FORTINET INC (1FTNT.MI) Stock Fundamental Analysis
BIT:1FTNT - Euronext Milan - US34959E1091 - Common Stock - Currency: EUR
We assign a fundamental rating of 7 out of 10 to 1FTNT. 1FTNT was compared to 98 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
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.
1FTNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
1FTNT has a better Return On Assets (18.06%) than 94.90% of its industry peers.
The Return On Equity of 1FTNT (95.74%) is better than 97.96% of its industry peers.
The Return On Invested Capital of 1FTNT (30.04%) is better than 95.92% of its industry peers.
1FTNT had an Average Return On Invested Capital over the past 3 years of 28.58%. This is significantly above the industry average of 12.15%.
The last Return On Invested Capital (30.04%) for 1FTNT is above the 3 year average (28.58%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.06% | ||
| ROE | 95.74% | ||
| ROIC | 30.04% |
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 (30.60%) than 92.86% 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 31.67%, 1FTNT belongs to the best of the industry, outperforming 92.86% of the companies in the same industry.
In the last couple of years the Operating Margin of 1FTNT has grown nicely.
1FTNT has a Gross Margin of 81.65%. This is in the better half of the industry: 1FTNT outperforms 75.51% 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 | 31.67% | ||
| PM (TTM) | 30.6% | ||
| GM | 81.65% |
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.
The number of shares outstanding for 1FTNT remains at a similar level compared to 1 year ago.
1FTNT has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1FTNT has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 5.68 indicates that 1FTNT is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 5.68, 1FTNT is in the better half of the industry, outperforming 70.41% of the companies in the same industry.
The Debt to FCF ratio of 1FTNT is 0.48, which is an excellent value as it means it would take 1FTNT, only 0.48 years of fcf income to pay off all of its debts.
With an excellent Debt to FCF ratio value of 0.48, 1FTNT belongs to the best of the industry, outperforming 86.73% of the companies in the same industry.
A Debt/Equity ratio of 0.25 indicates that 1FTNT is not too dependend on debt financing.
1FTNT has a Debt to Equity ratio (0.25) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.48 | ||
| Altman-Z | 5.68 |
ROIC/WACC2.63
WACC11.43%
2.3 Liquidity
A Current Ratio of 1.36 indicates that 1FTNT should not have too much problems paying its short term obligations.
1FTNT has a Current ratio of 1.36. This is comparable to the rest of the industry: 1FTNT outperforms 54.08% of its industry peers.
1FTNT has a Quick Ratio of 1.29. 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 (1.29) which is comparable to the rest of the 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 | 1.36 | ||
| Quick Ratio | 1.29 |
3. Growth
3.1 Past
1FTNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.66%, 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 13.83%.
The Revenue has been growing by 22.46% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)45.66%
EPS 3Y43.86%
EPS 5Y36.84%
EPS Q2Q%34.88%
Revenue 1Y (TTM)13.83%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%13.77%
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 9.15% on average per year.
Based on estimates for the next years, 1FTNT will show a quite strong growth in Revenue. The Revenue will grow by 13.49% on average per year.
EPS Next Y6.82%
EPS Next 2Y10.34%
EPS Next 3Y12.2%
EPS Next 5Y9.15%
Revenue Next Year14.76%
Revenue Next 2Y13.84%
Revenue Next 3Y13.86%
Revenue Next 5Y13.49%
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.
Although the future Revenue growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 30.85, the valuation of 1FTNT can be described as expensive.
73.47% of the companies in the same industry are more expensive than 1FTNT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of 1FTNT to the average of the S&P500 Index (26.93), we can say 1FTNT is valued inline with the index average.
Based on the Price/Forward Earnings ratio of 27.00, the valuation of 1FTNT can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1FTNT indicates a somewhat cheap valuation: 1FTNT is cheaper than 64.29% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of 1FTNT to the average of the S&P500 Index (35.31), we can say 1FTNT is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 27 |
4.2 Price Multiples
1FTNT's Enterprise Value to EBITDA ratio is in line with the industry average.
