I simply analyzed the sales and profit growth of the 3 well-known cyber security companies and got Gemini to help me.

It may be of interest to several people who are considering investing in one of these companies.

Crowdstrike has had the strongest average revenue growth of the three companies in the last 5 years and has continued to do so in the last few quarters. $CRWD (+0,54%) However, Crowdstrike has not been consistently profitable in recent years, but has focused strongly on revenue growth and expanding its market share. There have been phases with losses (including the last 4 quarters) as the company has invested heavily in marketing and research & development in order to maintain its technology leadership.

P/E ratio negative.

Fortinet also shows very strong and continuous sales growth. $FTNT (+1,09%) Fortinet has the most stable and reliable profit development of the three. Fortinet has achieved constant profits in recent years and has continuously increased them. The company has been profitable for a long time and has a high operating margin. In contrast to Crowdstrike and Palo Alto Networks, which focus more on software and subscriptions, Fortinet also generates a significant portion of its revenue from the sale of hardware products.

P/E RATIO 31

Palo Alto Networks is experiencing robust revenue growth, driven primarily by the transition from a hardware provider to a subscription provider.

$PANW (+0,62%) Palo Alto Networks had dynamic earnings growth, but with a less stable development than Fortinet. In the last 5 quarters, profit has gradually decreased. Growth is often driven by high investments in the acquisition of other companies and the development of new products.

P/E RATIO 121

Here are the figures for 2024, which already give a good insight.

Fortinet. 5.96 billion revenue, 1.74 billion profit

Crowdstrike 3.95 bn sales, 19 m loss

Palo Alto. 9.22 billion revenue, 1.13 billion profit

I have now left out the topic of AI.

Platforms in the cyber sector that have access to large data sets are the biggest winners from AI. And Crowdstrike will be ahead (according to Jefferies). Palo Alto Networks will also be behind.

For me, however, Fortinet would be the favorite as it has been generating profits for a long time and margins and revenues are growing consistently.

Hello dear Getquin Community,

Over the past few days, I have been working intensively on the topic of cyber security and its fundamental importance in various sectors such as healthcare, technology, energy, armaments & defense, e-commerce, software, insurance, industry, utilities, commodities, banks, fintech, holdings, crypto and blockchain. I took a closer look at the big players, the hidden champions and the essential blade manufacturers in the industry. My aim was to gain as comprehensive a picture as possible of the different levels of this industry.

If I have overlooked any important aspects or have not categorized something correctly, I look forward to your comments and interesting additions @Tenbagger2024
@Multibagger
@Simpson
@Vegasrobaina . Together we can understand the topic even better and learn from each other.

Feel free to leave a 👍. I wish you every success with your investments 🚀

At the request of @Multibagger I have subsequently added my personal favorites in each sector. I have an investment horizon of five to ten years. In addition to the quarterly figures, my main focus was on the long-term competitive advantages and the strength of the respective moat.

Contribution:

Cybersecurity is evolving from a peripheral topic to the foundation of global markets. Whether healthcare, banking, utilities, armaments & defense, energy, industry or the digital infrastructure for artificial intelligence and blockchain, the need for protection mechanisms is increasing everywhere. While the big players such as $PANW (+0,62%) Palo Alto Networks, $CRWD (+0,54%) CrowdStrike or $ZS (-0,04%) Zscaler are in the spotlight, more and more specialized providers are emerging that are essential in their niches and often have disproportionately high growth potential. Hidden champions such as $SECT B (+1,08%) Sectra in the healthcare sector, $NCNO (+0%) nCino in the banking sector or $ESTC (+0,18%) Elastic in the data center show that cyber security has long been a diversified ecosystem. In addition, we must not overlook the blade manufacturers, i.e. the companies that provide the technological basis. These include chip manufacturers such as $NVDA (+0,17%) , $INTC (+0,23%) Intel or $AMD (-0,41%) AMD, data center operators such as $EQIX (+0%) Equin$DLR (+0,64%) Digital Realty as well as software and infrastructure providers such as $ESTC (+0,18%) Elastic, $DDOG (+0,17%) Datadog or $ANET (+0,81%) Arista Networks, without whose technology the security providers' solutions would not be scalable. The capital markets are reacting to this with valuation premiums, as the dependence on secure infrastructures is comparable to electrification in the 20th century. Investors are now faced with the question of whether to favor the established market leaders or invest in smaller companies that fly under the radar but could potentially be the real winners of tomorrow.

