NASDAQ · Technology

Fortinet, Inc.

FTNT · Software - Infrastructure

$89.23

▲ 2.94 (3.41%)

Data cached · refreshes every 10 min

Mr. Market is currently offering Fortinet, Inc. at $89.23.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

Overall Grade

Defensive

Enterprising

Profitability A

Gross Profit Margin 80.5%

Operating Margin 30.7%

Net Income Margin 27.3%

Fin. Health A

Years to Pay Off Debt 0.5 yrs

Working Capital vs Long-Term Debt $370M

Working Capital $866M

Valuation F

Margin of Safety 0.0%

Price-to-Book 52.79x

Cash Flow A

Free Cash Flow $2.2B

CapEx % of Net Income 19.7%

Owner Earnings $2.4B

3/7

Graham Score

Speculative

Defensive — Graham's strict criteria (P/B, P/E, dividends, stability) · Enterprising — Profitability & cash flow focused, accepts higher valuations for quality

Market Data

Market Cap $65.3B

Enterprise Value $61.3B

P/E (TTM) 36.87

Dividend Yield N/A

Exchange NASDAQ

Key Margins

Gross Profit 80.5%

Operating Margin 30.7%

Net Margin 27.3%

Company Info

Sector Technology

Industry Software - Infrastructure

Employees 15109

Country United States

Visit website

📖

Full Graham Analysis

Mr. Market is currently offering Fortinet, Inc. at $89.23.

The business passes only 3 of 7 of Graham's defensive criteria — well below his required standard.

At $89.23, the stock trades at a 830% premium to its Graham Number of $9.59. Graham would consider this price speculative.

There is no margin of safety at the current price. Graham would advise patience and waiting for a better entry point.

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign..

Conclusion: By Graham's standards, this stock is speculative at its current price. The intelligent investor would look elsewhere or wait.

About Fortinet, Inc.

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 across the Fortinet Security Fabric; FortiEndpoint, which converges secure connectivity, endpoint protection, and capabilities into a single agent; and OT Security, which protect the engineered systems that underpin infrastructure and supply chains. It also provides secure networking solutions that focus on the convergence of networking and security; network firewall solutions comprising FortiGate data centers, hyperscale, and distributed firewalls; wireless local area network solutions; and secure connectivity solutions. In addition, the company offers the Fortinet Unified Secure Access Service Edge solutions that include firewall, software-defined wide-area network, secure web gateway, cloud access services broker, data loss prevention, and zero trust network access; and web application firewalls, cloud network security with virtualized firewalls, cloud-native firewalls, cloud-native application protection, and code security. Further, it provides AI-driven security operation solutions, which include a suite of cybersecurity solutions, as well as FortiEDR, FortiXDR, FortiNDR, FortiSandbox, FortiDeceptor, FortiDLP, and FortiRecon. Additionally, the company offers FortiGuard Labs, a cybersecurity threat intelligence and research organization; FortiGuard and Other Security Services, a suite of AI-powered security capabilities that consists of FortiGuard application, content, device, NOC/SOC, and web security services; and FortiCare technical support services. Fortinet, Inc. was incorporated in 2000 and is headquartered in Sunnyvale, California.

Showing Key Metrics

Income Highlights

Metric	2025	2024	2023	2022	2021
Gross Profit %	80.5% ▼	80.6%	76.7%	75.4%	N/A
Operating Margin %	30.7% ▲	30.3%	23.4%	21.9%	N/A
Net Income %	27.3% ▼	29.3%	21.6%	19.4%	N/A
Diluted EPS	2.42 ▲	2.26	1.46	1.06	N/A

Balance Sheet Highlights

Metric	2025	2024	2023	2022	2021
Total Assets	$10.4B	$9.8B	$7.3B	$6.2B	N/A
Total Debt	$996M ↑	$994M	$992M	$990M	N/A
Working Capital	$866M ▼	$1.9B	$709M	$732M	N/A
Years to Pay Debt	0.54	0.57	0.86	1.16	N/A

Cash Flow Highlights

Metric	2025	2024	2023	2022	2021
Free Cash Flow	$2.2B ▲	$1.9B	$1.7B	$1.4B	N/A
Owner Earnings	$2.4B	$2.2B	$1.5B	$1.2B	N/A
CapEx % of Net Income	19.7%	21.7%	17.8%	32.8%	N/A

