FORTINET INC (FTNT) Fundamental Analysis & Valuation

NASDAQ:FTNT • US34959E1091

Current stock price

79 USD
-0.34 (-0.43%)
Last:

This FTNT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. FTNT Profitability Analysis

1.1 Basic Checks

  • FTNT had positive earnings in the past year.
  • In the past year FTNT had a positive cash flow from operations.
  • In the past 5 years FTNT has always been profitable.
  • FTNT had a positive operating cash flow in each of the past 5 years.
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 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • The Return On Assets of FTNT (17.84%) is better than 93.17% of its industry peers.
  • FTNT has a Return On Equity of 149.77%. This is amongst the best in the industry. FTNT outperforms 98.92% of its industry peers.
  • FTNT has a Return On Invested Capital of 32.34%. This is amongst the best in the industry. FTNT outperforms 97.84% of its industry peers.
  • The Average Return On Invested Capital over the past 3 years for FTNT is significantly above the industry average of 10.92%.
  • The last Return On Invested Capital (32.34%) for FTNT is above the 3 year average (29.46%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 17.84%
ROE 149.77%
ROIC 32.34%
ROA(3y)17.18%
ROA(5y)15.11%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.46%
ROIC(5y)25.79%
FTNT Yearly ROA, ROE, ROICFTNT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 -200 -300

1.3 Margins

  • The Profit Margin of FTNT (27.26%) is better than 91.01% of its industry peers.
  • FTNT's Profit Margin has improved in the last couple of years.
  • FTNT has a better Operating Margin (30.51%) than 94.60% of its industry peers.
  • FTNT's Operating Margin has improved in the last couple of years.
  • FTNT has a Gross Margin of 80.46%. This is amongst the best in the industry. FTNT outperforms 82.73% of its industry peers.
  • In the last couple of years the Gross Margin of FTNT has remained more or less at the same level.
Industry RankSector Rank
OM 30.51%
PM (TTM) 27.26%
GM 80.46%
OM growth 3Y11.77%
OM growth 5Y9.99%
PM growth 3Y11.99%
PM growth 5Y7.68%
GM growth 3Y2.17%
GM growth 5Y0.61%
FTNT Yearly Profit, Operating, Gross MarginsFTNT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

2. FTNT Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FTNT is creating value.
  • FTNT has less shares outstanding than it did 1 year ago.
  • Compared to 5 years ago, FTNT has less shares outstanding
  • 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 2025 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 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • FTNT has an Altman-Z score of 5.19. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
  • FTNT has a better Altman-Z score (5.19) than 78.42% of its industry peers.
  • The Debt to FCF ratio of FTNT is 0.45, which is an excellent value as it means it would take FTNT, only 0.45 years of fcf income to pay off all of its debts.
  • FTNT's Debt to FCF ratio of 0.45 is fine compared to the rest of the industry. FTNT outperforms 78.06% of its industry peers.
  • FTNT has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
  • FTNT has a worse Debt to Equity ratio (0.40) than 62.23% of its industry peers.
  • Although FTNT's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 0.4
Debt/FCF 0.45
Altman-Z 5.19
ROIC/WACC2.96
WACC10.94%
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 2025 0 500M 1B 1.5B 2B

2.3 Liquidity

  • FTNT has a Current Ratio of 1.17. This is a normal value and indicates that FTNT is financially healthy and should not expect problems in meeting its short term obligations.
  • Looking at the Current ratio, with a value of 1.17, FTNT is doing worse than 67.99% of the companies in the same industry.
  • FTNT has a Quick Ratio of 1.09. This is a normal value and indicates that FTNT is financially healthy and should not expect problems in meeting its short term obligations.
  • With a Quick ratio value of 1.09, FTNT is not doing good in the industry: 70.50% of the companies in the same industry are doing better.
  • The current and quick ratio evaluation for FTNT is rather negative, while it does have 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 1.17
Quick Ratio 1.09
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 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. FTNT Growth Analysis

3.1 Past

  • FTNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 16.88%, which is quite good.
  • FTNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.75% yearly.
  • Looking at the last year, FTNT shows a quite strong growth in Revenue. The Revenue has grown by 14.17% in the last year.
  • The Revenue has been growing by 21.25% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)16.88%
EPS 3Y32.23%
EPS 5Y32.75%
EPS Q2Q%9.46%
Revenue 1Y (TTM)14.17%
Revenue growth 3Y15.46%
Revenue growth 5Y21.25%
Sales Q2Q%14.75%

3.2 Future

  • The Earnings Per Share is expected to grow by 7.59% on average over the next years.
  • FTNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.54% yearly.
EPS Next Y9.72%
EPS Next 2Y10.46%
EPS Next 3Y11.19%
EPS Next 5Y7.59%
Revenue Next Year12.53%
Revenue Next 2Y11.51%
Revenue Next 3Y10.82%
Revenue Next 5Y11.54%

3.3 Evolution

  • The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
  • 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

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Find the best growth stocksShow best growing peers

4

4. FTNT Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 28.52, which means the current valuation is very expensive for FTNT.
  • FTNT's Price/Earnings is on the same level as the industry average.
  • FTNT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.50, which is the current average of the S&P500 Index.
  • The Price/Forward Earnings ratio is 25.99, which means the current valuation is very expensive for FTNT.
  • FTNT's Price/Forward Earnings ratio is in line with the industry average.
  • Compared to an average S&P500 Price/Forward Earnings ratio of 22.67, FTNT is valued at the same level.
Industry RankSector Rank
PE 28.52
Fwd PE 25.99
FTNT Price Earnings VS Forward Price EarningsFTNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTNT indicates a somewhat cheap valuation: FTNT is cheaper than 70.14% of the companies listed in the same industry.
  • 63.31% 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 26.26
EV/EBITDA 24.72
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 FTNT does not grow enough to justify the current Price/Earnings ratio.
  • FTNT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)2.94
PEG (5Y)0.87
EPS Next 2Y10.46%
EPS Next 3Y11.19%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. FTNT Dividend Analysis

