FORTINET INC (FTNT) Stock Fundamental Analysis
NASDAQ:FTNT • US34959E1091
75.23 USD
-0.37 (-0.49%)
At close: Feb 24, 2026
75.1 USD
-0.13 (-0.17%)
After Hours: 2/24/2026, 8:00:01 PM
We assign a fundamental rating of 7 out of 10 to FTNT. FTNT was compared to 274 industry peers in the Software industry. Both the health and profitability get an excellent rating, making FTNT a very profitable company, without any liquidiy or solvency issues. FTNT is showing excellent growth while it is valued at reasonable prices. 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
- In the past year FTNT was profitable.
- 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
- The Return On Assets of FTNT (17.84%) is better than 93.80% of its industry peers.
- The Return On Equity of FTNT (149.77%) is better than 99.27% of its industry peers.
- With an excellent Return On Invested Capital value of 32.34%, FTNT belongs to the best of the industry, outperforming 97.81% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for FTNT is significantly above the industry average of 10.77%.
- 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
- Looking at the Profit Margin, with a value of 27.26%, FTNT belongs to the top of the industry, outperforming 88.69% of the companies in the same industry.
- FTNT's Profit Margin has improved in the last couple of years.
- 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.
- The Gross Margin of FTNT (80.46%) is better than 81.02% 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.
- FTNT has less 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 5.03 indicates that FTNT is not in any danger for bankruptcy at the moment.
- FTNT has a Altman-Z score of 5.03. This is in the better half of the industry: FTNT outperforms 79.20% 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.
- With a decent Debt to FCF ratio value of 0.45, FTNT is doing good in the industry, outperforming 79.20% of the companies in the same industry.
- A Debt/Equity ratio of 0.40 indicates that FTNT is not too dependend on debt financing.
- FTNT has a worse Debt to Equity ratio (0.40) than 62.77% 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 | 5.03 |
ROIC/WACC2.95
WACC10.95%
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 Current ratio of 1.17. This is in the lower half of the industry: FTNT underperforms 67.88% of its industry peers.
- A Quick Ratio of 1.09 indicates that FTNT should not have too much problems paying its short term obligations.
- With a Quick ratio value of 1.09, FTNT is not doing good in the industry: 69.71% of the companies in the same industry are doing better.
- 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
- 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
- FTNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.17%.
- FTNT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 21.25% yearly.
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
- Based on estimates for the next years, FTNT will show a small growth in Earnings Per Share. The EPS will grow by 7.59% on average per year.
- 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.
- 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
- With a Price/Earnings ratio of 27.16, FTNT can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Earnings ratio as FTNT.
- The average S&P500 Price/Earnings ratio is at 26.98. FTNT is around the same levels.
- The Price/Forward Earnings ratio is 25.10, which means the current valuation is very expensive for FTNT.
- FTNT's Price/Forward Earnings ratio is in line with the industry average.
- FTNT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.01.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 27.16 | ||
| Fwd PE | 25.1 |
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.
- FTNT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FTNT is cheaper than 64.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 25.13 | ||
| EV/EBITDA | 23.6 |
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)3.31
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% |
75.23
-0.37 (-0.49%)
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 Cap55.94B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts68.4
Price Target89.73 (19.27%)
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 | 27.16 | ||
| Fwd PE | 25.1 | ||
| P/S | 8.23 | ||
| P/FCF | 25.13 | ||
| P/OCF | 21.6 | ||
| P/B | 45.21 | ||
| P/tB | 63.37 | ||
| EV/EBITDA | 23.6 |
EPS(TTM)2.77
EY3.68%
EPS(NY)3
Fwd EY3.98%
FCF(TTM)2.99
FCFY3.98%
OCF(TTM)3.48
OCFY4.63%
SpS9.14
BVpS1.66
TBVpS1.19
PEG (NY)3.31
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
WACC10.95%
ROIC/WACC2.95
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.