🔑Takeaway:

Cybersecurity is not an isolated trend, but a key investment factor across all industries from hospitals to data centers from payments to crypto platforms.

Healthcare

Major players:

$PANW (+0,62%) Palo Alto Networks (PANW), $FTNT (+1,09%) Fortinet (FTNT), $CHKP (+0,24%) Check Point (CHKP), $CRWD (+0,54%) CrowdStrike (CRWD), $S (+0,49%) SentinelOne (S), $CYBR (+0,04%) CyberArk (CYBR), $ZS (-0,04%) Zscaler (ZS), $NET (+0,34%) Cloudflare (NET), $AKAM (+0,21%) Akamai Tech. (AKAM)

- Core provider for firewalls, zero trust, endpoint and web security

My top 2 recommendation in this sector are $ZS (-0,04%) Zscaler global Zero Trust Exchange, huge barrier to entry as infrastructure is built globally and $PANW (+0,62%) All-in-one platform, extremely high customer retention, hard to replace + acquisition of the company $CYBR (+0,04%)

Hidden champions:

$SECT B (+1,08%) Sectra (SECT-B.ST) - secure imaging & healthcare security

$VRNS (+0,37%) Varonis Systems (VRNS) - protection of sensitive patient data

Imprivata (private, partnerships with listed players) - identity management for clinics

My top recommendation
$SECT B (+1,08%) Niche leadership in healthcare security & medical technology

Blade manufacturer:

$NVDA (+0,17%) Nvidia (NVDA), $INTC (+0,23%) Intel (INTC), $AMD (-0,41%) AMD (AMD) - Chips & computing power for security appliances

$EQIX (+0%) Equinix (EQIX), $DLR (+0,64%) Digital Realty (DLR) - Data center infrastructure for clinical data

$ESTC (+0,18%) Elastic (ESTC), $DDOG (+0,17%) Datadog (DDOG) - basic software for monitoring & analytics

My top 2 recommendations are $NVDA (+0,17%) - GPUs, quasi-monopoly in high-end compute and $EQIX (+0%) - largest global colocation provider, enormous switching costs

🔑 Takeaway healthcare

Healthcare data is highly sensitive and clinics are at high risk of ransomware. In addition to large security providers, hidden champions such as Sectra and Varonis are gaining in importance as they secure directly at the interface between patient data and medical devices.

Technology, Data centers & AI, Telecommunications

Major players:

$ZS (-0,04%) Zscaler (ZS), $S (+0,49%) SentinelOne (S), $CHKP (+0,24%) Check Point (CHKP)

- Protection for cloud and AI environments

My top recommendation $ZS (-0,04%) - Global Zero Trust Exchange, almost impossible to copy

Hidden champions:

$ESTC (+0,18%) Elastic (ESTC) - Security-Analytics

$ANET (+0,81%) Arista Networks (ANET)

- Network switches for data centers

My top recommendation $ANET (+0,81%) - High-end switches, hyperscaler customers

Shovel manufacturer:

$EQIX (+0%) Equinix (EQIX), $DLR (+0,64%) Digital Realty (DLR)

- Data center infrastructure

$NVDA (+0,17%) Nvidia (NVDA), $INTC (+0,23%) Intel (INTC), $MRVL (+0,24%) Marvell Tech. (MRVL)

- Chips & computing power for AI and security

My top 2 recommendation $NVDA (+0,17%) - GPUs, quasi-monopoly in high-end compute and $EQIX (+0%) - largest global colocation provider, enormous switching costs

Special players Telecommunications

$AKAM (+0,21%) Akamai Tech. (AKAM) & Cloudflare (NET) - secure traffic and mobile data

$RDWR (+0,91%) Radware (RDWR) - DDoS protection for telcos

$CSCO (+0,16%) Cisco (CSCO) - network security for carriers

$CLAV (-5,2%) Clavister Holding AB (CLAV) - through SD-WAN and carrier security

My top recommendation $AKAM (+0,21%) - Established CDN + Security

🔑 Takeaway technology, data centers & AI

Data centers and AI platforms are the backbone of the digital economy. Zero Trust and cloud security from Zscaler or SentinelOne meet shovel manufacturers such as Equinix or Nvidia, who are indispensable with infrastructure and chips.