1FTNT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. 1FTNT is cheaper than 68.37% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 28.84 | ||
| EV/EBITDA | 26.34 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
1FTNT has an outstanding profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as 1FTNT's earnings are expected to grow with 12.20% in the coming years.
PEG (NY)4.52
PEG (5Y)0.84
EPS Next 2Y10.34%
EPS Next 3Y12.2%
5. Dividend
5.1 Amount
No dividends for 1FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1FTNT (8/14/2025, 7:00:00 PM)
66.64
-0.02 (-0.03%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.95%
Inst Owner ChangeN/A
Ins Owners16.94%
Ins Owner ChangeN/A
Market Cap51.01B
Analysts69.23
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)13.09%
Min EPS beat(2)6.61%
Max EPS beat(2)19.58%
EPS beat(4)4
Avg EPS beat(4)20.63%
Min EPS beat(4)6.61%
Max EPS beat(4)36.59%
EPS beat(8)8
Avg EPS beat(8)15.88%
EPS beat(12)12
Avg EPS beat(12)15.02%
EPS beat(16)16
Avg EPS beat(16)13.18%
Revenue beat(2)1
Avg Revenue beat(2)0.05%
Min Revenue beat(2)-1.99%
Max Revenue beat(2)2.1%
Revenue beat(4)2
Avg Revenue beat(4)0.05%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)2.1%
Revenue beat(8)2
Avg Revenue beat(8)-0.99%
Revenue beat(12)4
Avg Revenue beat(12)-0.74%
Revenue beat(16)7
Avg Revenue beat(16)0.35%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 30.85 | ||
| Fwd PE | 27 | ||
| P/S | 9.71 | ||
| P/FCF | 28.84 | ||
| P/OCF | 26.03 | ||
| P/B | 30.38 | ||
| P/tB | 37.14 | ||
| EV/EBITDA | 26.34 |
EPS(TTM)2.16
EY3.24%
EPS(NY)2.47
Fwd EY3.7%
FCF(TTM)2.31
FCFY3.47%
OCF(TTM)2.56
OCFY3.84%
SpS6.86
BVpS2.19
TBVpS1.79
PEG (NY)4.52
PEG (5Y)0.84
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 18.06% | ||
| ROE | 95.74% | ||
| ROCE | 34.25% | ||
| ROIC | 30.04% | ||
| ROICexc | 189.85% | ||
| ROICexgc | 315.2% | ||
| OM | 31.67% | ||
| PM (TTM) | 30.6% | ||
| GM | 81.65% | ||
| FCFM | 33.66% |
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-Score7
Asset Turnover0.59
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.25 | ||
| Debt/FCF | 0.48 | ||
| Debt/EBITDA | 0.24 | ||
| Cap/Depr | 171.92% | ||
| Cap/Sales | 3.64% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 110.4% | ||
| Profit Quality | 110.01% | ||
| Current Ratio | 1.36 | ||
| Quick Ratio | 1.29 | ||
| Altman-Z | 5.68 |
F-Score7
WACC11.43%
ROIC/WACC2.63
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)45.66%
EPS 3Y43.86%
EPS 5Y36.84%
EPS Q2Q%34.88%
EPS Next Y6.82%
EPS Next 2Y10.34%
EPS Next 3Y12.2%
EPS Next 5Y9.15%
Revenue 1Y (TTM)13.83%
Revenue growth 3Y21.24%
Revenue growth 5Y22.46%
Sales Q2Q%13.77%
Revenue Next Year14.76%
Revenue Next 2Y13.84%
Revenue Next 3Y13.86%
Revenue Next 5Y13.49%
EBIT growth 1Y51.46%
EBIT growth 3Y41.66%
EBIT growth 5Y39.22%
EBIT Next Year18.29%
EBIT Next 3Y16.03%
EBIT Next 5Y16.33%
FCF growth 1Y13.41%
FCF growth 3Y16%
FCF growth 5Y21.29%
OCF growth 1Y13.87%
OCF growth 3Y14.62%
OCF growth 5Y22.82%