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Fortinet, Inc. FTNT

TechnologySoftware - InfrastructureNASDAQ📅 Scored March 17, 2026
Price at analysis: $78.89
Crucible Score
70.0
B
Quality × Value Composite
KQI — Quality
75.7
B+
Fundamental Quality Index
KVI — Value
63.0
C+
Valuation Attractiveness Index
Crucible Verdict — FTNT

Fortinet displays strong operational fundamentals with an 83 Financial Quality score and impressive 95% earnings beat rate, though FTNT trades at a modest discount to its $87 fair value despite these credentials. The cybersecurity leader's 50 Growth Profile score stands as the primary concern given the premium valuations typical in its sector. Insider selling patterns warrant monitoring alongside growth trajectory sustainability.

— Kal, Kaladin Capital Intelligence

◆ KQI Quality Dimensions

Financial Quality
83.3
Growth Profile
49.7
Moat Durability
79.5
Management Effectiveness
84.2
Diversification & Resilience
82.0
Market Position
62.0
Weakest dimension: Growth Profile (49.7)

◆ KVI Value Dimensions

DCF Margin of Safety
60.5
FCF Yield & Cash Returns
48.3
Relative Valuation
67.7
Growth-Adjusted Value
73.7
Historical Valuation
94.5
Macro Context
5.0

◆ DCF Valuation Scenarios

Bear Case
$58.42
Base Case
$86.73
Bull Case
$126.58
Price at Analysis
$78.89
ScenarioFair ValueRev CAGR (5yr)Terminal MarginWACC
🔴 Bear$58.428.0%28.0%9.8%
🟢 Base$86.7312.0%32.0%9.3%
🟢 Bull$126.5815.0%35.0%8.8%
Key Assumptions: Revenue growth anchored to 5-year historical CAGR of ~19% but decelerating as FTNT scales, with base case at 12% 5-year CAGR tapering to ~8% in outer years. Operating margins reflect the improving trend from 19.5% to 30.6% but assume moderation given competitive pressures in cybersecurity; tax rate normalized to 15% from historically low rates as tax benefits diminish. WACC uses CAPM with 5.5% ERP and 1.04 beta, yielding ~10% cost of equity, blended with after-tax cost of debt on ~$1B outstanding.

◆ Financial Snapshot

Profitability

Gross Margin80.8%
Operating Margin30.6%
Net Margin27.3%
ROIC28.4%
ROE-8.4%

Balance Sheet

Balance SheetCR: 1.17
Cash ConversionFCF/EPS: 1.20x
Capital IntensityCapex/Rev: 5.4%
Altman Z-Score5.54 (Safe)
Piotroski F-Score6/9 (Good)

Growth

Revenue CAGR-32.8% CAGR (suspect)
Earnings CAGR-25.7% CAGR (suspect)
Growth ConsistencyCV: 4.04
Segment Breadth3/3 growing (100%)
Quarterly TrendMargin↓, WC↓
Earnings CredibilityConsistent Beater

◆ Analyst Consensus & Leadership

Analyst Price Targets

Avg Target (Last Quarter)$85.21
Analysts Covering (Quarter)14
Avg Target (Last Year)$88.05
Analysts (Year)20

Leadership & Governance

CEOKen Xie · 30 years
CEO Ownership17.2%
Compensation96% performance-based
Insider ActivitySelling
Capital AllocationROIC 28.4% vs WACC 1.6%
Earnings Beat Rate95% (20/22)

◆ Company Profile

Fortinet, Inc. provides broad, integrated, and automated cybersecurity solutions in the Americas, Europe, the Middle East, Africa, and the Asia Pacific.

CEO
Ken Xie
Employees
14556
Headquarters
Sunnyvale, CA, US
IPO Date
November 18, 2009
Exchange
NASDAQ

◆ Related Companies in Our Universe

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ADBE81.8A-NICE80.7A-DECK79.9A-INTU79.9A-EXEL78.3A-MTCH78.2A-TTD78.0B+
MethodologyAll ScoresCrucible BriefsPerformance@KaladinCI

Analysis conducted March 17, 2026 based on most recent SEC filings. Updated quarterly, after new SEC filings.

Point-in-time fundamental analysis. Not investment advice. Scores reflect company quality and valuation at time of analysis and may not reflect current market conditions.

© 2026 Kaladin Capital Intelligence — Conviction Through Scrutiny