Energy

Major players:

$FTNT (+1,09%) Fortinet (FTNT, NASDAQ) - OT/ICS security for power grids and power plants

$PANW (+0,62%) Palo Alto Networks (PANW, NASDAQ) - Zero Trust & network protection for energy suppliers

$CHKP (+0,24%) Check Point (CHKP, NASDAQ) - Critical infrastructure protection, gas and oil industry

My top recommendation $FTNT (+1,09%) - ASIC hardware + software, cost advantage

Hidden champions:

Dragos (private, IPO candidate) - leader in OT security, specialized in energy infrastructures

$RDWR (+0,91%) Radware (RDWR, NASDAQ) - DDoS defense for energy networks

$NCC (-0,88%) NCC Group (NCC.L, London) - penetration tests & audits for utilities

$CLAV (-5,2%) Clavister Holding AB (CLAV) - OT/ICS and infrastructure security

My top recommendation $CLAV (-5,2%) - small niche player (carrier security)

Shovel manufacturer:

$SBGSY (+0,22%) Schneider Electric (SBGSY, OTC) - OT/ICS hardware with security components

$ENR (-1,05%) Siemens Energy (ENR, Frankfurt) - Energy infrastructure with embedded security solutions

$AVGO (+0,16%) Broadcom (AVGO, NASDAQ) - Security chips for networks in energy environments

My top recommendation $AVGO (+0,16%) - Chip giant + Symantec Enterprise Security

E-Commerce

Major players:

$NET (+0,34%) Cloudflare (NET, NYSE) - DDoS and API protection for online stores & payment platforms

$AKAM (+0,21%) Akamai (AKAM, NASDAQ) - Application security & bot management in e-commerce

$FFIV (+0,32%) F5 Networks (FFIV, NASDAQ) - API & payment security for digital platforms

My top recommendation $NET (+0,34%) - worldwide network for DDoS/API, network effects

Hidden Champions:

$RSKD (-0,51%) Riskified (RSKD, NYSE) - Fraud prevention in online trading

$VRNS (+0,37%) Varonis Systems (VRNS, NASDAQ) - Protection of customer data

$CYBR (+0,04%) CyberArk (CYBR, NASDAQ) - Identity & access protection for payment processes

My top recommendation $CYBR (+0,04%) - Standard for Privileged Access

Shovel manufacturer:

$V (+0,39%) Visa (V, NYSE) & $MA (+0,64%) Mastercard (MA, NYSE) - not classic cybersecurity, but operators of secure payment networks

$ESTC (+0,18%) Elastic (ESTC, NYSE) - fraud analytics for e-commerce platforms

$DDOG (+0,17%) Datadog (DDOG, NASDAQ) - monitoring & security analytics for retail infrastructure

My top recommendation $V (+0,39%) - Global payment network, enormous network effect

🔑 Takeaway:

Energy is particularly vulnerable due to OT/ICS systems, specialists such as Dragos are emerging here.

E-commerce needs fraud prevention in addition to traditional web security, which is why players such as Riskified are occupying a niche.

Armaments & Defense

Major players:

$NOC (-0,47%) Northrop Grumman (NOC, NYSE) - leader in cyberdefense for military & intelligence agencies, also developing offensive cyber capabilities

$BAESY (+1,78%) BAE Systems (BAESY, OTC) - strong cyber intelligence division, protects critical military and government networks

$RTX (-0,24%) Raytheon Technologies (RTX, NYSE) - defense company with growing cybersecurity portfolio for military communications & satellites

My top recommendation $NOC (-0,47%) - Top defense contractor with cyber dominance

Hidden champions:

$PLTR (+0,53%) Palantir Technologies (PLTR, NYSE) - Data and analytics platform with strong cybersecurity component, often for defense contractors

$CACI (+0,26%) CACI International (CACI, NYSE) - specializes in cyber intelligence, network protection and military IT services

$LDOS (+0,65%) Leidos Holdings (LDOS, NYSE) - IT and cybersecurity service provider for US defense and NATO

$CLAV (-5,2%) Clavister Holding AB (CLAV) - used by government and military organizations

$ADVE Advenica (ADVE) - Specialized security, relevant for government agencies and national infrastructure

