FORTINET INC (FTNT) Stock Fundamental Analysis

USA • Nasdaq • NASDAQ:FTNT • US34959E1091

81.55 USD
+2.62 (+3.32%)
Last: Feb 6, 2026, 11:52 AM
Fundamental Rating

6

FTNT gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 278 industry peers in the Software industry. FTNT scores excellent on profitability, but there are some minor concerns on its financial health. FTNT has a decent growth rate and is not valued too expensively.


Dividend Valuation Growth Profitability Health

9

1. Profitability

1.1 Basic Checks

  • In the past year FTNT was profitable.
  • In the past year FTNT had a positive cash flow from operations.
  • Of the past 5 years FTNT 4 years were profitable.
  • Of the past 5 years FTNT 4 years had a positive operating cash flow.
FTNT Yearly Net Income VS EBIT VS OCF VS FCFFTNT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B 2B

1.2 Ratios

  • FTNT has a better Return On Assets (20.01%) than 95.32% of its industry peers.
  • FTNT has a better Return On Equity (254.88%) than 100.00% of its industry peers.
  • With an excellent Return On Invested Capital value of 38.77%, FTNT belongs to the best of the industry, outperforming 98.56% of the companies in the same industry.
  • Measured over the past 3 years, the Average Return On Invested Capital for FTNT is significantly above the industry average of 10.78%.
  • The 3 year average ROIC (28.58%) for FTNT is below the current ROIC(38.77%), indicating increased profibility in the last year.
Industry RankSector 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%
FTNT Yearly ROA, ROE, ROICFTNT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100 -100 -200 -300

1.3 Margins

  • The Profit Margin of FTNT (28.58%) is better than 88.49% of its industry peers.
  • In the last couple of years the Profit Margin of FTNT has grown nicely.
  • FTNT has a Operating Margin of 30.86%. This is amongst the best in the industry. FTNT outperforms 92.45% of its industry peers.
  • FTNT's Operating Margin has improved in the last couple of years.
  • Looking at the Gross Margin, with a value of 80.86%, FTNT belongs to the top of the industry, outperforming 83.45% of the companies in the same industry.
  • FTNT's Gross Margin has been stable in the last couple of years.
Industry RankSector 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%
FTNT Yearly Profit, Operating, Gross MarginsFTNT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 20 40 60 80

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ROAROEROICOperating and Profit MarginShow most profitable peers

6

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 no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
FTNT Yearly Shares OutstandingFTNT Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M
FTNT Yearly Total Debt VS Total AssetsFTNT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2B 4B 6B 8B

2.2 Solvency

  • An Altman-Z score of 5.37 indicates that FTNT is not in any danger for bankruptcy at the moment.
  • Looking at the Altman-Z score, with a value of 5.37, FTNT is in the better half of the industry, outperforming 79.86% of the companies in the same industry.
  • The Debt to FCF ratio of FTNT is 0.49, which is an excellent value as it means it would take FTNT, only 0.49 years of fcf income to pay off all of its debts.
  • Looking at the Debt to FCF ratio, with a value of 0.49, FTNT is in the better half of the industry, outperforming 79.14% of the companies in the same industry.
  • A Debt/Equity ratio of 0.68 indicates that FTNT is somewhat dependend on debt financing.
  • With a Debt to Equity ratio value of 0.68, FTNT is not doing good in the industry: 70.14% of the companies in the same industry are doing better.
  • Although FTNT 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 RankSector Rank
Debt/Equity 0.68
Debt/FCF 0.49
Altman-Z 5.37
ROIC/WACC3.49
WACC11.11%
FTNT Yearly LT Debt VS Equity VS FCFFTNT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B 1.5B

2.3 Liquidity

  • FTNT has a Current Ratio of 1.03. This is a normal value and indicates that FTNT is financially healthy and should not expect problems in meeting its short term obligations.
  • FTNT's Current ratio of 1.03 is on the low side compared to the rest of the industry. FTNT is outperformed by 72.66% of its industry peers.
  • A Quick Ratio of 0.94 indicates that FTNT may have some problems paying its short term obligations.
  • FTNT has a Quick ratio of 0.94. This is in the lower half of the industry: FTNT underperforms 76.26% of its industry peers.
  • 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 RankSector Rank
Current Ratio 1.03
Quick Ratio 0.94
FTNT Yearly Current Assets VS Current LiabilitesFTNT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • The Earnings Per Share has grown by an nice 16.88% over the past year.
  • The Earnings Per Share has been growing by 32.75% 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)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14.75%

