued deal wins, especially those of high value, are a key driver. Higher IT spending on cybersecurity is further expected to aid Fortinet to grow faster than the security market. Focus on enhancing its unified threat management (UTM) portfolio through product development and acquisitions is a tailwind for Fortinet. Our estimates suggest Fortinet’s revenues to grow at a CAGR of 20.6% through 2023-2025. However, intensifying competition due to increasing consolidation in the security industry poses concerns. Increased hiring and mergers & acquisitions spends remain overhangs on margin.
Over the past four weeks, shares have rallied 6.33%, and there have been 2 higher earnings estimate revisions in the past two months for fiscal 2023 compared to none lower. The consensus estimate has moved up as well.