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.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-15.4%

FEYE

-1.0%

US Software

-2.0%

US Market


1 Year Return

-44.2%

FEYE

6.5%

US Software

-15.1%

US Market

Return vs Industry: FEYE underperformed the US Software industry which returned 5.9% over the past year.

Return vs Market: FEYE underperformed the US Market which returned -13.6% over the past year.


Shareholder returns

FEYEIndustryMarket
7 Day-15.4%-1.0%-2.0%
30 Day-36.1%-15.0%-19.7%
90 Day-45.8%-8.6%-23.2%
1 Year-44.2%-44.2%7.6%6.5%-13.4%-15.1%
3 Year-24.8%-24.8%100.0%91.4%10.9%3.7%
5 Year-78.4%-78.4%162.3%143.8%28.4%14.4%

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?

46.1%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: FEYE ($9.87) is trading below our estimate of fair value ($17.54)

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 (3x) compared to the US Software industry average (4.2x).


Next Steps

Future Growth

How is FireEye forecast to perform in the next 1 to 3 years based on estimates from 22 analysts?

27.0%

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 (5.9% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: FEYE's revenue (5.9% 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 (13.4%).


Next Steps

Past Performance

How has FireEye performed over the past 5 years?

18.3%

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 18.3% 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 (18.7%).


Return on Equity

High ROE: FEYE has a negative Return on Equity (-36.69%), as it is currently unprofitable.


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 ($849.9M).

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 (144%) 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 45.3% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

How experienced are the management team and are they aligned to shareholders interests?

1.6yrs

Average management tenure


CEO

Kevin Mandia (48yo)

3.83s

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 ($USD6.54M) is above average for companies of similar size in the US market ($USD4.60M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Kevin Mandia
CEO & Director3.83yrsUS$6.54m1.55% $31.6m
Frank Verdecanna
Executive VP3.17yrsUS$3.08m0.24% $4.9m
Alexa King
Executive VP8yrsUS$1.97m0.16% $3.4m
Travis Reese
Consultant0.083yrUS$4.97m0.44% $9.0m
William Robbins
Executive VP0.25yrUS$4.06m0.050% $1.0m
Peter Bailey
Executive VP & COO0.17yrno datano data
Kate Patterson
Vice President of Investor Relations7yrsno datano data
Vasu Jakkal
Executive VP & Chief Marketing Officer2.58yrsno datano data
Barbara Massa
Executive VP & Chief of Business Operations0.25yrno datano data
Grady Summers
Executive Vice President of Products & Customer Success0.58yrno datano data

1.6yrs

Average Tenure

48yo

Average Age

Experienced Management: FEYE's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Kevin Mandia
CEO & Director3.83yrsUS$6.54m1.55% $31.6m
Robert Switz
Independent Director2.58yrsUS$207.00k0.0092% $188.6k
Enrique Salem
Independent Chairman of the Board3.08yrsUS$257.49k0.11% $2.2m
Ronald E. Codd
Independent Director7.75yrsUS$218.24k0.055% $1.1m
Stephen Pusey
Independent Director4.83yrsUS$204.99k0.012% $250.4k
Kimberly Alexy
Independent Director5.25yrsUS$166.87k0.022% $453.9k
Adrian McDermott
Independent Director1.17yrsno datano data

4.0yrs

Average Tenure

53yo

Average Age

Experienced Board: FEYE's board of directors are considered experienced (4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 8.6%.


Top Shareholders

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$2.044b
  • Shares outstanding: 219.29m
  • 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 network, email, endpoint, and cloud security solutions, as well as customer support and maintenance services. It also offers Helix Security Platform, a cloud-hosted security platform; Security Validation Platform that tests the effectiveness of security controls against cyber attacks; Dynamic Threat Intelligence cloud, a bi-directional cloud-based service; and Mandiant Threat Intelligence that offers subscriptions to threat intelligence reports to organizations for defending cyber threats. In addition, the company offers Mandiant Managed Defense, a technology-enabled managed detection and response service; Mandiant Digital Threat Monitoring, which analyzes content on the open and dark web for credential leakage, public data exposure, and other potential threats; and Mandiant Expertise-on-Demand, a prepaid subscription that provides access to the company's threat intelligence and expertise as microservices. Further, it provides incident response, response readiness and cyber insurance assessments, red and purple team assessments, and other strategic security services; cyber threat intelligence and defense center services; and education services. The company serves telecommunications providers, financial services entities, Internet search engines, social networking sites, stock exchanges, electrical grid operators, networking vendors, oil and gas companies, healthcare and pharmaceutical companies, and governmental agencies. FireEye, Inc. offers its products and services through distributors, resellers, and strategic partners in the United States, the Asia Pacific, Europe, the Middle East, Africa, and Japan. The company was formerly known as NetForts, Inc. and changed its name to FireEye, Inc. in September 2005. FireEye, Inc. was founded in 2004 and is headquartered in Milpitas, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/04/04 06:20
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.