CluenexFortinet Inc FTNT
Fortinet Inc scores excellent on business quality (8.3 of 10). Here is why, in plain words, and what our sealed record shows.
Why it matters
- What Fortinet Inc does
Fortinet provides cybersecurity solutions, selling hardware firewalls and software subscriptions to enterprises worldwide. The company secures network infrastructure and hybrid clouds for corporate clients who pay upfront for products and renew recurring software licenses.
- What it does best
Fortinet builds custom security processing chips that yield an 80.2% gross margin, outperforming Microsoft's 67.9% and Oracle's 64.0%. This hardware advantage makes it difficult for rivals to match its price-performance ratio.
- The main risk
Valuation stands at $180.95 against an intrinsic value of $107.13, exposing shareholders to multiple contraction if growth rates slow down from the current 14.2% level.
Quality, check by check
Scored against its own industry, from company filings.
Operating margins hit 32.4% while free cash flow margin sits in the 93rd percentile of its sector, showing exceptional profitability that expands efficiently with scale.
Switching costs anchor its moat by locking enterprise customers into proprietary hardware and software ecosystems, reflected in a gross margin sitting in the top quartile of its sector at the 83rd percentile.
Revenue grows at 14.2% annually, driven by software subscriptions and security services that expand steadily off a history of consistent multi-year top-line expansion.
Interest coverage is 135x, meaning debt costs are negligible while free cash flow reaches $3.1B alongside a net cash position of $2.6B, keeping the balance sheet very strong.
Insiders
Executives and directors, from SEC Form 4 filings we read ourselves. Open market trades only; grants, option exercises and pre-planned sales left out.
No open market buys or unplanned sales by executives or directors.
Our sealed record on FTNT
Verdicts appear here 30 days after we publish them; members see today's. Each one is in the nightly ledger, fingerprinted the night it was made.
The first sealed verdicts appear here on Oct 11, 2026.
Questions
Fortinet Inc scores excellent on the Cluenex quality check (8.3 of 10), measured against its own industry. Profitability is strong, moat strong, growth fast and financial health strong.
In the last 90 days of SEC Form 4 filings: No open market buys or unplanned sales by executives or directors.
Oct 28, 2026, after the close.
See FTNT today
- Today's verdict on FTNT, and why
- Fair value with cautious, base and optimistic cases
- The exact price that would change the verdict
- Which stocks each signal names, the night it fires
Cite this page: Cluenex, “Fortinet Inc (FTNT)”, https://cluenex.com/stocks/ftnt/, data as of Oct 10, 2026.