FORTINET INC (FTNT) Stock Fundamental Analysis
NASDAQ:FTNT • US34959E1091
86.03 USD
+1.77 (+2.1%)
Last: Feb 13, 2026, 02:00 PM
Overall FTNT gets a fundamental rating of 7 out of 10. We evaluated FTNT against 277 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! 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.
- FTNT had a positive operating cash flow in the past year.
- 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
- With an excellent Return On Assets value of 17.84%, FTNT belongs to the best of the industry, outperforming 93.50% of the companies in the same industry.
- FTNT's Return On Equity of 149.77% is amongst the best of the industry. FTNT outperforms 99.28% 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 97.83% 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 10.83%.
- 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 better Profit Margin (27.26%) than 88.09% 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 92.42% of its industry peers.
- FTNT's Operating Margin has improved in the last couple of years.
- FTNT's Gross Margin of 80.46% is amongst the best of the industry. FTNT outperforms 81.59% 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.
- FTNT has a better debt/assets ratio than last year.
2.2 Solvency
- FTNT has an Altman-Z score of 5.45. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
- FTNT has a Altman-Z score of 5.45. This is amongst the best in the industry. FTNT outperforms 81.23% 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 78.70% 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 has a Debt to Equity ratio of 0.40. This is in the lower half of the industry: FTNT underperforms 62.82% 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 | 5.45 |
ROIC/WACC2.92
WACC11.08%
2.3 Liquidity
- A Current Ratio of 1.17 indicates that FTNT should not have too much problems paying its short term obligations.
- With a Current ratio value of 1.17, FTNT is not doing good in the industry: 68.59% of the companies in the same industry are doing better.
- 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's Quick ratio of 1.09 is on the low side compared to the rest of the industry. FTNT is outperformed by 70.04% 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
- 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.
- Measured over the past years, FTNT shows a very strong growth in Earnings Per Share. The EPS has been growing by 32.75% on average per year.
- 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
- 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
- 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.
- 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 31.06, FTNT can be considered very expensive at the moment.
- FTNT's Price/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/Earnings ratio to 27.67, which is the current average of the S&P500 Index.
- FTNT is valuated quite expensively with a Price/Forward Earnings ratio of 28.70.
- The rest of the industry has a similar Price/Forward Earnings ratio as FTNT.
- The average S&P500 Price/Forward Earnings ratio is at 27.69. FTNT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.06 | ||
| Fwd PE | 28.7 |
4.2 Price Multiples
- FTNT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTNT is cheaper than 66.79% 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 | 28.74 | ||
| EV/EBITDA | 26.5 |
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)3.78
PEG (5Y)0.95
EPS Next 2Y9.75%
EPS Next 3Y6.12%
5. Dividend
5.1 Amount
- No dividends for FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:FTNT (2/13/2026, 2:00:07 PM)
86.03
+1.77 (+2.1%)
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 Owners70.81%
Inst Owner Change-2.51%
Ins Owners17.34%
Ins Owner Change-0.39%
Market Cap63.98B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts68.4
Price Target89.73 (4.3%)
Short Float %3.27%
Short Ratio3.4
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)1.14%
PT rev (3m)-1.91%
EPS NQ rev (1m)0%
EPS NQ rev (3m)4.58%
EPS NY rev (1m)0.17%
EPS NY rev (3m)5.3%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.51%
Revenue NY rev (1m)-0.04%
Revenue NY rev (3m)-0.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.06 | ||
| Fwd PE | 28.7 | ||
| P/S | 9.41 | ||
| P/FCF | 28.74 | ||
| P/OCF | 24.7 | ||
| P/B | 51.7 | ||
| P/tB | 72.47 | ||
| EV/EBITDA | 26.5 |
EPS(TTM)2.77
EY3.22%
EPS(NY)3
Fwd EY3.48%
FCF(TTM)2.99
FCFY3.48%
OCF(TTM)3.48
OCFY4.05%
SpS9.14
BVpS1.66
TBVpS1.19
PEG (NY)3.78
PEG (5Y)0.95
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 | 5.45 |
F-Score6
WACC11.08%
ROIC/WACC2.92
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.