78.32 USD
+0.38 (+0.49%)
We assign a fundamental rating of 7 out of 10 to FTNT. FTNT was compared to 276 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 showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! With these ratings, FTNT could be worth investigating further for growth and quality investing!.
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.
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.
1.2 Ratios
The Return On Assets of FTNT (20.01%) is better than 96.01% 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 Return On Invested Capital of 38.77%. This is amongst the best in the industry. FTNT outperforms 98.55% 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 10.78%.
The 3 year average ROIC (28.58%) for FTNT is below the current ROIC(38.77%), indicating increased profibility in the last year.
| Industry Rank | Sector 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%
1.3 Margins
Looking at the Profit Margin, with a value of 28.58%, FTNT belongs to the top of the industry, outperforming 88.41% of the companies in the same industry.
In the last couple of years the Profit Margin of FTNT has grown nicely.
FTNT has a better Operating Margin (30.86%) than 92.75% of its industry peers.
In the last couple of years the Operating Margin of FTNT has grown nicely.
Looking at the Gross Margin, with a value of 80.86%, FTNT belongs to the top of the industry, outperforming 83.70% 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 | 30.86% | ||
| 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%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FTNT is creating value.
The number of shares outstanding for FTNT remains at a similar level compared to 1 year ago.
FTNT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, FTNT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.32 indicates that FTNT is not in any danger for bankruptcy at the moment.
FTNT's Altman-Z score of 5.32 is fine compared to the rest of the industry. FTNT outperforms 73.19% of its industry peers.
FTNT has a debt to FCF ratio of 0.49. This is a very positive value and a sign of high solvency as it would only need 0.49 years to pay back of all of its debts.
FTNT's Debt to FCF ratio of 0.49 is fine compared to the rest of the industry. FTNT outperforms 78.99% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that FTNT is somewhat dependend on debt financing.
FTNT has a Debt to Equity ratio of 0.68. This is in the lower half of the industry: FTNT underperforms 69.93% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 5.32 |
ROIC/WACC3.55
WACC10.93%
2.3 Liquidity
A Current Ratio of 1.03 indicates that FTNT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.03, FTNT is doing worse than 73.55% of the companies in the same industry.
A Quick Ratio of 0.94 indicates that FTNT may have some problems paying 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 76.81% 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.94 |
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.
The Earnings Per Share has been growing by 36.84% on average over the past years. This is a very strong growth
The Revenue has grown by 14.78% in the past year. This is quite good.
FTNT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.46% yearly.
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 Y15.92%
EPS Next 2Y12.37%
EPS Next 3Y11.92%
EPS Next 5Y9.01%
Revenue Next Year14.64%
Revenue Next 2Y12.93%
Revenue Next 3Y12.15%
Revenue Next 5Y12.42%
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 29.01, which means the current valuation is very expensive for FTNT.
Based on the Price/Earnings ratio, FTNT is valued a bit cheaper than the industry average as 64.86% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of FTNT to the average of the S&P500 Index (26.87), we can say FTNT is valued inline with the index average.
FTNT is valuated quite expensively with a Price/Forward Earnings ratio of 26.17.
