Fortinet: The Market Is Missing Its Service Transformation

Core Viewpoint - Fortinet (FTNT) is identified as the most attractive cybersecurity stock in the market due to its industry-leading margins, competitive growth, and aggressive share count reduction, while competitors are seen as dilutive and trading at higher valuations [1] Company Analysis - Fortinet has a growing ecosystem and is focused on shareholder-friendly capital allocation through buybacks and dividends [1] - The company is positioned to benefit from strong secular tailwinds, indicating a long-term growth runway [1] Investment Philosophy - The investment philosophy emphasizes accumulating quality compounders at a discount, with a focus on sustainable wealth built through long-term compounding rather than speculative investments [1] - The methodology involves deep fundamental analysis to identify asymmetric risk opportunities where the market may misunderstand a company's competitive advantages or future prospects [1] Market Position - Fortinet is compared favorably against competitors, which are trading at higher valuations and are considered dilutive [1] - The company is highlighted for its ability to maintain industry-leading margins while growing its market presence [1]