FORTINET INC (FTNT) Stock Fundamental Analysis
USA - NASDAQ:FTNT - US34959E1091 - Common Stock
80.145 USD
-0.86 (-1.06%)
We assign a fundamental rating of 7 out of 10 to FTNT. FTNT was compared to 280 industry peers in the Software industry. Both the health and profitability get an excellent rating, making FTNT a very profitable company, without any liquidiy or solvency issues. FTNT is showing excellent growth while it is valued at reasonable prices. Keep and eye on this one! These ratings would make FTNT suitable for growth and quality investing!
1. Profitability
1.1 Basic Checks
In the past year FTNT was profitable.
In the past year FTNT had a positive cash flow from operations.
FTNT had positive earnings in each of the past 5 years.
Each year in the past 5 years FTNT had a positive operating cash flow.
1.2 Ratios
The Return On Assets of FTNT (18.23%) is better than 93.93% of its industry peers.
FTNT's Return On Equity of 94.14% is amongst the best of the industry. FTNT outperforms 98.93% of its industry peers.
FTNT has a better Return On Invested Capital (29.24%) than 96.79% of its industry peers.
FTNT had an Average Return On Invested Capital over the past 3 years of 28.58%. This is significantly above the industry average of 11.85%.
The 3 year average ROIC (28.58%) for FTNT is below the current ROIC(29.24%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.23% | ||
| ROE | 94.14% | ||
| ROIC | 29.24% |
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
With an excellent Profit Margin value of 30.60%, FTNT belongs to the best of the industry, outperforming 91.43% 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 30.85%, FTNT belongs to the best of the industry, outperforming 93.21% of the companies in the same industry.
In the last couple of years the Operating Margin of FTNT has grown nicely.
With an excellent Gross Margin value of 81.42%, FTNT belongs to the best of the industry, outperforming 85.36% 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 | 30.85% | ||
| PM (TTM) | 30.6% | ||
| GM | 81.42% |
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
FTNT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
The number of shares outstanding for FTNT remains at a similar level compared to 1 year ago.
The number of shares outstanding for FTNT has been reduced compared to 5 years ago.
FTNT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.77 indicates that FTNT is not in any danger for bankruptcy at the moment.
The Altman-Z score of FTNT (5.77) is better than 72.14% 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 78.57% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that FTNT is not too dependend on debt financing.
FTNT has a Debt to Equity ratio (0.24) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 5.77 |
ROIC/WACC2.66
WACC10.99%
2.3 Liquidity
A Current Ratio of 1.33 indicates that FTNT should not have too much problems paying its short term obligations.
FTNT has a Current ratio (1.33) which is in line with its industry peers.
FTNT has a Quick Ratio of 1.24. This is a normal value and indicates that FTNT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.24, FTNT perfoms like the industry average, outperforming 41.07% of the companies in the same industry.
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 | 1.33 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
FTNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 34.90%, which is quite impressive.
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 14.46%.
FTNT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.46% yearly.
EPS 1Y (TTM)34.9%
EPS 3Y43.86%
EPS 5Y36.84%
EPS Q2Q%12.28%
Revenue 1Y (TTM)14.46%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%13.64%
3.2 Future
FTNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 8.97% yearly.
FTNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.02% yearly.
EPS Next Y8.45%
EPS Next 2Y9.62%
EPS Next 3Y10.32%
EPS Next 5Y8.97%
Revenue Next Year14.59%
Revenue Next 2Y13.11%
Revenue Next 3Y12.31%
Revenue Next 5Y13.02%
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
Based on the Price/Earnings ratio of 30.94, the valuation of FTNT can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of FTNT indicates a somewhat cheap valuation: FTNT is cheaper than 64.29% of the companies listed in the same industry.
FTNT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 27.27, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 28.14, the valuation of FTNT can be described as expensive.
64.29% of the companies in the same industry are more expensive than FTNT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of FTNT to the average of the S&P500 Index (22.77), we can say FTNT is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.94 | ||
| Fwd PE | 28.14 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of FTNT indicates a somewhat cheap valuation: FTNT is cheaper than 75.36% of the companies listed in the same industry.