Based on the Price/Forward Earnings ratio, FTNT is valued a bit cheaper than the industry average as 64.13% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.46, FTNT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.01 | ||
| Fwd PE | 26.17 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, FTNT is valued a bit cheaper than 73.55% 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 70.29% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.71 | ||
| EV/EBITDA | 25.21 |
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)1.82
PEG (5Y)0.79
EPS Next 2Y12.37%
EPS Next 3Y11.92%
5. Dividend
5.1 Amount
No dividends for FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:FTNT (1/6/2026, 3:27:06 PM)
78.32
+0.38 (+0.49%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.81%
Inst Owner Change0%
Ins Owners17.34%
Ins Owner Change-1.18%
Market Cap58.24B
Revenue(TTM)6.55B
Net Income(TTM)1.87B
Analysts67.76
Price Target88.72 (13.28%)
Short Float %3.83%
Short Ratio4.25
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)10.51%
Min EPS beat(2)6.18%
Max EPS beat(2)14.84%
EPS beat(4)4
Avg EPS beat(4)11.8%
Min EPS beat(4)6.18%
Max EPS beat(4)19.58%
EPS beat(8)8
Avg EPS beat(8)16.09%
EPS beat(12)12
Avg EPS beat(12)14.54%
EPS beat(16)16
Avg EPS beat(16)13.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-0.75%
Revenue beat(4)1
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)2.1%
Revenue beat(8)2
Avg Revenue beat(8)-0.57%
Revenue beat(12)3
Avg Revenue beat(12)-0.84%
Revenue beat(16)5
Avg Revenue beat(16)-0.44%
PT rev (1m)-0.38%
PT rev (3m)-2.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11.05%
EPS NY rev (1m)0%
EPS NY rev (3m)6.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.01 | ||
| Fwd PE | 26.17 | ||
| P/S | 8.89 | ||
| P/FCF | 28.71 | ||
| P/OCF | 23.79 | ||
| P/B | 79.23 | ||
| P/tB | 158.87 | ||
| EV/EBITDA | 25.21 |
EPS(TTM)2.7
EY3.45%
EPS(NY)2.99
Fwd EY3.82%
FCF(TTM)2.73
FCFY3.48%
OCF(TTM)3.29
OCFY4.2%
SpS8.81
BVpS0.99
TBVpS0.49
PEG (NY)1.82
PEG (5Y)0.79
Graham Number7.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.01% | ||
| ROE | 254.88% | ||
| ROCE | 44.21% | ||
| ROIC | 38.77% | ||
| ROICexc | 122.19% | ||
| ROICexgc | 163.76% | ||
| OM | 30.86% | ||
| PM (TTM) | 28.58% | ||
| GM | 80.86% | ||
| FCFM | 30.95% |
ROA(3y)15.82%
ROA(5y)13.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)28.58%
ROIC(5y)24.19%
ROICexc(3y)95.75%
ROICexc(5y)91.08%
ROICexgc(3y)117.7%
ROICexgc(5y)117.86%
ROCE(3y)32.59%
ROCE(5y)27.58%
ROICexgc growth 3Y23.93%
ROICexgc growth 5Y1.09%
ROICexc growth 3Y22.17%
ROICexc growth 5Y2.73%
OM growth 3Y16.85%
OM growth 5Y13.69%
PM growth 3Y17.3%
PM growth 5Y13.83%
GM growth 3Y1.97%
GM growth 5Y1.17%
F-Score8
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 0.49 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 284.09% | ||
| Cap/Sales | 6.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.8% | ||
| Profit Quality | 108.26% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 5.32 |
F-Score8
WACC10.93%
ROIC/WACC3.55
Cap/Depr(3y)252.71%
Cap/Depr(5y)258.35%
Cap/Sales(3y)5.53%
Cap/Sales(5y)6.06%
Profit Quality(3y)142.53%
Profit Quality(5y)164.41%
High Growth Momentum
Growth
EPS 1Y (TTM)26.17%
EPS 3Y43.86%
EPS 5Y36.84%
EPS Q2Q%17.46%
EPS Next Y15.92%
EPS Next 2Y12.37%
EPS Next 3Y11.92%
EPS Next 5Y9.01%
Revenue 1Y (TTM)14.78%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%14.38%
Revenue Next Year14.64%
Revenue Next 2Y12.93%
Revenue Next 3Y12.15%
Revenue Next 5Y12.42%
EBIT growth 1Y24.11%
EBIT growth 3Y41.66%
EBIT growth 5Y39.22%
EBIT Next Year25.5%
EBIT Next 3Y15.68%
EBIT Next 5Y16.33%
FCF growth 1Y-1.72%
FCF growth 3Y16%
FCF growth 5Y21.29%
OCF growth 1Y7.75%
OCF growth 3Y14.62%
OCF growth 5Y22.82%
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.