ASX Cybersecurity Stocks: Investing in Secure Futures 2023
Team Veye | 24-Aug-2023
What are ASX Cybersecurity Stocks?
There are Australian cybersecurity stocks, which include companies that offer cyber recovery solutions and are listed on the Australian stock exchange and are called ASX cyber security stocks. Traders buy and sell these ASX cybersecurity shares. There are large-cap, mid-cap, and small-cap companies actively engaged in cyber recovery solutions in Australia. Some good ASX cyber security companies that are ASX cyber security stocks (M-cap dated 18 August 2023) are as follows:
• Tesserent Limited (ASX: TNT) has a market cap of $169.27 million.
• FirstWave Cloud Technology (ASX: FCT) has a market cap of $96.45 million.
• Prophecy International Holdings (ASX: PRO) has a market cap of $48.59 million.
• Senetas (ASX: SEN); market cap of $34million.
• ArchTIS (ASX: AR9) has a market cap of $29.99 million.
Download your free ASX Dividend Report Now
Investing in ASX Cybersecurity Shares?
The number of data breaches reported is growing, with the number of incidents increasing year on year. The expenditure incurring in cybersecurity globally is also rapidly increasing and with a high probability that the industry will grow faster, as per the research reported from IDC. Cybersecurity stocks are a prime focus of the tech industry, so making an informed decision on how and where to invest in ASX cybersecurity shares that can yield high returns in the long run is important.
Why Invest in ASX Cybersecurity Stocks?
The significance of cybersecurity products is rapidly increasing as a result of the reputational and financial repercussions of data breaches, malware, and ransomware. The cybersecurity expenditure has been growing at the fastest pace.
There are companies that lag behind in tuning up to secure key assets, which is why there is massive dependence on the outsourcing of vendors to provide digital defensive services against cyber threats. The paradigm shift in working culture towards the work from home (WFH) concept that took root during the pandemic has led to the realization of the significance of cybersecurity solutions, leading to growth in the cybersecurity sector globally.
A cyberattack is a major security threat that can potentially obliterate business operations and pivotal infrastructure. The issue is that the infinite ways to attack a computer network make infallible security impossible.
The major focus on providing security by safeguarding computers, programmes, and key data from a breach has created a mounting need for cybersecurity solutions. Therefore investing in ASX cybersecurity shares might be beneficial for investors in the long run.
Pros and Cons of Investing in Cybersecurity Shares?
There are advantages as well as disadvantages to investing in cybersecurity shares, as follows:
The digital role play has been critically increasing with the rise in economic growth, which in turn has created huge demand for cybersecurity solutions to secure the key data. The Australian companies that are actively involved in rendering cyber security solutions and security consultation services for businesses are ASX shares that might be beneficial to add to the portfolio. Australian cybersecurity services-based companies need to prioritize updating their offerings to gain better performance, particularly with the increasing complexity of technology.
Investing in Australian cybersecurity shares may lead to high risk sometimes due to their high volatility nature. Investors should proportionally allocate their investments so as to minimise the risk.
Future for ASX Cybersecurity Shares?
Revenue outcomes in the Australian cybersecurity market have been anticipated to rise at a CAGR of 11 percentage points until 2027, reaching up to US$5.83 billion. Australia is ranked the world’s fifth most powerful cyber nation as reported by the Australian government. The sector is attracting private equity from financial sponsors and strategic buyers.
Computer security remains a priority for Australian corporations and governments. Government initiatives could boost the sector. The Government is highly emphasizing the significance of cybersecurity for Australia’s national security, innovation, and prosperity.
The need for cybersecurity solutions is becoming pragmatism for every organization to ensure the success of digital operations. There is a bright future as increasing knowledge and importance of data risks and threats are providing tailwinds to the sector, which has experienced potential growth over the last few years. Increasing internet penetration in developing countries will further drive the adoption of cybersecurity solutions.
Cybersecurity Stocks on the ASX: Top Biggest Companies in 2023?
There has been an intact spike in expenditures in the cybersecurity space since the onset of the coronavirus pandemic at the beginning of 2020. Cloud computing and WFH concepts have evolved with new security obstacles, and businesses have turned to cybersecurity companies for consultation for a solution. There are top ASX cyber securities companies that are cybersecurity shares in 2023, are as follows:
Tesserent Limited (ASX: TNT)
Tesserent Limited (ASX: TNT) has a market cap of $169.27 million and a current share price of $0.125 (as of August 18, 2023). It is a service provider of full-service, enterprise-grade cybersecurity and networking solutions targeted at midmarket, enterprise, and government customers across Australia and New Zealand. The Company's Cyber 360 strategy delivers integrated solutions covering identification, protection, and 24*7 monitoring against cybersecurity threats.