My top recommendation $CACI (+0,26%) - Cyber intelligence, deep roots in the defense sector

Shovel manufacturer:

$LHX (-0,3%) L3Harris Technologies (LHX, NYSE) - provides communications and cyber hardware for military networks

$GD (+0,72%) General Dynamics (GD, NYSE) - with its IT division GDIT also a provider of cyber defense infrastructure

$KTOS (+0,91%) Kratos Defense (KTOS, NASDAQ) - specializes in drones, satellite systems and cyber hardening of defense communications

My top recommendation $GD (+0,72%) - strong role in defense cyber with GDIT

🔑 Takeaway:

In the defence sector, the boundaries between traditional defense and cybersecurity are becoming blurred. Alongside the large defense contractors, hidden champions such as Palantir, CACI and Leidos are emerging to provide pure cyber and data expertise. Shovel manufacturers such as L3Harris and Kratos secure the technical infrastructure.

Software & insurance

Big players:

$OKTA (+0,19%) Okta (OKTA), $CYBR (+0,04%) CyberArk (CYBR), $CRWD (+0,54%) CrowdStrike (CRWD)

- Identity, endpoint and cloud security

My top recommendation $CRWD (+0,54%) - Network effect through Falcon & Threat Graph

Hidden champions:

$VRNS (+0,37%) Varonis (VRNS) - Data Security

SailPoint (private, formerly NYSE) - Identity Governance

$FROG (-0%) JFrog (FROG) - DevSecOps & Supply-Chain-Security

$CYBE (+0,52%) CyberCatch Holdings, Inc (CYBE) - Provides AI-based cybersecurity SaaS

$GEN (+0,8%) Gen Digital (GEN) - one of the largest consumer cybersecurity providers worldwide (Norton, Avast, LifeLock), strong in identity protection and data protection for consumers & small businesses

$RBRK (+1,44%) Rubrik (RBRK) - data compliance and security in the area of cloud data security

My top recommendation $GEN (+0,8%) - Consumer security giant (Norton, Avast, LifeLock), strong brand power

Shovel manufacturer:

$MSFT (+0,44%) (MSFT), $GOOG (+0,31%) Alphabet (GOOGL), $AMZN (+0,46%) Amazon (AMZN)

- Cloud security base

$FFIV (+0,32%) F5 Networks (FFIV) - API protection for SaaS & insurance platforms

My top recommendation $GOOG (+0,31%) - global cloud security + Mandiant, strong moat through infrastructure & Threat Intel

🔑 Takeaway Software & Insurance

Data and identity protection take center stage. Major players such as Okta and CyberArk secure access, while hidden champions such as Varonis and JFrog provide specialist solutions. Cloud providers such as Microsoft and Amazon are both platform operators and security suppliers.

Industry, supply & raw materials

Major players:

$FTNT (+1,09%) Fortinet (FTNT), $CSCO (+0,16%) Cisco (CSCO), $PANW (+0,62%) Palo Alto Networks (PANW)

- Network protection for critical infrastructures

My top recommendation $FTNT (+1,09%) - ASIC hardware + software, cost advantage

Hidden champions:

$RDWR (+0,91%) Radware (RDWR) - DDoS protection

$NCC (-0,88%) NCC Group (NCC.L) - OT-Security & Penetration Tests

$SECT B (+1,08%) Sectra (SECT-B.ST) - secure infrastructure in the OT/healthcare intersection

$CLAV (-5,2%) Holding AB CLAV) - OT/ICS and infrastructure security

$ADVE Advenica (ADVE) - Specialized security, relevant for public authorities and national infrastructure

My top recommendation $ADVE - Specialized Crypto/OT-Security for public authorities

Shovel manufacturer:

$AVGO (+0,16%) Broadcom (AVGO) - security chips

Juniper Networks (JNPR) - network backbones

$ANET (+0,81%) Arista Networks (ANET) - high-end switches

My top recommendation $AVGO (+0,16%) - Chip-Giant + Symantec Enterprise Security

🔑 Takeaway Industry, Utilities & Commodities

OT/ICS systems in production, energy and raw materials are attractive targets. Fortinet and Palo Alto dominate, but hidden champions such as Radware and the NCC Group offer special expertise for attacks on industrial control systems.

