Is FORTINET INC (NASDAQ:FTNT) a Suitable Choice 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.

What matters for quality investors.

• Over the past 5 years, FORTINET INC has experienced impressive revenue growth, with 22.46% increase. This demonstrates the company's ability to effectively expand its top line and suggests a positive outlook for future revenue generation.
• FORTINET INC exhibits a strong ROIC excluding cash and goodwill, indicating efficient capital utilization and profitable operations. The 123.0% reflects the company's ability to generate returns on invested capital and underscores its commitment to delivering value to shareholders.
• With a Debt/Free Cash Flow Ratio of 0.53, FORTINET INC exhibits solid financial health and responsible debt management practices. This ratio indicates the company's ability to generate ample free cash flow to meet its debt obligations and pursue growth opportunities.
• The Profit Quality (5-year) of FORTINET INC stands at 164.0%, highlighting its ability to consistently generate reliable profits. This metric underscores the company's strong business fundamentals and reinforces its position as a financially stable entity.
• The 5-year EBIT growth of FORTINET INC has been remarkable, with 39.22% increase. This demonstrates the company's ability to improve its operational efficiency and indicates its competitiveness within the market.
• FORTINET INC has achieved superior EBIT 5-year growth compared to its Revenue 5-year growth. This demonstrates the company's ability to maximize its profitability through effective cost management and operational strategies.

How does the complete fundamental picture look for NASDAQ:FTNT?

As part of its analysis, ChartMill provides a comprehensive Fundamental Rating for each stock. This rating, ranging from 0 to 10, is updated on a daily basis and is based on the evaluation of various fundamental indicators and properties.

Taking everything into account, FTNT scores 7 out of 10 in our fundamental rating. FTNT was compared to 283 industry peers in the Software industry. FTNT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. FTNT is not overvalued while it is showing excellent growth. This is an interesting combination. These ratings would make FTNT suitable for growth and quality investing!

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

More ideas for quality investing can be found on ChartMill in our Caviar Cruise screen.

Keep in mind

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.