FORTINET INC (1FTNT.MI) Stock Fundamental Analysis
Europe - Euronext Milan - BIT:1FTNT - US34959E1091 - Common Stock
70.7 EUR
+1.52 (+2.2%)
Overall 1FTNT gets a fundamental rating of 7 out of 10. We evaluated 1FTNT against 105 industry peers in the Software industry. 1FTNT scores excellent points on both the profitability and health parts. This is a solid base for a good stock. 1FTNT shows excellent growth, but is valued quite expensive already. These ratings could make 1FTNT a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
In the past year 1FTNT was profitable.
In the past year 1FTNT had a positive cash flow from operations.
Each year in the past 5 years 1FTNT has been profitable.
Each year in the past 5 years 1FTNT had a positive operating cash flow.
1.2 Ratios
With an excellent Return On Assets value of 20.01%, 1FTNT belongs to the best of the industry, outperforming 91.74% of the companies in the same industry.
Looking at the Return On Equity, with a value of 254.88%, 1FTNT belongs to the top of the industry, outperforming 100.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 38.77%, 1FTNT belongs to the top of the industry, outperforming 97.25% of the companies in the same industry.
1FTNT had an Average Return On Invested Capital over the past 3 years of 28.58%. This is significantly above the industry average of 13.30%.
The last Return On Invested Capital (38.77%) for 1FTNT is above the 3 year average (28.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.01% | ||
| ROE | 254.88% | ||
| ROIC | 38.77% |
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
1FTNT's Profit Margin of 28.58% is amongst the best of the industry. 1FTNT outperforms 86.24% of its industry peers.
In the last couple of years the Profit Margin of 1FTNT has grown nicely.
1FTNT's Operating Margin of 30.86% is amongst the best of the industry. 1FTNT outperforms 87.16% of its industry peers.
In the last couple of years the Operating Margin of 1FTNT has grown nicely.
1FTNT has a better Gross Margin (80.86%) than 71.56% of its industry peers.
In the last couple of years the Gross Margin of 1FTNT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.86% | ||
| PM (TTM) | 28.58% | ||
| GM | 80.86% |
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
With a Return on Invested Capital (ROIC) well above the Cost of Capital (WACC), 1FTNT is creating value.
1FTNT has about the same amout of shares outstanding than it did 1 year ago.
1FTNT has less shares outstanding than it did 5 years ago.
1FTNT has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 5.63 indicates that 1FTNT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.63, 1FTNT is in the better half of the industry, outperforming 74.31% of the companies in the same industry.
1FTNT has a debt to FCF ratio of 0.49. This is a very positive value and a sign of high solvency as it would only need 0.49 years to pay back of all of its debts.
The Debt to FCF ratio of 1FTNT (0.49) is better than 88.07% of its industry peers.
A Debt/Equity ratio of 0.68 indicates that 1FTNT is somewhat dependend on debt financing.
The Debt to Equity ratio of 1FTNT (0.68) is worse than 71.56% of its industry peers.
Although 1FTNT does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 5.63 |
ROIC/WACC3.53
WACC10.97%
2.3 Liquidity
A Current Ratio of 1.03 indicates that 1FTNT should not have too much problems paying its short term obligations.
1FTNT's Current ratio of 1.03 is on the low side compared to the rest of the industry. 1FTNT is outperformed by 66.97% of its industry peers.
A Quick Ratio of 0.94 indicates that 1FTNT may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.94, 1FTNT is doing worse than 71.56% of the companies in the same industry.
1FTNT 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 | 1.03 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 26.17% over the past year.
Measured over the past years, 1FTNT shows a very strong growth in Earnings Per Share. The EPS has been growing by 36.84% on average per year.
The Revenue has grown by 14.78% in the past year. This is quite good.
The Revenue has been growing by 22.46% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)26.17%
EPS 3Y43.86%
EPS 5Y36.84%
EPS Q2Q%17.46%
Revenue 1Y (TTM)14.78%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%14.38%
3.2 Future
The Earnings Per Share is expected to grow by 8.97% on average over the next years. This is quite good.
1FTNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 13.02% yearly.
EPS Next Y8.48%
EPS Next 2Y9.58%
EPS Next 3Y10.22%
EPS Next 5Y8.97%
Revenue Next Year14.58%
Revenue Next 2Y13.08%
Revenue Next 3Y12.27%
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.
The estimated forward Revenue growth is still strong, although it is decreasing when compared to the stronger growth in the past years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 30.21 indicates a quite expensive valuation of 1FTNT.
Based on the Price/Earnings ratio, 1FTNT is valued a bit cheaper than 66.06% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 26.84. 1FTNT is around the same levels.
Based on the Price/Forward Earnings ratio of 28.62, the valuation of 1FTNT can be described as expensive.
The rest of the industry has a similar Price/Forward Earnings ratio as 1FTNT.
1FTNT is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.40, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.21 | ||
| Fwd PE | 28.62 |
4.2 Price Multiples
1FTNT's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of 1FTNT indicates a somewhat cheap valuation: 1FTNT is cheaper than 66.06% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.77 | ||
| EV/EBITDA | 27.26 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates 1FTNT does not grow enough to justify the current Price/Earnings ratio.