Income Statement

	2025	2024	2023	2022	2021
Tax Rate For Calcs	0	0	0	0
Normalized EBITDA	2,454,300	2,201,300	1,468,100	1,077,800
Total Unusual Items		106,300	0	0	4,600
Total Unusual Items Excluding Goodwill		106,300	0	0	4,600
Net Income From Continuing Operation Net Minority Interest	1,853,400	1,745,200	1,147,800	857,300
Reconciled Depreciation	152,000	122,800	113,400	104,300
Reconciled Cost Of Revenue	1,328,900	1,157,600	1,237,200	1,084,900
EBITDA	2,454,300	2,201,300	1,468,100	1,077,800
EBIT	2,302,300	2,078,500	1,354,700	973,500
Net Interest Income	142,200	135,200	98,700	-600
Interest Expense	20,100	20,000	21,000	18,000
Interest Income	162,300	155,200	119,700	17,400
Normalized Income	1,853,400	1,745,200	1,147,800	857,300
Net Income From Continuing And Discontinued Operation	1,853,400	1,745,200	1,147,800	857,300
Total Expenses	4,714,900	4,152,400	4,063,700	3,447,800
Total Operating Income As Reported	2,084,700	1,803,400	1,241,100	969,600
Diluted Average Shares	764,600	771,900	788,200	805,300
Basic Average Shares	758,000	764,400	778,600	791,400
Diluted EPS	0	0	0	0
Basic EPS	0	0	0	0
Diluted NI Availto Com Stockholders	1,853,400	1,745,200	1,147,800	856,600
Net Income Common Stockholders	1,853,400	1,745,200	1,147,800	856,600
Net Income	1,853,400	1,745,200	1,147,800	857,300
Minority Interests		0	0	700	100
Net Income Including Noncontrolling Interests	1,853,400	1,745,200	1,147,800	856,600
Net Income Continuous Operations	1,853,400	1,745,200	1,147,800	856,600
Earnings From Equity Interest Net Of Tax	10,300	-29,400	-42,100	-68,100
Tax Provision	439,100	283,900	143,800	30,800
Pretax Income	2,282,200	2,058,500	1,333,700	955,500
Other Income Expense	55,300	119,900	-6,100	-13,500
Other Non Operating Income Expenses	55,300	119,900	-6,100	-13,500
Special Income Charges		106,300	0	0	4,600
Other Special Charges			-4,600	-4,600	-4,600
Restructuring And Mergern Acquisition		-106,300	0	0
Net Non Operating Interest Income Expense	142,200	135,200	98,700	-600
Interest Expense Non Operating	20,100	20,000	21,000	18,000
Interest Income Non Operating	162,300	155,200	119,700	17,400
Operating Income	2,084,700	1,803,400	1,241,100	969,600
Operating Expense	3,386,000	2,994,800	2,826,500	2,362,900
Other Operating Expenses	-10,400	-4,600	-4,600	-4,600
Research And Development	815,500	716,800	613,800	512,400
Selling General And Administration	2,580,900	2,282,600	2,217,300	1,855,100
Selling And Marketing Expense	2,347,500	2,044,800	2,006,000	1,686,100
General And Administrative Expense	233,400	237,800	211,300	169,000
Other Gand A	233,400	237,800	211,300	169,000
Gross Profit	5,470,700	4,798,200	4,067,600	3,332,500
Cost Of Revenue	1,328,900	1,157,600	1,237,200	1,084,900
Total Revenue	6,799,600	5,955,800	5,304,800	4,417,400
Operating Revenue	6,799,600	5,955,800	5,304,800	4,417,400

