FORTINET INC (FTNT) Fundamental Analysis & Valuation

NASDAQ:FTNT • US34959E1091

Current stock price

84.31 USD
-1.8 (-2.09%)
At close:
84.9735 USD
+0.66 (+0.79%)
After Hours:

This FTNT fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

9

1. FTNT Profitability Analysis

1.1 Basic Checks

  • In the past year FTNT was profitable.
  • In the past year FTNT had a positive cash flow from operations.
  • In the past 5 years FTNT has always been profitable.
  • FTNT had a positive operating cash flow in each of the past 5 years.
FTNT Yearly Net Income VS EBIT VS OCF VS FCFFTNT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 500M 1B 1.5B 2B 2.5B

1.2 Ratios

  • FTNT's Return On Assets of 17.84% is amongst the best of the industry. FTNT outperforms 92.65% of its industry peers.
  • The Return On Equity of FTNT (149.77%) is better than 98.90% of its industry peers.
  • FTNT's Return On Invested Capital of 32.34% is amongst the best of the industry. FTNT outperforms 97.79% 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 11.04%.
  • The 3 year average ROIC (29.46%) for FTNT is below the current ROIC(32.34%), indicating increased profibility in the last year.
Industry RankSector 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%
FTNT Yearly ROA, ROE, ROICFTNT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 100 -100 -200 -300

1.3 Margins

  • Looking at the Profit Margin, with a value of 27.26%, FTNT belongs to the top of the industry, outperforming 91.18% of the companies in the same industry.
  • 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 94.49% of the companies in the same industry.
  • In the last couple of years the Operating Margin of FTNT has grown nicely.
  • FTNT has a better Gross Margin (80.46%) than 83.46% of its industry peers.
  • FTNT's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
FTNT Yearly Profit, Operating, Gross MarginsFTNT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 20 40 60 80

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8

2. FTNT Health Analysis

2.1 Basic Checks

  • With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), FTNT is creating value.
  • The number of shares outstanding for FTNT has been reduced compared to 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.
FTNT Yearly Shares OutstandingFTNT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 200M 400M 600M 800M
FTNT Yearly Total Debt VS Total AssetsFTNT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2B 4B 6B 8B 10B

2.2 Solvency

  • FTNT has an Altman-Z score of 5.52. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of FTNT (5.52) is better than 77.57% 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 has a Debt to FCF ratio of 0.45. This is in the better half of the industry: FTNT outperforms 77.94% 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.
  • FTNT's Debt to Equity ratio of 0.40 is on the low side compared to the rest of the industry. FTNT is outperformed by 63.97% 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 RankSector Rank
Debt/Equity 0.4
Debt/FCF 0.45
Altman-Z 5.52
ROIC/WACC2.96
WACC10.92%
FTNT Yearly LT Debt VS Equity VS FCFFTNT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B 1.5B 2B

2.3 Liquidity

  • A Current Ratio of 1.17 indicates that FTNT should not have too much problems paying its short term obligations.
  • FTNT's Current ratio of 1.17 is on the low side compared to the rest of the industry. FTNT is outperformed by 67.65% 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.
  • The Quick ratio of FTNT (1.09) is worse than 70.96% 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 RankSector Rank
Current Ratio 1.17
Quick Ratio 1.09
FTNT Yearly Current Assets VS Current LiabilitesFTNT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

7

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
  • The Revenue has grown by 14.17% 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 21.25% on average per year.
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.
  • The Revenue is expected to grow by 11.54% on average over the next years. This is quite good.
EPS Next Y9.69%
EPS Next 2Y10.43%
EPS Next 3Y11.2%
EPS Next 5Y7.59%
Revenue Next Year12.53%
Revenue Next 2Y11.51%
Revenue Next 3Y10.83%
Revenue Next 5Y11.54%

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.
FTNT Yearly Revenue VS EstimatesFTNT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B
FTNT Yearly EPS VS EstimatesFTNT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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Find the best growth stocksShow best growing peers

