FORTINET INC (FTNT) Fundamental Analysis & Valuation

NASDAQ:FTNT • US34959E1091

Current stock price

86.29 USD
+1.98 (+2.35%)
At close:
86.29 USD
0 (0%)
After Hours:

This FTNT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. FTNT Profitability Analysis

1.1 Basic Checks

  • In the past year FTNT was profitable.
  • In the past year FTNT had a positive cash flow from operations.
  • 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.
FTNT Yearly Net Income VS EBIT VS OCF VS FCFFTNT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • With an excellent Return On Assets value of 17.84%, FTNT belongs to the best of the industry, outperforming 92.65% of the companies in the same industry.
  • With an excellent Return On Equity value of 149.77%, FTNT belongs to the best of the industry, outperforming 98.90% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 32.34%, FTNT belongs to the top of the industry, outperforming 97.79% 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 11.04%.
  • 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 RankSector 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%
FTNT Yearly ROA, ROE, ROICFTNT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 -200 -300

1.3 Margins

  • With an excellent Profit Margin value of 27.26%, FTNT belongs to the best of the industry, outperforming 91.18% of the companies in the same industry.
  • FTNT's Profit Margin has improved in the last couple of years.
  • FTNT has a better Operating Margin (30.51%) than 94.49% of its industry peers.
  • In the last couple of years the Operating Margin of FTNT has grown nicely.
  • FTNT has a better Gross Margin (80.46%) than 83.46% 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 RankSector 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%
FTNT Yearly Profit, Operating, Gross MarginsFTNT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

8

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.
  • Compared to 1 year ago, FTNT has less shares outstanding
  • Compared to 5 years ago, FTNT has less shares outstanding
  • The debt/assets ratio for FTNT has been reduced compared to a year ago.
FTNT Yearly Shares OutstandingFTNT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
FTNT Yearly Total Debt VS Total AssetsFTNT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • An Altman-Z score of 5.43 indicates that FTNT is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.43, FTNT is in the better half of the industry, outperforming 77.21% 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 better Debt to FCF ratio (0.45) than 77.94% 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.
  • The Debt to Equity ratio of FTNT (0.40) is worse than 63.97% of its industry peers.
  • Although FTNT's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 RankSector Rank
Debt/Equity 0.4
Debt/FCF 0.45
Altman-Z 5.43
ROIC/WACC2.97
WACC10.9%
FTNT Yearly LT Debt VS Equity VS FCFFTNT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 1.17 indicates that FTNT should not have too much problems paying its short term obligations.
  • Looking at the Current ratio, with a value of 1.17, FTNT is doing worse than 67.65% of the companies in the same industry.
  • A Quick Ratio of 1.09 indicates that FTNT should not have too much problems paying its short term obligations.
  • Looking at the Quick ratio, with a value of 1.09, FTNT is doing worse than 70.96% of the companies in the same industry.
  • 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 RankSector Rank
Current Ratio 1.17
Quick Ratio 1.09
FTNT Yearly Current Assets VS Current LiabilitesFTNT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

3. FTNT Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an nice 16.88% over the past year.
  • The Earnings Per Share has been growing by 32.75% on average over the past years. This is a very strong growth
  • The Revenue has grown by 14.17% in the past year. This is quite good.
  • Measured over the past years, FTNT shows a very strong growth in Revenue. The Revenue has been growing by 21.25% on average per year.
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 11.54% on average per year.
EPS Next Y9.69%
EPS Next 2Y10.43%
EPS Next 3Y11.2%
EPS Next 5Y7.59%
Revenue Next Year12.53%
Revenue Next 2Y11.51%
Revenue Next 3Y10.83%
Revenue Next 5Y11.54%

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.
FTNT Yearly Revenue VS EstimatesFTNT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B
FTNT Yearly EPS VS EstimatesFTNT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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Find the best growth stocksShow best growing peers

3

4. FTNT Valuation Analysis

4.1 Price/Earnings Ratio

  • The Price/Earnings ratio is 31.15, which means the current valuation is very expensive for FTNT.
  • The rest of the industry has a similar Price/Earnings ratio as FTNT.
  • The average S&P500 Price/Earnings ratio is at 26.64. FTNT is around the same levels.
  • With a Price/Forward Earnings ratio of 28.40, FTNT can be considered very expensive at the moment.
  • Compared to the rest of the industry, the Price/Forward Earnings ratio of FTNT is on the same level as its industry peers.
  • FTNT's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 21.36.
Industry RankSector Rank
PE 31.15
Fwd PE 28.4
FTNT Price Earnings VS Forward Price EarningsFTNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • FTNT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTNT is cheaper than 68.01% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, FTNT is valued a bit cheaper than 62.50% of the companies in the same industry.
Industry RankSector Rank
P/FCF 28.69
EV/EBITDA 26.37
FTNT Per share dataFTNT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

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)3.21
PEG (5Y)0.95
EPS Next 2Y10.43%
EPS Next 3Y11.2%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. FTNT Dividend Analysis

5.1 Amount

  • No dividends for FTNT!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

FTNT Fundamentals: All Metrics, Ratios and Statistics

FORTINET INC

NASDAQ:FTNT (5/1/2026, 8:00:01 PM)

After market: 86.29 0 (0%)

86.29

+1.98 (+2.35%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength6.83
Industry Growth86.34
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners71.44%
Inst Owner Change0.04%
Ins Owners17.43%
Ins Owner Change-0.33%
Market Cap63.85B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts67.06
Price Target91.75 (6.33%)
Short Float %3.17%
Short Ratio3.15
Dividend
Industry RankSector 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)-0.54%
PT rev (3m)3.25%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-4.79%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
Industry RankSector Rank
PE 31.15
Fwd PE 28.4
P/S 9.39
P/FCF 28.69
P/OCF 24.65
P/B 51.59
P/tB 72.32
EV/EBITDA 26.37
EPS(TTM)2.77
EY3.21%
EPS(NY)3.04
Fwd EY3.52%
FCF(TTM)3.01
FCFY3.49%
OCF(TTM)3.5
OCFY4.06%
SpS9.19
BVpS1.67
TBVpS1.19
PEG (NY)3.21
PEG (5Y)0.95
Graham Number10.2097 (-88.17%)
Profitability
Industry RankSector 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 RankSector 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 5.43
F-Score6
WACC10.9%
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 Y9.69%
EPS Next 2Y10.43%
EPS Next 3Y11.2%
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 2Y11.51%
Revenue Next 3Y10.83%
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 Fundamental Analysis 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 3 / 10 to FORTINET INC (FTNT). This can be considered as Overvalued.


Can you provide the profitability details for FORTINET INC?

FORTINET INC (FTNT) has a profitability rating of 9 / 10.


How financially healthy is FORTINET INC?

The financial health rating of FORTINET INC (FTNT) is 8 / 10.


Can you provide the expected EPS growth for FTNT stock?

The Earnings per Share (EPS) of FORTINET INC (FTNT) is expected to grow by 9.69% in the next year.