FORTINET INC (FTNT) Fundamental Analysis & Valuation

NASDAQ:FTNT • US34959E1091

Current stock price

82.76 USD
-4.33 (-4.97%)
At close:
83.4225 USD
+0.66 (+0.8%)
Pre-Market:

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.
  • FTNT had a positive operating cash flow in the past year.
  • FTNT had positive earnings in each of the past 5 years.
  • Each year in the past 5 years FTNT had a positive operating cash flow.
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

  • FTNT's Return On Assets of 17.84% is amongst the best of the industry. FTNT outperforms 93.01% of its industry peers.
  • With an excellent Return On Equity value of 149.77%, FTNT belongs to the best of the industry, outperforming 98.90% of the companies in the same industry.
  • The Return On Invested Capital of FTNT (32.34%) is better than 97.79% of its industry peers.
  • Measured over the past 3 years, the Average Return On Invested Capital for FTNT is significantly above the industry average of 10.91%.
  • 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

  • FTNT's Profit Margin of 27.26% is amongst the best of the industry. FTNT outperforms 91.54% of its industry peers.
  • In the last couple of years the Profit Margin of FTNT has grown nicely.
  • FTNT's Operating Margin of 30.51% is amongst the best of the industry. FTNT outperforms 94.49% of its industry peers.
  • In the last couple of years the Operating Margin of FTNT has grown nicely.
  • The Gross Margin of FTNT (80.46%) is better than 81.99% 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

  • FTNT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
  • Compared to 1 year ago, FTNT has less shares outstanding
  • The number of shares outstanding for FTNT has been reduced compared to 5 years ago.
  • The debt/assets ratio for FTNT has been reduced compared to a year ago.
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 5.36. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
  • FTNT's Altman-Z score of 5.36 is fine compared to the rest of the industry. FTNT outperforms 76.47% of its industry peers.
  • FTNT has a debt to FCF ratio of 0.45. This is a very positive value and a sign of high solvency as it would only need 0.45 years to pay back of all of its debts.
  • FTNT has a Debt to FCF ratio of 0.45. This is in the better half of the industry: FTNT outperforms 79.04% of its industry peers.
  • A Debt/Equity ratio of 0.40 indicates that FTNT is not too dependend on debt financing.
  • FTNT's Debt to Equity ratio of 0.40 is on the low side compared to the rest of the industry. FTNT is outperformed by 61.76% of its industry peers.
  • Even though the debt/equity ratio score it not favorable for FTNT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
Industry RankSector Rank
Debt/Equity 0.4
Debt/FCF 0.45
Altman-Z 5.36
ROIC/WACC3.04
WACC10.62%
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

  • A Current Ratio of 1.17 indicates that FTNT should not have too much problems paying its short term obligations.
  • FTNT has a Current ratio of 1.17. This is in the lower half of the industry: FTNT underperforms 68.01% of its industry peers.
  • 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.
  • FTNT has a worse Quick ratio (1.09) than 70.59% 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 1.17
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

  • The Earnings Per Share has grown by an nice 16.88% over the past year.
  • The Earnings Per Share has been growing by 32.75% on average over the past years. This is a very strong growth
  • FTNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.17%.
  • 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

  • Based on estimates for the next years, FTNT will show a small growth in Earnings Per Share. The EPS will grow by 7.59% on average per year.
  • The Revenue is expected to grow by 11.54% on average over the next years. This is quite good.
EPS Next Y9.69%
EPS Next 2Y10.43%
EPS Next 3Y11.2%
EPS Next 5Y7.59%
Revenue Next Year12.53%
Revenue Next 2Y11.51%
Revenue Next 3Y10.83%
Revenue Next 5Y11.54%

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.
  • Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of 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

3

4. FTNT Valuation Analysis

4.1 Price/Earnings Ratio

  • With a Price/Earnings ratio of 29.88, FTNT can be considered very expensive at the moment.
  • The rest of the industry has a similar Price/Earnings ratio as FTNT.
  • Compared to an average S&P500 Price/Earnings ratio of 27.47, FTNT is valued at the same level.
  • With a Price/Forward Earnings ratio of 27.24, FTNT can be considered very expensive at the moment.
  • FTNT's Price/Forward Earnings ratio is in line with the industry average.
  • FTNT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 22.62, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 29.88
Fwd PE 27.24
FTNT Price Earnings VS Forward Price EarningsFTNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • 69.85% of the companies in the same industry are more expensive than FTNT, based on the Enterprise Value to EBITDA ratio.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of FTNT indicates a somewhat cheap valuation: FTNT is cheaper than 62.87% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 27.51
EV/EBITDA 25.86
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.
  • The excellent profitability rating of FTNT may justify a higher PE ratio.
PEG (NY)3.08
PEG (5Y)0.91
EPS Next 2Y10.43%
EPS Next 3Y11.2%

More info and screens

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

0

5. FTNT Dividend Analysis

5.1 Amount

  • FTNT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

FTNT Fundamentals: All Metrics, Ratios and Statistics

FORTINET INC

NASDAQ:FTNT (4/23/2026, 8:13:16 PM)

Premarket: 83.4225 +0.66 (+0.8%)

82.76

-4.33 (-4.97%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners71.44%
Inst Owner Change-0.06%
Ins Owners17.43%
Ins Owner Change-0.33%
Market Cap61.24B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts67.06
Price Target91.75 (10.86%)
Short Float %3.09%
Short Ratio2.74
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)-0.54%
PT rev (3m)3.25%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-4.79%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.15%
Valuation
Industry RankSector Rank
PE 29.88
Fwd PE 27.24
P/S 9.01
P/FCF 27.51
P/OCF 23.64
P/B 49.48
P/tB 69.37
EV/EBITDA 25.86
EPS(TTM)2.77
EY3.35%
EPS(NY)3.04
Fwd EY3.67%
FCF(TTM)3.01
FCFY3.63%
OCF(TTM)3.5
OCFY4.23%
SpS9.19
BVpS1.67
TBVpS1.19
PEG (NY)3.08
PEG (5Y)0.91
Graham Number10.2097 (-87.66%)
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 5.36
F-Score6
WACC10.62%
ROIC/WACC3.04
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 Y9.69%
EPS Next 2Y10.43%
EPS Next 3Y11.2%
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 3Y10.83%
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 3 / 10 to FORTINET INC (FTNT). This can be considered as Overvalued.


Can you provide the profitability details for FORTINET INC?

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


How financially healthy is FORTINET INC?

The financial health rating of FORTINET INC (FTNT) is 8 / 10.


Can you provide the expected EPS growth for FTNT stock?

The Earnings per Share (EPS) of FORTINET INC (FTNT) is expected to grow by 9.69% in the next year.