FI

FatPipe, Inc. Common Stock

FATN·NASDAQ

$7.92

+15%
TechnologySoftware - Infrastructure

FatPipe, Inc. develops secure software-defined wide area network (SD-WAN), secure access service edge (SASE), and network monitoring service (NMS) software solutions for organizations in the United States and internationally. The company offers SD-WAN, a network architecture solution that allows enterprises to utilize software and virtualization technologies to enhance the performance, security, and manageability of their WANs that connect offices, data centers, cloud applications, and cloud storage; SASE that provides virtual network and next generation security functions, which combine networking and next generation network security services into a single cloud-delivered solution; and NMS, a EnterpriseView reporting system for network monitoring that provides a platform to monitor an end-user's WAN, security compliance parameters, and the performance of FatPipe devices under management. It also provides technical support services, which includes implementation, configuration, and training services. The company offers its solutions to enterprises, communication service providers, security service providers, government organizations, and other middle-market companies. It sells its software solutions through a subscription-based model through a network of distributors, value-added resellers, internet service providers, and other third parties. The company was incorporated in 2009 and is based in Salt Lake City, Utah.FatPipe Networks, Inc. develops, manufactures, and markets router clustering products for wide area network (WAN) optimization, reliability, and security. The company provides IPVPN, a device for WAN optimization in private and public lines; MPVPN that provides VPN security, fault tolerance, and speed for critical VPNs; WARP, a solution for WAN redundancy, reliability, and increased bandwidth of data traffic directed from the network to the Internet, as well as data traffic directed to servers hosted internally; and XTREME, a high-speed router clustering device for WAN redundancy, reliability, load balancing, and speed for data traffic directed from the network to the Internet. It also offers WAN Optimization technology solutions; EnterpriseView for network administrators to monitor, manage, and maintain FatPipe devices from a central location; Symphony that offers software-defined WAN (SD-WAN) solution; SD-WAN for Azure that addresses connectivity issues for cloud-based real-time applications; and Cloud Connect that provides access to cloud services and centralized control of branch offices' web traffic. In addition, the company's solutions comprise premise managed, hosted managed, high bandwidth, multi-line WAN optimization, multi-path security, application control and visibility, hybrid multi line WAN, software-defined WAN, and secure hybrid WAN solutions, as well as FatPipe as a Service for MSPs. It serves markets, including healthcare benefits, hospital, hospitality, education, manufacturing, retail, publishing/media, financial, tax courts, government, government contractor, and government agency. The company markets and sells its products through a network of resellers, distributors, and dealers worldwide. FatPipe Networks, Inc. was formerly known as Ragula Systems, Inc. and changed its name to FatPipe Networks, Inc. in April 2004. The company was founded in 1989 and is based in Salt Lake City, Utah with operations in the United States, Nigeria, Philippines, Australia, India, and South Africa.

At a Glance

Live Snapshot
Market Cap$111.07M
EPS0.3600
P/E Ratio22.00
Earnings Date07/29/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal · Driver · Risk

Signal

High confidence

Valuation multiple is mid-range (P/E 22.0).

Valuation inputs: P/E 22.0, earnings yield +4.5%, momentum +15.3%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is acceptable (ROE +19.7%, ROIC +6.6%).

Profitability stack: net margin +25.9%, ROE +19.7%, ROIC +6.6%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Downside profile looks controlled across current risk inputs.

Risk factors: liabilities/assets +27.0%, momentum +15.3%, net margin +25.9%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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FatPipe, Inc. Common Stock Market vs Earnings Trajectory

FATN · NASDAQ
Current Price
$7.92
EPS (TTM)
$0.08

Performance Analysis

EPS Growth

-32.8%

Declining earnings warrant investigation into business challenges and competitive position.

Price-EPS Relationship

Aligned

Both price and earnings are declining together, reflecting deteriorating business fundamentals.

Stock Price Change

-30.0%

Over the 1Y period, stock price has decreased by 30.0%.

P/E Ratio (TTM)

22.0x

Moderate P/E ratio suggests fair market valuation relative to earnings.

FI

FatPipe, Inc. Common Stock Fair Value Envelope

FATN · NASDAQ

Our analysis suggests that FATN has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $7.92, this represents a potential HIDDEN relative to our calculated worth for FatPipe, Inc. Common Stock.

Intrinsic Value
Current Price: $7.92
3Y+71.0%
5Y+926.0%
10Y+926.0%
3Y+22.0%
5Y+55.0%
10Y+55.0%
3Y+71.0%
5Y+927.0%
10Y+927.0%
3Y-58.0%
5Y+309.0%
10Y+309.0%
3Y-61.0%
5Y+241.0%
10Y+241.0%
3Y+119.0%
5Y+219.0%
10Y+219.0%
FI

FatPipe, Inc. Common Stock Profit Bridge

FATN · NASDAQ
Revenue19.21M
Cost of Goods Sold (1.73M)
Gross Profit17.48M
Operating Expenses (12.16M)
Operating Income3.59M
Interest Expense (-475.07K)
Other Income/Expense-103.01K
Pretax Income3.49M
Income Tax (1.48M)
Net Income4.97M
Net Income
4.97M

Profitability Analysis

Gross Margin

91.0%

Exceptional pricing power and cost management. The company retains over half of revenue after direct costs.

