Equity Research Analysis: Fatpipe Inc/UT (FATN)
|Blank Capital Research Unit|Spot: $1.58
Price$1.58
Composite Score38.7/100
RatingAVOID (1★)
Rank#3711 OF 7,333
Market Cap$28M
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Verdict
Quantitative factor alignment verified for current market regime.
Quant Score
Rank
#3711
Positioning
Market Dominance
Services
Computer Software
$28M
Ragula Bhaskar
FatPipe is a pioneer in enterprise-class, application-aware, secure software-defined wide area network (“SD-WAN”) solutions for organizations, including enterprises, communication service providers, security service providers, government organizations, and middle-market companies. Our principal executive office is located in Salt Lake City, UT.
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X-AXIS: EV/EBITDA (LOWER = CHEAPER) | Y-AXIS: ROE (HIGHER = ELITE) | RED CIRCLE = FATN ANALYSIS TARGET
| Stock | Rating | Score▼ | Quality | Value | Momentum | P/E | EV/EBITDA | ROE | ROA | Gross Mgn | Op Mgn | Net Mgn | Rev Growth | Div Yield | D/E | Mkt Cap | AUDIT |
|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|---|
$YALA Yalla Group Ltd | 75 | 89 | 99 | 80 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$GRVY GRAVITY Co., Ltd. | 75 | 82 | 96 | 71 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$ISSC INNOVATIVE SOLUTIONS & SUPPORT INC | 73 | 81 | 88 | 94 | 25.0x | 14.1x | 17.1% | 10.3% | 35.5% | 14.6% | 10.1% | 105.2% | 0.0% | 41.0x | $244M | VS | |
$AER AerCap Holdings N.V. | 72 | 60 | 87 | 84 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$HCSG HEALTHCARE SERVICES GROUP INC | 72 | 74 | 88 | 88 | 7.1x | 6.1x | 28.9% | 20.8% | 20.8% | 9.9% | 9.3% | 8.5% | 0.0% | 1.0x | $1.2B | VS | |
$LQDT LIQUIDITY SERVICES INC | 72 | 90 | 88 | 68 | 24.9x | 14.3x | 14.1% | 8.3% | 45.7% | 8.5% | 6.2% | 28.1% | 0.0% | 0.0x | $736M | VS | |
$TRTNpA Triton International Ltd | 71 | 70 | 89 | 70 | - | 1.7x | 0.0% | - | 97.4% | 58.0% | 37.4% | - | 8.8% | 264.0x | $2.5B | VS | |
$EDU New Oriental Education & Technology Group Inc. | 71 | 83 | 52 | 77 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$NTES NetEase, Inc. | 71 | 88 | 93 | 68 | - | - | - | - | - | - | - | - | - | - | $0 | VS | |
$UTI UNIVERSAL TECHNICAL INSTITUTE INC | 70 | 86 | 86 | 72 | 43.2x | 16.0x | 15.3% | 5.8% | 100.0% | 6.9% | 5.2% | 15.1% | 0.0% | 24.0x | $1.8B | VS | |
$FATN Fatpipe Inc/UT | 39 | 46 | 52 | 19 | 44.8x | 20.4x | 2.5% | 1.7% | 89.9% | 4.9% | 3.3% | 3.9% | 0.0% | 22.0x | $28M | ||
| SECTOR BENCH | - | - | - | - | - | 23.7x | 11.7x | 5.7% | 2.4% | 64.6% | 4.5% | 2.8% | 8.6% | 0.0% | 0.3x | - | REF |
Fatpipe Inc/UT (FATN) receives a "Avoid" rating with a composite score of 38.7/100. It ranks #3711 out of 7,333 stocks in our coverage universe and carries a 1-star rating. Ratings are driven by a 6-factor quantitative model measuring quality, value, momentum, investment, stability, and short interest.
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Lagging peers — losers tend to keep underperforming
Fair valuation relative to peers
Average quality profile
High volatility — wider range of outcomes increases timing risk
Aggressive spending — empire-building risk, dilutive growth
Below-average composite — caution warranted
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Relative valuation derived from Services sector benchmarks. Model weights: EV/EBITDA (40%), P/B (35%), P/S (25%). Re-calculated daily.
Projection based on user-defined inputs. Re-calculated daily against current market data.
Reverse DCF Framework — Mauboussin Methodology
Institutional-grade Reverse DCF analysis. This model identifies the growth hurdles embedded in current market prices. When implied growth is significantly lower than historical or projected rates, a margin of safety may exist. Re-audited daily.
No analyst ratings for FATN.
View All Ratings| Factor | Global | Sector | Tilt |
|---|---|---|---|
| PROFITABILITY | 46 | 49 | -3NEUTRAL |
| MOMENTUM | 19 | 12 | +7ALPHA |
| VALUATION | 52 | 56 | -4NEUTRAL |
| INVESTMENT | 18 | 2 | +16ALPHA |
| STABILITY | 34 | 27 | +7ALPHA |
| SHORT INT | 88 | 96 | -8DRAG |
Global = full universe. Sector = relative to industry peers. Positive tilt indicates idiosyncratic strength.
