DB:CMY

Stock Analysis Report

Executive Summary

Zix Corporation provides email encryption, data loss prevention (DLP), threat protection, archiving, and bring-your-own-device mobile security solutions for the healthcare, financial services, insurance, and government sectors primarily in the United States.

Snowflake

Fundamentals

Slightly overvalued with limited growth.


Similar Companies

Share Price & News

How has Zix's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

-4.1%

CMY

10.0%

DE Software

3.9%

DE Market


1 Year Return

39.5%

CMY

21.0%

DE Software

3.4%

DE Market

Return vs Industry: CMY exceeded the German Software industry which returned 21% over the past year.

Return vs Market: CMY exceeded the German Market which returned 3.4% over the past year.


Shareholder returns

CMYIndustryMarket
7 Day-4.1%10.0%3.9%
30 Day-15.7%6.8%2.1%
90 Day-29.7%3.1%3.7%
1 Year39.5%39.5%22.6%21.0%6.7%3.4%
3 Year58.6%58.6%54.7%48.4%18.9%8.6%
5 Year132.3%132.3%144.4%127.1%41.8%22.5%

Price Volatility Vs. Market

How volatile is Zix's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Zix undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: CMY (€5.9) is trading below our estimate of fair value (€13.04)

Significantly Undervalued: CMY is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CMY is unprofitable, so we can't compare its PE Ratio to the Software industry average.

PE vs Market: CMY is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate CMY's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CMY is overvalued based on its PB Ratio (7.7x) compared to the DE Software industry average (3x).


Next Steps

Future Growth

How is Zix forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

131.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMY is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CMY is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CMY is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CMY's revenue (30.7% per year) is forecast to grow faster than the German market (5% per year).

High Growth Revenue: CMY's revenue (30.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: Insufficient data to determine if CMY's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Zix performed over the past 5 years?

-26.9%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CMY is unprofitable, and losses have increased over the past 5 years at a rate of -26.9% per year.

Accelerating Growth: Unable to compare CMY's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CMY is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.5%).


Return on Equity

High ROE: CMY has a negative Return on Equity (1.17%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: CMY is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: CMY is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Zix's financial position?


Financial Position Analysis

Short Term Liabilities: CMY's short term assets ($24.9M) do not cover its short term liabilities ($74.9M)

Long Term Liabilities: CMY's short term assets (24.9M) do not cover its long term liabilities (188.6M)


Debt to Equity History and Analysis

Debt Level: CMY's debt to equity ratio (119.7%) is considered high

Reducing Debt: Insufficient data to determine if CMY's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CMY's debt is not well covered by operating cash flow (7.6%).

Interest Coverage: Insufficient data to determine if CMY's interest payments on its debt are well covered by EBIT.


Balance Sheet

Inventory Level: CMY has a low level of unsold assets or inventory.

Debt Coverage by Assets: CMY's debt is not covered by short term assets (assets are 0.1x debt).


Next Steps

Dividend

What is Zix's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage1.3%forecastin3Yearsn/a

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate CMY's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CMY's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if CMY's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CMY's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CMY's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Zix's salary, the management and board of directors tenure and is there insider trading?

3.3yrs

Average management tenure


CEO

Dave Wagner (54yo)

3.8yrs

Tenure

US$1,408,392

Compensation

Mr. David J. Wagner, also known as Dave, has been the Chief Executive Officer and President of Zix Corporation since January 2016. Mr. Wagner served as the President of Entrust, Inc. He served as Chief Fin ...


CEO Compensation Analysis

Compensation vs. Market: Dave's total compensation ($USD1.41M) is about average for companies of similar size in the German market ($USD809.25K).

Compensation vs Earnings: Dave's compensation has been consistent with company performance over the past year.


Management Age and Tenure

3.3yrs

Average Tenure

50yo

Average Age

Experienced Management: CMY's management team is considered experienced (3.3 years average tenure).


Board Age and Tenure

8.9yrs

Average Tenure

64yo

Average Age

Experienced Board: CMY's board of directors are considered experienced (8.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown


Management Team

  • Dave Wagner (54yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$1.41m
  • David Rockvam (50yo)

    VP, CFO & Treasurer

    • Tenure: 3.3yrs
    • Compensation: US$698.71k
  • Geoff Bibby

    Vice President of Marketing

    • Tenure: 0yrs
  • Steve Irons

    Vice President of Sales

    • Tenure: 4.8yrs
  • Bhavin Merchant

    Vice President of Corporate Development

    • Tenure: 2.4yrs
  • Noah Webster (46yo)

    VP, General Counsel & Corporate Secretary

    • Tenure: 1.3yrs
    • Compensation: US$796.79k

Board Members

  • Rick Spurr (65yo)

    Non-Employee Director

    • Tenure: 14.4yrs
    • Compensation: US$146.00k
  • Mark Bonney (65yo)

    Independent Director

    • Tenure: 6.8yrs
    • Compensation: US$156.00k
  • Taher Elgamal (63yo)

    Independent Director

    • Tenure: 8.3yrs
    • Compensation: US$158.50k
  • Bob Hausmann (56yo)

    Independent Chairman of the Board

    • Tenure: 4.8yrs
    • Compensation: US$185.00k
  • Dave Wagner (54yo)

    President

    • Tenure: 3.8yrs
    • Compensation: US$1.41m
  • Amit Yoran (48yo)

    Member of Advisory Board

    • Tenure: 14.8yrs
  • Gail Wilensky (76yo)

    Member of Advisory Board

    • Tenure: 14.8yrs
  • Marc Mazur (60yo)

    Member of Advisory Board

    • Tenure: 14.8yrs
  • Maribess Miller (66yo)

    Independent Director

    • Tenure: 9.5yrs
    • Compensation: US$165.00k
  • James Greene (68yo)

    Independent Director

    • Tenure: 0.7yrs

Company Information

Zix Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Zix Corporation
  • Ticker: CMY
  • Exchange: DB
  • Founded: 1988
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$356.943m
  • Listing Market Cap: US$320.927m
  • Shares outstanding: 53.68m
  • Website: https://www.zixcorp.com

Number of Employees


Location

  • Zix Corporation
  • 2711 North Haskell Avenue
  • Suite 2200
  • Dallas
  • Texas
  • 75204
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
ZIXINasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1989
CMYDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1989

Biography

Zix Corporation provides email encryption, data loss prevention (DLP), threat protection, archiving, and bring-your-own-device mobile security solutions for the healthcare, financial services, insurance, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/17 20:34
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.