Fortinet, Inc. (FTNT) stock analysis

P/E below its 5-year median

Fortinet's P/E of 41.6 is below its own 5-year median of 48.1.

P/E above the industry

Fortinet's P/E of 41.6 is above the Computer and Office Equipment median of 26.0.

EV/EBITDA below its 5-year median

Fortinet's EV/EBITDA of 32.9 is below its 5-year median of 40.3.

P/B above the industry

Fortinet's price-to-book of 41.89 is above the Computer and Office Equipment median of 3.71.

Trading above fair value

The share price of $128.10 is above our fair value estimate of $115.62.

Margin of safety under 20%

The price is 10.8% above fair value, so there is no margin of safety.

Revenue growing 10%+ a year

Revenue grew 15.5% a year over the last three fiscal years.

EPS growing 10%+ a year

Diluted EPS grew 31.7% a year over the last three fiscal years.

Earnings growth not accelerating

Net income grew 21.8% over the last twelve months, against a 5-year average of 30.6% a year.

Growing faster than the industry

Revenue grew 20.2% over the last twelve months; the Computer and Office Equipment median is 11.2%.

Guidance raised

Fortinet raised its fiscal year 2026 Revenue outlook on Jul 29, 2026.

Gross margin slipping

Gross margin was 79.7% over the last twelve months, against 80.9% a year earlier.

Return on equity over 15%

Return on equity was 153% over the last twelve months and averaged 223% over five years.

Return on invested capital

Needs operating income and invested capital.

Return on equity above the industry

Fortinet's return on equity of 153% is above the Computer and Office Equipment median of 7.5%.

Earnings grew over 5 years

Net income grew 30.6% a year on average over the last five fiscal years.

Net margin above its 5-year average

Net margin was 29.0% over the last twelve months, against a 5-year average of 23.2%.

Net margin above the industry

Fortinet's net margin of 29.0% is above the Computer and Office Equipment median of 3.8%.

Low debt

Debt is 22.1% of shareholders' equity, under the 40% we consider low.

Debt rising against equity

Debt to equity rose from 0.0% five years ago to 22.1%.

Debt covered by cash flow

Operating cash flow over the last twelve months equals 742% of total debt.

Interest well covered

Operating income covers interest expense 175.6 times.

Short-term assets cover short-term debts

Current assets are 1.40 times current liabilities.

Low bankruptcy risk

The Altman Z-score is 7.44; above 3 is the safe zone and below 1.8 the distress zone.

No dividend

Fortinet 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.