Balance Sheet

	2025	2024	2023	2022	2021
Ordinary Shares Number	743,000	767,000	761,000	781,500
Share Issued	743,000	767,000	761,000	781,500
Total Debt	996,300	994,300	992,300	990,400
Tangible Book Value	882,800	1,143,400	-625,200	-465,600
Invested Capital	2,233,800	2,488,100	528,900	708,800
Working Capital	866,200	1,910,800	709,300	732,000
Net Tangible Assets	882,800	1,143,400	-625,200	-465,600
Common Stock Equity	1,237,500	1,493,800	-463,400	-281,600
Total Capitalization	1,734,100	2,488,100	528,900	708,800
Total Equity Gross Minority Interest	1,237,500	1,493,800	-463,400	-281,600
Minority Interest				0	16,700
Stockholders Equity	1,237,500	1,493,800	-463,400	-281,600
Gains Losses Not Affecting Retained Earnings	-25,400	-26,100	-18,900	-20,200
Other Equity Adjustments	-25,400	-26,100	-18,900	-20,200
Retained Earnings	-507,900	-117,100	-1,861,700	-1,546,400
Additional Paid In Capital	1,770,100	1,636,200	1,416,400	1,284,200
Capital Stock	700	800	800	800
Common Stock	700	800	800	800
Total Liabilities Net Minority Interest	9,151,700	8,269,300	7,722,300	6,509,600
Total Non Current Liabilities Net Minority Interest	4,117,700	4,208,600	4,003,300	3,431,200
Other Non Current Liabilities	141,300	129,600	124,700	149,800
Tradeand Other Payables Non Current				67,800	79,500
Non Current Deferred Liabilities	3,479,800	3,084,700	2,886,300	2,291,000
Non Current Deferred Revenue	3,479,800	3,084,700	2,886,300	2,291,000
Long Term Debt And Capital Lease Obligation	496,600	994,300	992,300	990,400
Long Term Debt	496,600	994,300	992,300	990,400
Current Liabilities	5,034,000	4,060,700	3,719,000	3,078,400
Current Deferred Liabilities	3,636,000	3,276,200	2,848,700	2,349,300
Current Deferred Revenue	3,636,000	3,276,200	2,848,700	2,349,300
Current Debt And Capital Lease Obligation	499,700
Current Debt	499,700
Other Current Borrowings	499,700
Payables And Accrued Expenses	898,300	784,500	870,300	729,100
Current Accrued Expenses	667,500	593,600	666,000	485,700
Payables	230,800	190,900	204,300	243,400
Accounts Payable	230,800	190,900	204,300	243,400
Total Assets	10,389,200	9,763,100	7,258,900	6,228,000
Total Non Current Assets	4,489,000	3,791,600	2,830,600	2,417,600
Other Non Current Assets	125,200	133,200	150,000	202,000
Non Current Deferred Assets	2,050,400	1,958,500	1,474,400	1,087,600
Non Current Deferred Taxes Assets	1,314,900	1,335,600	868,800	569,400
Investments And Advances	339,700	0	0	45,500
Investmentin Financial Assets	339,700	0	0	45,500
Available For Sale Securities	339,700			45,500	440,800
Goodwill And Other Intangible Assets	354,700	350,400	161,800	184,000
Other Intangible Assets	97,300	115,000	35,300	56,000
Goodwill	257,400	235,400	126,500	128,000
Net PPE	1,619,000	1,349,500	1,044,400	898,500
Accumulated Depreciation	-481,900	-416,100	-353,000	-280,200
Gross PPE	2,100,900	1,765,600	1,397,400	1,178,700
Leases	58,500	64,300	61,400	53,500
Construction In Progress	74,600	52,000	63,300	51,700
Other Properties	24,100	31,800	30,800	19,200
Machinery Furniture Equipment	377,300	315,500	294,700	254,000
Buildings And Improvements	974,000	801,400	595,500	490,300
Land And Improvements	592,400	500,600	351,700	310,000
Current Assets	5,900,200	5,971,500	4,428,300	3,810,400
Other Current Assets	227,000	126,100	101,100	73,100
Prepaid Assets					65,400
Inventory	399,500	315,500	484,800	264,600
Finished Goods	334,600	220,500	385,000	206,300
Work In Process	3,000	4,100	7,700	12,000
Raw Materials	61,900	90,900	92,100	46,300
Receivables	1,691,200	1,463,400	1,402,000	1,261,700
Accounts Receivable	1,691,200	1,463,400	1,402,000	1,261,700
Allowance For Doubtful Accounts Receivable	-7,400	-5,900	-8,200	-3,600
Gross Accounts Receivable	1,698,600	1,469,300	1,410,200	1,265,300
Cash Cash Equivalents And Short Term Investments	3,582,500	4,066,500	2,440,400	2,211,000
Other Short Term Investments	1,087,200	1,190,600	1,042,500	528,100
Cash And Cash Equivalents	2,495,300	2,875,900	1,397,900	1,682,900

