FORTINET INC (FTNT) Stock Fundamental Analysis
NASDAQ:FTNT • US34959E1091
79.2 USD
+1.85 (+2.39%)
At close: Feb 26, 2026
77.08 USD
-2.12 (-2.68%)
After Hours: 2/26/2026, 7:31:16 PM
Overall FTNT gets a fundamental rating of 7 out of 10. We evaluated FTNT against 274 industry peers in the Software industry. FTNT has outstanding health and profitabily ratings, belonging to the best of the industry. This is a solid base for any company. FTNT is growing strongly while it is still valued neutral. This is a good combination! These ratings could make FTNT a good candidate for growth and quality investing.
1. Profitability
1.1 Basic Checks
- FTNT had positive earnings in the past year.
- In the past year FTNT had a positive cash flow from operations.
- FTNT had positive earnings in each of the past 5 years.
- FTNT had a positive operating cash flow in each of the past 5 years.
1.2 Ratios
- FTNT has a better Return On Assets (17.84%) than 93.80% of its industry peers.
- The Return On Equity of FTNT (149.77%) is better than 99.27% of its industry peers.
- FTNT's Return On Invested Capital of 32.34% is amongst the best of the industry. FTNT outperforms 97.81% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for FTNT is significantly above the industry average of 10.79%.
- The 3 year average ROIC (29.46%) for FTNT is below the current ROIC(32.34%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.84% | ||
| ROE | 149.77% | ||
| ROIC | 32.34% |
ROA(3y)17.18%
ROA(5y)15.11%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.46%
ROIC(5y)25.79%
1.3 Margins
- FTNT has a Profit Margin of 27.26%. This is amongst the best in the industry. FTNT outperforms 88.69% of its industry peers.
- FTNT's Profit Margin has improved in the last couple of years.
- FTNT's Operating Margin of 30.51% is amongst the best of the industry. FTNT outperforms 92.70% of its industry peers.
- In the last couple of years the Operating Margin of FTNT has grown nicely.
- FTNT has a better Gross Margin (80.46%) than 81.39% of its industry peers.
- FTNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 30.51% | ||
| PM (TTM) | 27.26% | ||
| GM | 80.46% |
OM growth 3Y11.77%
OM growth 5Y9.99%
PM growth 3Y11.99%
PM growth 5Y7.68%
GM growth 3Y2.17%
GM growth 5Y0.61%
2. Health
2.1 Basic Checks
- The Return on Invested Capital (ROIC) is well above the Cost of Capital (WACC), so FTNT is creating value.
- FTNT has less shares outstanding than it did 1 year ago.
- Compared to 5 years ago, FTNT has less shares outstanding
- FTNT has a better debt/assets ratio than last year.
2.2 Solvency
- An Altman-Z score of 5.12 indicates that FTNT is not in any danger for bankruptcy at the moment.
- FTNT has a Altman-Z score of 5.12. This is in the better half of the industry: FTNT outperforms 77.37% of its industry peers.
- The Debt to FCF ratio of FTNT is 0.45, which is an excellent value as it means it would take FTNT, only 0.45 years of fcf income to pay off all of its debts.
- With a decent Debt to FCF ratio value of 0.45, FTNT is doing good in the industry, outperforming 79.20% of the companies in the same industry.
- A Debt/Equity ratio of 0.40 indicates that FTNT is not too dependend on debt financing.
- FTNT has a Debt to Equity ratio of 0.40. This is in the lower half of the industry: FTNT underperforms 62.77% of its industry peers.
- Even though the debt/equity ratio score it not favorable for FTNT, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 0.45 | ||
| Altman-Z | 5.12 |
ROIC/WACC2.95
WACC10.95%
2.3 Liquidity
- FTNT has a Current Ratio of 1.17. This is a normal value and indicates that FTNT is financially healthy and should not expect problems in meeting its short term obligations.
- Looking at the Current ratio, with a value of 1.17, FTNT is doing worse than 67.88% of the companies in the same industry.
- FTNT has a Quick Ratio of 1.09. This is a normal value and indicates that FTNT is financially healthy and should not expect problems in meeting its short term obligations.
