FTNTFortinet
Is the business good?
A genuinely good business: earnings fully cash-backed (1.7×), margins widening, and elite returns on assets.
Mixed fundamental signals. Nine pass/fail tests of year-over-year health from the filings.
Operating profit is fully backed by cash. Conversion is improving vs a year ago.
Positive operating leverage, operating profit is growing faster than sales, so margins widen as the business scales.
High-quality, exceptional returns on the assets themselves, not leverage. ROE 185% = margin × turnover × leverage.
Unless marked, from derived.
Against the whole market›
Percentile against every name Ryufin tracks. Higher is better; the tick marks the middle of the market. Context, not one of the checks above.
Where this answer is blind. The F-score rewards improvement, so an already-elite company can score mid-pack.
How good a business is FTNT?
Fortinet keeps 32% of every revenue dollar as operating profit, against 5.8% for the median Software - Infrastructure name.
Operating margin · Software - Infrastructure median 5.8% · 12 months to Q2 2026
- Cash conversion
- 1.72×
Cash conversion · 1.44× a year ago · operating cash flow covers the operating profit after tax
- Share count, year on year
- −4.2%
Share count, year on year · bought back, each share owns more of the company
- R&D as % of revenue
- 11%
R&D as % of revenue
| Year | Operating margin |
|---|---|
| FY2020 | 21% |
| FY2021 | 19% |
| FY2022 | 22% |
| FY2023 | 23% |
| FY2024 | 30% |
| FY2025 | 31% |
Details›
- Gross margin12 months to Q2 2026
- 80%
- Operating margin12 months to Q2 2026
- 32%
- Net margin12 months to Q2 2026
- 28%
- Free cash flow margin
- 43%
- R&D as % of revenue
- 11%
- Revenue, trailing twelve months
- $7.53B
- Free cash flow, trailing twelve months
- $3.20B
- Net income, trailing twelve months
- $2.12B
Margins, capital and share counts from the statements as filed with the SEC; cash conversion is operating cash flow over operating profit after tax.
Software, Infrastructure
The closest names by size in the same industry