Cash Flow

	2025	2024	2023	2022	2021
Free Cash Flow	2,225,800	1,879,200	1,731,400	1,449,400
Repurchase Of Capital Stock	-2,289,800	-600	-1,500,500	-1,991,200
Repayment Of Debt			0	0	-19,500
Issuance Of Debt			0	0	989,400
Issuance Of Capital Stock	44,700	63,100	43,800	26,100
Capital Expenditure	-364,800	-378,900	-204,100	-281,200
Income Tax Paid Supplemental Data	451,500	578,900	426,300	260,200
End Cash Position	2,495,300	2,875,900	1,397,900	1,682,900
Beginning Cash Position	2,875,900	1,397,900	1,682,900	1,319,100
Effect Of Exchange Rate Changes	-600	-2,600	-800	-400
Changes In Cash	-380,000	1,480,600	-284,200	364,200
Financing Cash Flow	-2,371,500	-50,100	-1,570,400	-2,130,300
Cash Flow From Continuing Financing Activities	-2,371,500	-50,100	-1,570,400	-2,130,300
Net Other Financing Charges	-126,400	-112,600	-113,700	-165,200
Net Common Stock Issuance	-2,245,100	62,500	-1,456,700	-1,965,100
Common Stock Payments	-2,289,800	-600	-1,500,500	-1,991,200
Common Stock Issuance	44,700	63,100	43,800	26,100
Net Issuance Payments Of Debt			0	0	969,900
Net Long Term Debt Issuance			0	0	969,900
Long Term Debt Payments			0	0	-19,500
Long Term Debt Issuance			0	0	989,400
Investing Cash Flow	-599,100	-727,400	-649,300	763,900
Cash Flow From Continuing Investing Activities	-599,100	-727,400	-649,300	763,900
Net Other Investing Changes	100	100	300		400
Net Investment Purchase And Sale	-192,800	-73,100	-437,000	1,075,900
Sale Of Investment	1,803,300	1,892,200	1,418,800	1,465,000
Purchase Of Investment	-1,996,100	-1,965,300	-1,855,800	-389,100
Net Business Purchase And Sale	-41,600	-275,500	-8,500	-30,800
Purchase Of Business	-41,600	-275,500	-8,500	-30,800
Net PPE Purchase And Sale	-364,800	-378,900	-204,100	-281,200
Purchase Of PPE	-364,800	-378,900	-204,100	-281,200
Operating Cash Flow	2,590,600	2,258,100	1,935,500	1,730,600
Cash Flow From Continuing Operating Activities	2,590,600	2,258,100	1,935,500	1,730,600
Change In Working Capital	55,800	-20,600	126,100	233,000
Change In Other Working Capital	371,400	43,500	439,900	632,900
Change In Other Current Liabilities	6,800	-8,300	-21,700	23,500
Change In Other Current Assets	-16,200	-11,000	17,700	-35,300
Change In Payables And Accrued Expense	96,200	-116,900	117,700	185,400
Change In Accrued Expense	68,300	-106,700	160,800	80,200
Change In Payable	27,900	-10,200	-43,100	105,200
Change In Account Payable	27,900	-10,200	-43,100	105,200
Change In Prepaid Assets	-95,900	-13,700	-27,600	-7,700
Change In Inventory	-90,600	131,200	-253,500	-109,100
Change In Receivables	-215,900	-45,400	-146,400	-456,700
Changes In Account Receivables	-215,900	-45,400	-146,400	-456,700
Other Non Cash Items	283,600	201,600	326,900	246,900
Stock Based Compensation	279,500	257,900	249,000	217,300
Amortization Of Securities	-33,700	-48,800	-27,700	4,400
Depreciation Amortization Depletion	152,000	122,800	113,400	104,300
Depreciation And Amortization	152,000	122,800	113,400	104,300
Amortization Cash Flow	50,700	23,100	18,900	23,300
Amortization Of Intangibles	50,700	23,100	18,900	23,300
Depreciation	101,300	99,700	94,500	81,000
Operating Gains Losses		29,400	42,100	68,100	7,600
Earnings Losses From Equity Investments		29,400	42,100	68,100	7,600
Net Income From Continuing Operations	1,853,400	1,745,200	1,147,800	856,600

These metrics estimate what Fortinet, Inc. is worth based on its fundamentals — independent of what the market currently prices it at. Graham's Fair Value and NCAV are conservative floors rooted in 1930s–60s principles. EPV assumes zero growth. None are price targets — they are reference points for judging whether the current price offers a margin of safety.

