FORTINET INC (FTNT) Stock Fundamental Analysis
NASDAQ:FTNT • US34959E1091
77.35 USD
+2.12 (+2.82%)
At close: Feb 25, 2026
77.34 USD
-0.01 (-0.01%)
After Hours: 2/25/2026, 8:15:27 PM
FTNT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 274 industry peers in the Software industry. FTNT gets an excellent profitability rating and is at the same time showing great financial health properties. FTNT is growing strongly while it is still valued neutral. This is a good combination! This makes FTNT very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
- In the past year FTNT was profitable.
- FTNT had a positive operating cash flow in the past year.
- Each year in the past 5 years FTNT has been profitable.
- FTNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- With an excellent Return On Assets value of 17.84%, FTNT belongs to the best of the industry, outperforming 93.80% of the companies in the same industry.
- FTNT's Return On Equity of 149.77% is amongst the best of the industry. FTNT outperforms 99.27% of its industry peers.
- FTNT has a better Return On Invested Capital (32.34%) than 97.81% 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 10.77%.
- 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 Rank | Sector 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%
1.3 Margins
- FTNT's Profit Margin of 27.26% is amongst the best of the industry. FTNT outperforms 88.69% 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 92.70% of its industry peers.
- FTNT's Operating Margin has improved in the last couple of years.
- With an excellent Gross Margin value of 80.46%, FTNT belongs to the best of the industry, outperforming 81.39% of the companies in the same industry.
- In the last couple of years the Gross Margin of FTNT has remained more or less at the same level.
| Industry Rank | Sector 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%
2. Health
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.
2.2 Solvency
- An Altman-Z score of 5.12 indicates that FTNT is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.12, FTNT is doing good in the industry, outperforming 77.37% of the companies in the same industry.
- 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.
- Looking at the Debt to FCF ratio, with a value of 0.45, FTNT is in the better half of the industry, outperforming 79.20% of the companies in the same industry.
- 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 62.77% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 5.12 |
ROIC/WACC2.96
WACC10.94%
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.
- FTNT's Current ratio of 1.17 is on the low side compared to the rest of the industry. FTNT is outperformed by 67.88% of its industry peers.
- A Quick Ratio of 1.09 indicates that FTNT should not have too much problems paying its short term obligations.
- Looking at the Quick ratio, with a value of 1.09, FTNT is doing worse than 69.71% of the companies in the same industry.
- 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.09 |
3. Growth
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.
- Measured over the past years, FTNT shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.75% on average per year.
- FTNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.17%.
- Measured over the past years, FTNT shows a very strong growth in Revenue. The Revenue has been growing by 21.25% on average per year.
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
- FTNT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.59% yearly.
- The Revenue is expected to grow by 11.52% on average over the next years. This is quite good.
EPS Next Y8.21%
EPS Next 2Y9.75%
EPS Next 3Y6.12%
EPS Next 5Y7.59%
Revenue Next Year11.18%
Revenue Next 2Y10.92%
Revenue Next 3Y13.32%
Revenue Next 5Y11.52%
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.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 27.92, the valuation of FTNT can be described as expensive.
- FTNT's Price/Earnings ratio is in line with the industry average.
- FTNT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.05, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 25.80, which means the current valuation is very expensive for FTNT.
- The rest of the industry has a similar Price/Forward Earnings ratio as FTNT.
- FTNT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.03.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.92 | ||
| Fwd PE | 25.8 |
4.2 Price Multiples
- FTNT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTNT is cheaper than 69.71% of the companies in the same industry.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FTNT indicates a somewhat cheap valuation: FTNT is cheaper than 64.60% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.84 | ||
| EV/EBITDA | 24.19 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- FTNT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.4
PEG (5Y)0.85
EPS Next 2Y9.75%
EPS Next 3Y6.12%
5. Dividend
5.1 Amount
- No dividends for FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
77.35
+2.12 (+2.82%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)05-05 2026-05-05/amc
Inst Owners70.81%
Inst Owner Change2.33%
Ins Owners17.34%
Ins Owner Change-0.39%
Market Cap57.52B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts68.4
Price Target89.73 (16.01%)
Short Float %2.86%
Short Ratio2.62
Dividend
| Industry Rank | Sector 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)0.98%
PT rev (3m)-1.91%
EPS NQ rev (1m)-4.52%
EPS NQ rev (3m)-4.3%
EPS NY rev (1m)0.32%
EPS NY rev (3m)5.32%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.92 | ||
| Fwd PE | 25.8 | ||
| P/S | 8.46 | ||
| P/FCF | 25.84 | ||
| P/OCF | 22.2 | ||
| P/B | 46.48 | ||
| P/tB | 65.16 | ||
| EV/EBITDA | 24.19 |
EPS(TTM)2.77
EY3.58%
EPS(NY)3
Fwd EY3.88%
FCF(TTM)2.99
FCFY3.87%
OCF(TTM)3.48
OCFY4.5%
SpS9.14
BVpS1.66
TBVpS1.19
PEG (NY)3.4
PEG (5Y)0.85
Graham Number10.18
Profitability
| Industry Rank | Sector 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 Rank | Sector 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 | 5.12 |
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 Y8.21%
EPS Next 2Y9.75%
EPS Next 3Y6.12%
EPS Next 5Y7.59%
Revenue 1Y (TTM)14.17%
Revenue growth 3Y15.46%
Revenue growth 5Y21.25%
Sales Q2Q%14.75%
Revenue Next Year11.18%
Revenue Next 2Y10.92%
Revenue Next 3Y13.32%
Revenue Next 5Y11.52%
EBIT growth 1Y14.11%
EBIT growth 3Y29.06%
EBIT growth 5Y33.37%
EBIT Next Year16.05%
EBIT Next 3Y18%
EBIT Next 5Y13.8%
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 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.