- With a Quick ratio value of 1.09, FTNT is not doing good in the industry: 69.71% of the companies in the same industry are doing better.
- FTNT 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 | 1.17 | ||
| Quick Ratio | 1.09 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an nice 16.88% over the past year.
- FTNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 32.75% yearly.
- The Revenue has grown by 14.17% in the past year. This is quite good.
- The Revenue has been growing by 21.25% on average over the past years. This is a very strong growth!
EPS 1Y (TTM)16.88%
EPS 3Y32.23%
EPS 5Y32.75%
EPS Q2Q%9.46%
Revenue 1Y (TTM)14.17%
Revenue growth 3Y15.46%
Revenue growth 5Y21.25%
Sales Q2Q%14.75%
3.2 Future
- Based on estimates for the next years, FTNT will show a small growth in Earnings Per Share. The EPS will grow by 7.59% on average per year.
- Based on estimates for the next years, FTNT will show a quite strong growth in Revenue. The Revenue will grow by 11.52% on average per year.
EPS Next Y8.21%
EPS Next 2Y9.75%
EPS Next 3Y6.12%
EPS Next 5Y7.59%
Revenue Next Year11.18%
Revenue Next 2Y10.92%
Revenue Next 3Y13.32%
Revenue Next 5Y11.52%
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
- The Price/Earnings ratio is 28.59, which means the current valuation is very expensive for FTNT.
- The rest of the industry has a similar Price/Earnings ratio as FTNT.
- When comparing the Price/Earnings ratio of FTNT to the average of the S&P500 Index (27.21), we can say FTNT is valued inline with the index average.
- Based on the Price/Forward Earnings ratio of 26.42, the valuation of FTNT can be described as expensive.
- FTNT's Price/Forward Earnings is on the same level as the industry average.
- FTNT's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.13.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 26.42 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, FTNT is valued a bit cheaper than 69.71% of the companies in the same industry.
- Based on the Price/Free Cash Flow ratio, FTNT is valued a bit cheaper than the industry average as 64.60% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.46 | ||
| EV/EBITDA | 24.19 |
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 FTNT may justify a higher PE ratio.
PEG (NY)3.48
PEG (5Y)0.87
EPS Next 2Y9.75%
EPS Next 3Y6.12%
5. Dividend
5.1 Amount
- No dividends for FTNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
79.2
+1.85 (+2.39%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05 2026-02-05/amc
Earnings (Next)05-05 2026-05-05/amc
Inst Owners70.81%
Inst Owner Change2.33%
Ins Owners17.34%
Ins Owner Change-0.39%
Market Cap58.90B
Revenue(TTM)6.80B
Net Income(TTM)1.85B
Analysts68.4
Price Target89.73 (13.3%)
Short Float %2.86%
Short Ratio2.62
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)11%
Min EPS beat(2)7.16%
Max EPS beat(2)14.84%
EPS beat(4)4
Avg EPS beat(4)8.7%
Min EPS beat(4)6.18%
Max EPS beat(4)14.84%
EPS beat(8)8
Avg EPS beat(8)15.03%
EPS beat(12)12
Avg EPS beat(12)14.29%
EPS beat(16)16
Avg EPS beat(16)14.02%
Revenue beat(2)1
Avg Revenue beat(2)-0.17%
Min Revenue beat(2)-0.75%
