FTNT Fortinet, Inc. - Fundamental Analysis
NEUTRAL
FTNT Stock | Fundamental Analysis & Investment Insights
NASDAQ
•
Technology
•
Software - Infrastructure
Current Price
$77.88
Analyst Target
$87.04
+11.8% Upside
52W High
$114.82
52W Low
$70.12
At a glance
Key valuation, profitability, growth, and risk metrics.
Updated Jan 04, 2026
Market cap
$59.68B
P/E
32.05
ROE
228.0%
Profit margin
28.6%
Debt/Equity
1.48
Dividend yield
N/A
AI Analysis
Powered by advanced machine learning algorithms
Confidence Score
75%
Analysis Accuracy
Fortinet's financial health is stable with a Piotroski F-Score of 5/9 and an exceptionally high Altman Z-Score of 85330168652.8, indicating negligible bankruptcy risk. The company exhibits strong profitability, including a 28.58% profit margin and 228.04% ROE, well above sector averages. However, recent earnings growth is negative year-over-year (-11.40%), and insider selling activity totaling $14.03M over the past six months signals caution. While valuation metrics are rich relative to historical formulas—trading at $77.88 versus a Graham Number of $7.36 and intrinsic value of $17.01—the stock is priced for continued growth expectations, supported by a solid earnings beat streak and analyst target of $87.04.
Key Strengths
Exceptionally high Altman Z-Score indicates near-zero bankruptcy risk
Superior profitability with 28.58% net margin and 31.65% operating margin
Consistent earnings beats: 3 out of last 4 quarters, with an average surprise of 11.40%
Strong historical EPS growth: +17.5% YoY and +15.6% QoQ in most recent quarter
High gross margin of 80.87%, reflecting pricing power and scalable software model
Key Risks
Negative earnings growth: -11.40% YoY and -12.20% QoQ
Rich valuation metrics: P/E of 32.05 and Price/Book of 78.67 suggest premium pricing
Low liquidity ratios: Current Ratio of 1.03 and Quick Ratio of 0.90 indicate tight short-term financial flexibility
High Debt/Equity ratio of 1.48, above sector average of 0.78, increasing financial risk
Bearish insider sentiment with $14.03M in net insider sales and no buys in last 6 months
AI Fair Value Estimate
Based on comprehensive analysis
$87.04
+11.8% above current price
Performance Snowflake
Multi-dimensional analysis across 5 key categories
Overall
52
Moderate
45
60
75
80
0
AI Verdict
Neutral with upside potential if growth reaccelerates
Key drivers: High profitability and earnings quality, Rich valuation limiting margin of safety, Strong analyst target support, Deteriorating near-term earnings growth, Exceptional financial stability
Confidence
75%
Value
45/100
Ref P/E, PEG, Graham Number
Positives
- Forward P/E of 26.60 is below current P/E of 32.05, suggesting earnings recovery priced in
Watchpoints
- Current price ($77.88) is 10.6x Graham Number ($7.36)
- Price/Book of 78.67 is extremely high
- Intrinsic value of $17.01 implies significant overvaluation
Future
60/100
Ref Growth rates
Positives
- Analyst target price of $87.04 implies 11.7% upside
- Revenue growth of 14.40% YoY remains solid
Watchpoints
- Earnings growth is negative: -11.40% YoY and -12.20% QoQ
- PEG Ratio unavailable, limiting growth-adjusted valuation insight
Past
75/100
Ref Historical trends
Positives
- 24 out of 25 quarters beat EPS estimates
- Consistent positive earnings surprises averaging over 15% in recent years
- 5-year price return of +167.5% shows strong long-term momentum
Watchpoints
- 1-year return of -17.8% and 6-month return of -26.3% indicate recent underperformance
Health
80/100
Ref Altman Z-Score, Piotroski F-Score
Positives
- Altman Z-Score of 85330168652.8 is astronomically high, signaling extreme financial safety
- Piotroski F-Score of 5/9 indicates stable financial health
Watchpoints
- Current Ratio (1.03) and Quick Ratio (0.90) are below 1, indicating potential short-term liquidity pressure
Dividend
0/100
Ref Yield, Payout
Positives
No standout positives identified.
Watchpoints
- No dividend program: Dividend yield and payout ratio are 0%
- Dividend Strength score of 0/100 confirms lack of income appeal
Stock Price & Analyst Targets
Real-time price movements and analyst price targets
Current Price
$77.88
Analyst Target
$87.04
Upside/Downside
+11.8%
Multi-Horizon Performance vs Peers
Price momentum across 5Y → 1W horizons for FTNT and closest competitors.
Updated 2026-01-02
| Company | 5Y | 3Y | 1Y | 6M | 1M | 1W |
|---|---|---|---|---|---|---|
|
FTNT
Fortinet, Inc.
Primary
|
+167.5% | +60.5% | -17.8% | -26.3% | -5.9% | -4.5% |
|
ADSK
Autodesk, Inc.
Peer
|
-3.4% | +54.9% | -2.2% | -9.4% | -6.7% | -4.7% |
|
WDAY
Workday, Inc.
Peer
|
-9.8% | +21.5% | -18.3% | -14.9% | -4.2% | -6.8% |
|
NET
Cloudflare, Inc.
Peer
|
+162.8% | +355.6% | +74.2% | +2.5% | -4.1% | -3.1% |
|
NXPI
NXP Semiconductors N.V.
Peer
|
+43.1% | +19.3% | -10.3% | -6.4% | -9.3% | -3.6% |
Positive values indicate cumulative gains over the specified period. Comparables pulled from the same sector to highlight whether momentum is stock-specific or industry-wide.
