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 114 industry peers in the Software industry. Both the health and profitability get an excellent rating, making 1FTNT a very profitable company, without any liquidiy or solvency issues. 1FTNT is growing strongly while it is still valued neutral. This is a good combination! With these ratings, 1FTNT could be worth investigating further for growth and quality investing!.
1. Profitability
1.1 Basic Checks
1FTNT had positive earnings in the past year.
In the past year 1FTNT had a positive cash flow from operations.
Each year in the past 5 years 1FTNT has been profitable.
1FTNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1FTNT has a Return On Assets of 20.01%. This is amongst the best in the industry. 1FTNT outperforms 91.74% of its industry peers.
With an excellent Return On Equity value of 254.88%, 1FTNT belongs to the best of the industry, outperforming 100.00% of the companies in the same industry.
1FTNT has a better Return On Invested Capital (38.77%) than 97.25% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1FTNT is significantly above the industry average of 13.10%.
The 3 year average ROIC (28.58%) for 1FTNT is below the current ROIC(38.77%), indicating increased profibility in the last year.
| 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 has a better Profit Margin (28.58%) than 86.24% of its industry peers.
In the last couple of years the Profit Margin of 1FTNT has grown nicely.
With an excellent Operating Margin value of 30.86%, 1FTNT belongs to the best of the industry, outperforming 87.16% of the companies in the same industry.
1FTNT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 80.86%, 1FTNT is in the better half of the industry, outperforming 71.56% of the companies in the same industry.
1FTNT's Gross Margin has been stable in the last couple of years.
| 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
The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so 1FTNT 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
An Altman-Z score of 5.63 indicates that 1FTNT is not in any danger for bankruptcy at the moment.
1FTNT has a Altman-Z score of 5.63. This is in the better half of the industry: 1FTNT outperforms 74.31% 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.
The Debt to FCF ratio of 1FTNT (0.49) is better than 88.07% of its industry peers.
1FTNT has a Debt/Equity ratio of 0.68. This is a neutral value indicating 1FTNT is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.68, 1FTNT is doing worse than 71.56% of the companies in the same industry.
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.
The Current ratio of 1FTNT (1.03) is worse than 66.97% of its industry peers.
A Quick Ratio of 0.94 indicates that 1FTNT may have some problems paying its short term obligations.
1FTNT has a Quick ratio of 0.94. This is in the lower half of the industry: 1FTNT underperforms 71.56% of 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 | 1.03 | ||
| Quick Ratio | 0.94 |
3. Growth
3.1 Past
1FTNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 26.17%, which is quite impressive.
The Earnings Per Share has been growing by 36.84% on average over the past years. This is a very strong growth
1FTNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 14.78%.
1FTNT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.46% yearly.
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
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 Y8.48%
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
Based on the Price/Earnings ratio of 30.21, the valuation of 1FTNT can be described as expensive.
1FTNT's Price/Earnings ratio is a bit cheaper when compared to the industry. 1FTNT is cheaper than 66.06% of the companies in the same industry.
1FTNT is valuated at similar levels of the S&P average when we compare the Price/Earnings ratio to 25.98, which is the current average of the S&P500 Index.
1FTNT is valuated quite expensively with a Price/Forward Earnings ratio of 28.62.
1FTNT's Price/Forward Earnings ratio is in line with the industry average.
1FTNT is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 35.79, 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.
Based on the Price/Free Cash Flow ratio, 1FTNT is valued a bit cheaper than the industry average as 66.06% of the companies are valued more expensively.
| 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 an expensive valuation of the company.
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.