3

4. FTNT Valuation Analysis

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 30.44 indicates a quite expensive valuation of FTNT.
  • FTNT's Price/Earnings ratio is in line with the industry average.
  • The average S&P500 Price/Earnings ratio is at 26.77. FTNT is around the same levels.
  • A Price/Forward Earnings ratio of 27.75 indicates a quite expensive valuation of FTNT.
  • FTNT's Price/Forward Earnings is on the same level as the industry average.
  • The average S&P500 Price/Forward Earnings ratio is at 21.75. FTNT is valued slightly more expensive when compared to this.
Industry RankSector Rank
PE 30.44
Fwd PE 27.75
FTNT Price Earnings VS Forward Price EarningsFTNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, FTNT is valued a bit cheaper than 68.01% of the companies in the same industry.
  • Based on the Price/Free Cash Flow ratio, FTNT is valued a bit cheaper than the industry average as 62.13% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 28.03
EV/EBITDA 26.97
FTNT Per share dataFTNT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

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)3.14
PEG (5Y)0.93
EPS Next 2Y10.43%
EPS Next 3Y11.2%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. FTNT Dividend Analysis

5.1 Amount

  • FTNT does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

FTNT Fundamentals: All Metrics, Ratios and Statistics

FORTINET INC

NASDAQ:FTNT (4/30/2026, 8:00:00 PM)

After market: 84.9735 +0.66 (+0.79%)

84.31

-1.8 (-2.09%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Industry Strength6.21
Industry Growth86.34
Earnings (Last)02-05
Earnings (Next)05-06
Inst Owners71.44%
Inst Owner Change0.04%
Ins Owners17.43%
Ins Owner Change-0.33%
Market Cap62.38B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts67.06
Price Target91.75 (8.82%)
Short Float %3.17%
Short Ratio3.15
Dividend
Industry RankSector 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)-0.54%
PT rev (3m)3.25%
EPS NQ rev (1m)0.09%
EPS NQ rev (3m)-4.79%
EPS NY rev (1m)-0.02%
EPS NY rev (3m)1.68%
Revenue NQ rev (1m)0.06%
Revenue NQ rev (3m)0.63%
Revenue NY rev (1m)0%
Revenue NY rev (3m)1.21%
Valuation
Industry RankSector Rank
PE 30.44
Fwd PE 27.75
P/S 9.17
P/FCF 28.03
P/OCF 24.08
P/B 50.41
P/tB 70.66
EV/EBITDA 26.97
EPS(TTM)2.77
EY3.29%
EPS(NY)3.04
Fwd EY3.6%
FCF(TTM)3.01
FCFY3.57%
OCF(TTM)3.5
OCFY4.15%
SpS9.19
BVpS1.67
TBVpS1.19
PEG (NY)3.14
PEG (5Y)0.93
Graham Number10.2097 (-87.89%)
Profitability
Industry RankSector 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 RankSector 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 5.52
F-Score6
WACC10.92%
ROIC/WACC2.96
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 Y9.69%
EPS Next 2Y10.43%
EPS Next 3Y11.2%
EPS Next 5Y7.59%
Revenue 1Y (TTM)14.17%
Revenue growth 3Y15.46%
Revenue growth 5Y21.25%
Sales Q2Q%14.75%
Revenue Next Year12.53%
Revenue Next 2Y11.51%
Revenue Next 3Y10.83%
Revenue Next 5Y11.54%
EBIT growth 1Y14.11%
EBIT growth 3Y29.06%
EBIT growth 5Y33.37%
EBIT Next Year18.07%
EBIT Next 3Y14.13%
EBIT Next 5Y14.02%
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 Fundamental Analysis 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 3 / 10 to FORTINET INC (FTNT). This can be considered as Overvalued.


Can you provide the profitability details for FORTINET INC?

FORTINET INC (FTNT) has a profitability rating of 9 / 10.


How financially healthy is FORTINET INC?

The financial health rating of FORTINET INC (FTNT) is 8 / 10.


Can you provide the expected EPS growth for FTNT stock?

The Earnings per Share (EPS) of FORTINET INC (FTNT) is expected to grow by 9.69% in the next year.