DB:CTX

Stock Analysis Report

Executive Summary

Citrix Systems, Inc. provides workspace, networking, and analytics solutions worldwide.

Rewards

Trading at 20.5% below its fair value

Earnings grew by 408% over the past year

Risk Analysis

Earnings are forecast to decline by an average of -16.5% per year for the next 3 years

Has a high level of debt



Snowflake Analysis

Solid track record and fair value.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CTX has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-1.2%

CTX

2.2%

DE Software

0.7%

DE Market


1 Year Return

0.8%

CTX

38.0%

DE Software

15.1%

DE Market

Return vs Industry: CTX underperformed the German Software industry which returned 38% over the past year.

Return vs Market: CTX underperformed the German Market which returned 15.1% over the past year.


Shareholder returns

CTXIndustryMarket
7 Day-1.2%2.2%0.7%
30 Day-2.1%-0.6%-0.7%
90 Day13.1%12.7%5.9%
1 Year2.2%0.8%39.8%38.0%18.7%15.1%
3 Year17.9%15.9%63.8%57.3%19.2%8.6%
5 Year111.8%108.2%150.8%132.9%39.0%20.1%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

20.5%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTX (€98.91) is trading below our estimate of fair value (€124.48)

Significantly Below Fair Value: CTX is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CTX is good value based on its PE Ratio (22.6x) compared to the Software industry average (40.6x).

PE vs Market: CTX is poor value based on its PE Ratio (22.6x) compared to the German market (20.8x).


Price to Earnings Growth Ratio

PEG Ratio: CTX's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CTX is overvalued based on its PB Ratio (20x) compared to the DE Software industry average (3x).


Next Steps

Future Growth

How is Citrix Systems forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

-16.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTX's earnings are forecast to decline over the next 3 years (-16.5% per year).

Earnings vs Market: CTX's earnings are forecast to decline over the next 3 years (-16.5% per year).

High Growth Earnings: CTX's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CTX's revenue (4.5% per year) is forecast to grow slower than the German market (4.9% per year).

High Growth Revenue: CTX's revenue (4.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTX's Return on Equity is forecast to be very high in 3 years time (85.1%).


Next Steps

Past Performance

How has Citrix Systems performed over the past 5 years?

10.7%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTX has high quality earnings.

Growing Profit Margin: CTX's current net profit margins (21.3%) are higher than last year (4.3%).


Past Earnings Growth Analysis

Earnings Trend: CTX's earnings have grown by 10.7% per year over the past 5 years.

Accelerating Growth: CTX's earnings growth over the past year (408%) exceeds its 5-year average (10.7% per year).

Earnings vs Industry: CTX earnings growth over the past year (408%) exceeded the Software industry 14.6%.


Return on Equity

High ROE: Whilst CTX's Return on Equity (89.83%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Citrix Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CTX's short term assets ($1.2B) do not cover its short term liabilities ($1.6B).

Long Term Liabilities: CTX's short term assets ($1.2B) do not cover its long term liabilities ($1.7B).


Debt to Equity History and Analysis

Debt Level: CTX's debt to equity ratio (104.2%) is considered high.

Reducing Debt: CTX's debt to equity ratio has increased from 61.3% to 104.2% over the past 5 years.

Debt Coverage: CTX's debt is well covered by operating cash flow (105.5%).

Interest Coverage: CTX's interest payments on its debt are well covered by EBIT (19.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: CTX's debt is covered by short term assets (assets are 1.6x debt).


Next Steps

Dividend

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

1.28%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.6%industryaverage1.2%forecastin3Years0.6%

Current dividend yield vs market & industry

Notable Dividend: CTX's dividend (1.28%) isn’t notable compared to the bottom 25% of dividend payers in the German market (1.38%).

High Dividend: CTX's dividend (1.28%) is low compared to the top 25% of dividend payers in the German market (3.61%).


Stability and Growth of Payments

Stable Dividend: Too early to tell whether CTX's dividend payments have been stable as they only just started paying a dividend.

Growing Dividend: Too early to tell if CTX's dividend payments are increasing as they only just started paying a dividend.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (28.8%), CTX's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CTX'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 Citrix Systems's salary, the management and board of directors tenure and is there insider trading?

3.4yrs

Average management tenure


CEO

David Henshall (51yo)

2.4yrs

Tenure

US$19,258,102

Compensation

Mr. David James Henshall has been Chief Executive Officer and President at Citrix Systems, Inc. since July 10, 2017. Mr. Henshall served as an Executive Vice President and Treasurer at Citrix Systems, Inc. ...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD19.26M) is above average for companies of similar size in the German market ($USD4.73M).

Compensation vs Earnings: David's compensation has increased by more than 20% in the past year.


Management Age and Tenure

3.4yrs

Average Tenure

49yo

Average Age

Experienced Management: CTX's management team is considered experienced (3.4 years average tenure).


Board Age and Tenure

3.2yrs

Average Tenure

58.5yo

Average Age

Experienced Board: CTX's board of directors are considered experienced (3.2 years average tenure).


