Fortinet, Inc.

FTNT

Fortinet, Inc. provides cybersecurity and convergence of networking and security solutions worldwide. The company offers FortiOS, a unified operating system designed to address cybersecurity threats; FortiASIC application-specific integrated circuit (ASIC)-based security processing units; FortiCloud, a private cloud software as a service platform; FortiAI, which provides a dual-layered defense...

Country: United StatesPrice: $160.01Market Cap: $117.4B

Company Profile

Industry: Computers
SIC Sector: Industrial Machinery & Computing
Size: Large Cap($117.4B)
Revenue: $6.8B+14.2% YoY
Net Income: $1.9B+6.2% YoY

Financial Snapshot

Operating Margin30.7%
Return on Equity149.8%
Debt / Equity0.81
Current Ratio1.17
EPS (Diluted)$2.42+7.1%
Buybacks (1y)$2.3B
Buybacks (2y)$2.3B
Shares Retired3.1% / 2.4% 2y

Similar Companies

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HPE-PCHewlett Packard Enterprise Co
$198.1B

Shareholder Return

Fiscal 2025

Retired 3.1% of shares last year, 2.4% over two.

Buybacks
$2.3B
Dividends
—

What drove EPS

A buyback raises earnings per share without the company earning more. This splits each year's change into the two.

FY22
45.2% = 41.3% + 2.8%
FY23
37.7% = 33.9% + 2.9%
FY24
54.8% = 52.0% + 1.8%
FY25
7.1% = 6.2% + 0.8%
Earnings Fewer shares More shares

The two parts do not sum exactly to the total — the difference is the cross-term, plus preferred capital where the company has any. It is left visible rather than distributed into the other two.

Share count is the denominator the filer used for diluted EPS, recovered as net income ÷ EPS — not the balance-sheet count, which is a point-in-time figure and would put the timing difference into this split. Years with a loss are omitted: a smaller share count makes a loss per share larger, so the decomposition inverts.

Company Financials

Annual data (10-K) · Last 5 years

MetricFY 2025FY 2024FY 2023FY 2022FY 2021
Market Cap$117.4B$77.4Best.$49.1Best.$40.9Best.$48.2Best.
Revenue$6.8B↑14%$6.0B↑12%$5.3B↑20%$4.4B↑32%$3.3B
Operating Income$2.1B↑16%$1.8B↑45%$1.2B↑28%$969.6M↑49%$650.4M
Net Income$1.9B↑6%$1.7B↑52%$1.1B↑34%$857.3M↑41%$606.8M
EPS (Diluted)$2.42↑7%$2.26↑55%$1.46↑38%$1.06↑45%$0.73
Gross Margin80.5%80.6%↑5%76.7%↑2%75.4%↓1%76.6%
Operating Margin30.7%↑1%30.3%↑29%23.4%↑7%21.9%↑13%19.5%
ROE149.8%↑28%116.8%↑147%-247.7%↑19%-304.4%↓492%77.6%
Total Debt$996.3M$994.3M$992.3M$990.4M$988.4M
Shareholders' Equity$1.2B↓17%$1.5B↑422%-$463.4M↓65%-$281.6M↓136%$781.7M
Current Ratio1.17↓20%1.47↑24%1.19↓4%1.24↓20%1.55
Debt / Equity0.81↑21%0.67↑131%-2.14↑39%-3.52↓378%1.26
Operating Cash Flow$2.6B↑15%$2.3B↑17%$1.9B↑12%$1.7B↑15%$1.5B
Free Cash Flow$2.2B↑18%$1.9B↑9%$1.7B↑19%$1.4B↑20%$1.2B
Scored from 10-K1d ago
MetricMarks