Operating Margin

18.7%

Healthy operating margins demonstrate effective cost control and strong business fundamentals.

Net Profit Margin

25.9%

Exceptional profitability. The company converts a significant portion of revenue to bottom-line earnings.

Effective Tax Rate

42.6%

Higher tax burden may reflect limited tax optimization or operations in high-tax jurisdictions.

Profitability Insight

High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.

91.00%
Gross Profit Margin
-3%
3Y-2.0%
5Y-4.0%
10Y-4.0%
18.69%
Operating Profit Margin
-12%
3Y-9.0%
5Y-1134.0%
10Y-1134.0%
25.87%
Net Profit Margin
114%
3Y+40.0%
5Y+563.0%
10Y+563.0%
19.71%
Return on Equity
60%
3Y-37.0%
5Y+168.0%
10Y+168.0%
14.40%
Return on Assets
107%
3Y-22.0%
5Y+222.0%
10Y+222.0%
6.64%
Return on Invested Capital
-27%
3Y-73.0%
5Y-345.0%
10Y-345.0%
F

FatPipe, Inc. Common Stock Cash Conversion Engine

FATN · NASDAQ
Net Income3.96M
Depreciation & Amortization369.25K
Stock-Based Compensation770.22K
Change in Working Capital0.00
Others-5.88M
Capital Expenditures0.00
Free Cash Flow-780.39K

Cash Flow Quality Analysis

FCF Conversion Rate

-19.7%

Negative free cash flow despite positive earnings raises concerns about cash generation ability or heavy capital requirements.

FCF Growth Trend

-49.0%

Significant FCF decline raises concerns. Urgent review needed of operational performance and capital allocation.

Working Capital Impact

+$0.00

Neutral working capital impact. Changes in current assets and liabilities balanced out.

Cash Flow Quality Insight

Cash flow concerns: Despite profitability, the company is burning cash. Review working capital management, CapEx levels, and sustainability of current operations.

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FatPipe, Inc. Common Stock Funding & Solvency Profile

FATN · NASDAQ
Cash & Cash Equivalents5.21M
Net Receivables26.46M
Inventory445.84K
Other Current Assets-15.66M
Total Current Assets16 M
Property, Plant & Equipment1.14M
Goodwill & Intangible Assets694.19K
Long-Term Investments0.00
Other Non-Current Assets16.16M
Total Non-Current Assets17 M
Total Assets
34.52M

Financial Health Analysis

Current Ratio

3.85x

Excellent liquidity position. The company can easily cover its short-term obligations with substantial cushion.

Debt-to-Equity Ratio

0.37x

Conservative capital structure. The company relies primarily on equity financing, indicating low financial risk.

Working Capital

12 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

48% Current

Balanced asset mix between current and non-current assets, typical of many stable businesses.

Financial Health Insight

Strong financial foundation: Excellent liquidity combined with conservative leverage suggests the company is well-positioned to weather economic uncertainties and fund growth opportunities.

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FatPipe, Inc. Common Stock Street Expectations Map

FATN · NASDAQ

No Target Data

No analyst price targets available for fatn.

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FatPipe, Inc. Common Stock Insider Positioning

FATN · NASDAQ

During the last 12 months, insiders have purchased $29K worth of FATN shares, with no selling activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

20.0K

29.00K

Sold

0

0.00

Net Activity

+29K

+$29K

6-9 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

9-12 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

Top Buyers

1
BR

Bhaskar Ragula

Director, 10 Percent Owner:

20.0K shares1 transactions

$29K

Top Sellers

No selling activity

Insider Activity Analysis

Net Insider Sentiment

Bullish

Strong bullish signal with $29K net buying. Insiders are aggressively accumulating shares, suggesting significant confidence in future prospects.

Buy/Sell Ratio

∞:1

Perfect buy/sell ratio. Only buying activity with zero selling—the most bullish possible insider signal.

Insider Participation

High Buying

1 insider buyers vs. 0 sellers. Broad-based buying across management team suggests widespread confidence.

Insider Activity Insight

Unanimous insider buying: Zero selling combined with active buying is rare and typically very bullish. Insiders appear to see significant upside with limited downside risk.

No Dividend Yield Data

FATN has not reported any dividend yield values in the available annual periods.

 

fatn Dividend History

FATN
10Y CAGR +0%
Latest $0
Annual $0
Stable dividend payments
Last Period: +0%