FORTINET INC (FTNT) Stock Fundamental Analysis
NASDAQ:FTNT • US34959E1091
80 USD
-1.67 (-2.04%)
At close: Feb 20, 2026
79.76 USD
-0.24 (-0.3%)
After Hours: 2/20/2026, 8:00:01 PM
Taking everything into account, FTNT scores 7 out of 10 in our fundamental rating. FTNT was compared to 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 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.
- FTNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- Looking at the Return On Assets, with a value of 17.84%, FTNT belongs to the top of the industry, outperforming 93.48% of the companies in the same industry.
- Looking at the Return On Equity, with a value of 149.77%, FTNT belongs to the top of the industry, outperforming 99.28% of the companies in the same industry.
- FTNT's Return On Invested Capital of 32.34% is amongst the best of the industry. FTNT outperforms 97.83% of its industry peers.
- FTNT had an Average Return On Invested Capital over the past 3 years of 29.46%. This is significantly above the industry average of 10.64%.
- The 3 year average ROIC (29.46%) for FTNT is below the current ROIC(32.34%), indicating increased profibility in the last year.
| 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 Profit Margin of 27.26%. This is amongst the best in the industry. FTNT outperforms 88.41% of its industry peers.
- FTNT's Profit Margin has improved in the last couple of years.
- With an excellent Operating Margin value of 30.51%, FTNT belongs to the best of the industry, outperforming 92.75% of the companies in the same industry.
- FTNT's Operating Margin has improved in the last couple of years.
- Looking at the Gross Margin, with a value of 80.46%, FTNT belongs to the top of the industry, outperforming 81.52% of the companies in the same industry.
- 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
- 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
- FTNT has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.33 indicates that FTNT is not in any danger for bankruptcy at the moment.
- The Altman-Z score of FTNT (5.33) is better than 80.07% 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 78.99% of its industry peers.
- A Debt/Equity ratio of 0.40 indicates that FTNT is not too dependend on debt financing.
- With a Debt to Equity ratio value of 0.40, FTNT is not doing good in the industry: 63.04% of the companies in the same industry are doing better.
- 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 | 5.33 |
ROIC/WACC2.94
WACC10.99%
2.3 Liquidity
- A Current Ratio of 1.17 indicates that FTNT should not have too much problems paying its short term obligations.
- The Current ratio of FTNT (1.17) is worse than 68.84% of its industry peers.
- A Quick Ratio of 1.09 indicates that FTNT should not have too much problems paying 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 70.29% 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.
- 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%.
- The Revenue has been growing by 21.25% on average over the past years. This is a very strong growth!
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 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
- A Price/Earnings ratio of 28.88 indicates a quite expensive valuation of FTNT.
- FTNT's Price/Earnings is on the same level as the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 26.99, FTNT is valued at the same level.
- Based on the Price/Forward Earnings ratio of 26.69, the valuation of FTNT can be described as expensive.
- 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 28.06.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.88 | ||
| Fwd PE | 26.69 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FTNT is valued a bit cheaper than the industry average as 68.12% of the companies are valued more expensively.
- Compared to the rest of the industry, the Price/Free Cash Flow ratio of FTNT indicates a somewhat cheap valuation: FTNT is cheaper than 63.77% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.73 | ||
| EV/EBITDA | 25.63 |
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)3.52
PEG (5Y)0.88
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% |
80
-1.67 (-2.04%)
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 Change1.17%
Ins Owners17.34%
Ins Owner Change-0.39%
Market Cap59.49B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts68.4
Price Target89.73 (12.16%)
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)1.14%
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)-0.07%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.88 | ||
| Fwd PE | 26.69 | ||
| P/S | 8.75 | ||
| P/FCF | 26.73 | ||
| P/OCF | 22.96 | ||
| P/B | 48.07 | ||
| P/tB | 67.39 | ||
| EV/EBITDA | 25.63 |
EPS(TTM)2.77
EY3.46%
EPS(NY)3
Fwd EY3.75%
FCF(TTM)2.99
FCFY3.74%
OCF(TTM)3.48
OCFY4.35%
SpS9.14
BVpS1.66
TBVpS1.19
PEG (NY)3.52
PEG (5Y)0.88
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 | 5.33 |
F-Score6
WACC10.99%
ROIC/WACC2.94
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.