Fatpipe, Inc. (FATN)
NASDAQ:FATN
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Fatpipe, Inc.
(NASDAQ:FATN)
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Rating:56Neutral
Price Target:
$2.50
▼(-42.79% Downside)
Action:ReiteratedDate:03/27/26
The score is primarily constrained by weak cash generation and compressed profitability despite strong gross margins and a low-leverage balance sheet. Technicals show improving short-to-mid-term momentum but the stock remains well below its 200-day average, and valuation is only moderate with no dividend support.
Positive Factors
High gross margins
Sustained gross margins near 91–94% indicate a software-centric cost structure with low direct costs. That structural margin advantage supports pricing power, healthy contribution per sale, and the ability to fund R&D or sales investment even if operating expenses rise, preserving long-term profitability potential.
Negative Factors
Persistent negative cash flow
Chronic negative operating and free cash flow means accounting profits are not translating into cash, forcing reliance on balance-sheet reserves or financing. Over months, this constrains reinvestment, limits margin improvement initiatives, and raises execution risk if cash conversion does not normalize.
Read all positive and negative factors
Positive Factors
Negative Factors
High gross margins
Sustained gross margins near 91–94% indicate a software-centric cost structure with low direct costs. That structural margin advantage supports pricing power, healthy contribution per sale, and the ability to fund R&D or sales investment even if operating expenses rise, preserving long-term profitability potential.
Read all positive factors
Fatpipe, Inc. (FATN) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$29.94M
Dividend YieldN/A
Average Volume (3M)42.57K
Price to Earnings (P/E)22.6
Beta (1Y)1.26
Revenue GrowthN/A
EPS GrowthN/A
CountryUS
Employees154
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)N/A
Shares Outstanding13,924,468
10 Day Avg. Volume43,951
30 Day Avg. Volume42,571
Financial Highlights & Ratios
PEG Ratio-1.60
Price to Book (P/B)10.50
Price to Sales (P/S)10.26
P/FCF Ratio-319.09
Enterprise Value/Market Cap0.99
Enterprise Value/Revenue1.95
Enterprise Value/Gross Profit2.16
Enterprise Value/Ebitda13.48
Forecast
1Y Price Target
$8.00Price Target Upside83.07% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
EPS Forecast (FY)N/A
Revenue Forecast (FY)N/A
Fatpipe, Inc. Business Overview & Revenue Model
Company Description
Fatpipe, Inc. (FATN) is a technology company that specializes in providing advanced networking solutions and software-defined networking (SDN) technologies. The company operates primarily in the telecommunications and information technology sector...
How the Company Makes Money
FatPipe, Inc.’s specific, current revenue breakdown and monetization details are null. At a high level, companies in this category typically generate revenue by (1) selling software licenses (perpetual or term-based) for SD-WAN/WAN optimization an...
Fatpipe, Inc. Financial Statement Overview
Summary
Income Statement
66
Positive
Balance Sheet
78
Positive
Cash Flow
29
Negative
| Breakdown | TTM | Mar 2025 | Mar 2024 | Mar 2023 | Mar 2022 |
|---|---|---|---|---|---|
Income Statement | |||||
| Total Revenue | 15.13M | 16.29M | 17.86M | 15.80M | 12.40M |
| Gross Profit | 13.71M | 15.23M | 16.79M | 14.69M | 11.71M |
| EBITDA | 2.19M | 4.16M | 6.60M | 3.83M | 1.03M |
| Net Income | 1.09M | 1.97M | 4.37M | 2.91M | 483.73K |
Balance Sheet | |||||
| Total Assets | 32.38M | 28.29M | 21.44M | 15.73M | 10.82M |
| Cash, Cash Equivalents and Short-Term Investments | 6.16M | 2.92M | 1.11M | 1.08M | 1.38M |
| Total Debt | 5.79M | 6.59M | 2.83M | 2.63M | 942.18K |
| Total Liabilities | 11.22M | 12.36M | 7.39M | 6.17M | 4.04M |
| Stockholders Equity | 21.16M | 15.93M | 13.94M | 9.37M | 6.57M |
Cash Flow | |||||
| Free Cash Flow | -64.85K | -523.89K | -382.61K | -2.01M | -228.97K |
| Operating Cash Flow | -57.84K | -504.12K | -363.43K | -1.84M | -190.61K |
| Investing Cash Flow | -50.98K | -19.76K | -19.19K | -163.53K | -38.35K |
| Financing Cash Flow | 5.27M | 2.49M | 205.68K | 1.69M | -481.72K |
Fatpipe, Inc. Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
71 Outperform | $400.52M | 6.67 | 29.64% | 3.75% | -1.43% | 101.80% | |
70 Outperform | $613.86M | -1,031.94 | -0.32% | ― | ― | ― | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $29.94M | 22.64 | 5.57% | ― | ― | ― | |
43 Neutral | $8.47M | -0.08 | -164.51% | ― | 16.50% | ― | |
43 Neutral | $17.70M | -2.51 | -86.02% | ― | 33.49% | 82.01% |
* Technology Sector Average
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Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.