The excellent profitability rating of 1FTNT may justify a higher PE ratio.
PEG (NY)3.56
PEG (5Y)0.82
EPS Next 2Y9.58%
EPS Next 3Y10.22%
5. Dividend
5.1 Amount
No dividends for 1FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1FTNT (11/10/2025, 7:00:00 PM)
70.7
+1.52 (+2.2%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.66%
Inst Owner ChangeN/A
Ins Owners16.86%
Ins Owner ChangeN/A
Market Cap54.18B
Revenue(TTM)6.55B
Net Income(TTM)1.87B
Analysts68.4
Price Target74.5 (5.37%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)10.51%
Min EPS beat(2)6.18%
Max EPS beat(2)14.84%
EPS beat(4)4
Avg EPS beat(4)11.8%
Min EPS beat(4)6.18%
Max EPS beat(4)19.58%
EPS beat(8)8
Avg EPS beat(8)16.09%
EPS beat(12)12
Avg EPS beat(12)14.54%
EPS beat(16)16
Avg EPS beat(16)13.89%
Revenue beat(2)0
Avg Revenue beat(2)-1.19%
Min Revenue beat(2)-1.63%
Max Revenue beat(2)-0.75%
Revenue beat(4)1
Avg Revenue beat(4)-0.57%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)2.1%
Revenue beat(8)2
Avg Revenue beat(8)-0.57%
Revenue beat(12)3
Avg Revenue beat(12)-0.84%
Revenue beat(16)5
Avg Revenue beat(16)-0.44%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)11.01%
EPS NQ rev (3m)11.16%
EPS NY rev (1m)0.05%
EPS NY rev (3m)0.03%
Revenue NQ rev (1m)-0.89%
Revenue NQ rev (3m)-0.94%
Revenue NY rev (1m)-0.01%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.21 | ||
| Fwd PE | 28.62 | ||
| P/S | 9.52 | ||
| P/FCF | 30.77 | ||
| P/OCF | 25.49 | ||
| P/B | 84.9 | ||
| P/tB | 170.24 | ||
| EV/EBITDA | 27.26 |
EPS(TTM)2.34
EY3.31%
EPS(NY)2.47
Fwd EY3.49%
FCF(TTM)2.3
FCFY3.25%
OCF(TTM)2.77
OCFY3.92%
SpS7.43
BVpS0.83
TBVpS0.42
PEG (NY)3.56
PEG (5Y)0.82
Graham Number6.62
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 20.01% | ||
| ROE | 254.88% | ||
| ROCE | 44.21% | ||
| ROIC | 38.77% | ||
| ROICexc | 122.19% | ||
| ROICexgc | 163.76% | ||
| OM | 30.86% | ||
| PM (TTM) | 28.58% | ||
| GM | 80.86% | ||
| FCFM | 30.95% |
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%
ROICexgc growth 3Y23.93%
ROICexgc 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 Turnover0.7
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.68 | ||
| Debt/FCF | 0.49 | ||
| Debt/EBITDA | 0.23 | ||
| Cap/Depr | 284.09% | ||
| Cap/Sales | 6.4% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 112.8% | ||
| Profit Quality | 108.26% | ||
| Current Ratio | 1.03 | ||
| Quick Ratio | 0.94 | ||
| Altman-Z | 5.63 |
F-Score8
WACC10.97%
ROIC/WACC3.53
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)26.17%
EPS 3Y43.86%
EPS 5Y36.84%
EPS Q2Q%17.46%
EPS Next Y8.48%
EPS Next 2Y9.58%
EPS Next 3Y10.22%
EPS Next 5Y8.97%
Revenue 1Y (TTM)14.78%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%14.38%
Revenue Next Year14.58%
Revenue Next 2Y13.08%
Revenue Next 3Y12.27%
Revenue Next 5Y13.02%
EBIT growth 1Y24.11%
EBIT growth 3Y41.66%
EBIT growth 5Y39.22%
EBIT Next Year19.33%
EBIT Next 3Y14.96%
EBIT Next 5Y16.33%
FCF growth 1Y-1.72%
FCF growth 3Y16%
FCF growth 5Y21.29%
OCF growth 1Y7.75%
OCF growth 3Y14.62%
OCF growth 5Y22.82%
FORTINET INC / 1FTNT.MI FAQ
What is the fundamental rating for 1FTNT stock?
ChartMill assigns a fundamental rating of 7 / 10 to 1FTNT.MI.
What is the valuation status for 1FTNT stock?
ChartMill assigns a valuation rating of 4 / 10 to FORTINET INC (1FTNT.MI). This can be considered as Fairly Valued.
Can you provide the profitability details for FORTINET INC?
FORTINET INC (1FTNT.MI) has a profitability rating of 9 / 10.
What is the financial health of FORTINET INC (1FTNT.MI) stock?
The financial health rating of FORTINET INC (1FTNT.MI) is 7 / 10.
What is the expected EPS growth for FORTINET INC (1FTNT.MI) stock?
The Earnings per Share (EPS) of FORTINET INC (1FTNT.MI) is expected to grow by 8.48% in the next year.