Why NASDAQ:FTNT Is a Standout High-Growth Stock in a Consolidation Phase.

For growth-minded investors, high revenue and EPS growth are key criteria. Today, we'll examine whether FORTINET INC (NASDAQ:FTNT) fits the bill for growth investing, particularly as it forms a base and hints at a potential breakout. Remember, due diligence is essential, but FORTINET INC has caught our attention on our screen for growth with base formation. It may warrant additional investigation.

Unpacking NASDAQ:FTNT's Growth Rating

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:FTNT has received a 8 out of 10:

• The Earnings Per Share has grown by an impressive 28.86% over the past year.
• Measured over the past years, FTNT shows a very strong growth in Earnings Per Share. The EPS has been growing by 35.13% on average per year.
• Looking at the last year, FTNT shows a quite strong growth in Revenue. The Revenue has grown by 11.02% 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 14.76% on average over the next years. This is quite good.

Analyzing Health Metrics

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 5.76. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
• FTNT's Altman-Z score of 5.76 is fine compared to the rest of the industry. FTNT outperforms 71.83% of its industry peers.
• 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 77.11% 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.

Profitability Examination for NASDAQ:FTNT

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:FTNT has earned a 9 out of 10:

• FTNT has a Return On Assets of 16.30%. This is amongst the best in the industry. FTNT outperforms 94.01% of its industry peers.
• FTNT has a Return On Equity of 455.55%. This is amongst the best in the industry. FTNT outperforms 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 97.54% of the companies in the same industry.
• The Average Return On Invested Capital over the past 3 years for FTNT is significantly above the industry average of 10.32%.
• 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 91.55% of the companies in the same industry.
• In the last couple of years the Profit Margin of FTNT has grown nicely.
• FTNT has a better Operating Margin (26.05%) than 94.37% of its industry peers.
• In the last couple of years the Operating Margin of FTNT has grown nicely.
• FTNT has a better Gross Margin (78.09%) than 75.35% of its industry peers.

How do we evaluate the setup for NASDAQ:FTNT?

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:FTNT scores a 8 out of 10:

Besides having an excellent technical rating, FTNT also presents a decent setup pattern. Prices have been consolidating lately. There is a resistance zone just above the current price starting at 76.71. Right above this resistance zone may be a good entry point. There is a support zone below the current price at 75.86, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

For an up to date full fundamental analysis you can check the fundamental report of FTNT

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

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.