Historical Performance Trends
Long-term financial metrics and growth patterns
Revenue & Net Income
Profit & Operating Margins
Return on Equity (ROE)
Quarterly Revenue Growth
Historical data shows last 12 quarters (3 years)
Valuation Metrics
Key valuation ratios and pricing indicators
P/E Ratio
32.05
Forward P/E
26.6
PEG Ratio
N/A
P/B Ratio
78.67
P/S Ratio
9.1
EV/Revenue
8.53
EV/EBITDA
25.74
Market Cap
$59.68B
Profitability
Profit margins and return metrics
Profit Margin
28.58%
Operating Margin
31.65%
Gross Margin
80.87%
ROE
228.04%
ROA
13.88%
Growth
Revenue and earnings growth rates
Revenue Growth
+14.4%
Earnings Growth
-11.4%
Q/Q Revenue Growth
N/A
Q/Q Earnings Growth
-12.2%
Financial Health
Balance sheet strength and liquidity metrics
Debt/Equity
1.48
Moderate
Current Ratio
1.03
Good
Quick Ratio
0.9
Poor
Cash/Share
$4.2
Quarterly Earnings History
EPS performance vs analyst estimates
2026-02-05
$N/A
2025-11-05
$0.74
+16.9% surprise
2025-08-06
$0.64
+8.3% surprise
2025-05-07
$0.58
+9.0% surprise
Technology Sector Comparison
Comparing FTNT against 50 companies in the Technology sector
(10 bullish, 40 neutral, 0 bearish)
P/E Ratio
32.05
This Stock
vs
108.43
Sector Avg
-70.4%
(Discount)
Return on Equity (ROE)
228.04%
This Stock
vs
29.27%
Sector Avg
+679.2%
(Excellent)
Profit Margin
28.58%
This Stock
vs
17.13%
Sector Avg
+66.9%
(Superior)
Debt to Equity
1.48
This Stock
vs
0.79
Sector Avg
+88.0%
(Higher)
Revenue Growth
14.4%
This Stock
vs
19.33%
Sector Avg
-25.5%
(Slower)
Current Ratio
1.03
This Stock
vs
1.93
Sector Avg
-46.9%
(Weaker)
Similar Companies
Peer comparison within the same industry
| Company | AI Rating | Market Cap | P/E | ROE | Profit Margin | Price | |
|---|---|---|---|---|---|---|---|
|
FTNT
Fortinet, Inc.
|
NEUTRAL | $59.68B | 32.05 | 228.0% | 28.6% | $77.88 | |
|
ADSK
Autodesk, Inc.
|
NEUTRAL | $61.07B | 55.57 | 40.3% | 16.1% | $286.73 | |
|
WDAY
Workday, Inc.
|
NEUTRAL | $54.95B | 86.83 | 7.3% | 7.0% | $205.79 | |
|
NET
Cloudflare, Inc.
|
NEUTRAL | $68.66B | - | -8.9% | -5.1% | $196.02 | |
|
NXPI
NXP Semiconductors N.V.
|
BULLISH | $50.64B | 24.39 | 20.9% | 17.1% | $197.1 |
Recent Insider Trading
Insider buy and sell transactions from the last 6 months
| Date | Insider | Position | Transaction | Shares | Value |
|---|---|---|---|---|---|
| 2025-12-31 | HU JEAN X | Director | Stock Award | 649 | - |
| 2025-12-31 | GOLDMAN KENNETH ALLEN | Director | Stock Award | 649 | - |
| 2025-12-31 | HSIEH MING | Director | Stock Award | 649 | - |
| 2025-12-31 | NAPOLITANO JANET ANN | Director | Stock Award | 649 | - |
| 2025-12-31 | SIM JUDITH KOON LIEN | Director | Stock Award | 649 | - |
| 2025-12-31 | STAVRIDIS JAMES G | Director | Stock Award | 649 | - |
| 2025-12-05 | XIE MICHAEL | Chief Technology Officer | Gift | 245,000 | - |
| 2025-11-04 | OHLGART CHRISTIANE MARGRIT | Chief Financial Officer | Sale | 110 | $9,515 |
| 2025-11-03 | XIE MICHAEL | Chief Technology Officer | Sale | 3,546 | $306,825 |
| 2025-11-03 | XIE KENNETH QING | Chief Executive Officer | Sale | 158,485 | $13,710,381 |
| 2025-11-03 | XIE KENNETH QING | Chief Executive Officer | Option Exercise | 166,832 | $2,534,700 |
| 2025-10-31 | WHITTLE JOHN | Chief Operating Officer | Stock Award | 4,615 | - |
| 2025-10-31 | OHLGART CHRISTIANE MARGRIT | Chief Financial Officer | Stock Award | 685 | - |
| 2025-10-31 | XIE MICHAEL | Chief Technology Officer | Stock Award | 7,035 | - |
| 2025-09-30 | HU JEAN X | Director | Stock Award | 649 | - |
Insider transactions can signal confidence or concerns about company prospects
Wall Street Analysts
Professional analyst ratings and price targets
Consensus
HOLD
33 analysts
Morgan Stanley
2025-12-18
Underweight
Underweight
JP Morgan
2025-12-17
Neutral
Underweight
JP Morgan
2025-11-06
Neutral
Neutral
Jefferies
2025-11-06
Hold
Hold
UBS
2025-11-06
Neutral
Neutral
TD Cowen
2025-11-06
Hold
Hold
Baird
2025-11-06
Neutral
Neutral
Mizuho
2025-11-06
Underperform
Underperform
RBC Capital
2025-11-06
Sector Perform
Sector Perform
Piper Sandler
2025-11-06
Neutral
Neutral