That brings us full circle to Fortinet, which has no debt and a positive net profit margin. It’s one of the cheapest players in the cybersecurity industry. The network security company has gotten profitable by offering effective cybersecurity products at reasonable prices. Fortinet provides an all-in-one service, which includes antivirus and firewall products.
The beauty of this type of all-in-one product, more technically known as unified threat management (UTM), is that it’s the fastest growing part of the cybersecurity market. Fortinet owns over 25% of the UTM market share.
Just last month, Fortinet managed to post earnings that beat management guidance, with revenue up 30% year-over-year. Big companies are also showing more interest in Fortinet’s all-in-one services. Large enterprises accounted for 45% of product revenues last quarter, up from 40% in the same quarter last year. Its client profile is fairly diverse, with 24% of product sales to mid-sized enterprises and the remaining 31% to small businesses.
Cybersecurity is hot right now, but expensive valuations shouldn’t keep you from capitalizing on this fast growth market. Fortinet is still one of the more enticing plays, given its valuation and product offering, but keep an eye on the likes of Cyberark and FireEye for selloffs that make the company’s more enticing valuation-wise.
This article is brought to you courtesy of Marshall Hargrave from Wyatt Research.