📊 FATN Key Takeaways
Is Fatpipe Inc/UT (FATN) a Good Investment?
Fatpipe exhibits severe accounting inconsistencies with gross profit (10.9M) exceeding revenue (5.7M), indicating data quality issues that undermine fundamental analysis reliability. Despite strong liquidity and leverage metrics, the company faces stagnant revenue growth (0% YoY), dramatically declining diluted EPS (-57.1% YoY), and negligible free cash flow generation (1.6% FCF margin) relative to asset base, suggesting operational efficiency problems and potential unsustainable earnings.
FatPipe shows positive reported profitability and a healthy balance sheet, with solid liquidity, modest leverage, and positive net income. However, growth quality looks weak because revenue was flat, free cash flow generation was minimal relative to sales, and diluted EPS fell sharply despite stable net income, suggesting dilution or capital structure pressure. The unusually high gross margin also raises questions about earnings quality or classification, which tempers conviction.
Why Buy Fatpipe Inc/UT Stock? FATN Key Strengths
- Strong liquidity position with 2.71x current ratio and 6.2M cash reserves
- Conservative leverage with 0.22x debt-to-equity ratio providing financial flexibility
- Positive interest coverage of 4.7x indicates manageable debt service obligations
- Strong liquidity with 2.71x current ratio and $6.16M cash against modest leverage
- Positive operating and net profitability, including 24.8% operating margin and 17.8% net margin
- Manageable balance sheet risk with debt/equity of 0.22x and positive interest coverage of 4.7x
FATN Stock Risks: Fatpipe Inc/UT Investment Risks
- Critical data anomaly: gross profit exceeds revenue by 191%, suggesting material reporting errors or consolidation issues requiring immediate clarification
- Revenue completely stalled with 0% YoY growth and declining unit economics evidenced by 57.1% EPS decline despite net income growth
- Severely impaired cash generation with only 89.7K free cash flow on 5.7M revenue (1.6% FCF margin) insufficient to fund growth or returns
- Flat revenue indicates limited top-line momentum and weak growth quality
- Free cash flow is very thin at $89.68K, only 1.6% of revenue, despite reported earnings
- Diluted EPS fell 57.1% year over year and reported gross margin above 100% suggests potential data or accounting classification concerns
Key Metrics to Watch
- Revenue growth trajectory and gross profit reconciliation (resolve 193.5% gross margin anomaly)
- Free cash flow and operating cash flow sustainability relative to capital requirements
- Earnings quality and dilution factors driving 57% EPS decline despite positive net income growth
- Operating cash flow and free cash flow conversion versus net income
- Revenue growth and diluted share count trend
Fatpipe Inc/UT (FATN) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 1.6% FCF margin may limit capital allocation flexibility. Strong liquidity with a 2.71x current ratio provides a solid financial cushion.
FATN Profit Margin, ROE & Profitability Analysis
FATN vs Technology Sector: How Fatpipe Inc/UT Compares
How Fatpipe Inc/UT compares to Technology sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Fatpipe Inc/UT Stock Overvalued? FATN Valuation Analysis 2026
Based on fundamental analysis, Fatpipe Inc/UT has mixed fundamental signals relative to the Technology sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Fatpipe Inc/UT Balance Sheet: FATN Debt, Cash & Liquidity
FATN Revenue & Earnings Growth: 5-Year Financial Trend
5-Year Trend Summary: Fatpipe Inc/UT's revenue has remained relatively flat over the 5-year period, with a 0% decline. The most recent EPS of $0.35 reflects profitable operations.
FATN Revenue Growth, EPS Growth & YoY Performance
FATN Quarterly Earnings & Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q3 2026 | $3.1M | N/A | $0.01 |
| Q2 2026 | $4.0M | -$43.4K | $0.00 |
| Q1 2026 | $3.8M | $625.5K | $0.05 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
Fatpipe Inc/UT Dividends, Buybacks & Capital Allocation
FATN SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Fatpipe Inc/UT (CIK: 0001993400)
📋 Recent SEC Filings
❓ Frequently Asked Questions about FATN
What is the AI rating for FATN?
Fatpipe Inc/UT (FATN) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (HOLD) with 73% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are FATN's key strengths?
Claude: Strong liquidity position with 2.71x current ratio and 6.2M cash reserves. Conservative leverage with 0.22x debt-to-equity ratio providing financial flexibility. ChatGPT: Strong liquidity with 2.71x current ratio and $6.16M cash against modest leverage. Positive operating and net profitability, including 24.8% operating margin and 17.8% net margin.
What are the risks of investing in FATN?
Claude: Critical data anomaly: gross profit exceeds revenue by 191%, suggesting material reporting errors or consolidation issues requiring immediate clarification. Revenue completely stalled with 0% YoY growth and declining unit economics evidenced by 57.1% EPS decline despite net income growth. ChatGPT: Flat revenue indicates limited top-line momentum and weak growth quality. Free cash flow is very thin at $89.68K, only 1.6% of revenue, despite reported earnings.
What is FATN's revenue and growth?
Fatpipe Inc/UT reported revenue of $5.7M.
Does FATN pay dividends?
Fatpipe Inc/UT does not currently pay dividends.
Where can I find FATN SEC filings?
Official SEC filings for Fatpipe Inc/UT (CIK: 0001993400) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is FATN's EPS?
Fatpipe Inc/UT has a diluted EPS of $0.07.
How is the AI analysis conducted?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is FATN a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Fatpipe Inc/UT has a SELL rating with 73% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is FATN stock overvalued or undervalued?
Valuation metrics for FATN: ROE of 4.8% (sector avg: 22%), net margin of 17.8% (sector avg: 18%). Compare these metrics with sector averages to assess valuation.
Should I buy FATN stock in 2026?
Our dual AI analysis gives Fatpipe Inc/UT a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is FATN's free cash flow?
Fatpipe Inc/UT's operating cash flow is $132.1K, with capital expenditures of $42.4K. FCF margin is 1.6%.
How does FATN compare to other Technology stocks?
Vs Technology sector averages: Net margin 17.8% (avg: 18%), ROE 4.8% (avg: 22%), current ratio 2.71 (avg: 2.5).