84.57 USD
+1.81 (+2.19%)
We assign a fundamental rating of 7 out of 10 to FTNT. FTNT was compared to 281 industry peers in the Software industry. FTNT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FTNT is not overvalued while it is showing excellent growth. This is an interesting combination. 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.
In the past year FTNT had a positive cash flow from operations.
Each year in the past 5 years FTNT has been profitable.
Each year in the past 5 years FTNT had a positive operating cash flow.
1.2 Ratios
FTNT's Return On Assets of 20.01% is amongst the best of the industry. FTNT outperforms 94.66% of its industry peers.
Looking at the Return On Equity, with a value of 254.88%, FTNT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
FTNT has a better Return On Invested Capital (38.77%) than 98.22% 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 12.03%.
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
FTNT's Profit Margin of 28.58% is amongst the best of the industry. FTNT outperforms 89.32% of its industry peers.
In the last couple of years the Profit Margin of FTNT has grown nicely.
FTNT has a Operating Margin of 30.86%. This is amongst the best in the industry. FTNT outperforms 92.88% of its industry peers.
In the last couple of years the Operating Margin of FTNT has grown nicely.
FTNT has a Gross Margin of 80.86%. This is amongst the best in the industry. FTNT outperforms 84.34% 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 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.
FTNT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, FTNT has less shares outstanding
The debt/assets ratio for FTNT has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 5.57 indicates that FTNT is not in any danger for bankruptcy at the moment.
FTNT has a Altman-Z score of 5.57. This is in the better half of the industry: FTNT outperforms 74.02% 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 79.72% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that FTNT is somewhat dependend on debt financing.
The Debt to Equity ratio of FTNT (0.68) is worse than 69.75% 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 | 0.68 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 5.57 |
ROIC/WACC3.58
WACC10.83%
2.3 Liquidity
A Current Ratio of 1.03 indicates that FTNT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.03, FTNT is not doing good in the industry: 73.67% of the companies in the same industry are doing better.
A Quick Ratio of 0.94 indicates that FTNT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.94, FTNT is doing worse than 76.16% 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 | 1.03 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.17% over the past year.
FTNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.84% yearly.
The Revenue has grown by 14.78% in the past year. This is quite good.
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.
Based on estimates for the next years, FTNT will show a quite strong growth in Revenue. The Revenue will grow by 12.42% on average per year.
EPS Next Y8.48%
EPS Next 2Y9.58%
EPS Next 3Y10.22%
EPS Next 5Y9.01%
Revenue Next Year14.58%
Revenue Next 2Y13.08%
Revenue Next 3Y12.27%
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.
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
The Price/Earnings ratio is 31.32, 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 63.70% of the companies are valued more expensively.
FTNT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.37, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 29.71, which means the current valuation is very expensive for FTNT.
FTNT's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 36.20. FTNT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.32 | ||
| Fwd PE | 29.71 |
4.2 Price Multiples
73.31% of the companies in the same industry are more expensive than FTNT, based on the Enterprise Value to EBITDA ratio.
69.75% of the companies in the same industry are more expensive than FTNT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31 | ||
| EV/EBITDA | 26.86 |
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)3.69
PEG (5Y)0.85
EPS Next 2Y9.58%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
No dividends for FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:FTNT (12/4/2025, 12:04:07 PM)
84.57
+1.81 (+2.19%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.66%
Inst Owner Change-3.05%
Ins Owners16.86%
Ins Owner Change-0.78%
Market Cap62.89B
Revenue(TTM)6.55B
Net Income(TTM)1.87B
Analysts68.4
Price Target89.06 (5.31%)
Short Float %3.33%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)-2.51%
PT rev (3m)-3.56%
EPS NQ rev (1m)10.93%
EPS NQ rev (3m)11.16%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.32 | ||
| Fwd PE | 29.71 | ||
| P/S | 9.59 | ||
| P/FCF | 31 | ||
| P/OCF | 25.69 | ||
| P/B | 85.55 | ||
| P/tB | 171.55 | ||
| EV/EBITDA | 26.86 |
EPS(TTM)2.7
EY3.19%
EPS(NY)2.85
Fwd EY3.37%
FCF(TTM)2.73
FCFY3.23%
OCF(TTM)3.29
OCFY3.89%
SpS8.81
BVpS0.99
TBVpS0.49
PEG (NY)3.69
PEG (5Y)0.85
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 | 5.57 |
F-Score8
WACC10.83%
ROIC/WACC3.58
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 Y8.48%
EPS Next 2Y9.58%
EPS Next 3Y10.22%
EPS Next 5Y9.01%
Revenue 1Y (TTM)14.78%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%14.38%
Revenue Next Year14.58%
Revenue Next 2Y13.08%
Revenue Next 3Y12.27%
Revenue Next 5Y12.42%
EBIT growth 1Y24.11%
EBIT growth 3Y41.66%
EBIT growth 5Y39.22%
EBIT Next Year19.33%
EBIT Next 3Y14.96%
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 for 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 earnings growth outlook for FORTINET INC?
The Earnings per Share (EPS) of FORTINET INC (FTNT) is expected to grow by 8.48% in the next year.