85.18 USD
+2.42 (+2.92%)
85.1 USD
-0.08 (-0.09%)
FTNT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 281 industry peers in the Software industry. FTNT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FTNT is not overvalued while it is showing excellent growth. This is an interesting combination. This makes FTNT very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
FTNT had positive earnings in the past year.
FTNT had a positive operating cash flow in the past year.
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 has a better Return On Assets (20.01%) than 94.66% of its industry peers.
The Return On Equity of FTNT (254.88%) is better than 100.00% of its industry peers.
FTNT has a better Return On Invested Capital (38.77%) than 98.22% 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 12.03%.
The last Return On Invested Capital (38.77%) for FTNT is above the 3 year average (28.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.01% | ||
| ROE | 254.88% | ||
| ROIC | 38.77% |
ROA(3y)15.82%
ROA(5y)13.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)28.58%
ROIC(5y)24.19%
1.3 Margins
FTNT has a better Profit Margin (28.58%) than 89.32% of its industry peers.
FTNT's Profit Margin has improved in the last couple of years.
Looking at the Operating Margin, with a value of 30.86%, FTNT belongs to the top of the industry, outperforming 92.88% of the companies in the same industry.
In the last couple of years the Operating Margin of FTNT has grown nicely.
The Gross Margin of FTNT (80.86%) is better than 84.34% of its industry peers.
FTNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.86% | ||
| PM (TTM) | 28.58% | ||
| GM | 80.86% |
OM growth 3Y16.85%
OM growth 5Y13.69%
PM growth 3Y17.3%
PM growth 5Y13.83%
GM growth 3Y1.97%
GM growth 5Y1.17%
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 about the same amout of 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 5.69 indicates that FTNT is not in any danger for bankruptcy at the moment.
FTNT has a Altman-Z score of 5.69. This is in the better half of the industry: FTNT outperforms 74.38% of its industry peers.
FTNT has a debt to FCF ratio of 0.49. This is a very positive value and a sign of high solvency as it would only need 0.49 years to pay back of all of its debts.
FTNT has a better Debt to FCF ratio (0.49) than 79.72% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that FTNT is somewhat dependend on debt financing.
The Debt to Equity ratio of FTNT (0.68) is worse than 69.75% 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 | 0.68 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 5.69 |
ROIC/WACC3.59
WACC10.81%
2.3 Liquidity
FTNT has a Current Ratio of 1.03. This is a normal value and indicates that FTNT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of FTNT (1.03) is worse than 73.67% of its industry peers.
FTNT has a Quick Ratio of 1.03. This is a bad value and indicates that FTNT is not financially healthy enough and could expect problems in meeting its short term obligations.
FTNT's Quick ratio of 0.94 is on the low side compared to the rest of the industry. FTNT is outperformed by 76.16% 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 | 1.03 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
FTNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.17%, which is quite impressive.
FTNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.84% yearly.
The Revenue has grown by 14.78% 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 22.46% on average per year.
EPS 1Y (TTM)26.17%
EPS 3Y43.86%
EPS 5Y36.84%
EPS Q2Q%17.46%
Revenue 1Y (TTM)14.78%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%14.38%
3.2 Future
FTNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 9.01% yearly.
FTNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.42% yearly.
EPS Next Y8.48%
EPS Next 2Y9.58%
EPS Next 3Y10.22%
EPS Next 5Y9.01%
Revenue Next Year14.58%
Revenue Next 2Y13.08%
Revenue Next 3Y12.27%
Revenue Next 5Y12.42%
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
With a Price/Earnings ratio of 31.55, FTNT can be considered very expensive at the moment.
Based on the Price/Earnings ratio, FTNT is valued a bit cheaper than the industry average as 61.57% of the companies are valued more expensively.
FTNT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 26.41.
Based on the Price/Forward Earnings ratio of 29.93, the valuation of FTNT can be described as expensive.