Graham's Fair Value

$9.59

Margin of Safety

Market Cap ÷ Company Value

1.40

P/B Ratio

52.79

Warren's Owner Earnings

$2.4B

Latest fiscal year

Graham's 7 Criteria

Defensive Investor Checklist

3/7 — Speculative Investor

✅ Adequate Size

$6.8B

vs > $1.5B revenue

❌ Strong Financial Condition

1.17x

vs Current Ratio > 2.0x

✅ Earnings Stability

No loss years (4 yrs data)

vs No negative EPS years

❌ Dividend Record

No dividend

vs Uninterrupted dividends

✅ Earnings Growth

+128.3% EPS growth

vs > 33% EPS growth

❌ Moderate P/E Ratio

36.9x

vs P/E ≤ 15.0x

❌ Moderate Price-to-Book

52.79x P/B (P/E×P/B: 1946.6)

vs P/B ≤ 1.5x | P/E × P/B ≤ 22.5

Net Current Asset Value

$-4.44

Negative NCAV — liabilities exceed current assets. Common in capital-return businesses (buybacks, debt-funded dividends) and capital-intensive industries. Not automatically a warning sign.

"Buy at two-thirds of net current assets." — Graham

Earnings Power Value

$31.64

Per share, no-growth floor. Compare to current price.

Cash Flow Analysis

Metric	2025	2024	2023	2022	2021
Capital Expenditure % of Net Income	19.7%	21.7%	17.8%	32.8%	N/A
Repurchase of Capital Stock	-$2.3B	-$1M	-$1.5B	-$2.0B	N/A
Free Cash Flow	$2.2B ▲	$1.9B ▲	$1.7B ▲	$1.4B •	N/A •
Warren's Owner Earnings	$2.4B	$2.2B	$1.5B	$1.2B	N/A

Peers & Industry

No auto-detected peers for Software - Infrastructure. You can manually compare FTNT against any stock using the Compare tool.

"The management of a business is its most important single factor — more important than market position, patents, or financial structure."

— Benjamin Graham

Capital Allocation & Alignment

Insider Ownership

17.40%

High — management has strong skin in the game

Return on Equity (ROE)

149.8%

Excellent — management generates strong returns on equity

Return on Assets (ROA)

17.8%

Strong — management uses assets efficiently

Share Buybacks (Latest Year)

$2.3B

Management is returning capital to shareholders via buybacks

Debt Trend YoY

+0.2% YoY

Debt is roughly stable

Leadership Team

Ken Xie

Co-Founder, Chairman & CEO

Age 62

Pay: $1,302,937

0.070% of net income

Michael Xie

Co-Founder, President, CTO & Director

Age 56

Pay: $773,876

0.042% of net income

Anthony Luscri

Vice President of Investor Relations

Russ Schafer

Executive Vice President of Marketing

Robert May

Executive Vice President of Technology & Product Management

Top Institutional Holders

Institution	% Owned	Shares
Vanguard Group Inc	10.07%	73,745,561
Blackrock Inc.	8.36%	61,215,505
State Street Corporation	3.98%	29,140,849
Geode Capital Management, LLC	2.32%	16,975,909
NORGES BANK	1.98%	14,518,531
Bank Of New York Mellon Corporation	1.98%	14,504,597
Invesco Ltd.	1.48%	10,832,583
Morgan Stanley	1.14%	8,312,273

Risk Analysis

Beta (Market Risk)

0.92

Low volatility — more stable than the market

Short Interest

3.2% of float

Low short interest — market is not heavily bearish

Debt-to-Equity

0.86x

Conservative balance sheet — low financial risk

Current Ratio