Banks, Fintech & Holdings

Big players:

$CRWD (+0,54%) CrowdStrike (CRWD), $PANW (+0,62%) Palo Alto Networks (PANW), $ZS (-0,04%) Zscaler (ZS)

- Core protection for banks & digital platforms

My top recommendation $ZS (-0,04%) - Global Zero Trust Exchange, almost impossible to copy

Hidden champions:

$NCNO (+0%) nCino (NCNO) - Cloud Banking Security

$NCC (-0,88%) NCC Group (NCC.L) - Audits & Compliance

$CYBE (+0,52%) CyberCatch Holdings, Inc (CYBE) - Provides AI-based cybersecurity SaaS

$GEN (+0,8%) Gen Digital (GEN) - through fraud prevention and identity topics

My top recommendation $GEN (+0,8%) - Consumer security giant (Norton, Avast, LifeLock), strong brand power

Shovel manufacturer:

$FFIV (+0,32%) F5 Networks (FFIV) - API security for payments

$AKAM (+0,21%) Akamai Tech. (AKAM) - Web & Payment Security

$ESTC (+0,18%) Elastic (ESTC) - Fraud Analytics

My top recommendation $FFIV (+0,32%) - Leader in Application & API Security

🔑 Takeaway Banks, Fintech & Holdings

High regulatory pressure makes cybersecurity a mandatory field. In addition to established providers, banks are relying on hidden champions such as nCino or Darktrace for cloud banking and anomaly detection. Shovel manufacturers such as F5 or Akamai secure payment APIs and banking portals.

Crypto & blockchain

Big players:

$PANW (+0,62%) Palo Alto Networks (PANW), $FTNT (+1,09%) Fortinet (FTNT), $CRWD (+0,54%) CrowdStrike (CRWD)

- Core protection for exchanges, wallets and blockchain infrastructure

My top recommendation $FTNT (+1,09%) - ASIC hardware + software, cost advantage

Hidden champions:

$BBAI (+1,35%) BigBear.ai (BBAI) - Blockchain Fraud Detection

$RIOT (+0,22%) Riot Platforms (RIOT) - Mining with a focus on security

$CHKP (+0,24%) Check Point - the new blockchain firewall initiative (Web3)

My top recommendation $CHKP (+0,24%) - Strong brand & existing customers, but limited innovative strength

Shovel manufacturer:

$NVDA (+0,17%) Nvidia (NVDA), AMD (AMD) - chips & mining hardware

$NET (+0,34%) Cloudflare (NET), $AKAM (+0,21%) Akamai Tech. (AKAM)

- Network protection for wallets & exchanges

My top recommendation $NVDA (+0,17%) - GPUs, quasi-monopoly in high-end compute

🔑 Takeaway crypto & blockchain

Crypto ecosystems are heavily affected by attacks on exchanges, wallets and smart contracts. While traditional security players provide protection, niche providers such as BigBear.ai and Riskified are emerging that specialize specifically in fraud and blockchain risks.

Source: Own analysis, image material: schwarz-digits

I am currently restructuring my portfolio and would like to keep the ACWI as the core and have a mix of growth and quality individual stocks with a long investment horizon as satellites. I have currently selected the following stocks:

$NVDA (+0,17%)

$GOOGL (+0,28%)

$AMZN (+0,46%)

$2330

$BRK.B (+0,3%)

$ASML (+0,04%)

$V (+0,39%)

$NOVO B (-1,62%)

$FTNT (+1,09%)

$SOFI (+1,51%)

$CSU (-0,09%)

However, this selection is very tech and USA focused. Do you have any suggestions or alternatives? For example, I have $LIN (+0,32%) , $SAP (-1,57%) , $SIE (+0,02%) and $CAT (+0,56%) or $DE (+0,27%) on the watchlist. What do you think?

$FTNT (+1,09%)

Fortinet on the rise

Over the past ten years, sales have increased from USD 1.01 billion to USD 5.96 billion.

In the same period, free cash flow increased from USD 0.28 to USD 2.43 per share.

The business is highly scalable and highly profitable, with an FCF margin of over 30%. As a result, growth was financed entirely from current cash flow. The company has no significant debt.

Since 2017, the company has even been successively buying back its own Aktien and has reduced the number of outstanding shares from 872 to 764 million.

Another share price slump

However, all this has not prevented Fortinet from undergoing a major correction or crashing from time to time.

