78.87 USD
-2.25 (-2.77%)
Last: Feb 5, 2026, 03:31 PM
FTNT gets a fundamental rating of 7 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. FTNT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 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. Profitability
1.1 Basic Checks
- FTNT had positive earnings in the past year.
- FTNT had a positive operating cash flow in the past year.
- In the past 5 years FTNT has always been profitable.
- FTNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- FTNT has a Return On Assets of 20.01%. This is amongst the best in the industry. FTNT outperforms 95.32% of its industry peers.
- FTNT has a better Return On Equity (254.88%) than 100.00% of its industry peers.
- FTNT's Return On Invested Capital of 38.77% is amongst the best of the industry. FTNT outperforms 98.56% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FTNT is significantly above the industry average of 10.78%.
- 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
- The Profit Margin of FTNT (28.58%) is better than 88.49% 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 92.45% 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 80.86%. This is amongst the best in the industry. FTNT outperforms 83.45% 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
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 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.
- FTNT has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.48 indicates that FTNT is not in any danger for bankruptcy at the moment.
- FTNT has a better Altman-Z score (5.48) than 79.50% of its industry peers.
- The Debt to FCF ratio of FTNT is 0.49, which is an excellent value as it means it would take FTNT, only 0.49 years of fcf income to pay off all of its debts.
- FTNT has a better Debt to FCF ratio (0.49) than 79.14% of its industry peers.
- FTNT has a Debt/Equity ratio of 0.68. This is a neutral value indicating FTNT is somewhat dependend on debt financing.
- FTNT has a worse Debt to Equity ratio (0.68) than 70.14% of its industry peers.
- 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 | 0.68 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 5.48 |
ROIC/WACC3.49
WACC11.12%
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's Current ratio of 1.03 is on the low side compared to the rest of the industry. FTNT is outperformed by 72.66% of its industry peers.
- A Quick Ratio of 0.94 indicates that FTNT may have some problems paying its short term obligations.
- With a Quick ratio value of 0.94, FTNT is not doing good in the industry: 76.26% of the companies in the same industry are doing better.
- 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.
- Looking at the last year, FTNT shows a quite strong growth in Revenue. The Revenue has grown by 14.78% in the last year.
- The Revenue has been growing by 22.46% on average over the past years. This is a very strong growth!
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.
- 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 Y15.71%
EPS Next 2Y12.28%
EPS Next 3Y11.85%
EPS Next 5Y9.01%
Revenue Next Year14.66%
Revenue Next 2Y12.91%
Revenue Next 3Y12.15%
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.
- 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
- With a Price/Earnings ratio of 29.21, 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 28.25. FTNT is around the same levels.
- FTNT is valuated quite expensively with a Price/Forward Earnings ratio of 26.39.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of FTNT is on the same level as its industry peers.
- FTNT is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 27.50, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.21 | ||
| Fwd PE | 26.39 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FTNT is valued a bit cheaper than 68.70% of the companies in the same industry.
- FTNT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. FTNT is cheaper than 65.11% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.92 | ||
| EV/EBITDA | 26.3 |
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)1.86
PEG (5Y)0.79
EPS Next 2Y12.28%
EPS Next 3Y11.85%
5. Dividend
5.1 Amount
- No dividends for FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NASDAQ:FTNT (2/5/2026, 3:31:09 PM)
78.87
-2.25 (-2.77%)
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 Change-2.27%
Ins Owners17.34%
Ins Owner Change-1.21%
Market Cap58.65B
Revenue(TTM)6.55B
Net Income(TTM)1.87B
Analysts67.35
Price Target88.87 (12.68%)
Short Float %3.27%
Short Ratio3.4
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)0.16%
PT rev (3m)-2.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)6.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.07%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.21 | ||
| Fwd PE | 26.39 | ||
| P/S | 8.95 | ||
| P/FCF | 28.92 | ||
| P/OCF | 23.96 | ||
| P/B | 79.79 | ||
| P/tB | 159.99 | ||
| EV/EBITDA | 26.3 |
EPS(TTM)2.7
EY3.42%
EPS(NY)2.99
Fwd EY3.79%
FCF(TTM)2.73
FCFY3.46%
OCF(TTM)3.29
OCFY4.17%
SpS8.81
BVpS0.99
TBVpS0.49
PEG (NY)1.86
PEG (5Y)0.79
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 | 5.48 |
F-Score8
WACC11.12%
ROIC/WACC3.49
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 Y15.71%
EPS Next 2Y12.28%
EPS Next 3Y11.85%
EPS Next 5Y9.01%
Revenue 1Y (TTM)14.78%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%14.38%
Revenue Next Year14.66%
Revenue Next 2Y12.91%
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.