3.2 Future

  • The Earnings Per Share is expected to grow by 10.21% on average over the next years. This is quite good.
  • FTNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.73% yearly.
EPS Next Y8.21%
EPS Next 2Y9.75%
EPS Next 3Y6.12%
EPS Next 5Y10.21%
Revenue Next Year11.18%
Revenue Next 2Y10.92%
Revenue Next 3Y13.32%
Revenue Next 5Y10.73%

3.3 Evolution

  • Although the future EPS growth is still strong, it is not able to hold up the even more excellent growth rate of the past years.
FTNT Yearly Revenue VS EstimatesFTNT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 5B 10B
FTNT Yearly EPS VS EstimatesFTNT Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2017 2019 2021 2023 2025 2027 2029 2031 2033 2 4 6

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Find the best growth stocksShow best growing peers

4

4. Valuation

4.1 Price/Earnings Ratio

  • A Price/Earnings ratio of 29.44 indicates a quite expensive valuation of FTNT.
  • FTNT's Price/Earnings ratio is in line with the industry average.
  • FTNT's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.67.
  • FTNT is valuated quite expensively with a Price/Forward Earnings ratio of 27.21.
  • The rest of the industry has a similar Price/Forward Earnings ratio as FTNT.
  • The average S&P500 Price/Forward Earnings ratio is at 27.20. FTNT is around the same levels.
Industry RankSector Rank
PE 29.44
Fwd PE 27.21
FTNT Price Earnings VS Forward Price EarningsFTNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30 40

4.2 Price Multiples

  • FTNT's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. FTNT is cheaper than 68.70% 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 64.75% of the companies are valued more expensively.
Industry RankSector Rank
P/FCF 29.9
EV/EBITDA 25.55
FTNT Per share dataFTNT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6 8

4.3 Compensation for Growth

  • The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
  • FTNT has an outstanding profitability rating, which may justify a higher PE ratio.
PEG (NY)3.58
PEG (5Y)0.9
EPS Next 2Y9.75%
EPS Next 3Y6.12%

More info and screens

Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. Dividend

5.1 Amount

  • No dividends for FTNT!.
Industry RankSector Rank
Dividend Yield 0%

More info and screens

Find the best dividend stocksShow peers with best dividend

FORTINET INC

NASDAQ:FTNT (2/6/2026, 11:52:09 AM)

81.55

+2.62 (+3.32%)

Chartmill FA Rating
GICS IndustryGroupSoftware & Services
GICS IndustrySoftware
Earnings (Last)02-05
Earnings (Next)05-05
Inst Owners70.81%
Inst Owner Change-2.27%
Ins Owners17.34%
Ins Owner Change-1.21%
Market Cap60.64B
Revenue(TTM)N/A
Net Income(TTM)1.87B
Analysts67.35
Price Target89.73 (10.03%)
Short Float %3.27%
Short Ratio3.4
Dividend
Industry RankSector 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)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)0.16%
PT rev (3m)-2.72%
EPS NQ rev (1m)0%
EPS NQ rev (3m)11%
EPS NY rev (1m)-0.18%
EPS NY rev (3m)6.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-0.89%
Revenue NY rev (1m)0.01%
Revenue NY rev (3m)0.07%
Valuation
Industry RankSector Rank
PE 29.44
Fwd PE 27.21
P/S 9.25
P/FCF 29.9
P/OCF 24.77
P/B 82.5
P/tB 165.42
EV/EBITDA 25.55
EPS(TTM)2.77
EY3.4%
EPS(NY)3
Fwd EY3.68%
FCF(TTM)2.73
FCFY3.34%
OCF(TTM)3.29
OCFY4.04%
SpS8.81
BVpS0.99
TBVpS0.49
PEG (NY)3.58
PEG (5Y)0.9
Graham Number7.85
Profitability
Industry RankSector 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 RankSector 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 5.37
F-Score8
WACC11.11%
ROIC/WACC3.49
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)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 5Y10.21%
Revenue 1Y (TTM)N/A
Revenue growth 3YN/A
Revenue growth 5YN/A
Sales Q2Q%14.75%
Revenue Next Year11.18%
Revenue Next 2Y10.92%
Revenue Next 3Y13.32%
Revenue Next 5Y10.73%
EBIT growth 1Y24.11%
EBIT growth 3Y41.66%
EBIT growth 5Y39.22%
EBIT Next Year25.5%
EBIT Next 3Y15.68%
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 / 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 7 / 10.