Fortinet Return On Equity vs. Gross Profit
| F1TN34 Stock | BRL 293.00 1.58 0.54% |
For Fortinet profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Fortinet to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Fortinet utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Fortinet's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Fortinet over time as well as its relative position and ranking within its peers.
Fortinet |
Fortinet Gross Profit vs. Return On Equity Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Fortinet's current stock value. Our valuation model uses many indicators to compare Fortinet value to that of its competitors to determine the firm's financial worth. Fortinet is rated # 5 in return on equity category among its peers. It is rated below average in gross profit category among its peers fabricating about 884,801,549 of Gross Profit per Return On Equity. Comparative valuation analysis is a catch-all model that can be used if you cannot value Fortinet by discounting back its dividends or cash flows. This model doesn't attempt to find an intrinsic value for Fortinet's Stock. Still, instead, it compares the stock's price multiples to a benchmark or nearest competition to determine if the stock is relatively undervalued or overvalued.Fortinet Gross Profit vs. Return On Equity
Return on Equity or ROE tells company stockholders how effectually their money is being utilized or reinvested. It is a useful ratio when analyzing company profitability or the management effectiveness given the capital invested by the shareholders. ROE shows how efficiently a company utilizes investments to generate income.
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| = | 2.89 |
For most industries, Return on Equity between 10% and 30% are considered desirable to provide dividends to owners and have funds for the future growth of the company. Investors should be very careful using ROE as the only efficiency indicator because ROE can be high if a company is heavily leveraged.
Gross Profit is the most basic measure of business operational efficiency. It is simply the difference between sales revenue and the cost associated with making a product or providing a service. It is calculated before deducting administrative expenses, taxes, and interest payments.
Fortinet |
| = | 2.56 B |
Gross Profit varies significantly from one sector to another and tells an investor how much money a business would have made if it didn't have to pay any overhead expenses such as salary, taxes, or rent.
Fortinet Gross Profit Comparison
Fortinet is rated # 5 in gross profit category among its peers.
Fortinet Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Fortinet, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Fortinet will eventually generate negative long term returns. The profitability progress is the general direction of Fortinet's change in net profit over the period of time. It can combine multiple indicators of Fortinet, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific. The company was founded in 2000 and is headquartered in Sunnyvale, California. FORTINET INCDRN operates under SoftwareInfrastructure classification in Brazil and is traded on Sao Paolo Stock Exchange. It employs 8615 people.
Fortinet Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Fortinet. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Fortinet position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Fortinet's important profitability drivers and their relationship over time.
Use Fortinet in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Fortinet position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Fortinet will appreciate offsetting losses from the drop in the long position's value.Fortinet Pair Trading
Fortinet Pair Trading Analysis
The ability to find closely correlated positions to Fortinet could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Fortinet when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Fortinet - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Fortinet to buy it.
The correlation of Fortinet is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Fortinet moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Fortinet moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Fortinet can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Fortinet position
In addition to having Fortinet in your portfolios, you can quickly add positions using our predefined set of ideas and optimize them against your very unique investing style. A single investing idea is a collection of funds, stocks, ETFs, or cryptocurrencies that are programmatically selected from a pull of investment themes. After you determine your investment opportunity, you can then find an optimal portfolio that will maximize potential returns on the chosen idea or minimize its exposure to market volatility.Did You Try This Idea?
Run Real Estate Thematic Idea Now
Real Estate
Fama and French investing themes focus on testing asset pricing under different economic assumptions. The Real Estate theme has 61 constituents at this time.
You can either use a buy-and-hold strategy to lock in the entire theme or actively trade it to take advantage of the short-term price volatility of individual constituents. Macroaxis can help you discover thousands of investment opportunities in different asset classes. In addition, you can partner with us for reliable portfolio optimization as you plan to utilize Real Estate Theme or any other thematic opportunities.
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Additional Information and Resources on Investing in Fortinet Stock
When determining whether Fortinet is a good investment, qualitative aspects like company management, corporate governance, and ethical practices play a significant role. A comparison with peer companies also provides context and helps to understand if Fortinet Stock is undervalued or overvalued. This multi-faceted approach, blending both quantitative and qualitative analysis, forms a solid foundation for making an informed investment decision about Fortinet Stock. Highlighted below are key reports to facilitate an investment decision about Fortinet Stock:Check out Investing Opportunities. For information on how to trade Fortinet Stock refer to our How to Trade Fortinet Stock guide.You can also try the Share Portfolio module to track or share privately all of your investments from the convenience of any device.
To fully project Fortinet's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Fortinet at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Fortinet's income statement, its balance sheet, and the statement of cash flows.