NasdaqGS:FEYE

Stock Analysis Report

Executive Summary

FireEye, Inc. provides cybersecurity solutions that allow organizations to prepare for, prevent, investigate, respond to, and remediate cyber-attacks.

Rewards

Trading at 32.6% below its fair value

Revenue is forecast to grow 8.63% per year

Earnings have grown 15.8% per year over the past 5 years

Risk Analysis

Currently unprofitable and not forecast to become profitable over the next 3 years

Shareholders have been diluted in the past year



Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

How has FireEye's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: FEYE has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

FEYE

0.2%

US Software

1.1%

US Market


1 Year Return

-17.0%

FEYE

28.8%

US Software

17.8%

US Market

Return vs Industry: FEYE underperformed the US Software industry which returned 28.8% over the past year.

Return vs Market: FEYE underperformed the US Market which returned 17.8% over the past year.


Shareholder returns

FEYEIndustryMarket
7 Day-1.2%0.2%1.1%
30 Day-5.4%1.3%1.4%
90 Day15.6%4.0%3.9%
1 Year-17.0%-17.0%30.7%28.8%20.3%17.8%
3 Year23.9%23.9%125.1%116.1%44.8%35.4%
5 Year-43.4%-43.4%185.0%164.8%71.3%52.4%

Price Volatility Vs. Market

How volatile is FireEye's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is FireEye undervalued compared to its fair value and its price relative to the market?

32.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FEYE ($16.2) is trading below our estimate of fair value ($24.03)

Significantly Below Fair Value: FEYE is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: FEYE is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: FEYE is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate FEYE's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FEYE is good value based on its PB Ratio (4.9x) compared to the US Software industry average (5.7x).


Next Steps

Future Growth

How is FireEye forecast to perform in the next 1 to 3 years based on estimates from 24 analysts?

11.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: FEYE is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: FEYE is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: FEYE is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: FEYE's revenue (8.6% per year) is forecast to grow faster than the US market (7.4% per year).

High Growth Revenue: FEYE's revenue (8.6% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: FEYE's Return on Equity is forecast to be low in 3 years time (9.8%).


Next Steps

Past Performance

How has FireEye performed over the past 5 years?

15.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: FEYE is currently unprofitable.

Growing Profit Margin: FEYE is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: FEYE is unprofitable, but has reduced losses over the past 5 years at a rate of 15.8% per year.

Accelerating Growth: Unable to compare FEYE's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: FEYE is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (15.8%).


Return on Equity

High ROE: FEYE has a negative Return on Equity (-36.5%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is FireEye's financial position?


Financial Position Analysis

Short Term Liabilities: FEYE's short term assets ($1.3B) exceed its short term liabilities ($820.1M).

Long Term Liabilities: FEYE's short term assets ($1.3B) do not cover its long term liabilities ($1.3B).


Debt to Equity History and Analysis

Debt Level: FEYE's debt to equity ratio (142%) is considered high.

Reducing Debt: Insufficient data to determine if FEYE's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: FEYE has a low level of unsold assets or inventory.

Debt Coverage by Assets: FEYE's debt is covered by short term assets (assets are 1.3x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable FEYE has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: FEYE is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 55.9% per year.


Next Steps

Dividend

What is FireEye's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.4%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate FEYE's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate FEYE's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if FEYE's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FEYE's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of FEYE's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of FireEye's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Kevin Mandia (48yo)

3.5yrs

Tenure

US$6,544,668

Compensation

Mr. Kevin R. Mandia has been the Chief Executive Officer of FireEye, Inc. since June 15, 2016. Mr. Mandia has been Director at Awake Security, Inc. since 2019. Mr. Mandia was a Strategic Advisor of Trident ...


CEO Compensation Analysis

Compensation vs Market: Kevin's total compensation ($USD6.54M) is about average for companies of similar size in the US market ($USD5.10M).

Compensation vs Earnings: Kevin's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

48yo

Average Age

Experienced Management: FEYE's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

3.6yrs

Average Tenure

53yo

Average Age

Experienced Board: FEYE's board of directors are considered experienced (3.6 years average tenure).


