Growing security concerns in an interconnected world

Growing security concerns in an interconnected world

by Pininvest Analysis

Cybersecurity Platforms on

  • constituents
  • 41.4% 1y performance
  • 21.1% volatility
Check the investment theme exit_to_app

There is little doubt the massive Equifax data breach (publicized in September ’17) generated a wave of potential customer leads and renewed investor interest in the industry

Because the shares have been surging across the board since publication of our theme on in early February ’18, company fundamentals might provide valuable signals about their actual growth potential

Except for quite large and highly profitable Verisign , and Check Point , most firms are in the mid-cap (under $10bn) segment, and still unprofitable in Q1-2018

As of mid-May ’18, we observe that accelerating sales trends, comparing the  % increase of 2017/2015  with  the increase of 2018/2015, have been highly significant indicators of outsized 12-months share performance. For this reason, second quarter sales will be of special interest to control the upward trend and put the expectations underlying the share price on a sure footing

All top performers have been notably boosted in Q1-2018 as shown when the data for the latest quarter is available

      Share Performance Sales 2018/2015 Sales 2017/2015
Varonis Systems, VRNS 109% 116% 63%
Qualys Inc QLYS 90% 72% 45%
Palo Alto Networks PANW 79%   73%
Mimecast MIME 71%   61%
Proofpoint Inc. PFPT 61% 168% 95%
Fortinet Inc. FTNT 54% 91% 64%


Share performance as of mid-May '18

Year-on-year rolling financials for the latest 4 quarters are available by entering the ticker on pininvest / search