Risk-Aware Value

Akre

Three-Legged Stool

Druckenmiller

Macro-Enhanced Growth

Spier

Value Checklist

Pabrai

Dhandho Framework

Munger

Quality Focus

Ackman

Activist Value

Piotroski

F-Score

Greenblatt

Magic Formula

Lynch

GARP

Buffett

Quality Compounder

Graham

Defensive Value

VerdictHOLDBUYHOLDBUYHOLDHOLDHOLDHOLDNot rankedHOLDPASSFAIL
Score
Analysis
Intrinsic Value
Margin of Safety-740.4%-1846.6%-105.4%-300.8%-286.6%-123.9%-58.6%-9481.4%-780.1%-164.5%-446.3%-1580.8%
Data As Of10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)10-K (2026-08-15)

Where They Agree

  • Valuation models

    FTNT overvalued: all 12 models price fair value below $160.01 (median $34.61)

    Marks fair value$19.04
    ✗Marks-740.4% margin vs $160.01
    Akre fair value$8.22
    ✗Akre-1846.6% margin vs $160.01
    Druckenmiller fair value$77.89
    ✗Druckenmiller-105.4% margin vs $160.01
    Spier fair value$39.92
    ✗Spier-300.8% margin vs $160.01
    Show 8 more metrics ▾
    Pabrai fair value$41.39
    ✗Pabrai-286.6% margin vs $160.01
    Munger fair value$71.46
    ✗Munger-123.9% margin vs $160.01
    Ackman fair value$100.90
    ✗Ackman-58.6% margin vs $160.01
    Piotroski fair value$1.67
    ✗Piotroski-9481.4% margin vs $160.01
    Greenblatt fair value$18.18
    ✗Greenblatt-780.1% margin vs $160.01
    Lynch fair value$60.50
    ✗Lynch-164.5% margin vs $160.01
    Buffett fair value$29.29
    ✗Buffett-446.3% margin vs $160.01
    Graham fair value$9.52
    ✗Graham-1580.8% margin vs $160.01

Where They Disagree

  • Profitability

    3 of 11 pass — Marks, Druckenmiller, Spier +5 more object

    Discount to Intrinsic Value-157.4% (IV=$30.70 vs Price=$79.03)
    ✗Marks>= 20% below intrinsic value
    Positive Net Income Frequency17/17 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    Return on Equity114.7% (3-yr avg)
    ✓AkreROE > 20% (3-year avg)
    EPS Growth AccelerationLatest: 7.1%, Prior: 54.8%
    ✗DruckenmillerAccelerating EPS growth
    Show 19 more metrics ▾
    Margin of SafetyP/E=32.7x, P/B=47.4x
    ✗SpierP/E < 15 AND P/B < 2.0✗PabraiP/B < 1.5 or P/E < 15
    Operating Income / Revenue30.7%
    ✓Ackman>= 15%
    Net Income / Shareholders Equity149.8%
    ✓Ackman>= 15%
    Net Income / Total Assets17.84%
    ✓PiotroskiROA > 0
    ROA Change YoY17.88% -> 17.84% (delta: -0.04%)
    ✗PiotroskiCurrent ROA > Prior ROA
    (CFO / Total Assets) vs ROACFO/Assets=24.94%, ROA=17.84%
    ✓PiotroskiCFO/Assets > ROA
    Gross Margin Change YoY80.6% -> 80.5%
    ✗PiotroskiImproved YoY
    EBIT / Enterprise Value3.6%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=3.6%, ROC=425.8%
    ✗GreenblattBoth EY > 10% and ROC > 25%
    3-5 Year EPS CAGR33.1%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    ROE149.8%
    ✓Lynch> 15%
    Net Income Positive (10+ years)17/18 years positive
    ✗BuffettPositive every year for 10+ years
    ROE (5-yr avg)85.2%
    ✓Buffett> 15% (5-yr avg)
    Operating Margin (10-yr trend)30.7% (latest)
    ✓BuffettStable or rising over 10 years
    Free Cash Flow Proxy$1.8B
    ✓BuffettPositive and growing
    Earnings Variance (10-yr CoV)
    ✗BuffettCoV < 0.3
    Retained Earnings Effectiveness0.06x
    ✗Buffett$1 retained -> > $1 market value created
    Positive EPS (10 years)17/18 years positive
    ✗GrahamPositive EPS every year for 10 years
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
  • Debt & Leverage

