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FORTINET INC (FTNT) Stock Fundamental Analysis

USA - Nasdaq - NASDAQ:FTNT - US34959E1091 - Common Stock

81.71 USD
-1.36 (-1.64%)
Last: 1/27/2026, 4:45:06 PM
81.71 USD
0 (0%)
After Hours: 1/27/2026, 4:45:06 PM
Fundamental Rating

7

Overall FTNT gets a fundamental rating of 7 out of 10. We evaluated FTNT against 278 industry peers in the Software industry. Both the health and profitability get an excellent rating, making FTNT a very profitable company, without any liquidiy or solvency issues. FTNT is not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings would make FTNT suitable for growth and quality investing!


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • FTNT had positive earnings in the past year.
  • FTNT had a positive operating cash flow in the past year.
  • In the past 5 years FTNT has always been profitable.
  • In the past 5 years FTNT always reported a positive cash flow from operatings.
FTNT Yearly Net Income VS EBIT VS OCF VS FCFFTNT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

1.2 Ratios

  • FTNT's Return On Assets of 20.01% is amongst the best of the industry. FTNT outperforms 95.32% of its industry peers.
  • FTNT's Return On Equity of 254.88% is amongst the best of the industry. FTNT outperforms 100.00% of its industry peers.
  • FTNT has a better Return On Invested Capital (38.77%) than 98.56% of its industry peers.
  • FTNT had an Average Return On Invested Capital over the past 3 years of 28.58%. This is significantly above the industry average of 10.76%.
  • The 3 year average ROIC (28.58%) for FTNT is below the current ROIC(38.77%), indicating increased profibility in the last year.
Industry RankSector Rank
ROA 20.01%
ROE 254.88%
ROIC 38.77%
ROA(3y)15.82%
ROA(5y)13.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)28.58%
ROIC(5y)24.19%
FTNT Yearly ROA, ROE, ROICFTNT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 -200 -300

1.3 Margins

  • FTNT has a Profit Margin of 28.58%. This is amongst the best in the industry. FTNT outperforms 88.85% of its industry peers.
  • In the last couple of years the Profit Margin of FTNT has grown nicely.
  • The Operating Margin of FTNT (30.86%) is better than 92.81% of its industry peers.
  • In the last couple of years the Operating Margin of FTNT has grown nicely.
  • FTNT's Gross Margin of 80.86% is amongst the best of the industry. FTNT outperforms 83.81% of its industry peers.
  • FTNT's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 30.86%
PM (TTM) 28.58%
GM 80.86%
OM growth 3Y16.85%
OM growth 5Y13.69%
PM growth 3Y17.3%
PM growth 5Y13.83%
GM growth 3Y1.97%
GM growth 5Y1.17%
FTNT Yearly Profit, Operating, Gross MarginsFTNT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

7

2. Health

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FTNT is creating value.
  • FTNT has about the same amout of shares outstanding than it did 1 year ago.
  • FTNT has less shares outstanding than it did 5 years ago.
  • FTNT has a better debt/assets ratio than last year.
FTNT Yearly Shares OutstandingFTNT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
FTNT Yearly Total Debt VS Total AssetsFTNT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

  • An Altman-Z score of 5.58 indicates that FTNT is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.58, FTNT is in the better half of the industry, outperforming 75.18% of the companies in the same industry.
  • The Debt to FCF ratio of FTNT is 0.49, which is an excellent value as it means it would take FTNT, only 0.49 years of fcf income to pay off all of its debts.
  • FTNT's Debt to FCF ratio of 0.49 is fine compared to the rest of the industry. FTNT outperforms 79.14% of its industry peers.
  • FTNT has a Debt/Equity ratio of 0.68. This is a neutral value indicating FTNT is somewhat dependend on debt financing.
  • FTNT's Debt to Equity ratio of 0.68 is on the low side compared to the rest of the industry. FTNT is outperformed by 70.14% of its industry peers.
  • 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.
Industry RankSector Rank
Debt/Equity 0.68
Debt/FCF 0.49
Altman-Z 5.58
ROIC/WACC3.5
WACC11.07%
FTNT Yearly LT Debt VS Equity VS FCFFTNT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

