Skip to Content

FireEye Inc FEYE

Rating as of

Morningstar’s Analysis

Valuation
Currency in USD
Is it the right time to buy or sell?
Find out with Morningstar Premium
Is it the right time to buy or sell?
Find out with Morningstar Premium

1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

It’s Not You, It’s Me; FireEye Selling FireEye Products Division to Focus on SaaS and Services

Mark Cash Senior Equity Analyst

Analyst Note

| Mark Cash |

We are maintaining our $17 fair value estimate for no-moat FireEye after it announced the sale of the FireEye products business to Symphony Technology Group for $1.2 billion in an all-cash transaction. This is a shrewd deal in our opinion as FireEye’s leading consulting and professional services division were at times overlooked due to its security products not being best-of-breed against sizable competitors with entrenched customer bases. With the pandemic changing the dynamics of the attack surface and a ramped up threat environment, alongside the persistent talent dearth in cybersecurity, the sale is well timed, in our view. We believe that under its new name, Mandiant’s focus on supplementing security teams and automating threat response is the proper strategic decision. Nonetheless, we remain hesitant about Mandiant carving out sustainable customer switching costs. Shares fell over 5% on the news, but we still view shares as overvalued and expect more insight when FireEye reports their second-quarter earnings.

Read Full Analysis

Company Profile

Business Description

FireEye is a pure-play cybersecurity firm that offers solutions for networks, endpoints, and email. FireEye's products for on-premises and cloud-based security are supplemented by its services division, with its Mandiant consulting group as a main player in the market for breach responses and security assessments. The company's security experts can be used on demand by customers and help FireEye innovative its product offerings. The California-based company sells products worldwide; it was founded in 2004 and went public in 2013.

Contact
601 McCarthy Boulevard
Milpitas, CA, 95035
T +1 408 321-6300
Sector Technology
Industry Software - Infrastructure
Most Recent Earnings Mar 31, 2021
Fiscal Year End Dec 31, 2021
Stock Type Classic Growth
Employees 3,400

Transparency is how we protect the integrity of our work and keep empowering investors to achieve their goals and dreams. And we have unwavering standards for how we keep that integrity intact, from our research and data to our policies on content and your personal data.

We’d like to share more about how we work and what drives our day-to-day business.

We sell different types of products and services to both investment professionals and individual investors. These products and services are usually sold through license agreements or subscriptions. Our investment management business generates asset-based fees, which are calculated as a percentage of assets under management. We also sell both admissions and sponsorship packages for our investment conferences and advertising on our websites and newsletters.

How we use your information depends on the product and service that you use and your relationship with us. We may use it to:

  • Verify your identity, personalize the content you receive, or create and administer your account.
  • Provide specific products and services to you, such as portfolio management or data aggregation.
  • Develop and improve features of our offerings.
  • Gear advertisements and other marketing efforts towards your interests.

To learn more about how we handle and protect your data, visit our privacy center.

Maintaining independence and editorial freedom is essential to our mission of empowering investor success. We provide a platform for our authors to report on investments fairly, accurately, and from the investor’s point of view. We also respect individual opinions––they represent the unvarnished thinking of our people and exacting analysis of our research processes. Our authors can publish views that we may or may not agree with, but they show their work, distinguish facts from opinions, and make sure their analysis is clear and in no way misleading or deceptive.

To further protect the integrity of our editorial content, we keep a strict separation between our sales teams and authors to remove any pressure or influence on our analyses and research.

Read our editorial policy to learn more about our process.