Insider Trading

Insider Buying: FEYE insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$105,90520 Nov 19
William Robbins
EntityIndividual
Role
Head of Sales
Executive Vice President of Worldwide Sales
Shares6,256
Max PriceUS$16.93
SellUS$139,83019 Aug 19
Frank Verdecanna
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares10,525
Max PriceUS$13.29
SellUS$83,91119 Aug 19
William Robbins
EntityIndividual
Role
Head of Sales
Executive Vice President of Worldwide Sales
Shares6,316
Max PriceUS$13.29
SellUS$229,36620 Jun 19
Kevin Mandia
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares15,616
Max PriceUS$14.69
SellUS$229,36620 Jun 19
Travis Reese
EntityIndividual
Role
President
President
Shares15,616
Max PriceUS$14.69
SellUS$3,18220 May 19
Frank Verdecanna
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares207
Max PriceUS$15.37
SellUS$48,51320 May 19
Travis Reese
EntityIndividual
Role
President
President
Shares3,156
Max PriceUS$15.37
SellUS$96,99620 May 19
William Robbins
EntityIndividual
Role
Head of Sales
Executive Vice President of Worldwide Sales
Shares6,310
Max PriceUS$15.37
SellUS$48,51320 May 19
Alexa King
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares3,156
Max PriceUS$15.37
SellUS$931,85520 Feb 19
Frank Verdecanna
EntityIndividual
Role
Chief Financial Officer
Executive VP
Shares55,775
Max PriceUS$16.71
SellUS$802,28920 Feb 19
William Robbins
EntityIndividual
Role
Head of Sales
Executive Vice President of Worldwide Sales
Shares48,020
Max PriceUS$16.71
SellUS$1,697,75620 Feb 19
Travis Reese
EntityIndividual
Role
President
President
Shares101,617
Max PriceUS$16.71
SellUS$847,01520 Feb 19
Alexa King
EntityIndividual
Role
Chief Legal Officer
Executive VP
Shares50,697
Max PriceUS$16.71
SellUS$2,76920 Feb 19
Kevin Mandia
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares165.73
Max PriceUS$16.71

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 7.8%.


Management Team

  • Frank Verdecanna (48yo)

    Executive VP

    • Tenure: 2.8yrs
    • Compensation: US$3.08m
  • Kate Patterson

    Vice President of Investor Relations

    • Tenure: 6.7yrs
  • Travis Reese (47yo)

    President

    • Tenure: 3.5yrs
    • Compensation: US$4.97m
  • Bill Robbins (52yo)

    Executive Vice President of Worldwide Sales

    • Tenure: 3.1yrs
    • Compensation: US$4.06m
  • Kevin Mandia (48yo)

    CEO & Director

    • Tenure: 3.5yrs
    • Compensation: US$6.54m
  • Grady Summers (42yo)

    Executive Vice President of Products & Customer Success

    • Tenure: 0.3yrs
  • Alexa King (51yo)

    Executive VP

    • Tenure: 7.7yrs
    • Compensation: US$1.97m
  • Barbara Massa

    Executive Vice President of People & Places

    • Tenure: 3.2yrs
  • Jason Martin

    Executive Vice President of Research & Engineering

    • Tenure: 4yrs
  • Vasu Jakkal

    Executive VP & Chief Marketing Officer

    • Tenure: 2.3yrs

Board Members

  • Bob Switz (73yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$207.00k
  • Enrique Salem (53yo)

    Independent Chairman of the Board

    • Tenure: 2.8yrs
    • Compensation: US$257.49k
  • Ron Codd (64yo)

    Independent Director

    • Tenure: 7.4yrs
    • Compensation: US$218.24k
  • Steve Pusey (57yo)

    Independent Director

    • Tenure: 4.5yrs
    • Compensation: US$204.99k
  • Kimberly Alexy (49yo)

    Independent Director

    • Tenure: 4.9yrs
    • Compensation: US$166.87k
  • Kevin Mandia (48yo)

    CEO & Director

    • Tenure: 3.5yrs
    • Compensation: US$6.54m
  • Adrian McDermott (50yo)

    Independent Director

    • Tenure: 0.8yrs

Company Information

FireEye, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: FireEye, Inc.
  • Ticker: FEYE
  • Exchange: NasdaqGS
  • Founded: 2004
  • Industry: Systems Software
  • Sector: Software
  • Market Cap: US$3.457b
  • Shares outstanding: 213.41m
  • Website: https://www.fireeye.com

Number of Employees


Location

  • FireEye, Inc.
  • 601 McCarthy Boulevard
  • Milpitas
  • California
  • 95035
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FEYENasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDSep 2013
F9EDB (Deutsche Boerse AG)YesCommon StockDEEURSep 2013
FEYESWX (SIX Swiss Exchange)YesCommon StockCHCHFSep 2013
0QZYLSE (London Stock Exchange)YesCommon StockGBUSDSep 2013

Biography

FireEye, Inc. provides cybersecurity solutions that allow organizations to prepare for, prevent, investigate, respond to, and remediate cyber-attacks. The company provides threat detection and prevention s ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 00:40
End of Day Share Price2019/12/10 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.