At this point, I could once again sing the song of the market's irrational short-sightedness, but I'll leave it at that.

Instead, let's take a look at what caused the share price to plummet.

At USD 0.64 per share, Q2 earnings were well above expectations of USD 0.59. With sales of USD 1.63 billion, analysts' estimates of USD 1.62 billion were also exceeded.

For the year as a whole, this corresponds to a 14% increase in sales and a 12% jump in profits.

Operating cash flow improved by 32% to USD 451.9 million. Due to major acquisitions, however, FCF fell from USD 318.9 million to USD 284.1 million.

Whether all this justifies a share price fall of almost 30 % is questionable. At UBS, however, a reason was immediately found. The bank warns of "low double-digit" growth rates, as Fortinet is only forecasting a sales increase of 11% for the fourth quarter, which is below the long-term target of 12%.

I had to laugh heartily.

Forecasts, panic and potential

The forecast for the current financial year was adjusted to an insignificant extent and largely confirmed.

For example, the sales forecast was raised from an average of USD 6.75 billion to USD 6.80 billion, but the service business forecast was lowered from USD 4.65 billion to USD 4.60 billion. The operating margin was increased from an average of 32.5 % to 32.75 % and earnings expectations were raised slightly from USD 2.46 to USD 2.50 per share.

Neither the quarterly figures nor the outlook have provided any profound new information that has or would fundamentally change the situation.

According to consensus estimates, free cash flow is expected to increase by 14% to USD 2.77 per share this year.

Fortinet thus has a forward P/FCF of 28.3, making the stock fairly valued for the first time since August last year. Over the last five years, the P/FCF has averaged 29.7

Fortinet share: Chart from 13.08.2025, price: USD 78.47 - symbol: FTNT | Source: TWS

The initial panic quickly dissipated. The return above USD 78 even triggered a Kaufsignal was even triggered. A first possible Kursziel lies at USD 82.00 - 83.50. Above this level, even a quick Gap-Closeconceivable.

If, on the other hand, the share falls below USD 78, further price losses towards USD 73 or USD 70 must be expected.

https://www.lynxbroker.de/boerse/boerse-kurse/aktien/fortinet-aktie/fortinet-analyse/?a=3355991664&utm_medium=email&utm_source=newsletter&utm_campaign=newsletter-boersenblick&newsletter=true&mc-rss-cache-bypass=2025081406&goal=0_d93daae099-4f62ef3757-410756260#fortinet-im-feuer-jetzt-noch-die-reissleine-ziehen

The current earnings wave shows impressively how differently AI and tech stocks are performing: $BBAI (+1,35%) BigBear.ai collapses by almost 30% after disappointing figures and it is by no means a new $PLTR (+0,53%) Palantir. Investors should avoid the stock and focus on profitable growth stocks. $FTNT (+1,09%) Although Fortinet exceeded expectations, its weak outlook in the firewall segment is causing uncertainty. $TTD (+0,47%) Trade Desk and $AI (+0,25%) C3.ai are unable to translate their technical expertise into sustained market confidence, while $DUOL Duolingo increases sales and profits significantly thanks to efficient AI integration. Palantir maintains its role as a defensive AI play with strong roots in the government sector. This divergence shows that execution business model and sustainable profitability are more crucial than mere buzzwords. Will market selection in the AI sector be even tougher in the future?

Source wallstreet ONLINE from August 12, 2025

I did manage to buy some more at the end of the week (yesterday) and filled my portfolio a little more. 📈

I bought:

• 150 × $ADS (+0,15%) at € 167.00 → € 25,050
• 40 × $ASML (+0,04%) at € 610.00 → € 24,400
• 340 × $PYPL (+0,32%) at € 58.80 → 19,992
• 300 × $FTNT (+1,09%) at € 65.90 → € 19,770
• 180 × $TEM (+1,13%) at € 54.50 → € 9,810
• 22 × $VOW3 (-0,84%) at € 95.20 → € 2,094

Total sum: € 101,116

Let's see how this develops, in any case I'm well covered for now. 🚀

New acquisitions: $FTNT (+1,09%)
$TTD (+0,47%)
$CMG (+0,3%)
$AJG (-0,4%)
$BRK.B (+0,3%)
$ZTS (+0,04%)

Please let me know what you think of my compilation.