Based on the Price/Free Cash Flow ratio, FTNT is valued a bit cheaper than 73.21% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.21 | ||
| EV/EBITDA | 27.36 |
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)3.66
PEG (5Y)0.84
EPS Next 2Y9.62%
EPS Next 3Y10.32%
5. Dividend
5.1 Amount
No dividends for FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:FTNT (9/16/2025, 9:53:04 AM)
80.145
-0.86 (-1.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.17%
Inst Owner Change-2.51%
Ins Owners16.94%
Ins Owner Change-0.77%
Market Cap61.41B
Analysts68.08
Price Target91.35 (13.98%)
Short Float %3.2%
Short Ratio2.72
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)6.39%
Min EPS beat(2)6.18%
Max EPS beat(2)6.61%
EPS beat(4)4
Avg EPS beat(4)13.02%
Min EPS beat(4)6.18%
Max EPS beat(4)19.74%
EPS beat(8)8
Avg EPS beat(8)15.55%
EPS beat(12)12
Avg EPS beat(12)14.84%
EPS beat(16)16
Avg EPS beat(16)13.18%
Revenue beat(2)0
Avg Revenue beat(2)-1.81%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)-1.63%
Revenue beat(4)1
Avg Revenue beat(4)-0.41%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)2.1%
Revenue beat(8)2
Avg Revenue beat(8)-0.84%
Revenue beat(12)4
Avg Revenue beat(12)-0.75%
Revenue beat(16)6
Avg Revenue beat(16)-0.1%
PT rev (1m)-18.02%
PT rev (3m)-17.49%
EPS NQ rev (1m)-0.01%
EPS NQ rev (3m)0.12%
EPS NY rev (1m)1.57%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)-0.12%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.94 | ||
| Fwd PE | 28.14 | ||
| P/S | 9.69 | ||
| P/FCF | 30.21 | ||
| P/OCF | 25.58 | ||
| P/B | 29.81 | ||
| P/tB | 36.59 | ||
| EV/EBITDA | 27.36 |
EPS(TTM)2.59
EY3.23%
EPS(NY)2.85
Fwd EY3.55%
FCF(TTM)2.65
FCFY3.31%
OCF(TTM)3.13
OCFY3.91%
SpS8.27
BVpS2.69
TBVpS2.19
PEG (NY)3.66
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.23% | ||
| ROE | 94.14% | ||
| ROCE | 33.34% | ||
| ROIC | 29.24% | ||
| ROICexc | 131.78% | ||
| ROICexgc | 186.57% | ||
| OM | 30.85% | ||
| PM (TTM) | 30.6% | ||
| GM | 81.42% | ||
| FCFM | 32.07% |
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%
ROICexcg growth 3Y23.93%
ROICexcg 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 Turnover0.6
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.49 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | 264.7% | ||
| Cap/Sales | 5.81% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 114.64% | ||
| Profit Quality | 104.8% | ||
| Current Ratio | 1.33 | ||
| Quick Ratio | 1.24 | ||
| Altman-Z | 5.77 |
F-Score8
WACC10.99%
ROIC/WACC2.66
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)34.9%
EPS 3Y43.86%
EPS 5Y36.84%
EPS Q2Q%12.28%
EPS Next Y8.45%
EPS Next 2Y9.62%
EPS Next 3Y10.32%
EPS Next 5Y8.97%
Revenue 1Y (TTM)14.46%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%13.64%
Revenue Next Year14.59%
Revenue Next 2Y13.11%
Revenue Next 3Y12.31%
Revenue Next 5Y13.02%
EBIT growth 1Y34.55%
EBIT growth 3Y41.66%
EBIT growth 5Y39.22%
EBIT Next Year18.49%
EBIT Next 3Y16.12%
EBIT Next 5Y17.24%
FCF growth 1Y2.77%
FCF growth 3Y16%
FCF growth 5Y21.29%
OCF growth 1Y8.95%
OCF growth 3Y14.62%
OCF growth 5Y22.82%