CompaniesFATN
Overview
FATN
FatPipe Networks
TechnologySD-WANSASEInsider-Owned
$6.05+1.7%
Market Cap
$85M
SEC 10-Q (yfinance-validated)
P/E (TTM)
17.3×
via financials
Rev Growth YoY
90.4%
+90.4%SEC filing
Gross Margin
91.0%
SEC filing
FCF Yield
-0.4%
calculated
Upside to FV
+45.5%
vs fair value
Conviction
3/5Real SD-WAN/SASE software — 91% gross margin, +90% revenue and 54.9% insider ownership — but no longer cheap at 4.4× sales after a 4.6× run off the low.
Research Depth
ScreeningDeep DiveFull Model
Updated 13d ago
Thesis
FatPipe sells SD-WAN/SASE networking software. Validated figures show real quality — 91% gross margin, 25.9% net margin, +90% TTM revenue growth and 54.9% insider ownership — but after a run from a $1.31 low to ~$6, it is no longer statistically cheap: 4.4× sales, ~27× forward P/E, and free cash flow was slightly negative on the latest TTM. Phase 1 deep-dive pending.
Bull Case
Quality91% gross margin, 25.9% net margin, +90% TTM revenue growth; 54.9% insider ownership aligns management.
Balance SheetCurrent ratio 3.85 and minimal net debt; analyst mean target $8.80.
Bear Case
ValuationNo longer cheap: 4.4× sales and ~27× forward P/E after a ~4.6× run off the $1.31 low.
Cash FlowTTM free cash flow slightly negative (−$0.35M); growth is not yet self-funding.
Liquidity~14M shares / ~6M float — extreme illiquidity; 2.6% institutional ownership.
Key Metrics
Market Cap
$85M
SEC 10-Q (yfinance-validated)
Enterprise Value
$85M
calculated
Revenue (TTM)
$19M
SEC filing
P/E (TTM)
17.3×
via financials
Forward P/E
26.9×
consensus
P/S (TTM)
4.4×
via financials
P/B
3.4×
via financials
EV/EBITDA
[awaiting: calc]
calculated
PEG
—
calculated
Revenue Growth
90.4%
SEC filing
Gross Margin
91.0%
SEC filing
Operating Margin
30.2%
SEC filing
Net Margin
25.9%
SEC filing
Free Cash Flow
$-350.0K
SEC filing
FCF Yield
-0.4%
calculated
Debt / Equity
[awaiting: filing]
SEC filing
Current Ratio
3.9×
SEC filing
Short Interest
1.2%
exchange
Institutional Own.
2.6%
13F
Insider Own.
54.9%
proxy
Shares Out.
14.0M
SEC filing
Float
6.0M
exchange
Valuation
Price vs Fair Value
Valuation pending
Scenario fair-value range awaiting model.
DCF Summary
DCF awaiting Phase 2+
Discounted cash-flow model is built once research reaches Deep Dive.
Historical Multiples
Multiple history pending
This section is being deepened.
Peer Comparison
Peer set pending
Comparable companies awaiting selection.
Financials
Income statement pending
Awaiting SEC filing backfill.
Balance sheet pending
Awaiting SEC filing backfill.
Cash flow pending
Awaiting SEC filing backfill.
Phase 1 — full backfill pending; metrics yfinance-validated. (Note: an HTML 'Fat Projects Nexgen' write-up was a different, phantom entity and was discarded.)
Catalysts
Q4 FY26
Earnings
Q4 FY2026 earnings
Watch whether 90%+ revenue growth and MRR momentum continue and FCF turns positive.
Risks
| Risk | Category | Severity | Probability | Impact on Thesis |
|---|---|---|---|---|
| Rich valuation after a 4.6× run | Market/Macro | Medium | Medium | 4.4× sales and ~27× forward P/E leave little margin of safety. |
| Extreme illiquidity / low float | Market/Macro | Medium | High | ~6M float; thin trading amplifies both upside and drawdowns. |
| Negative free cash flow | Execution | Low | Medium | Growth not yet self-funding on a TTM basis. |
Technical Snapshot
52-Week Range
$1.31$6.05$10.90
RSI (14)
52
neutral
50-Day MA
$6.20
-2.4%below
200-Day MA
$4.50
+34.4%above
Avg Vol (30d)
0.2M
0%vs average
Support Levels
$4.50$1.31
Resistance Levels
$8.80$10.90
Price path reconstructed from the 52-week range, current price, and 50/200-day moving averages — connect a live market-data feed for production.
Ownership & Insider Activity
Top Institutional Holders via 13F filings
13F holdings pending
Institutional holder detail awaiting filing.
Insider Activity
Insiders own ~54.9%; institutions only ~2.6%. Short interest ~1.2%. Float ~6M shares.
Insider transactions pending
This section is being deepened.
Peer Comparison
Peer set pending
Comparable companies awaiting selection.
Research Notes
2026-06-03Internal
Quality but no longer cheap
Real SD-WAN/SASE software, insider-aligned (54.9%), 91% gross margin. Validated data corrects earlier figures: revenue +90%, but the stock now trades 4.4× sales after a 4.6× run; FCF slightly negative. Low float is the main caveat.