FORTINET INC (FTNT) Stock Fundamental Analysis
NASDAQ:FTNT • US34959E1091
75.6 USD
-4.4 (-5.5%)
At close: Feb 23, 2026
75.9684 USD
+0.37 (+0.49%)
After Hours: 2/23/2026, 8:00:01 PM
Taking everything into account, FTNT scores 7 out of 10 in our fundamental rating. FTNT was compared to 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 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
- In the past year FTNT was profitable.
- In the past year FTNT had a positive cash flow from operations.
- 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
- FTNT has a better Return On Assets (17.84%) than 93.80% of its industry peers.
- FTNT has a better Return On Equity (149.77%) than 99.27% of its industry peers.
- FTNT's Return On Invested Capital of 32.34% is amongst the best of the industry. FTNT outperforms 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 10.76%.
- 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 has a Profit Margin of 27.26%. This is amongst the best in the industry. FTNT outperforms 88.69% of its industry peers.
- In the last couple of years the Profit Margin of FTNT has grown nicely.
- FTNT has a Operating Margin of 30.51%. This is amongst the best in the industry. FTNT outperforms 92.70% of its industry peers.
- FTNT's Operating Margin has improved in the last couple of years.
- FTNT has a better Gross Margin (80.46%) than 81.02% 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 | 30.51% | ||
| 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FTNT is creating value.
- FTNT has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for FTNT has been reduced compared to 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 5.03 indicates that FTNT is not in any danger for bankruptcy at the moment.
- With a decent Altman-Z score value of 5.03, FTNT is doing good in the industry, outperforming 79.20% of the companies in the same industry.
- The Debt to FCF ratio of FTNT is 0.45, which is an excellent value as it means it would take FTNT, only 0.45 years of fcf income to pay off all of its debts.
- FTNT has a Debt to FCF ratio of 0.45. This is in the better half of the industry: FTNT outperforms 79.20% of its industry peers.
- A Debt/Equity ratio of 0.40 indicates that FTNT is not too dependend on debt financing.
- The Debt to Equity ratio of FTNT (0.40) is worse than 62.77% 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 | 0.4 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 5.03 |
ROIC/WACC2.94
WACC11%
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.
- 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.
- The Quick ratio of FTNT (1.09) is worse than 69.71% of its industry peers.
- 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
- The Earnings Per Share has grown by an nice 16.88% over the past year.
- FTNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.75% yearly.
- 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.
- Based on estimates for the next years, FTNT will show a quite strong growth in Revenue. The Revenue will grow by 11.52% on average per year.
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
- 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 27.29, which means the current valuation is very expensive for FTNT.
- Compared to the rest of the industry, the Price/Earnings ratio of FTNT is on the same level as its industry peers.
- FTNT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 26.64, which is the current average of the S&P500 Index.
- The Price/Forward Earnings ratio is 25.22, which means the current valuation is very expensive for FTNT.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FTNT is on the same level as its industry peers.
- Compared to an average S&P500 Price/Forward Earnings ratio of 27.75, FTNT is valued at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.29 | ||
| Fwd PE | 25.22 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTNT indicates a somewhat cheap valuation: FTNT is cheaper than 68.61% of the companies listed 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 64.96% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.26 | ||
| EV/EBITDA | 23.6 |
4.3 Compensation for Growth
- The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
- The excellent profitability rating of FTNT may justify a higher PE ratio.
PEG (NY)3.32
PEG (5Y)0.83
EPS Next 2Y9.75%
EPS Next 3Y6.12%
5. Dividend
5.1 Amount
- FTNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
75.6
-4.4 (-5.5%)
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 Cap56.22B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts68.4
Price Target89.73 (18.69%)
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 | 27.29 | ||
| Fwd PE | 25.22 | ||
| P/S | 8.27 | ||
| P/FCF | 25.26 | ||
| P/OCF | 21.7 | ||
| P/B | 45.43 | ||
| P/tB | 63.68 | ||
| EV/EBITDA | 23.6 |
EPS(TTM)2.77
EY3.66%
EPS(NY)3
Fwd EY3.96%
FCF(TTM)2.99
FCFY3.96%
OCF(TTM)3.48
OCFY4.61%
SpS9.14
BVpS1.66
TBVpS1.19
PEG (NY)3.32
PEG (5Y)0.83
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 | 5.03 |
F-Score6
WACC11%
ROIC/WACC2.94
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.