Insider Trading

Insider Buying: CTX insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellUS$81,956,06327 Nov 19
Elliott Management Corporation
EntityCompany
Shares791,000
Max PriceUS$103.96
SellUS$775,73128 Oct 19
Jeroen van Rotterdam
EntityIndividual
Shares7,956
Max PriceUS$97.50
SellUS$500,96828 Oct 19
Mark Schmitz
EntityIndividual
Role
Chief Operating Officer
COO & Executive VP
Shares5,138
Max PriceUS$97.50
SellUS$473,03912 Sep 19
Jessica Soisson
EntityIndividual
Role
Chief Accounting Officer
VP, Chief Accounting Officer & Corporate Controller
Shares5,400
Max PriceUS$87.60
SellUS$469,66015 Aug 19
Peter Sacripanti
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,726
Max PriceUS$82.02
SellUS$351,92312 Aug 19
Jeroen van Rotterdam
EntityIndividual
Shares4,288
Max PriceUS$82.07
SellUS$121,82928 Dec 18
Mark Ferrer
EntityIndividual
Shares1,388
Max PriceUS$87.77
SellUS$143,02014 Dec 18
Jessica Soisson
EntityIndividual
Role
Chief Accounting Officer
VP, Chief Accounting Officer & Corporate Controller
Shares1,466
Max PriceUS$97.56

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • David Henshall (51yo)

    CEO, President & Director

    • Tenure: 2.4yrs
    • Compensation: US$19.26m
  • Traci Tsuchiguchi (44yo)

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Tim Minahan (49yo)

    Executive VP of Business Strategy & Chief Marketing Officer

    • Tenure: 4.1yrs
    • Compensation: US$2.79m
  • Donna Kimmel (56yo)

    Executive VP & Chief People Officer

    • Tenure: 4.1yrs
    • Compensation: US$6.28m
  • Isaac Leonard

    Senior Director of Corporate Development & Corporate Venture Capital

    • Tenure: 0yrs
  • Tony Gomes (53yo)

    Executive VP

    • Tenure: 4.7yrs
    • Compensation: US$6.16m
  • Paul Hough (54yo)

    Executive VP & Chief Product Officer

    • Tenure: 3.2yrs
    • Compensation: US$6.23m
  • Arlen Shenkman (49yo)

    Executive VP & CFO

    • Tenure: 0.3yrs
  • Jessica Soisson (45yo)

    VP, Chief Accounting Officer & Corporate Controller

    • Tenure: 3.7yrs
  • Mark Schmitz (44yo)

    COO & Executive VP

    • Tenure: 0.4yrs

Board Members

  • Murray Demo (58yo)

    Independent Director

    • Tenure: 14.8yrs
    • Compensation: US$327.93k
  • Bob Calderoni (59yo)

    Chairman of the Board

    • Tenure: 4.4yrs
    • Compensation: US$8.67m
  • Tom Hogan (60yo)

    Independent Director

    • Tenure: 1yrs
    • Compensation: US$4.67k
  • Nanci Caldwell (61yo)

    Lead Independent Director

    • Tenure: 1.7yrs
    • Compensation: US$402.56k
  • David Henshall (51yo)

    CEO, President & Director

    • Tenure: 2.4yrs
    • Compensation: US$19.26m
  • Bob Daleo (69yo)

    Independent Director

    • Tenure: 6.6yrs
    • Compensation: US$377.99k
  • Ajei Gopal (57yo)

    Independent Director

    • Tenure: 2.3yrs
    • Compensation: US$328.12k
  • Peter Sacripanti (63yo)

    Independent Director

    • Tenure: 4yrs
    • Compensation: US$354.83k
  • Jesse Cohn (38yo)

    Independent Director

    • Tenure: 4.4yrs
    • Compensation: US$343.23k
  • Moira Kilcoyne (57yo)

    Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$294.49k

Company Information

Citrix Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Citrix Systems, Inc.
  • Ticker: CTX
  • Exchange: DB
  • Founded: 1989
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$14.283b
  • Listing Market Cap: US$12.873b
  • Shares outstanding: 130.22m
  • Website: https://www.citrix.com

Number of Employees


Location

  • Citrix Systems, Inc.
  • 851 West Cypress Creek Road
  • Fort Lauderdale
  • Florida
  • 33309
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CTXSNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1995
CTXDB (Deutsche Boerse AG)YesCommon StockDEEURDec 1995
CTXXTRA (XETRA Trading Platform)YesCommon StockDEEURDec 1995
CTXS *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNDec 1995
0HYRLSE (London Stock Exchange)YesCommon StockGBUSDDec 1995
CTXSWBAG (Wiener Boerse AG)YesCommon StockATEURDec 1995
CTXETLX (Eurotlx)YesCommon StockITEURDec 1995

Biography

Citrix Systems, Inc. provides workspace, networking, and analytics solutions worldwide. The company offers workspace services, including Citrix Virtual Apps and Desktops, a cloud-enabled app and desktop vi ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/11 20:49
End of Day Share Price2019/12/11 00:00
Earnings2019/09/30
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.