NASDAQ:FTNT—Positioned as a High-Growth Stock, Ready for a Potential Breakout.

Groth investors are looking for stocks showing high revenue and EPS growth. We will have a look here to see if FORTINET INC (NASDAQ:FTNT) is suited for growth investing, while it is forming a base and may be ready to breakout. Investors should of course do their own research, but we spotted FORTINET INC showing up in our growth with base formation screen, so it may be worth spending some more time on it.

Exploring NASDAQ:FTNT's Growth

ChartMill employs its own Growth Rating system for all stocks. This score, ranging from 0 to 10, is derived by evaluating different growth factors, such as EPS and revenue growth, taking into account both past performance and future projections. NASDAQ:FTNT has earned a 8 for growth:

• The Earnings Per Share has grown by an impressive 70.87% over the past year.
• FTNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 41.93% yearly.
• FTNT shows a strong growth in Revenue. In the last year, the Revenue has grown by 30.71%.
• Measured over the past years, FTNT shows a very strong growth in Revenue. The Revenue has been growing by 24.20% on average per year.
• FTNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 18.81% yearly.
• The Revenue is expected to grow by 19.71% on average over the next years. This is quite good.

How do we evaluate the Health for NASDAQ:FTNT?

To gauge a stock's financial health, ChartMill utilizes a Health Rating on a scale of 0 to 10. This comprehensive evaluation encompasses liquidity and solvency, both in absolute terms and in comparison to industry peers. NASDAQ:FTNT has earned a 8 out of 10:

• An Altman-Z score of 5.01 indicates that FTNT is not in any danger for bankruptcy at the moment.
• FTNT's Altman-Z score of 5.01 is fine compared to the rest of the industry. FTNT outperforms 74.10% of its industry peers.
• FTNT has a debt to FCF ratio of 0.50. This is a very positive value and a sign of high solvency as it would only need 0.50 years to pay back of all of its debts.
• FTNT has a better Debt to FCF ratio (0.50) than 82.01% 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.
• 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.

How do we evaluate the Profitability for NASDAQ:FTNT?

ChartMill assigns a proprietary Profitability Rating to each stock. The score is computed by evaluating various profitability ratios and margins and ranges from 0 to 10. NASDAQ:FTNT was assigned a score of 9 for profitability:

• FTNT's Return On Assets of 14.15% is amongst the best of the industry. FTNT outperforms 96.04% of its industry peers.
• The Return On Equity of FTNT (329.83%) is better than 99.64% of its industry peers.
• The Return On Invested Capital of FTNT (23.22%) is better than 97.48% of its industry peers.
• The Average Return On Invested Capital over the past 3 years for FTNT is significantly above the industry average of 10.82%.
• The 3 year average ROIC (18.64%) for FTNT is below the current ROIC(23.22%), indicating increased profibility in the last year.
• FTNT's Profit Margin of 21.24% is amongst the best of the industry. FTNT outperforms 93.53% of its industry peers.
• In the last couple of years the Profit Margin of FTNT has grown nicely.
• FTNT has a better Operating Margin (23.48%) than 93.17% of its industry peers.
• FTNT's Operating Margin has improved in the last couple of years.
• FTNT's Gross Margin of 76.26% is fine compared to the rest of the industry. FTNT outperforms 72.66% of its industry peers.

Looking at the Setup

ChartMill also assign a Setup Rating to every stock. With this score it is determined to what extend the stock has been trading in a range in the recent days and weeks. This score also ranges from 0 to 10 and is updated daily. The setup score evaluates various short term technical indicators. NASDAQ:FTNT scores a 8 out of 10:

FTNT has a bad technical rating, but it does show a decent setup pattern. Prices have been consolidating lately and the volatility has been reduced. There is a support zone below the current price at 56.77, a Stop Loss order could be placed below this zone.

Our Strong Growth screener lists more Strong Growth stocks and is updated daily.

Our latest full fundamental report of FTNT contains the most current fundamental analsysis.

Check the latest full technical report of FTNT for a complete technical analysis.

Keep in mind

This is not investing advice! The article highlights some of the observations at the time of writing, but you should always make your own analysis and invest based on your own insights.