Is FORTINET INC (NASDAQ:FTNT) a Strong Candidate for Quality Investing?

Quality investors are looking for the best of the best. Companies which are growing steadily and consistently, but are also in excellent financial condition. We will have a look here to see if FORTINET INC (NASDAQ:FTNT) is suited for quality investing. Investors should of course do their own research, but we spotted FORTINET INC showing up in our Caviar Cruise quality screen, so it may be worth spending some more time on it.

Highlighting Notable Quality Metrics of NASDAQ:FTNT.

• The 5-year revenue growth of FORTINET INC has been remarkable, with 24.11% increase. This showcases the company's strong performance in driving revenue growth and indicates its competitiveness within the market.
• FORTINET INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 137.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a favorable Debt/Free Cash Flow Ratio of 0.63, FORTINET INC showcases its sound financial discipline and cash flow management. This ratio indicates the company's ability to service its debt obligations while maintaining sufficient free cash flow for future investments or operational needs.
• With a favorable Profit Quality (5-year) ratio of 186.0%, FORTINET INC showcases its ability to consistently deliver high-quality profits. This metric signifies the company's financial strength and its capacity to generate sustainable earnings over an extended period.
• FORTINET INC has demonstrated consistent growth in EBIT over the past 5 years, with a strong 39.87%. This signifies the company's ability to generate sustainable earnings and reflects its positive financial trajectory.
• FORTINET INC demonstrates a remarkable trend where its EBIT 5-year growth exceeds its Revenue 5-year growth. This indicates the company's ability to enhance its profitability through improved cost control and operational efficiency.

Fundamental Analysis Observations

At ChartMill, a crucial aspect of their analysis is the assignment of a Fundamental Rating to each stock. This rating, ranging from 0 to 10, is calculated daily by considering numerous fundamental indicators and properties.

FTNT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 282 industry peers in the Software industry. FTNT has an excellent profitability rating, but there are some minor concerns on its financial health. FTNT is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings could make FTNT a good candidate for growth investing.

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

Our Caviar Cruise screen will find you more ideas suited for quality investing.

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.