Fortinet, Inc. (FTNT)

FairStock Score: 52/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I look for a business with durable advantages and a price that leaves room for error. Fortinet sells cybersecurity and secure networking, and the numbers show a real business: in fiscal Q2 2026, the quarter ended 2026-06-30, revenue was $2.0B, net income $606.3M, and diluted EPS $0.82, up from revenue $1.6B, net income $440.1M, and diluted EPS $0.57 in fiscal Q2 2025. For fiscal 2025, revenue was $6.8B and net income $1.9B, with diluted EPS $2.42, versus fiscal 2024 revenue $6.0B and net income $1.7B, and fiscal 2023 revenue $5.3B and net income $1.1B. That is fast growth, and FairStock labels it a FAST GROWER with profit growth of 30.6% a year over five years and revenue growth of 21.3%. The balance sheet looks sound: FairStock's Piotroski F-Score is 8/9, Altman Z-Score is 9.53, debt-to-equity is 0.36, and trailing free cash flow is $3.1B. FairStock's return on equity is 117.44%, though return on capital employed is 14.17%, so the equity figure is flattered by a small book value. The trouble is price. At the close on 2026-10-13, the FairStock P/E is 67.17, price-to-book is 90.41, PEG is 1.78, EV/EBITDA is 49.12, and FCF yield is only 2.2%. The Graham Number is $11.64, leaving a margin of safety of -1538.83%, meaning the quote is far above what Graham-style math would justify. I admire the growth and balance sheet, but I would want a much lower price before calling it a value investment.

In plain English: Fortinet sells cybersecurity and secure networking products to organizations around the world. The business is growing quickly and earning solid profits, and its balance sheet looks healthy. But the share price is very high compared with those profits and with the company's accounting value, so it looks expensive rather than cheap.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q2 2026 10-Q (period ended 2026-06-30) · fiscal Q1 2026 10-Q (period ended 2026-03-31) · fiscal Q3 2025 10-Q (period ended 2025-09-30) · fiscal Q2 2025 10-Q (period ended 2025-06-30) · FY2025 10-K (period ended 2025-12-31) · FY2024 10-K (period ended 2024-12-31) · FY2023 10-K (period ended 2023-12-31)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer