Investors seeking growth at a reasonable cost should explore NASDAQ:FTNT.

Uncover the potential of FORTINET INC (NASDAQ:FTNT), a growth stock that our stock screener found to be reasonably priced. NASDAQ:FTNT is excelling in growth aspects, maintaining a healthy financial position, and still offers an attractive valuation. We'll examine each aspect in detail.

Exploring NASDAQ:FTNT's Growth

ChartMill assigns a proprietary Growth Rating to each stock. The score is computed by evaluating various growth aspects, like EPS and revenue growth. We take into account the history as well as the estimated future numbers. NASDAQ:FTNT was assigned a score of 8 for growth:

• FTNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 28.15%, which is quite impressive.
• FTNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.13% yearly.
• Looking at the last year, FTNT shows a quite strong growth in Revenue. The Revenue has grown by 14.20% in the last year.
• The Revenue has been growing by 24.11% on average over the past years. This is a very strong growth!
• FTNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.69% yearly.
• The Revenue is expected to grow by 14.59% on average over the next years. This is quite good.

Assessing Valuation for NASDAQ:FTNT

ChartMill assigns a Valuation Rating to each stock, ranging from 0 to 10. This rating is calculated by analyzing different valuation elements, such as price to earnings and free cash flow, both in absolute terms and relative to the market and industry. In the case of NASDAQ:FTNT, the assigned 5 reflects its valuation:

• Based on the Price/Earnings ratio, FTNT is valued a bit cheaper than the industry average as 72.10% of the companies are valued more expensively.
• 69.20% of the companies in the same industry are more expensive than FTNT, based on the Price/Forward Earnings ratio.
• FTNT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTNT is cheaper than 76.81% of the companies in the same industry.
• Based on the Price/Free Cash Flow ratio, FTNT is valued cheaper than 80.07% of the companies in the same industry.
• The excellent profitability rating of FTNT may justify a higher PE ratio.
• A more expensive valuation may be justified as FTNT's earnings are expected to grow with 15.38% in the coming years.

A Closer Look at Health for NASDAQ:FTNT

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:FTNT has earned a 6 out of 10:

• FTNT has an Altman-Z score of 4.51. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 4.51, FTNT is in the better half of the industry, outperforming 67.39% of the companies in the same industry.
• The Debt to FCF ratio of FTNT is 0.59, which is an excellent value as it means it would take FTNT, only 0.59 years of fcf income to pay off all of its debts.
• FTNT has a better Debt to FCF ratio (0.59) than 78.62% of its industry peers.

Evaluating Profitability: NASDAQ:FTNT

ChartMill's Profitability Rating offers a unique perspective on stock analysis, providing scores from 0 to 10. These ratings consider a wide range of profitability metrics and margins, both in comparison to industry peers and on their own merits. For NASDAQ:FTNT, the assigned 8 is a significant indicator of profitability:

• FTNT's Return On Assets of 15.65% is amongst the best of the industry. FTNT outperforms 94.57% of its industry peers.
• The Return On Invested Capital of FTNT (26.27%) is better than 98.19% of its industry peers.
• FTNT had an Average Return On Invested Capital over the past 3 years of 21.99%. This is significantly above the industry average of 10.38%.
• The 3 year average ROIC (21.99%) for FTNT is below the current ROIC(26.27%), indicating increased profibility in the last year.
• The Profit Margin of FTNT (22.23%) is better than 91.67% of its industry peers.
• In the last couple of years the Profit Margin of FTNT has grown nicely.
• FTNT has a better Operating Margin (23.80%) than 93.48% of its industry peers.
• In the last couple of years the Operating Margin of FTNT has grown nicely.
• Looking at the Gross Margin, with a value of 77.13%, FTNT is in the better half of the industry, outperforming 74.28% of the companies in the same industry.

More Affordable Growth stocks can be found in our Affordable Growth screener.

Our latest full fundamental report of FTNT contains the most current fundamental analsysis.

Disclaimer

This article should in no way be interpreted as advice in any way. The article is based on the observed metrics at the time of writing, but you should always make your own analysis and trade or invest at your own responsibility.