FORTINET INC (1FTNT.MI) Stock Fundamental Analysis
BIT:1FTNT - Euronext Milan - US34959E1091 - Common Stock - Currency: EUR
Taking everything into account, 1FTNT scores 7 out of 10 in our fundamental rating. 1FTNT was compared to 107 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 valued quite expensively, but it does show have an excellent growth rating. This makes 1FTNT very considerable for growth and quality investing!
1. Profitability
1.1 Basic Checks
1FTNT had positive earnings in the past year.
1FTNT had a positive operating cash flow in the past year.
In the past 5 years 1FTNT has always been profitable.
In the past 5 years 1FTNT always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 18.06%, 1FTNT belongs to the best of the industry, outperforming 96.26% of the companies in the same industry.
1FTNT has a better Return On Equity (95.74%) than 99.07% of its industry peers.
With an excellent Return On Invested Capital value of 30.04%, 1FTNT belongs to the best of the industry, outperforming 97.20% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for 1FTNT is significantly above the industry average of 10.79%.
The 3 year average ROIC (28.58%) for 1FTNT is below the current ROIC(30.04%), indicating increased profibility in the last year.
| 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's Profit Margin of 30.60% is amongst the best of the industry. 1FTNT outperforms 92.52% of its industry peers.
In the last couple of years the Profit Margin of 1FTNT has grown nicely.
1FTNT has a better Operating Margin (31.67%) than 92.52% of its industry peers.
In the last couple of years the Operating Margin of 1FTNT has grown nicely.
The Gross Margin of 1FTNT (81.65%) is better than 76.64% 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
1FTNT has a Return on Invested Capital (ROIC), which is well above the Cost of Capital (WACC), which means it is creating value.
Compared to 1 year ago, 1FTNT has about the same amount of shares outstanding.
The number of shares outstanding for 1FTNT has been reduced compared to 5 years ago.
The debt/assets ratio for 1FTNT has been reduced compared to a year ago.
2.2 Solvency
1FTNT has an Altman-Z score of 7.11. This indicates that 1FTNT is financially healthy and has little risk of bankruptcy at the moment.
1FTNT's Altman-Z score of 7.11 is fine compared to the rest of the industry. 1FTNT outperforms 73.83% of its industry peers.
1FTNT has a debt to FCF ratio of 0.48. This is a very positive value and a sign of high solvency as it would only need 0.48 years to pay back of all of its debts.
1FTNT's Debt to FCF ratio of 0.48 is amongst the best of the industry. 1FTNT outperforms 86.92% of its industry peers.
1FTNT has a Debt/Equity ratio of 0.25. This is a healthy value indicating a solid balance between debt and equity.
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 | 7.11 |
ROIC/WACC2.68
WACC11.23%
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 51.40% 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.
The Quick ratio of 1FTNT (1.29) is comparable to the rest of the industry.
The current and quick ratio evaluation for 1FTNT is rather negative, while it does have 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.
1FTNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 36.84% yearly.
1FTNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.83%.
1FTNT shows a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 22.46% yearly.
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
The Earnings Per Share is expected to grow by 9.15% 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 13.49% yearly.
EPS Next Y6.45%
EPS Next 2Y10.34%
EPS Next 3Y12.2%
EPS Next 5Y9.15%
Revenue Next Year14.76%
Revenue Next 2Y13.84%
Revenue Next 3Y13.84%
Revenue Next 5Y13.49%
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
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
The Price/Earnings ratio is 41.39, which means the current valuation is very expensive for 1FTNT.
Based on the Price/Earnings ratio, 1FTNT is valued a bit cheaper than the industry average as 67.29% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of 1FTNT to the average of the S&P500 Index (26.59), we can say 1FTNT is valued expensively.
1FTNT is valuated quite expensively with a Price/Forward Earnings ratio of 36.06.
1FTNT's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.39, 1FTNT is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.39 | ||
| Fwd PE | 36.06 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as 1FTNT.
Based on the Price/Free Cash Flow ratio, 1FTNT is valued a bit cheaper than 69.16% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.53 | ||
| EV/EBITDA | 35.99 |
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.
A more expensive valuation may be justified as 1FTNT's earnings are expected to grow with 12.20% in the coming years.
PEG (NY)6.42
PEG (5Y)1.12
EPS Next 2Y10.34%
EPS Next 3Y12.2%
5. Dividend
5.1 Amount
1FTNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1FTNT (6/9/2025, 7:00:00 PM)
91.06
+0.8 (+0.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)
Earnings (Next)
Inst Owners70.96%
Inst Owner ChangeN/A
Ins Owners17.47%
Ins Owner ChangeN/A
Market Cap69.70B
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 | 41.39 | ||
| Fwd PE | 36.06 | ||
| P/S | 12.97 | ||
| P/FCF | 38.53 | ||
| P/OCF | 34.77 | ||
| P/B | 40.58 | ||
| P/tB | 49.62 | ||
| EV/EBITDA | 35.99 |
EPS(TTM)2.2
EY2.42%
EPS(NY)2.52
Fwd EY2.77%
FCF(TTM)2.36
FCFY2.6%
OCF(TTM)2.62
OCFY2.88%
SpS7.02
BVpS2.24
TBVpS1.84
PEG (NY)6.42
PEG (5Y)1.12
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 | 7.11 |
F-Score7
WACC11.23%
ROIC/WACC2.68
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 Y6.45%
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 3Y13.84%
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%