FTNT's Price/Forward 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/Forward Earnings ratio to 35.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.55 | ||
| Fwd PE | 29.93 |
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 72.60% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FTNT is valued a bit cheaper than the industry average as 70.11% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.23 | ||
| EV/EBITDA | 27.69 |
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)3.72
PEG (5Y)0.86
EPS Next 2Y9.58%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
FTNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
85.18
+2.42 (+2.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.66%
Inst Owner Change-3.05%
Ins Owners16.86%
Ins Owner Change-0.78%
Market Cap63.34B
Revenue(TTM)6.55B
Net Income(TTM)1.87B
Analysts68.4
Price Target89.06 (4.56%)
Short Float %3.33%
Short Ratio4.07
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)10.51%
Min EPS beat(2)6.18%
Max EPS beat(2)14.84%
EPS beat(4)4
Avg EPS beat(4)11.8%
Min EPS beat(4)6.18%
Max EPS beat(4)19.58%
EPS beat(8)8
Avg EPS beat(8)16.09%
EPS beat(12)12
Avg EPS beat(12)14.54%
EPS beat(16)16
Avg EPS beat(16)13.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-0.75%
Revenue beat(4)1
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)2.1%
Revenue beat(8)2
Avg Revenue beat(8)-0.57%
Revenue beat(12)3
Avg Revenue beat(12)-0.84%
Revenue beat(16)5
Avg Revenue beat(16)-0.44%
PT rev (1m)-2.51%
PT rev (3m)-3.56%
EPS NQ rev (1m)10.93%
EPS NQ rev (3m)11.16%
EPS NY rev (1m)0.02%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 31.55 | ||
| Fwd PE | 29.93 | ||
| P/S | 9.66 | ||
| P/FCF | 31.23 | ||
| P/OCF | 25.88 | ||
| P/B | 86.17 | ||
| P/tB | 172.79 | ||
| EV/EBITDA | 27.69 |
EPS(TTM)2.7
EY3.17%
EPS(NY)2.85
Fwd EY3.34%
FCF(TTM)2.73
FCFY3.2%
OCF(TTM)3.29
OCFY3.86%
SpS8.81
BVpS0.99
TBVpS0.49
PEG (NY)3.72
PEG (5Y)0.86
Graham Number7.75
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.01% | ||
| ROE | 254.88% | ||
| ROCE | 44.21% | ||
| ROIC | 38.77% | ||
| ROICexc | 122.19% | ||
| ROICexgc | 163.76% | ||
| OM | 30.86% | ||
| PM (TTM) | 28.58% | ||
| GM | 80.86% | ||
| FCFM | 30.95% |
ROA(3y)15.82%
ROA(5y)13.96%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)28.58%
ROIC(5y)24.19%
ROICexc(3y)95.75%
ROICexc(5y)91.08%
ROICexgc(3y)117.7%
ROICexgc(5y)117.86%
ROCE(3y)32.59%
ROCE(5y)27.58%
ROICexgc growth 3Y23.93%
ROICexgc growth 5Y1.09%
ROICexc growth 3Y22.17%
ROICexc growth 5Y2.73%
OM growth 3Y16.85%
OM growth 5Y13.69%
PM growth 3Y17.3%
PM growth 5Y13.83%
GM growth 3Y1.97%
GM growth 5Y1.17%
F-Score8
Asset Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 0.49 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 284.09% | ||
| Cap/Sales | 6.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.8% | ||
| Profit Quality | 108.26% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 5.69 |
F-Score8
WACC10.81%
ROIC/WACC3.59
Cap/Depr(3y)252.71%
Cap/Depr(5y)258.35%
Cap/Sales(3y)5.53%
Cap/Sales(5y)6.06%
Profit Quality(3y)142.53%
Profit Quality(5y)164.41%
High Growth Momentum
Growth
EPS 1Y (TTM)26.17%
EPS 3Y43.86%
EPS 5Y36.84%
EPS Q2Q%17.46%
EPS Next Y8.48%
EPS Next 2Y9.58%
EPS Next 3Y10.22%
EPS Next 5Y9.01%
Revenue 1Y (TTM)14.78%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%14.38%
Revenue Next Year14.58%
Revenue Next 2Y13.08%
Revenue Next 3Y12.27%
Revenue Next 5Y12.42%
EBIT growth 1Y24.11%
EBIT growth 3Y41.66%
EBIT growth 5Y39.22%
EBIT Next Year19.33%
EBIT Next 3Y14.96%
EBIT Next 5Y16.33%
FCF growth 1Y-1.72%
FCF growth 3Y16%
FCF growth 5Y21.29%
OCF growth 1Y7.75%
OCF growth 3Y14.62%
OCF growth 5Y22.82%
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 for 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 earnings growth outlook for FORTINET INC?
The Earnings per Share (EPS) of FORTINET INC (FTNT) is expected to grow by 8.48% in the next year.