FirstWave Cloud Technology (ASX: FCT), which has a market cap of $96.45 million and a current market price of $0.058 (as of August 18, 2023), is a global cybersecurity and network monitoring technology company formed in 2004. The company’s globally unique CyberCisionTM platform provides the best services in cybersecurity technologies, enabling FirstWave's Partners, including some of the world's largest telcos and managed service providers, to protect their customers from cyber threats while rapidly growing cybersecurity services revenues at scale. In January 2022, FirstWave Cloud Technology Limited acquired Opmantek, a provider of enterprise-grade network management, automation, and IT audit software, with 150,000 organisations using their software across 178 countries and enterprise clients, including Microsoft, Telmex, Claro, NextLink, and NASA.
Prophecy International Holdings (ASX: PRO) has a market cap of $48.59 million and a current market price of $0.65(as of 18 August 2023); designs software solutions that go beyond the status quo to ensure that the customers stay ahead in global markets. The company's classic cyber security product (Snare), is a leading centralized log management solution adopted by large organizations, military and defense leaders, and government all around the world.
Senetas Corporation Limited (ASX: SEN) has a market cap of $34 million and current market price of $0.026(as of 18 August 2023) is involved in the sale of IT security products which provide data security solutions to the businesses and governments globally. The company provides network independent encryption hardware and virtualized solutions.
ArchTIS Limited (ASX: AR9) has a market cap of $29.99 million and current market price of $0.103(as of 18 August 2023) is a global provider of innovative software solutions for the secure collaboration of sensitive information. The company's data centric security solutions safeguard the global most key content in government, defense, supply chain, enterprises and regulated industries.
Download your free ASX Penny Report Now
Frequently Asked Questions (FAQ)
What is the best cybersecurity stock to buy now?
There are a dozen good companies in ASX cybersecurity; one among them is the best small cap company, WhiteHawk Limited (ASX: WHK), with a market capitalization of $8.72 million and a current price of $0.034 (as of August 18, 2023).Offers an online tool for small and medium-sized enterprises to take action against cybercrime. It is one of the first global online cybersecurity marketplaces. The cloud-based platform delivers artificial intelligence solutions through intuitive virtual consultations.
What is the largest cyber security company ASX?
Family Zone Cyber Safety (ASX: FZO) has a market cap of $233.5 million, and current market price of $0.605 (as 18 August 2023), offers an app to help control screen time and restrict cyber bullying. Parents can use the app to restrict social media, block inappropriate apps, set up an internet filter and limit in-app purchases.
Should I invest in cybersecurity shares?
The need to provide security by safeguarding computers, programmes, and key data from a breach has created a mounting need for cybersecurity solutions. Therefore, investing in ASX cybersecurity shares might be beneficial for investors in the long run.
What will cybersecurity look like in 2025?
Cybersecurity ventures estimates the global cybercrime costs will upsurge by 15% per year over the next five years, reaching $10.5 trillion USD annually by 2025. (As per the website https://securityboulevard.com/).The industry is at a nascent stage, and most Australian cybersecurity businesses are less than 10 years old and are primarily private. The expenditures incurred in cybersecurity globally are anticipated to surpass $200 billion in 2023. In the long run, there could be a mature level of the industry.
Is cyber security good to invest in?
Someone might add cybersecurity stocks to their portfolio for diversification and to balance the portfolio's risk. It is highly important to invest in undervalued cyber security stocks; for that, someone needs to do better research.
What is the future of cybersecurity stocks?
Cybersecurity companies may enhance cyber defenses through hardware and cloud-oriented software technology, specifically in SaaS applications, to protect against attacks. These companies have a better future because the demand for cybersecurity solutions is growing for large enterprises as well as organizations.
Veye Pty Ltd(ABN 58 623 120 865), holds (AFSL No. 523157 ). All information provided by Veye Pty Ltd through its website, reports, and newsletters is general financial product advice only and should not be considered a personal recommendation to buy or sell any asset or security. Before acting on the advice, you should consider whether it’s appropriate to you, in light of your objectives, financial situation, or needs. You should look at the Product Disclosure Statement or other offer document associated with the security or product before making a decision on acquiring the security or product. You can refer to our Terms & Conditions and Financial Services Guide for more information. Any recommendation contained herein may not be suitable for all investors as it does not take into account your personal financial needs or investment objectives. Although Veye takes the utmost care to ensure accuracy of the content and that the information is gathered and processed from reliable resources, we strongly recommend that you seek professional advice from your financial advisor or stockbroker before making any investment decision based on any of our recommendations. All the information we share represents our views on the date of publishing as stocks are subject to real time changes and therefore may change without notice. Please remember that investments can go up and down and past performance is not necessarily indicative of future returns. We request our readers not to interpret our reports as direct recommendations. To the extent permitted by law, Veye Pty Ltd excludes all liability for any loss or damage arising from the use of this website and any information published (including any indirect or consequential loss, any data loss, or data corruption) (as mentioned on the website www.veye.com.au), and confirms that the employees and/or associates of Veye Pty Ltd do not hold positions in any of the financial products covered on the website on the date of publishing this report. Veye Pty Ltd hereby limits its liability, to the extent permitted by law to the resupply of services.