FORTINET INC (FTNT) Stock Fundamental Analysis
NASDAQ:FTNT • US34959E1091
81.1 USD
+1.92 (+2.42%)
At close: Mar 3, 2026
80.2791 USD
-0.82 (-1.01%)
After Hours: 3/3/2026, 8:14:29 PM
Overall FTNT gets a fundamental rating of 7 out of 10. We evaluated FTNT against 276 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 not priced too expensively while it is growing strongly. Keep and eye on this one! These ratings could make FTNT a good candidate 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.
- 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 has a Return On Assets of 17.84%. This is amongst the best in the industry. FTNT outperforms 93.48% of its industry peers.
- FTNT has a Return On Equity of 149.77%. This is amongst the best in the industry. FTNT outperforms 98.91% of its industry peers.
- The Return On Invested Capital of FTNT (32.34%) is better than 98.19% of its industry peers.
- FTNT had an Average Return On Invested Capital over the past 3 years of 29.46%. This is significantly above the industry average of 10.79%.
- The 3 year average ROIC (29.46%) for FTNT is below the current ROIC(32.34%), indicating increased profibility in the last year.
| 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 has a Profit Margin of 27.26%. This is amongst the best in the industry. FTNT outperforms 90.22% of its industry peers.
- In the last couple of years the Profit Margin of FTNT has grown nicely.
- The Operating Margin of FTNT (30.51%) is better than 94.57% 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 81.52% of its industry peers.
- FTNT's Gross Margin has been stable in the last couple of years.
| 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.
- The number of shares outstanding for FTNT has been reduced compared to 1 year ago.
- Compared to 5 years ago, FTNT has less shares outstanding
- Compared to 1 year ago, FTNT has an improved debt to assets ratio.
2.2 Solvency
- FTNT has an Altman-Z score of 5.21. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
- FTNT's Altman-Z score of 5.21 is fine compared to the rest of the industry. FTNT outperforms 78.26% 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.
- Looking at the Debt to FCF ratio, with a value of 0.45, FTNT is in the better half of the industry, outperforming 79.35% of the companies in the same industry.
- A Debt/Equity ratio of 0.40 indicates that FTNT is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.40, FTNT is not doing good in the industry: 62.68% of the companies in the same industry are doing better.
- 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 | 5.21 |
ROIC/WACC2.96
WACC10.93%
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 has a worse Current ratio (1.17) than 69.20% 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 71.01% 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 | 1.17 | ||
| 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.
- The Earnings Per Share has been growing by 32.75% on average over the past years. This is a very strong growth
- The Revenue has grown by 14.17% in the past year. This is quite good.
- 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
- FTNT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 7.59% yearly.
- FTNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.52% yearly.
EPS Next Y8.21%
EPS Next 2Y9.75%
EPS Next 3Y6.12%
EPS Next 5Y7.59%
Revenue Next Year12.54%
Revenue Next 2Y11.54%
Revenue Next 3Y10.84%
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
- With a Price/Earnings ratio of 29.28, FTNT can be considered very expensive at the moment.
- Based on the Price/Earnings ratio, FTNT is valued a bit cheaper than 60.14% of the companies in the same industry.
- FTNT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.83, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 27.06 indicates a quite expensive valuation of FTNT.
- FTNT's Price/Forward 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/Forward Earnings ratio to 24.95, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.28 | ||
| Fwd PE | 27.06 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FTNT is valued a bit cheaper than 71.01% 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 64.13% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.1 | ||
| EV/EBITDA | 24.8 |
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)3.56
PEG (5Y)0.89
EPS Next 2Y9.75%
EPS Next 3Y6.12%
5. Dividend
5.1 Amount
- No dividends for FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
81.1
+1.92 (+2.42%)
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 Change2.41%
Ins Owners17.34%
Ins Owner Change-0.39%
Market Cap60.31B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts68.4
Price Target92.25 (13.75%)
Short Float %2.76%
Short Ratio2.44
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)3.81%
PT rev (3m)3.59%
EPS NQ rev (1m)-4.85%
EPS NQ rev (3m)-4.94%
EPS NY rev (1m)0.32%
EPS NY rev (3m)5.32%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)1.23%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.28 | ||
| Fwd PE | 27.06 | ||
| P/S | 8.87 | ||
| P/FCF | 27.1 | ||
| P/OCF | 23.28 | ||
| P/B | 48.74 | ||
| P/tB | 68.32 | ||
| EV/EBITDA | 24.8 |
EPS(TTM)2.77
EY3.42%
EPS(NY)3
Fwd EY3.7%
FCF(TTM)2.99
FCFY3.69%
OCF(TTM)3.48
OCFY4.3%
SpS9.14
BVpS1.66
TBVpS1.19
PEG (NY)3.56
PEG (5Y)0.89
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 | 5.21 |
F-Score6
WACC10.93%
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 Year12.54%
Revenue Next 2Y11.54%
Revenue Next 3Y10.84%
Revenue Next 5Y11.52%
EBIT growth 1Y14.11%
EBIT growth 3Y29.06%
EBIT growth 5Y33.37%
EBIT Next Year18.07%
EBIT Next 3Y14.13%
EBIT Next 5Y13.76%
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.