Looking for growth without the hefty price tag? Consider NASDAQ:FTNT.

Discover FORTINET INC (NASDAQ:FTNT), an undervalued growth gem identified by our stock screener. NASDAQ:FTNT is shining in terms of growth metrics, and it's also displaying strong financial health and profitability. What's more, it retains an appealing valuation. We'll break it down further.

Exploring NASDAQ:FTNT's Growth

A key component of ChartMill's stock assessment is the Growth Rating, which spans from 0 to 10. This rating evaluates diverse growth factors, such as EPS and revenue growth, considering both past performance and future projections. NASDAQ:FTNT has received a 8 out of 10:

• FTNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 56.37%, which is quite impressive.
• Measured over the past years, FTNT shows a very strong growth in Earnings Per Share. The EPS has been growing by 41.93% on average per year.
• Looking at the last year, FTNT shows a very strong growth in Revenue. The Revenue has grown by 26.22%.
• FTNT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.20% yearly.
• FTNT is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 16.28% yearly.
• The Revenue is expected to grow by 17.51% on average over the next years. This is quite good.

A Closer Look at Valuation for NASDAQ:FTNT

To assess a stock's valuation, ChartMill utilizes a Valuation Rating on a scale of 0 to 10. This comprehensive assessment considers various valuation aspects, comparing price to earnings and cash flows, while factoring in profitability and growth. NASDAQ:FTNT has achieved a 5 out of 10:

• FTNT's Price/Earnings ratio is a bit cheaper when compared to the industry. FTNT is cheaper than 70.04% of the companies in the same industry.
• 66.06% of the companies in the same industry are more expensive than FTNT, based on the Price/Forward Earnings ratio.
• 79.78% of the companies in the same industry are more expensive than FTNT, based on the Enterprise Value to EBITDA ratio.
• Based on the Price/Free Cash Flow ratio, FTNT is valued cheaply inside the industry as 84.48% of the companies are valued more expensively.
• FTNT has an outstanding profitability rating, which may justify a higher PE ratio.
• FTNT's earnings are expected to grow with 18.44% in the coming years. This may justify a more expensive valuation.

How do we evaluate the Health for NASDAQ:FTNT?

ChartMill utilizes a Health Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of liquidity and solvency ratios, both in absolute terms and in comparison to industry peers. NASDAQ:FTNT has earned a 8 out of 10:

• An Altman-Z score of 5.04 indicates that FTNT is not in any danger for bankruptcy at the moment.
• The Altman-Z score of FTNT (5.04) is better than 68.23% of its industry peers.
• The Debt to FCF ratio of FTNT is 0.48, which is an excellent value as it means it would take FTNT, only 0.48 years of fcf income to pay off all of its debts.
• FTNT's Debt to FCF ratio of 0.48 is amongst the best of the industry. FTNT outperforms 84.12% 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.

Looking at the Profitability

ChartMill utilizes a Profitability Rating to assess stocks, scoring them on a scale of 0 to 10. This rating takes into account a variety of profitability ratios and margins, both in absolute terms and in comparison to industry peers. NASDAQ:FTNT has earned a 9 out of 10:

• FTNT's Return On Assets of 15.39% is amongst the best of the industry. FTNT outperforms 95.67% of its industry peers.
• Looking at the Return On Equity, with a value of 1552.90%, FTNT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
• FTNT has a better Return On Invested Capital (24.93%) than 98.56% of its industry peers.
• FTNT had an Average Return On Invested Capital over the past 3 years of 18.64%. This is significantly above the industry average of 10.09%.
• The last Return On Invested Capital (24.93%) for FTNT is above the 3 year average (18.64%), which is a sign of increasing profitability.
• With an excellent Profit Margin value of 22.25%, FTNT belongs to the best of the industry, outperforming 93.14% of the companies in the same industry.
• FTNT's Profit Margin has improved in the last couple of years.
• Looking at the Operating Margin, with a value of 23.37%, FTNT belongs to the top of the industry, outperforming 93.50% of the companies in the same industry.
• FTNT's Operating Margin has improved in the last couple of years.
• With a decent Gross Margin value of 76.44%, FTNT is doing good in the industry, outperforming 71.84% of the companies in the same industry.

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

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

Disclaimer

Important Note: The content of this article is not intended as trading advice. It is essential to perform your own analysis and exercise caution when making trading decisions. The article presents observations created by automated analysis but does not guarantee any trading or investment outcomes. Always trade responsibly and make independent judgments.