Is Fortinet Stock Halal?

Is Fortinet Stock Halal?

How much of Fortinet’s revenue comes from haram?

Fortinet is a Cybersecurity developer that specializes in both physical and software security solutions.

Fortinet earns its revenue from the following revenue sources:

  • Product Revenue:

Includes revenue generated from the sale of physical and virtual machine appliances, most of which comes from the company’s FortiGate product line, a comprehensive network firewall.

  • Service Revenue:

Includes revenue generated primarily from FortiGuard security subscription services and FortiCare technical support. In addition, Fortinet offers professional and training services for users to implement their network security systems effectively.

The contributions from each of Fortinet’s revenue segments in their 2020 annual report were as follows:

Practical Islamic Finance concludes:

None of Fortinet’s revenue comes from anything inherently haram.

Does Fortinet rely on interest to operate?

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What is Fortinet’s Environmental, Social, and Governance (ESG) impact?

Environment

No notable environmental highlights. 

Social

In 2019 Fortinet agreed to pay a $545,000 settlement after violating the False Claims Act by selling mislabeled equipment to the US government. The products were labeled as US-made when in actuality they were Chinese technology. 

The company acknowledged that a single rogue employee was responsible and they have since been fired. 

Fortinet has an impressively high Glassdoor rating of 4.4 out of 5.0 from over 1,300 current and previous employees compared to a 3.3 average for all other Glassdoor rated companies.

Governance

No notable governance highlights.

Practical Islamic Finance concludes:

Fortinet has a net positive ESG impact.

Comfort Rating

From Fortinet’s business, financial, and ESG reviews, Practical Islamic Finance rates Fortinet stock as: 

Comfortable to invest in from a Halal perspective.

Sources

Fortinet 2020 10-K

Fortinet Q2 2021 10-Q

Fortinet Mislabel Settlement 

Fortinet Reviews

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