Why NASDAQ:FTNT Is a Promising High-Growth Stock in the Midst of Consolidation.

Exploring Growth Potential: FORTINET INC (NASDAQ:FTNT) and Its Base Formation. Growth investors seek promising revenue and EPS growth, and FORTINET INC has come under our scrutiny for potential growth investing. While it's crucial to do your own research, we've detected FORTINET INC on our screen for growth with base formation, suggesting it merits a closer look.

How do we evaluate the Growth for NASDAQ:FTNT?

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:FTNT scores a 8 out of 10:

• The Earnings Per Share has grown by an impressive 28.86% over the past year.
• The Earnings Per Share has been growing by 35.13% on average over the past years. This is a very strong growth
• FTNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.02%.
• The Revenue has been growing by 24.11% on average over the past years. This is a very strong growth!
• Based on estimates for the next years, FTNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 16.69% on average per year.
• The Revenue is expected to grow by 14.76% on average over the next years. This is quite good.

Health Analysis for NASDAQ:FTNT

Every stock is evaluated by ChartMill, receiving a Health Rating on a scale of 0 to 10. This assessment considers different health aspects, including liquidity and solvency, both in absolute terms and relative to industry peers. NASDAQ:FTNT has achieved a 6 out of 10:

• An Altman-Z score of 5.69 indicates that FTNT is not in any danger for bankruptcy at the moment.
• Looking at the Altman-Z score, with a value of 5.69, FTNT is in the better half of the industry, outperforming 70.42% of the companies in the same industry.
• FTNT has a debt to FCF ratio of 0.63. This is a very positive value and a sign of high solvency as it would only need 0.63 years to pay back of all of its debts.
• With a decent Debt to FCF ratio value of 0.63, FTNT is doing good in the industry, outperforming 78.17% of the companies in the same industry.
• Although FTNT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.

Exploring NASDAQ:FTNT's Profitability

Discover ChartMill's exclusive Profitability Rating, a proprietary metric that assesses stocks on a scale of 0 to 10. It takes into consideration various profitability ratios and margins, both in absolute terms and relative to industry peers. Notably, NASDAQ:FTNT has achieved a 9:

• FTNT has a Return On Assets of 16.30%. This is amongst the best in the industry. FTNT outperforms 94.72% of its industry peers.
• FTNT has a better Return On Equity (455.55%) than 100.00% of its industry peers.
• With an excellent Return On Invested Capital value of 26.33%, FTNT belongs to the best of the industry, outperforming 97.89% of the companies in the same industry.
• Measured over the past 3 years, the Average Return On Invested Capital for FTNT is significantly above the industry average of 10.21%.
• The 3 year average ROIC (21.99%) for FTNT is below the current ROIC(26.33%), indicating increased profibility in the last year.
• Looking at the Profit Margin, with a value of 23.71%, FTNT belongs to the top of the industry, outperforming 91.90% of the companies in the same industry.
• In the last couple of years the Profit Margin of FTNT has grown nicely.
• Looking at the Operating Margin, with a value of 26.05%, FTNT belongs to the top of the industry, outperforming 94.37% of the companies in the same industry.
• In the last couple of years the Operating Margin of FTNT has grown nicely.
• The Gross Margin of FTNT (78.09%) is better than 75.00% of its industry peers.

How does the Setup look for NASDAQ:FTNT

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the extent of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:FTNT has a 7 as its setup rating:

Besides having an excellent technical rating, FTNT also presents a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a resistance zone just above the current price starting at 75.19. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 75.17, a Stop Loss order could be placed below this zone.

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Check the latest full fundamental report of FTNT for a complete fundamental analysis.

Check the latest full technical report of FTNT for a complete technical analysis.

Disclaimer

This article should in no way be interpreted as advice. 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.