FORTINET INC (FTNT) Fundamental Analysis & Valuation
NASDAQ:FTNT • US34959E1091
82.79 USD
+1.69 (+2.08%)
At close: Mar 4, 2026
82.49 USD
-0.3 (-0.36%)
Pre-Market: 3/5/2026, 7:02:46 AM
This FTNT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
We assign a fundamental rating of 7 out of 10 to FTNT. FTNT was compared to 276 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. With these ratings, FTNT could be worth investigating further for growth and quality investing!.
1. FTNT Profitability Analysis
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.
- FTNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- FTNT's Return On Assets of 17.84% is amongst the best of the industry. FTNT outperforms 93.12% of its industry peers.
- With an excellent Return On Equity value of 149.77%, FTNT belongs to the best of the industry, outperforming 98.91% 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 98.19% 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 10.80%.
- 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's Profit Margin of 27.26% is amongst the best of the industry. FTNT outperforms 90.22% 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 30.51%, FTNT belongs to the best of the industry, outperforming 94.57% of the companies in the same industry.
- In the last couple of years the Operating Margin of FTNT has grown nicely.
- FTNT has a Gross Margin of 80.46%. This is amongst the best in the industry. FTNT outperforms 81.88% of its industry peers.
- FTNT's Gross Margin has been stable in the last couple of years.
| 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. FTNT Health Analysis
2.1 Basic Checks
- FTNT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it 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.
- Compared to 1 year ago, FTNT has an improved debt to assets ratio.
2.2 Solvency
- FTNT has an Altman-Z score of 5.38. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
- FTNT has a better Altman-Z score (5.38) than 77.90% of its industry peers.
- 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's Debt to FCF ratio of 0.45 is fine compared to the rest of the industry. FTNT outperforms 79.35% 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.
- With a Debt to Equity ratio value of 0.40, FTNT is not doing good in the industry: 62.68% 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 | 5.38 |
ROIC/WACC2.95
WACC10.95%
2.3 Liquidity
- FTNT has a Current Ratio of 1.17. 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 (1.17) is worse than 69.57% of its industry peers.
- 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 has a worse Quick ratio (1.09) than 71.01% 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. 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
- 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
- The Earnings Per Share is expected to grow by 7.59% on average over the next years.
- 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 Year12.54%
Revenue Next 2Y11.54%
Revenue Next 3Y10.84%
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.
- 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. FTNT Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 29.89, FTNT can be considered very expensive at the moment.
- Compared to the rest of the industry, the Price/Earnings ratio of FTNT is on the same level as its industry peers.
- The average S&P500 Price/Earnings ratio is at 27.03. FTNT is around the same levels.
- With a Price/Forward Earnings ratio of 27.62, FTNT can be considered very expensive at the moment.
- FTNT's Price/Forward Earnings is on the same level as the industry average.
- The average S&P500 Price/Forward Earnings ratio is at 25.11. FTNT is around the same levels.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.89 | ||
| Fwd PE | 27.62 |
4.2 Price Multiples
- FTNT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTNT is cheaper than 70.65% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, FTNT is valued a bit cheaper than 64.49% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 27.66 | ||
| EV/EBITDA | 26 |
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)3.64
PEG (5Y)0.91
EPS Next 2Y9.75%
EPS Next 3Y6.12%
5. FTNT Dividend Analysis
5.1 Amount
- No dividends for FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
FTNT Fundamentals: All Metrics, Ratios and Statistics
82.79
+1.69 (+2.08%)
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 Change2.41%
Ins Owners17.34%
Ins Owner Change-0.39%
Market Cap61.57B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts68.4
Price Target92.25 (11.43%)
Short Float %2.76%
Short Ratio2.44
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)3.81%
PT rev (3m)3.59%
EPS NQ rev (1m)-4.85%
EPS NQ rev (3m)-4.94%
EPS NY rev (1m)0.32%
EPS NY rev (3m)5.32%
Revenue NQ rev (1m)0.51%
Revenue NQ rev (3m)0.51%
Revenue NY rev (1m)1.23%
Revenue NY rev (3m)0.91%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.89 | ||
| Fwd PE | 27.62 | ||
| P/S | 9.05 | ||
| P/FCF | 27.66 | ||
| P/OCF | 23.77 | ||
| P/B | 49.75 | ||
| P/tB | 69.74 | ||
| EV/EBITDA | 26 |
EPS(TTM)2.77
EY3.35%
EPS(NY)3
Fwd EY3.62%
FCF(TTM)2.99
FCFY3.62%
OCF(TTM)3.48
OCFY4.21%
SpS9.14
BVpS1.66
TBVpS1.19
PEG (NY)3.64
PEG (5Y)0.91
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 | 5.38 |
F-Score6
WACC10.95%
ROIC/WACC2.95
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 Year12.54%
Revenue Next 2Y11.54%
Revenue Next 3Y10.84%
Revenue Next 5Y11.52%
EBIT growth 1Y14.11%
EBIT growth 3Y29.06%
EBIT growth 5Y33.37%
EBIT Next Year18.07%
EBIT Next 3Y14.13%
EBIT Next 5Y13.76%
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.