FORTINET INC (1FTNT.MI) Stock Fundamental Analysis
BIT:1FTNT - US34959E1091 - Common Stock
68.04 EUR
+3.07 (+4.73%)
We assign a fundamental rating of 7 out of 10 to 1FTNT. 1FTNT was compared to 101 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 is not priced too expensively while it is growing strongly. Keep and eye on this one! With these ratings, 1FTNT could be worth investigating further 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.
1FTNT had positive earnings in each of the past 5 years.
1FTNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
The Return On Assets of 1FTNT (18.23%) is better than 94.06% of its industry peers.
With an excellent Return On Equity value of 94.14%, 1FTNT belongs to the best of the industry, outperforming 98.02% of the companies in the same industry.
1FTNT has a better Return On Invested Capital (29.24%) than 95.05% of its industry peers.
The Average Return On Invested Capital over the past 3 years for 1FTNT is significantly above the industry average of 12.69%.
The 3 year average ROIC (28.58%) for 1FTNT 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%, 1FTNT belongs to the best of the industry, outperforming 91.09% of the companies in the same industry.
In the last couple of years the Profit Margin of 1FTNT has grown nicely.
1FTNT has a better Operating Margin (30.85%) than 88.12% of its industry peers.
1FTNT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 81.42%, 1FTNT is in the better half of the industry, outperforming 73.27% of the companies in the same industry.
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 | 30.85% | ||
| 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
1FTNT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
1FTNT has about the same amout of shares outstanding than it did 1 year ago.
Compared to 5 years ago, 1FTNT has less shares outstanding
1FTNT has a better debt/assets ratio than last year.
2.2 Solvency
1FTNT has an Altman-Z score of 5.71. This indicates that 1FTNT is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of 1FTNT (5.71) is better than 70.30% of its industry peers.
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.
1FTNT has a better Debt to FCF ratio (0.49) than 86.14% of its industry peers.
A Debt/Equity ratio of 0.24 indicates that 1FTNT is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.24, 1FTNT perfoms like the industry average, outperforming 56.44% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 0.49 | ||
| Altman-Z | 5.71 |
ROIC/WACC2.62
WACC11.15%
2.3 Liquidity
A Current Ratio of 1.33 indicates that 1FTNT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.33, 1FTNT is in line with its industry, outperforming 47.52% of the companies in the same industry.
1FTNT has a Quick Ratio of 1.24. This is a normal value and indicates that 1FTNT is financially healthy and should not expect problems in meeting its short term obligations.
1FTNT has a Quick ratio (1.24) which is in line with its industry peers.
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 | 1.33 | ||
| Quick Ratio | 1.24 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 34.90% over the past year.
The Earnings Per Share has been growing by 36.84% on average over the past years. This is a very strong growth
The Revenue has grown by 14.46% in the past year. This is quite good.
Measured over the past years, 1FTNT shows a very strong growth in Revenue. The Revenue has been growing by 22.46% on average per year.
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
Based on estimates for the next years, 1FTNT will show a quite strong growth in Earnings Per Share. The EPS will grow by 8.97% on average per year.
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 Y8.45%
EPS Next 2Y9.62%
EPS Next 3Y10.32%
EPS Next 5Y8.97%
Revenue Next Year14.58%
Revenue Next 2Y13.12%
Revenue Next 3Y12.3%
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
1FTNT is valuated quite expensively with a Price/Earnings ratio of 30.79.
1FTNT's Price/Earnings ratio is a bit cheaper when compared to the industry. 1FTNT is cheaper than 75.25% of the companies in the same industry.
When comparing the Price/Earnings ratio of 1FTNT to the average of the S&P500 Index (27.07), we can say 1FTNT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 28.06, the valuation of 1FTNT can be described as expensive.
Based on the Price/Forward Earnings ratio, 1FTNT is valued a bit cheaper than the industry average as 63.37% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 22.59. 1FTNT is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.79 | ||
| Fwd PE | 28.06 |
4.2 Price Multiples
1FTNT's Enterprise Value to EBITDA is on the same level as 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 67.33% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 30.12 | ||
| EV/EBITDA | 26.96 |
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.
1FTNT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.64
PEG (5Y)0.84
EPS Next 2Y9.62%
EPS Next 3Y10.32%
5. Dividend
5.1 Amount
No dividends for 1FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1FTNT (9/8/2025, 7:00:00 PM)
68.04
+3.07 (+4.73%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners71.17%
Inst Owner ChangeN/A
Ins Owners16.94%
Ins Owner ChangeN/A
Market Cap52.14B
Analysts68.08
Price TargetN/A
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)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)N/A
PT rev (3m)N/A
EPS NQ rev (1m)2.62%
EPS NQ rev (3m)0.12%
EPS NY rev (1m)1.53%
EPS NY rev (3m)1.88%
Revenue NQ rev (1m)-0.63%
Revenue NQ rev (3m)-0.97%
Revenue NY rev (1m)-0.16%
Revenue NY rev (3m)-0.16%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.79 | ||
| Fwd PE | 28.06 | ||
| P/S | 9.66 | ||
| P/FCF | 30.12 | ||
| P/OCF | 25.5 | ||
| P/B | 29.72 | ||
| P/tB | 36.49 | ||
| EV/EBITDA | 26.96 |
EPS(TTM)2.21
EY3.25%
EPS(NY)2.42
Fwd EY3.56%
FCF(TTM)2.26
FCFY3.32%
OCF(TTM)2.67
OCFY3.92%
SpS7.04
BVpS2.29
TBVpS1.86
PEG (NY)3.64
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 | 5.71 |
F-Score8
WACC11.15%
ROIC/WACC2.62
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 Year14.58%
Revenue Next 2Y13.12%
Revenue Next 3Y12.3%
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%