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NASDAQ:FTNT qualifies as a high growth stock and is consolidating.

By Mill Chart

Last update: Apr 11, 2024

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.

Evaluating Growth: NASDAQ:FTNT

ChartMill assigns a Growth Rating to every stock. This score ranges from 0 to 10 and evaluates the different growth aspects like EPS and Revenue, both in the past as in the future. NASDAQ:FTNT scores a 8 out of 10:

  • The Earnings Per Share has grown by an impressive 36.89% over the past year.
  • FTNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 35.13% yearly.
  • Looking at the last year, FTNT shows a very strong growth in Revenue. The Revenue has grown by 20.09%.
  • FTNT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 24.11% yearly.
  • The Earnings Per Share is expected to grow by 13.59% on average over the next years. This is quite good.
  • FTNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 16.91% yearly.

Understanding NASDAQ:FTNT's Health

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 6 out of 10:

  • FTNT has an Altman-Z score of 5.09. This indicates that FTNT is financially healthy and has little risk of bankruptcy at the moment.
  • FTNT has a Altman-Z score of 5.09. This is in the better half of the industry: FTNT outperforms 70.40% of its industry peers.
  • The Debt to FCF ratio of FTNT is 0.57, which is an excellent value as it means it would take FTNT, only 0.57 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.57, FTNT belongs to the top of the industry, outperforming 80.87% of the companies in the same industry.

Analyzing Profitability Metrics

ChartMill employs its own Profitability Rating system for stock evaluation. This score, ranging from 0 to 10, is derived from an analysis of diverse profitability metrics and margins. In the case of NASDAQ:FTNT, the assigned 8 is noteworthy for profitability:

  • With an excellent Return On Assets value of 15.81%, FTNT belongs to the best of the industry, outperforming 95.31% of the companies in the same industry.
  • Looking at the Return On Invested Capital, with a value of 27.59%, FTNT belongs to the top of the industry, outperforming 98.19% of the companies in the same industry.
  • FTNT had an Average Return On Invested Capital over the past 3 years of 21.99%. This is significantly above the industry average of 10.22%.
  • The 3 year average ROIC (21.99%) for FTNT is below the current ROIC(27.59%), indicating increased profibility in the last year.
  • FTNT's Profit Margin of 21.64% is amongst the best of the industry. FTNT outperforms 91.34% of its industry peers.
  • FTNT's Profit Margin has improved in the last couple of years.
  • Looking at the Operating Margin, with a value of 23.31%, FTNT belongs to the top of the industry, outperforming 93.86% 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 (76.68%) than 73.65% of its industry peers.

How does the Setup look for NASDAQ:FTNT

In addition to the Technical Rating, ChartMill provides a Setup Rating for each stock. This rating, ranging from 0 to 10, assesses the level of consolidation in the stock based on multiple short-term technical indicators. Currently, NASDAQ:FTNT has a 8 as its setup rating, indicating its current consolidation status.

FTNT has only a medium 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 67.12, a Stop Loss order could be placed below this zone. Another positive sign is the recent Pocket Pivot signal.

Every day, new Strong Growth stocks can be found on ChartMill in our Strong Growth screener.

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

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

Keep in mind

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.

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FORTINET INC

NASDAQ:FTNT (5/24/2024, 7:00:00 PM)

Premarket: 61.42 +0.07 (+0.11%)

61.35

+0.42 (+0.69%)

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