Fortinet $FTNT is one of the highest quality companies in my portfolio.
● Revenue CAGR: 18% ✅
● FCF per share CAGR: 23% ✅
● Cash return on capital: 43% ✅
● Share count down 11% ✅
● SBC less than 10% of operating cash flow ✅
What are your thoughts on Fortinet?
There are three drives of share price appreciation:
● Multiple expansion - turning revenue growth into even higher FCF growth
● Buybacks - turning FCF growth into even higher FCF per share growth
● Multiple expansion - turning FCF per share growth into even higher share price