    4 of 8 pass — Akre, Munger, Lynch +1 more object

    Interest Coverage & Debt/EBITDAIC=103.7x, D/EBITDA=0.4x
    ✓MarksInterest Coverage > 3x; Debt/EBITDA < 4x
    Debt Levels0.81
    ✗AkreDebt/Equity < 0.3✗MungerDebt/Equity < 0.5
    Total Debt / Shareholders Equity0.81
    ✓Ackman<= 1.0
    LT Debt / Total Assets Change10.18% -> 4.78%
    ✓PiotroskiDecreased YoY
    Show 4 more metrics ▾
    Total Debt / Equity0.81
    ✗Lynch< 0.33
    Cash - Long-term Debt$2.0B
    ✓LynchPositive preferred
    Debt/Equity & Interest CoverageD/E: 0.81, IC: 103.7x
    ✗BuffettD/E < 0.5 AND Interest Coverage > 5x
    LT Debt vs Net Current AssetsLT Debt $496.6M vs NCA $866.2M
    ✓GrahamLT Debt <= Net Current Assets
  • Valuation

    2 of 9 pass — Marks, Spier, Pabrai +4 more object

    P/B or P/E vs. Historical AverageP/E=32.7x, P/B=47.4x
    ✗MarksP/E < 15 or P/B < 2.0
    Discount to Intrinsic Value-157.4% (IV=$30.70 vs Price=$79.03)
    ✗Marks>= 20% below intrinsic value
    Price vs. 200-day MAQualitative
    ✓DruckenmillerPrice above 200-day moving average
    Margin of SafetyP/E=32.7x, P/B=47.4x
    ✗SpierP/E < 15 AND P/B < 2.0
    Show 9 more metrics ▾
    P/E or FCF YieldP/E=32.7x, FCF Yield=3.8%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    Valuation ReasonablenessP/E=32.7x, OE Yield=2.8%
    ✗MungerP/E < 25 or Owner Earnings Yield > 5%
    Price / FCF per Share26.4x
    ✗Ackman<= 25
    EBIT / Enterprise Value3.6%
    ✗Greenblatt> 10%
    Earnings Yield + ROC AssessmentEY=3.6%, ROC=425.8%
    ✗GreenblattBoth EY > 10% and ROC > 25%
    P/E / EPS Growth Rate0.99
    ✓Lynch< 1.0 (ideally < 0.5)
    Price / 3-yr avg EPS38.6x
    ✗Graham<= 15x
    Price-to-Book Ratio47.4x
    ✗Graham<= 1.5x
    P/E x P/B1,832.2
    ✗Graham<= 22.5
  • Cash Flow

    4 of 6 pass — Pabrai and Ackman object

    FCF Positive17/17 years FCF positive
    ✓MarksPositive FCF in majority of recent years
    P/E or FCF YieldP/E=32.7x, FCF Yield=3.8%
    ✗PabraiP/E < 15 or FCF Yield > 10%
    (OCF - CapEx) / Market Cap3.8%
    ✗Ackman>= 4%
    Price / FCF per Share26.4x
    ✗Ackman<= 25
    Show 4 more metrics ▾
    Operating Cash Flow$2.6B
    ✓PiotroskiCFO > 0
    (CFO / Total Assets) vs ROACFO/Assets=24.94%, ROA=17.84%
    ✓PiotroskiCFO/Assets > ROA
    FCF Positive and Growing$2.2B
    ✓LynchPositive and growing
    Free Cash Flow Proxy$1.8B
    ✓BuffettPositive and growing
  • Growth