5.1 Amount

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

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Find the best dividend stocksShow peers with best dividend

FTNT Fundamentals: All Metrics, Ratios and Statistics

FORTINET INC

NASDAQ:FTNT (3/25/2026, 2:44:09 PM)

79

-0.34 (-0.43%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)05-05
Inst Owners71.09%
Inst Owner Change2.3%
Ins Owners17.43%
Ins Owner Change-0.33%
Market Cap58.45B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts67.6
Price Target92.25 (16.77%)
Short Float %2.9%
Short Ratio2.59
Dividend
Industry RankSector Rank
Dividend Yield 0%
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11%
Min EPS beat(2)7.16%
Max EPS beat(2)14.84%
EPS beat(4)4
Avg EPS beat(4)8.7%
Min EPS beat(4)6.18%
Max EPS beat(4)14.84%
EPS beat(8)8
Avg EPS beat(8)15.03%
EPS beat(12)12
Avg EPS beat(12)14.29%
EPS beat(16)16
Avg EPS beat(16)14.02%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)0.42%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.42%
Revenue beat(8)3
Avg Revenue beat(8)-0.33%
Revenue beat(12)4
Avg Revenue beat(12)-0.57%
Revenue beat(16)6
Avg Revenue beat(16)-0.32%
PT rev (1m)2.8%
PT rev (3m)3.98%
EPS NQ rev (1m)-0.37%
EPS NQ rev (3m)-4.88%
EPS NY rev (1m)1.39%
EPS NY rev (3m)1.56%
Revenue NQ rev (1m)0.11%
Revenue NQ rev (3m)0.57%
Revenue NY rev (1m)1.21%
Revenue NY rev (3m)1.17%
Valuation
Industry RankSector Rank
PE 28.52
Fwd PE 25.99
P/S 8.6
P/FCF 26.26
P/OCF 22.56
P/B 47.24
P/tB 66.21
EV/EBITDA 24.72
EPS(TTM)2.77
EY3.51%
EPS(NY)3.04
Fwd EY3.85%
FCF(TTM)3.01
FCFY3.81%
OCF(TTM)3.5
OCFY4.43%
SpS9.19
BVpS1.67
TBVpS1.19
PEG (NY)2.94
PEG (5Y)0.87
Graham Number10.21
Profitability
Industry RankSector Rank
ROA 17.84%
ROE 149.77%
ROCE 38.73%
ROIC 32.34%
ROICexc 97.69%
ROICexgc 122.12%
OM 30.51%
PM (TTM) 27.26%
GM 80.46%
FCFM 32.73%
ROA(3y)17.18%
ROA(5y)15.11%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.46%
ROIC(5y)25.79%
ROICexc(3y)95.09%
ROICexc(5y)84.5%
ROICexgc(3y)117.15%
ROICexgc(5y)104.17%
ROCE(3y)35.29%
ROCE(5y)30.89%
ROICexgc growth 3Y4.58%
ROICexgc growth 5Y-5.51%
ROICexc growth 3Y4.41%
ROICexc growth 5Y-2.11%
OM growth 3Y11.77%
OM growth 5Y9.99%
PM growth 3Y11.99%
PM growth 5Y7.68%
GM growth 3Y2.17%
GM growth 5Y0.61%
F-Score6
Asset Turnover0.65
Health
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 0.45
Debt/EBITDA 0.22
Cap/Depr 240%
Cap/Sales 5.37%
Interest Coverage 250
Cash Conversion 116.36%
Profit Quality 120.09%
Current Ratio 1.17
Quick Ratio 1.09
Altman-Z 5.19
F-Score6
WACC10.94%
ROIC/WACC2.96
Cap/Depr(3y)242.84%
Cap/Depr(5y)269.75%
Cap/Sales(3y)5.19%
Cap/Sales(5y)6.16%
Profit Quality(3y)126.21%
Profit Quality(5y)149.21%
High Growth Momentum
Growth
EPS 1Y (TTM)16.88%
EPS 3Y32.23%
EPS 5Y32.75%
EPS Q2Q%9.46%
EPS Next Y9.72%
EPS Next 2Y10.46%
EPS Next 3Y11.19%
EPS Next 5Y7.59%
Revenue 1Y (TTM)14.17%
Revenue growth 3Y15.46%
Revenue growth 5Y21.25%
Sales Q2Q%14.75%
Revenue Next Year12.53%
Revenue Next 2Y11.51%
Revenue Next 3Y10.82%
Revenue Next 5Y11.54%
EBIT growth 1Y14.11%
EBIT growth 3Y29.06%
EBIT growth 5Y33.37%
EBIT Next Year18.07%
EBIT Next 3Y14.13%
EBIT Next 5Y14.02%
FCF growth 1Y18.44%
FCF growth 3Y15.37%
FCF growth 5Y18.37%
OCF growth 1Y14.72%
OCF growth 3Y14.39%
OCF growth 5Y19.04%

FORTINET INC / FTNT Fundamental Analysis 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 8 / 10.