Fatpipe Inc/UT (FATN) stock analysis
Close on Nov 12, 2026Market cap $66.05MP/E 9.9Yield –
StockData Score
Prices as of Nov 11, 2026How the score works
Mixed11 of 30 checks passed
Fatpipe passes 11 of the 30 checks behind our score; 17 could not be run for lack of data and count as not passed. Each dot in the shape is one check — hover it for the numbers.
- Valuation
- 4/6
- Growth
- 2/6
- Past performance
- 1/6
- Financial health
- 4/6
- Dividend
- 0/6
What stands out
Margin of safety over 20%
The price is 48.6% below fair value, more than the 20% cushion we look for.
Trading below fair value
The share price of $4.86 is below our fair value estimate of $9.46.
Return on capital over 10%
Return on invested capital was 21.5%, above the 10% that usually covers the cost of capital.
Low debt
Debt is 1.5% of shareholders' equity, under the 40% we consider low.
What to watch
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals -587% of total debt; we look for at least 20%.
No dividend
Fatpipe has not paid a dividend in the last twelve months.
Valuation4/6
P/E against its history
Not enough price and earnings history to compare.
P/E below the industry
Fatpipe's P/E of 10.3 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 27.6.
EV/EBITDA against its history
Needs positive EBITDA and price history.
P/B below the industry
Fatpipe's price-to-book of 2.48 is below the Computer Programming, Data Processing, and Other Computer Related Services median of 3.32.
Trading below fair value
The share price of $4.86 is below our fair value estimate of $9.46.
Margin of safety over 20%
The price is 48.6% below fair value, more than the 20% cushion we look for.
Growth2/6
Revenue growth over 3 years
Needs three years of positive revenue.
EPS growth over 3 years
Needs positive EPS three years ago and today.
Earnings acceleration
Needs positive net income now, a year ago and five years ago.
Growing faster than the industry
Revenue grew 31.8% over the last twelve months; the Computer Programming, Data Processing, and Other Computer Related Services median is 9.6%.
Company guidance
No outlook found in earnings releases from the last twelve months.
Gross margin improving
Gross margin was 69.5% over the last twelve months, against 65.9% a year earlier.
Past performance1/6
Return on equity
Needs positive equity and five years of results.
Return on capital over 10%
Return on invested capital was 21.5%, above the 10% that usually covers the cost of capital.
Return on equity against the industry
Needs positive equity.
Earnings over 5 years
Needs positive net income five years ago and in the latest year.
Net margin against its history
Needs five years of revenue and net income.
Net margin against the industry
Needs revenue and net income.
Financial health4/6
Low debt
Debt is 1.5% of shareholders' equity, under the 40% we consider low.
Debt trend
Needs a balance sheet from five years ago with positive equity.
Debt not well covered by cash flow
Operating cash flow over the last twelve months equals -587% of total debt; we look for at least 20%.
Interest well covered
Operating income covers interest expense 10.7 times.
Short-term assets cover short-term debts
Current assets are 5.13 times current liabilities.
Low bankruptcy risk
The Altman Z-score is 7.72; above 3 is the safe zone and below 1.8 the distress zone.
Dividend0/6
No dividend
Fatpipe has not paid a dividend in the last twelve months.
Yield against Treasuries
No dividend.
Yield against the market
No dividend.
Dividend stability
No dividend.
Earnings cover
No dividend.
Cash-flow cover
No dividend.
Fair value
How we estimate itOur estimate per share
$9.46
The share price is 49% below this estimate.
| Method | Multiple used | Own 5Y median | Industry median | Value per share | Weight |
|---|---|---|---|---|---|
| P/E | 27.6× | – | 27.6× | $12.96 | 47% |
| EV/EBITDA | 18.8× | – | 18.8× | $6.30 | 41% |
| P/B | 3.3× | – | 3.3× | $6.52 | 12% |
| Fair value | $9.46 | 100% | |||
Valuation over time
Using the earnings and balance sheet published at each date, not today's.
- P/E at month end
- Computer Programming, Data Processing, and Other Computer Related Services median 27.6
An estimate from reported numbers and market multiples, not a price target or investment advice. It can be far off for companies whose profits are about to change sharply.
Market risk
From the past year of daily prices.
Liquidity
High risk
- Average value traded per day
- $184.56K
- Value traded per 1% price move
- $76.36K
Downside
High risk
- Typical loss in a bad month
- 26.1%
- Volatility (annualized)
- 137%
- Sharpe ratio, 1 year
- 0.42
- Beta to the S&P 500 (5Y)
- 1.74
Typical bad-month loss, week by week
Margins
Share of revenue, fiscal years 2023 to 2026
Gross margin
Operating margin
Net margin
Growth rates
Compound annual growth to fiscal 2026
| Per year | 1 year | 3 years | 5 years | 10 years | Five-year pace |
|---|---|---|---|---|---|
| Revenue | +17.9% | – | – | – | |
| Gross profit | +14.8% | – | – | – | |
| Operating income | +3.4% | – | – | – | |
| Net income | +152.7% | – | – | – | |
| EPS, diluted | +133.3% | – | – | – |
Returns and balance sheet
4 fiscal years. Hover a measure to see how it is calculated.
| Measure | FY2023 | FY2023 | FY2026 | Trend |
|---|---|---|---|---|
| Return on equity | – | – | 24.2% | |
| Return on assets | – | – | 15.8% | |
| Current ratio | – | – | 3.85 | |
| Interest coverage | – | – | 8.9× | |
| Inventory turnover | – | – | 4.0× | |
| Capex to revenue | – | – | 0.3% | |
| Diluted shares | – | – | 14M |
Cash use needs five years of cash flow figures
Fatpipe does not report operating cash flow and capital expenditure for each of the last five fiscal years.
DuPont analysis
Return on equity split into margin, efficiency and leverage
| Fiscal year | Net margin | Asset turnover | Equity multiplier | Return on equity |
|---|---|---|---|---|
| FY2026 | 25.9% | 0.61× | 1.53× | 24.2% |
| FY2025 | 12.1% | 0.66× | 1.67× | 13.2% |
Piotroski F-Score
Nine tests of profitability, balance sheet and efficiency, fiscal 2026 against fiscal 2025
- ProfitableNet income above zero$4.97M
- Cash generatingOperating cash flow above zero-$780.39K
- Return on assets improvedROA up on the prior year9.2% → 17.6%
- Earnings backed by cashOperating cash flow above net income-$780.39K vs $4.97M
- Less leverageLong-term debt to assets fell– → –
- Better liquidityCurrent ratio rose2.00 → 3.85
- No dilutionShare count did not rise13M → 14M
- Gross margin improvedGross margin up on the prior year93.48% → 91.00%
- More efficientAsset turnover rose0.76 → 0.68
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