Max Revenue beat(2)0.42%
Revenue beat(4)1
Avg Revenue beat(4)-0.99%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.42%
Revenue beat(8)3
Avg Revenue beat(8)-0.33%
Revenue beat(12)4
Avg Revenue beat(12)-0.57%
Revenue beat(16)6
Avg Revenue beat(16)-0.32%
PT rev (1m)0.98%
PT rev (3m)-1.91%
EPS NQ rev (1m)-4.52%
EPS NQ rev (3m)-4.3%
EPS NY rev (1m)0.32%
EPS NY rev (3m)5.32%
Revenue NQ rev (1m)0.46%
Revenue NQ rev (3m)0.46%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 28.59 | ||
| Fwd PE | 26.42 | ||
| P/S | 8.66 | ||
| P/FCF | 26.46 | ||
| P/OCF | 22.73 | ||
| P/B | 47.59 | ||
| P/tB | 66.72 | ||
| EV/EBITDA | 24.19 |
EPS(TTM)2.77
EY3.5%
EPS(NY)3
Fwd EY3.78%
FCF(TTM)2.99
FCFY3.78%
OCF(TTM)3.48
OCFY4.4%
SpS9.14
BVpS1.66
TBVpS1.19
PEG (NY)3.48
PEG (5Y)0.87
Graham Number10.18
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 17.84% | ||
| ROE | 149.77% | ||
| ROCE | 38.73% | ||
| ROIC | 32.34% | ||
| ROICexc | 97.69% | ||
| ROICexgc | 122.12% | ||
| OM | 30.51% | ||
| PM (TTM) | 27.26% | ||
| GM | 80.46% | ||
| FCFM | 32.73% |
ROA(3y)17.18%
ROA(5y)15.11%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)29.46%
ROIC(5y)25.79%
ROICexc(3y)95.09%
ROICexc(5y)84.5%
ROICexgc(3y)117.15%
ROICexgc(5y)104.17%
ROCE(3y)35.29%
ROCE(5y)30.89%
ROICexgc growth 3Y4.58%
ROICexgc growth 5Y-5.51%
ROICexc growth 3Y4.41%
ROICexc growth 5Y-2.11%
OM growth 3Y11.77%
OM growth 5Y9.99%
PM growth 3Y11.99%
PM growth 5Y7.68%
GM growth 3Y2.17%
GM growth 5Y0.61%
F-Score6
Asset Turnover0.65
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.4 | ||
| Debt/FCF | 0.45 | ||
| Debt/EBITDA | 0.22 | ||
| Cap/Depr | 240% | ||
| Cap/Sales | 5.37% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 116.36% | ||
| Profit Quality | 120.09% | ||
| Current Ratio | 1.17 | ||
| Quick Ratio | 1.09 | ||
| Altman-Z | 5.12 |
F-Score6
WACC10.95%
ROIC/WACC2.95
Cap/Depr(3y)242.84%
Cap/Depr(5y)269.75%
Cap/Sales(3y)5.19%
Cap/Sales(5y)6.16%
Profit Quality(3y)126.21%
Profit Quality(5y)149.21%
High Growth Momentum
Growth
EPS 1Y (TTM)16.88%
EPS 3Y32.23%
EPS 5Y32.75%
EPS Q2Q%9.46%
EPS Next Y8.21%
EPS Next 2Y9.75%
EPS Next 3Y6.12%
EPS Next 5Y7.59%
Revenue 1Y (TTM)14.17%
Revenue growth 3Y15.46%
Revenue growth 5Y21.25%
Sales Q2Q%14.75%
Revenue Next Year11.18%
Revenue Next 2Y10.92%
Revenue Next 3Y13.32%
Revenue Next 5Y11.52%
EBIT growth 1Y14.11%
EBIT growth 3Y29.06%
EBIT growth 5Y33.37%
EBIT Next Year16.05%
EBIT Next 3Y18%
EBIT Next 5Y13.8%
FCF growth 1Y18.44%
FCF growth 3Y15.37%
FCF growth 5Y18.37%
OCF growth 1Y14.72%
OCF growth 3Y14.39%
OCF growth 5Y19.04%
FORTINET INC / FTNT FAQ
What is the ChartMill fundamental rating of FORTINET INC (FTNT) stock?
ChartMill assigns a fundamental rating of 7 / 10 to FTNT.
What is the valuation status of FORTINET INC (FTNT) stock?
ChartMill assigns a valuation rating of 4 / 10 to FORTINET INC (FTNT). This can be considered as Fairly Valued.
How profitable is FORTINET INC (FTNT) stock?
FORTINET INC (FTNT) has a profitability rating of 9 / 10.
What is the financial health of FORTINET INC (FTNT) stock?
The financial health rating of FORTINET INC (FTNT) is 8 / 10.