FORTINET INC (FTNT) Fundamental Analysis & Valuation
NASDAQ:FTNT • US34959E1091
84.4 USD
+0.92 (+1.1%)
At close: Mar 12, 2026
84.0234 USD
-0.38 (-0.45%)
After Hours: 3/12/2026, 8:00:01 PM
This FTNT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
FTNT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 277 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 growing strongly while it is still valued neutral. This is a good combination! These ratings could make FTNT a good candidate for growth and quality investing.
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.
- FTNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- FTNT has a Return On Assets of 17.84%. This is amongst the best in the industry. FTNT outperforms 92.78% of its industry peers.
- The Return On Equity of FTNT (149.77%) is better than 98.92% of its industry peers.
- FTNT's Return On Invested Capital of 32.34% is amongst the best of the industry. FTNT outperforms 97.83% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FTNT is significantly above the industry average of 10.89%.
- 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
- The Profit Margin of FTNT (27.26%) is better than 90.25% of its industry peers.
- FTNT's Profit Margin has improved in the last couple of years.
- Looking at the Operating Margin, with a value of 30.51%, FTNT belongs to the top of the industry, outperforming 94.58% of the companies in the same industry.
- In the last couple of years the Operating Margin of FTNT has grown nicely.
- Looking at the Gross Margin, with a value of 80.46%, FTNT belongs to the top of the industry, outperforming 82.31% of the companies in the same industry.
- 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. FTNT Health Analysis
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.
- FTNT has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for FTNT has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 5.39 indicates that FTNT is not in any danger for bankruptcy at the moment.
- FTNT's Altman-Z score of 5.39 is fine compared to the rest of the industry. FTNT outperforms 78.34% 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 better Debt to FCF ratio (0.45) than 79.42% 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 62.09% 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 | 5.39 |
ROIC/WACC2.96
WACC10.94%
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 67.87% 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.
- Looking at the Quick ratio, with a value of 1.09, FTNT is doing worse than 70.76% 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. FTNT Growth Analysis
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
- Looking at the last year, FTNT shows a quite strong growth in Revenue. The Revenue has grown by 14.17% in the last year.
- 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
- The Earnings Per Share is expected to grow by 7.59% on average over the next years.
- Based on estimates for the next years, FTNT will show a quite strong growth in Revenue. The Revenue will grow by 11.54% on average per year.
EPS Next Y9.72%
EPS Next 2Y10.46%
EPS Next 3Y11.19%
EPS Next 5Y7.59%
Revenue Next Year12.53%
Revenue Next 2Y11.53%
Revenue Next 3Y10.82%
Revenue Next 5Y11.54%
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. FTNT Valuation Analysis
4.1 Price/Earnings Ratio
- FTNT is valuated quite expensively with a Price/Earnings ratio of 30.47.
- The rest of the industry has a similar Price/Earnings ratio as FTNT.
- FTNT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.71, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 27.77, which means the current valuation is very expensive for FTNT.
- FTNT's Price/Forward Earnings ratio is in line with the industry average.
- When comparing the Price/Forward Earnings ratio of FTNT to the average of the S&P500 Index (23.82), we can say FTNT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.47 | ||
| Fwd PE | 27.77 |
4.2 Price Multiples
- FTNT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTNT is cheaper than 70.76% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, FTNT is valued a bit cheaper than 63.90% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.06 | ||
| EV/EBITDA | 26.09 |
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)3.14
PEG (5Y)0.93
EPS Next 2Y10.46%
EPS Next 3Y11.19%
5. FTNT Dividend Analysis
5.1 Amount
- No dividends for FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FTNT Fundamentals: All Metrics, Ratios and Statistics
84.4
+0.92 (+1.1%)
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 Owners71.09%
Inst Owner Change2.3%
Ins Owners17.43%
Ins Owner Change-0.33%
Market Cap62.45B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts67.6
Price Target92.25 (9.3%)
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)2.8%
PT rev (3m)3.77%
EPS NQ rev (1m)-4.85%
EPS NQ rev (3m)-4.85%
EPS NY rev (1m)1.39%
EPS NY rev (3m)1.46%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)1.21%
Revenue NY rev (3m)1.12%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.47 | ||
| Fwd PE | 27.77 | ||
| P/S | 9.18 | ||
| P/FCF | 28.06 | ||
| P/OCF | 24.11 | ||
| P/B | 50.46 | ||
| P/tB | 70.74 | ||
| EV/EBITDA | 26.09 |
EPS(TTM)2.77
EY3.28%
EPS(NY)3.04
Fwd EY3.6%
FCF(TTM)3.01
FCFY3.56%
OCF(TTM)3.5
OCFY4.15%
SpS9.19
BVpS1.67
TBVpS1.19
PEG (NY)3.14
PEG (5Y)0.93
Graham Number10.21
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 | 5.39 |
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 Y9.72%
EPS Next 2Y10.46%
EPS Next 3Y11.19%
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 2Y11.53%
Revenue Next 3Y10.82%
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 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.