76.39 USD
-1.94 (-2.48%)
76.21 USD
-0.18 (-0.24%)
We assign a fundamental rating of 7 out of 10 to FTNT. 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 growing strongly while it is still valued neutral. This is a good 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.
- FTNT had positive earnings in each of the past 5 years.
- FTNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- The Return On Assets of FTNT (20.01%) is better than 95.65% of its industry peers.
- FTNT's Return On Equity of 254.88% is amongst the best of the industry. FTNT outperforms 100.00% of its industry peers.
- With an excellent Return On Invested Capital value of 38.77%, FTNT belongs to the best of the industry, outperforming 98.55% 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 10.78%.
- The 3 year average ROIC (28.58%) for FTNT is below the current ROIC(38.77%), indicating increased profibility in the last year.
| 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 Profit Margin of 28.58%. This is amongst the best in the industry. FTNT outperforms 88.77% of its industry peers.
- In the last couple of years the Profit Margin of FTNT has grown nicely.
- With an excellent Operating Margin value of 30.86%, FTNT belongs to the best of the industry, outperforming 92.75% of the companies in the same industry.
- In the last couple of years the Operating Margin of FTNT has grown nicely.
- FTNT's Gross Margin of 80.86% is amongst the best of the industry. FTNT outperforms 83.70% 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 | 30.86% | ||
| 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.
- Compared to 1 year ago, FTNT has about the same amount of shares outstanding.
- FTNT has less shares outstanding than it did 5 years ago.
- The debt/assets ratio for FTNT has been reduced compared to a year ago.
2.2 Solvency
- FTNT has an Altman-Z score of 5.34. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
- FTNT has a better Altman-Z score (5.34) than 73.55% 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.
- With a decent Debt to FCF ratio value of 0.49, FTNT is doing good in the industry, outperforming 78.99% of the companies in the same industry.
- FTNT has a Debt/Equity ratio of 0.68. This is a neutral value indicating FTNT is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.68, FTNT is doing worse than 69.93% of the companies in the same industry.
- 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 | 5.34 |
ROIC/WACC3.52
WACC11.02%
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.
- FTNT has a Current ratio of 1.03. This is in the lower half of the industry: FTNT underperforms 73.55% of its industry peers.
- A Quick Ratio of 0.94 indicates that FTNT may have some problems paying 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 76.81% 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 | 1.03 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 26.17% over the past year.
- The Earnings Per Share has been growing by 36.84% 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 14.78%.
- FTNT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.46% yearly.
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
- Based on estimates for the next years, FTNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 9.01% on average per year.
- Based on estimates for the next years, FTNT will show a quite strong growth in Revenue. The Revenue will grow by 12.42% on average per year.
EPS Next Y15.92%
EPS Next 2Y12.37%
EPS Next 3Y11.92%
EPS Next 5Y9.01%
Revenue Next Year14.64%
Revenue Next 2Y12.93%
Revenue Next 3Y12.15%
Revenue Next 5Y12.42%
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
- With a Price/Earnings ratio of 28.29, FTNT can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of FTNT indicates a somewhat cheap valuation: FTNT is cheaper than 64.86% of the companies listed in the same industry.
- When comparing the Price/Earnings ratio of FTNT to the average of the S&P500 Index (27.30), we can say FTNT is valued inline with the index average.
- FTNT is valuated quite expensively with a Price/Forward Earnings ratio of 25.53.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FTNT indicates a somewhat cheap valuation: FTNT is cheaper than 64.13% of the companies listed in the same industry.
- FTNT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 24.04, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 25.53 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FTNT is valued a bit cheaper than 72.83% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, FTNT is valued a bit cheaper than 69.57% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.01 | ||
| EV/EBITDA | 25.34 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- The excellent profitability rating of FTNT may justify a higher PE ratio.
PEG (NY)1.78
PEG (5Y)0.77
EPS Next 2Y12.37%
EPS Next 3Y11.92%
5. Dividend
5.1 Amount
- FTNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
76.39
-1.94 (-2.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)11-05 2025-11-05/amc
Earnings (Next)02-05 2026-02-05/amc
Inst Owners70.81%
Inst Owner Change0.05%
Ins Owners17.34%
Ins Owner Change-1.18%
Market Cap56.81B
Revenue(TTM)6.55B
Net Income(TTM)1.87B
Analysts67.35
Price Target88.72 (16.14%)
Short Float %3.83%
Short Ratio4.25
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)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)-0.2%
PT rev (3m)-2.88%
EPS NQ rev (1m)0%
EPS NQ rev (3m)10.96%
EPS NY rev (1m)0%
EPS NY rev (3m)6.91%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.29 | ||
| Fwd PE | 25.53 | ||
| P/S | 8.67 | ||
| P/FCF | 28.01 | ||
| P/OCF | 23.21 | ||
| P/B | 77.28 | ||
| P/tB | 154.96 | ||
| EV/EBITDA | 25.34 |
EPS(TTM)2.7
EY3.53%
EPS(NY)2.99
Fwd EY3.92%
FCF(TTM)2.73
FCFY3.57%
OCF(TTM)3.29
OCFY4.31%
SpS8.81
BVpS0.99
TBVpS0.49
PEG (NY)1.78
PEG (5Y)0.77
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 | 5.34 |
F-Score8
WACC11.02%
ROIC/WACC3.52
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 Y15.92%
EPS Next 2Y12.37%
EPS Next 3Y11.92%
EPS Next 5Y9.01%
Revenue 1Y (TTM)14.78%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%14.38%
Revenue Next Year14.64%
Revenue Next 2Y12.93%
Revenue Next 3Y12.15%
Revenue Next 5Y12.42%
EBIT growth 1Y24.11%
EBIT growth 3Y41.66%
EBIT growth 5Y39.22%
EBIT Next Year25.5%
EBIT Next 3Y15.68%
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 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 7 / 10.