FORTINET INC (FTNT) Stock Fundamental Analysis
NASDAQ:FTNT • US34959E1091
79.03 USD
-0.17 (-0.21%)
At close: Feb 27, 2026
78.2 USD
-0.83 (-1.05%)
After Hours: 2/27/2026, 8:06:02 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 overvalued while it is showing excellent growth. This is an interesting combination. 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.
- In the past year FTNT had a positive cash flow from operations.
- Each year in the past 5 years FTNT has been profitable.
- In the past 5 years FTNT always reported a positive cash flow from operatings.
1.2 Ratios
- FTNT's Return On Assets of 17.84% is amongst the best of the industry. FTNT outperforms 93.84% of its industry peers.
- FTNT's Return On Equity of 149.77% is amongst the best of the industry. FTNT outperforms 98.91% of its industry peers.
- Looking at the Return On Invested Capital, with a value of 32.34%, FTNT belongs to the top of the industry, outperforming 98.19% of the companies in the same industry.
- Measured over the past 3 years, the Average Return On Invested Capital for FTNT is significantly above the industry average of 10.73%.
- 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 90.58% of the companies in the same industry.
- In the last couple of years the Profit Margin of FTNT has grown nicely.
- FTNT has a better Operating Margin (30.51%) than 94.57% of its industry peers.
- In the last couple of years the Operating Margin of FTNT has grown nicely.
- FTNT has a Gross Margin of 80.46%. This is amongst the best in the industry. FTNT outperforms 81.52% 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.
- FTNT has less shares outstanding than it did 5 years ago.
- Compared to 1 year ago, FTNT has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 5.20 indicates that FTNT is not in any danger for bankruptcy at the moment.
- FTNT has a Altman-Z score of 5.20. This is in the better half of the industry: FTNT outperforms 78.26% of its industry peers.
- 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's Debt to FCF ratio of 0.45 is fine compared to the rest of the industry. FTNT outperforms 79.35% of its industry peers.
- FTNT has a Debt/Equity ratio of 0.40. This is a healthy value indicating a solid balance between debt and equity.
- 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 62.32% 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 | 5.2 |
ROIC/WACC2.97
WACC10.88%
2.3 Liquidity
- A Current Ratio of 1.17 indicates that FTNT should not have too much problems paying 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 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.
- 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.
- 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.
- 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
- FTNT is valuated quite expensively with a Price/Earnings ratio of 28.53.
- FTNT's Price/Earnings ratio is in line with the industry average.
- When comparing the Price/Earnings ratio of FTNT to the average of the S&P500 Index (27.07), we can say FTNT is valued inline with the index average.
- The Price/Forward Earnings ratio is 26.37, 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.
- When comparing the Price/Forward Earnings ratio of FTNT to the average of the S&P500 Index (28.05), we can say FTNT is valued inline with the index average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.53 | ||
| Fwd PE | 26.37 |
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.
- FTNT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FTNT is cheaper than 63.77% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.4 | ||
| EV/EBITDA | 24.75 |
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)3.47
PEG (5Y)0.87
EPS Next 2Y9.75%
EPS Next 3Y6.12%
5. Dividend
5.1 Amount
- No dividends for FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
79.03
-0.17 (-0.21%)
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 Cap58.77B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts68.4
Price Target92.25 (16.73%)
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)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 | 28.53 | ||
| Fwd PE | 26.37 | ||
| P/S | 8.64 | ||
| P/FCF | 26.4 | ||
| P/OCF | 22.69 | ||
| P/B | 47.49 | ||
| P/tB | 66.57 | ||
| EV/EBITDA | 24.75 |
EPS(TTM)2.77
EY3.5%
EPS(NY)3
Fwd EY3.79%
FCF(TTM)2.99
FCFY3.79%
OCF(TTM)3.48
OCFY4.41%
SpS9.14
BVpS1.66
TBVpS1.19
PEG (NY)3.47
PEG (5Y)0.87
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 | 5.2 |
F-Score6
WACC10.88%
ROIC/WACC2.97
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.