  • A Current Ratio of 1.03 indicates that FTNT should not have too much problems paying its short term obligations.
  • FTNT has a Current ratio of 1.03. This is in the lower half of the industry: FTNT underperforms 73.02% of its industry peers.
  • FTNT has a Quick Ratio of 1.03. This is a bad value and indicates that FTNT is not financially healthy enough and could expect problems in meeting its short term obligations.
  • FTNT's Quick ratio of 0.94 is on the low side compared to the rest of the industry. FTNT is outperformed by 76.26% of its industry peers.
  • FTNT does not score too well on the current and quick ratio evaluation. However, as it has excellent solvency and profitability, these ratios do not necessarly indicate liquidity issues and need to be evaluated against the specifics of the business.
Industry RankSector Rank
Current Ratio 1.03
Quick Ratio 0.94
FTNT Yearly Current Assets VS Current LiabilitesFTNT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

8

3. Growth

3.1 Past

  • FTNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.17%, which is quite impressive.
  • Measured over the past years, FTNT shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.84% on average per year.
  • FTNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.78%.
  • The Revenue has been growing by 22.46% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)26.17%
EPS 3Y43.86%
EPS 5Y36.84%
EPS Q2Q%17.46%
Revenue 1Y (TTM)14.78%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%14.38%

3.2 Future

  • The Earnings Per Share is expected to grow by 9.01% on average over the next years. This is quite good.
  • FTNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.42% yearly.
EPS Next Y15.71%
EPS Next 2Y12.28%
EPS Next 3Y11.85%
EPS Next 5Y9.01%
Revenue Next Year14.66%
Revenue Next 2Y12.91%
Revenue Next 3Y12.15%
Revenue Next 5Y12.42%

3.3 Evolution

  • When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
  • The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
FTNT Yearly Revenue VS EstimatesFTNT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B
FTNT Yearly EPS VS EstimatesFTNT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 30.26 indicates a quite expensive valuation of FTNT.
  • Compared to the rest of the industry, the Price/Earnings ratio of FTNT indicates a somewhat cheap valuation: FTNT is cheaper than 61.87% of the companies listed in the same industry.
  • When comparing the Price/Earnings ratio of FTNT to the average of the S&P500 Index (27.25), we can say FTNT is valued inline with the index average.
  • The Price/Forward Earnings ratio is 27.35, which means the current valuation is very expensive for FTNT.
  • 61.87% of the companies in the same industry are more expensive than FTNT, based on the Price/Forward Earnings ratio.
  • FTNT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 25.98.
Industry RankSector Rank
PE 30.26
Fwd PE 27.35
FTNT Price Earnings VS Forward Price EarningsFTNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40 50

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, FTNT is valued a bit cheaper than the industry average as 70.50% of the companies are valued more expensively.
  • 68.70% of the companies in the same industry are more expensive than FTNT, based on the Price/Free Cash Flow ratio.
Industry RankSector Rank
P/FCF 29.96
EV/EBITDA 26.97
FTNT Per share dataFTNT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • The excellent profitability rating of FTNT may justify a higher PE ratio.
PEG (NY)1.93
PEG (5Y)0.82
EPS Next 2Y12.28%
EPS Next 3Y11.85%

0

5. Dividend

5.1 Amount

  • No dividends for FTNT!.
Industry RankSector Rank
Dividend Yield 0%

FORTINET INC / FTNT FAQ

What is the ChartMill fundamental rating of FORTINET INC (FTNT) stock?

ChartMill assigns a fundamental rating of 7 / 10 to FTNT.


What is the valuation status of FORTINET INC (FTNT) stock?

ChartMill assigns a valuation rating of 4 / 10 to FORTINET INC (FTNT). This can be considered as Fairly Valued.


How profitable is FORTINET INC (FTNT) stock?

FORTINET INC (FTNT) has a profitability rating of 9 / 10.


What is the financial health of FORTINET INC (FTNT) stock?

The financial health rating of FORTINET INC (FTNT) is 7 / 10.