    2 of 5 pass — Druckenmiller, Lynch and Graham object

    Positive Net Income Frequency17/17 years positive
    ✓MarksPositive net income in >= 7 of last 10 years
    EPS Growth AccelerationLatest: 7.1%, Prior: 54.8%
    ✗DruckenmillerAccelerating EPS growth
    Revenue Growth RateLatest: 14.2%, Prior: 12.3%
    ✓DruckenmillerRevenue growth accelerating
    3yr Median Revenue Growth14.2%
    ✓Ackman>= 5%
    Show 5 more metrics ▾
    Positive EPS Growth Frequency5/5 years with positive EPS growth
    ✓AckmanPositive EPS growth in >= 3 of last 5 years
    P/E / EPS Growth Rate0.99
    ✓Lynch< 1.0 (ideally < 0.5)
    3-5 Year EPS CAGR33.1%
    ✓Lynch15-30% (Fast Grower); > 0% to pass
    Inventory Growth vs Revenue GrowthInv: 26.6% vs Rev: 14.2%
    ✗LynchInventory growth < Revenue growth
    EPS Growth (3-yr avg, 10-yr window)
    ✗Graham>= 33% growth
  • Efficiency

    4 of 6 pass — Piotroski and Graham object

    ROIC (high and growing)6/6 years ROIC > 15% (latest: 73.7%)
    ✓AkreROIC > 15% for 3+ years
    Reinvestment Rate x ROIC73.7% (RR=100% x ROIC=73.7%)
    ✓AkreReinvestment Rate * ROIC > 10%
    Return on Invested Capital73.7%
    ✓Munger> 15%
    Current Ratio Change YoY1.47 -> 1.17
    ✗PiotroskiIncreased YoY
    Show 5 more metrics ▾
    Revenue / Total Assets Change YoY0.61x -> 0.65x
    ✓PiotroskiImproved YoY
    EBIT / (NWC + Net Fixed Assets)425.8%
    ✓Greenblatt> 25%
    ROIC (3-5 yr avg)113.9%
    ✓Buffett> 10%
    ROIC - WACC+103.9%
    ✓BuffettPositive (WACC = 10%)
    Current Ratio1.17
    ✗Graham>= 2.0
  • Verdicts

    Split decision: 7 HOLD · 2 BUY · 1 PASS · 1 FAIL

    Overall verdict
    •MarksHOLD (6/8)✓AkreBUY (6/7)•DruckenmillerHOLD (5/7)✓SpierBUY (7/8)•PabraiHOLD (6/8)•MungerHOLD (5/7)•AckmanHOLD (7/9)•PiotroskiHOLD (F-Score 6)•GreenblattNot ranked•LynchHOLD (PEG 0.99)✓BuffettPASS (5/9)✗GrahamFAIL (2/9)

Historical Score Timeline

Industry Peers

Similar companies in Computers

FTNT vs Peers — Financial Grading

Revenue$6.8BBottom 25%
Net Income$1.9BMedian
ROE149.8%Top 25%
D/E0.81Top 25%
Op. Margin30.7%Top 25%
Curr. Ratio1.17Top 25%
CompanyMarket CapPriceRevenueNet IncomeROED/EOp. MarginCurr. RatioGrahamBuffettLynchGreenblattPiotroski
Apple Inc.AAPL$4.46T$305.93$416.2B$112.0B151.9%1.4032.0%0.891/96/93/71/3F-Score 8
CISCO SYSTEMS, INC.CSCO$440.2B$111.68$56.7B$10.2B21.7%0.5620.8%1.004/97/93/70/3F-Score 8
INTERNATIONAL BUSINESS MACHINES CORPIBM$220.8B$234.32$67.5B$10.6B32.4%1.68—0.963/93/93/70/3F-Score 6
Hewlett Packard Enterprise CoHPE-PC$198.1B$150.26$34.3B$57.0M0.2%1.03-1.3%1.011/91/91/70/3F-Score 4
WESTERN DIGITAL CORPWDC$175.4B$508.80$9.5B$1.9B35.6%1.3124.5%1.081/91/93/71/3F-Score 4
NCR Voyix CorpNCRRP$138.6B$1002.00$2.7B$62.0M6.5%1.171.0%1.041/93/90/70/3F-Score 3
NetApp, Inc.NTAP$40.6B$207.08$6.2B$1.3B94.4%1.8426.8%1.443/95/93/71/3F-Score 8
HP INCHPQ$27.5B$30.11$55.3B$2.5B-730.9%-30.385.7%0.773/93/91/71/3F-Score 5