ROE proxy 2.5% (sector 5.7%)
GM 90% vs sector 65%, OM 5% vs sector 5%
Capital turnover N/A, R&D intensity 3.8%
Rev growth 4%, 2yr history
Interest coverage 3.9x, Net debt/EBITDA -2.8x
Composite assessment of profitability, capital efficiency, and financial strength. Top-tier entities demonstrate sustainable cash flow generation and elite competitive moats.
Profit generated per dollar of shareholder equity
Efficiency of asset utilization
Pricing power and cost efficiency
Core business profitability
Bottom-line profitability
The Quality factor evaluates the persistence and magnitude of realized cash flows. Companies with scores >70 exhibit superior pricing power and structural financial resilience through diverse economic regimes.
Our uncertainty rating tracks the predictability of future cash flows and potential for permanent capital loss. Moderate visibility with standard industry cyclicality.
We rate Fatpipe Inc/UT (FATN) as Avoid with a composite score of 38.7/100 at a current price of $1.58. The stock falls in the bottom quintile, and the multi-factor weakness suggests a high probability of continued underperformance.
Fatpipe Inc/UT holds a top-quartile position (#0 of 50) within the Services sector, based on our composite quantitative scoring across quality, value, momentum, and stability factors. The composite score of 38.7/100 places it at rank #3711 in our full universe.
No Moat
Low
Standard
Fair Value
Gross margins of 90% signal strong pricing power.
Stable competitive position in a defensive sector.
Elevated P/E ratio of 44.8x leaves little room for execution misses.
Weak momentum suggests persistent institutional selling pressure.
Vulnerability to macroeconomic shocks and interest rate volatility.
Fatpipe Inc/UT represents a avoid based on multi-factor quantitative performance.
Our quantitative model flags Fatpipe Inc/UT with an Avoid rating, assigning a composite score of 38.7/100 and 1 out of 5 stars. Ranked #3711 of 7,333 stocks, FATN falls in the bottom tier across key factors. Historically, stocks with this profile have faced elevated risk of underperformance and capital loss.
With a quality score of 46/100, FATN shows adequate but unremarkable business quality. The company reports a return on equity of 2.5% (sector avg: 5.7%), gross margins of 89.9% (sector avg: 64.6%), net margins of 3.3% (sector avg: 2.8%). This suggests the company generates acceptable returns but may lack the competitive positioning or operational efficiency to stand out from peers.
FATN's value score of 52/100 indicates the stock is fairly valued based on its current fundamentals. Key valuation metrics include a P/E ratio of 44.80x, an EV/EBITDA of 20.36x, a P/B ratio of 1.13x. At this level, neither a clear bargain nor overpriced, the stock's attractiveness depends more on forward growth expectations and qualitative factors.
Fatpipe Inc/UT's investment score of 18/100 suggests limited reinvestment activity. Key growth metrics include revenue growth of 3.9% vs. a sector average of 8.6% and a return on assets of 1.7% (sector: 2.4%). While this can be positive for mature, cash-generative businesses returning capital to shareholders, it may also signal a lack of growth opportunities or management conservatism.
Fatpipe Inc/UT is experiencing notably weak momentum with a score of just 19/100. The stock has underperformed its peers and is trending below major moving averages. Revenue growth stands at 3.9% year-over-year, while a beta of -0.25 reflects its sensitivity to broader market moves. While deep momentum weakness can occasionally present value opportunities, it often reflects deteriorating fundamentals or structural headwinds that may persist.
FATN's stability score of 34/100 signals elevated volatility and/or leverage concerns. Key stability metrics include a beta of -0.25 and a debt-to-equity ratio of 22.00x (sector avg: 0.3x). Investors should be prepared for wider-than-average price swings and consider position sizing accordingly to manage portfolio risk.
FATN's short interest factor score of 88/100 indicates very low short selling activity relative to peers — a positive signal suggesting institutional investors see limited near-term downside. Specific risk factors include elevated leverage (D/E: 22.00x), micro-cap liquidity risk. As a micro-cap company with a market capitalization of $28M, Fatpipe Inc/UT benefits from the generally lower volatility and deeper liquidity associated with its size class.
Fatpipe Inc/UT is a micro-cap company in the Services sector, ranked #0 of 50 in its sector (100th percentile) and #3711 of 7,333 overall (49th percentile). Key comparisons include ROE of 2.5% trailing the 5.7% sector median and operating margins of 4.9% above the 4.5% sector average. This top-quartile standing reflects exceptional competitive strength relative to Services peers.
While FATN currently exhibits a AVOID profile, superior opportunities exist within the SERVICES sector. Our model identifies several "Strong Buy" candidates with higher quality scores and more attractive valuations among direct industry competitors.
View Top Services Alpha →Quant Factor Profile
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Improvement in Investment (18) would have the largest impact on the composite score.
EV/EBITDA 74% ABOVE SECTOR MEDIAN
ROE 56% BELOW SECTOR MEDIAN
Gross Margin 39% ABOVE SECTOR MEDIAN (FAVORABLE)
Above 50MA
37.18%
Net New Highs
+51081
SALT LAKE CITY, UTAH / ACCESS Newswire / February 18, 2026 / FatPipe, Inc. (NASDAQ:FATN) ("FatPipe" or the "Company"), today announced that Zacks Small-Cap Research ("Zacks") Senior Equity Analyst Lisa Thompson has initiated independent equity research ...
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