NasdaqGS:CTXS

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Solid track record and slightly overvalued.


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


Market Performance


7 Day Return

5.0%

CTXS

-2.7%

US Software

1.0%

US Market


1 Year Return

0.8%

CTXS

19.2%

US Software

8.0%

US Market

Return vs Industry: CTXS underperformed the US Software industry which returned 19.2% over the past year.

Return vs Market: CTXS underperformed the US Market which returned 8% over the past year.


Shareholder returns

CTXSIndustryMarket
7 Day5.0%-2.7%1.0%
30 Day6.4%-2.7%-0.07%
90 Day2.3%-7.0%-1.0%
1 Year2.2%0.8%21.0%19.2%10.4%8.0%
3 Year52.5%19.8%111.2%102.7%46.2%36.7%
5 Year107.7%63.0%164.9%145.8%64.3%46.2%

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

Valuation

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

22.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTXS ($103.19) is trading below our estimate of fair value ($132.26)

Significantly Below Fair Value: CTXS is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CTXS is good value based on its PE Ratio (26x) compared to the Software industry average (45.8x).

PE vs Market: CTXS is poor value based on its PE Ratio (26x) compared to the US market (17.6x).


Price to Earnings Growth Ratio

PEG Ratio: CTXS is poor value based on its PEG Ratio (2x)


Price to Book Ratio

PB vs Industry: CTXS is overvalued based on its PB Ratio (26.5x) compared to the US Software industry average (5.3x).


Next Steps

  • Explore potentially undervalued companies in the Software industry.

Future Growth

How is Citrix Systems forecast to perform in the next 1 to 3 years based on estimates from 16 analysts?

12.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTXS's forecast earnings growth (12.7% per year) is above the savings rate (2.7%).

Earnings vs Market: CTXS's earnings (12.7% per year) are forecast to grow slower than the US market (14.5% per year).

High Growth Earnings: CTXS's earnings are forecast to grow, but not significantly.

Revenue vs Market: CTXS's revenue (5.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CTXS's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CTXS's Return on Equity is forecast to be very high in 3 years time (197.8%).


Next Steps

Past Performance

How has Citrix Systems performed over the past 5 years?

6.3%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CTXS's earnings have grown by 6.3% per year over the past 5 years.

Accelerating Growth: CTXS's earnings growth over the past year (462.6%) exceeds its 5-year average (6.3% per year).

Earnings vs Industry: CTXS earnings growth over the past year (462.6%) exceeded the Software industry 19.1%.


Return on Equity

High ROE: Whilst CTXS's Return on Equity (104.01%) is outstanding, this metric is skewed due to their high level of debt.


Return on Assets

ROA vs Industry: CTXS has a higher Return on Assets than the Software industry average last year.


Return on Capital Employed

ROCE Improving: CTXS has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Citrix Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CTXS's short term assets ($1.3B) do not cover its short term liabilities ($1.7B)

Long Term Liabilities: CTXS's short term assets (1.3B) do not cover its long term liabilities (1.7B)


Debt to Equity History and Analysis

Debt Level: CTXS's debt to equity ratio (146.2%) is considered high

Reducing Debt: CTXS's debt to equity ratio has increased from 60.7% to 146.2% over the past 5 years.

Debt Coverage: CTXS's debt is well covered by operating cash flow (126.2%).

Interest Coverage: CTXS's interest payments on its debt are well covered by EBIT (19.2x coverage).


Balance Sheet

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

Debt Coverage by Assets: CTXS's debt is covered by short term assets (assets are 1.712780x debt).


Next Steps

Dividend

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

1.36%

Current Dividend Yield


Dividend Yield vs Market

company1.4%marketbottom25%1.4%markettop25%3.7%industryaverage1.5%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CTXS's dividend (1.36%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.44%).

High Dividend: CTXS's dividend (1.36%) is low compared to the top 25% of dividend payers in the US market (3.68%).

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

Growing Dividend: Too early to tell if CTXS'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 (26.4%), CTXS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTXS is not forecast to pay a dividend in 3 years.


Next Steps

Management

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

3.3yrs

Average management tenure


CEO

David Henshall (51yo)

2.3yrs

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 has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

3.3yrs

Average Tenure

49yo

Average Age

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


Board Age and Tenure

3.0yrs

Average Tenure

58.5yo

Average Age

Experienced Board: CTXS's board of directors are considered experienced (3 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$520,16612 Sep 19
Jessica Soisson
EntityIndividual
Role
Chief Accounting Officer
VP, Chief Accounting Officer & Corporate Controller
Shares5,400
Max PriceUS$96.33
SellUS$523,35615 Aug 19
Peter Sacripanti
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares5,726
Max PriceUS$91.40
SellUS$394,75312 Aug 19
Jeroen van Rotterdam
EntityIndividual
Shares4,288
Max PriceUS$92.06
SellUS$138,99428 Dec 18
Mark Ferrer
EntityIndividual
Shares1,388
Max PriceUS$100.14
SellUS$162,39314 Dec 18
Jessica Soisson
EntityIndividual
Role
Chief Accounting Officer
VP, Chief Accounting Officer & Corporate Controller
Shares1,466
Max PriceUS$110.77
SellUS$111,150,00030 Nov 18
Elliott Management Corporation
EntityCompany
Shares1,000,000
Max PriceUS$111.15

Ownership Breakdown


Management Team

  • David Henshall (51yo)

    CEO, President & Director

    • Tenure: 2.3yrs
    • Compensation: US$19.26m
  • Traci Tsuchiguchi (44yo)

    Vice President of Investor Relations

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

    Executive VP & Chief Marketing Officer

    • Tenure: 3.9yrs
    • Compensation: US$2.79m
  • Donna Kimmel (56yo)

    Executive VP & Chief People Officer

    • Tenure: 3.9yrs
    • Compensation: US$6.28m
  • Isaac Leonard

    Senior Director of Corporate Development & Corporate Venture Capital

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

    Executive VP

    • Tenure: 4.5yrs
    • Compensation: US$6.16m
  • Paul Hough (54yo)

    Executive VP & Chief Product Officer

    • Tenure: 3yrs
    • Compensation: US$6.23m
  • Arlen Shenkman (49yo)

    Executive VP & CFO

    • Tenure: 0.08yrs
  • Jessica Soisson (45yo)

    VP, Chief Accounting Officer & Corporate Controller

    • Tenure: 3.5yrs
  • Mark Schmitz (44yo)

    COO & Executive VP

    • Tenure: 0.3yrs

Board Members

  • Murray Demo (58yo)

    Independent Director

    • Tenure: 14.7yrs
    • Compensation: US$327.93k
  • Bob Calderoni (59yo)

    Chairman of the Board

    • Tenure: 4.3yrs
    • Compensation: US$8.67m
  • Tom Hogan (60yo)

    Independent Director

    • Tenure: 0.8yrs
    • Compensation: US$4.67k
  • Nanci Caldwell (61yo)

    Lead Independent Director

    • Tenure: 1.5yrs
    • Compensation: US$402.56k
  • David Henshall (51yo)

    CEO, President & Director

    • Tenure: 2.3yrs
    • Compensation: US$19.26m
  • Bob Daleo (69yo)

    Independent Director

    • Tenure: 6.4yrs
    • Compensation: US$377.99k
  • Ajei Gopal (57yo)

    Independent Director

    • Tenure: 2.1yrs
    • Compensation: US$328.12k
  • Peter Sacripanti (63yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$354.83k
  • Jesse Cohn (38yo)

    Independent Director

    • Tenure: 4.3yrs
    • Compensation: US$343.23k
  • Moira Kilcoyne (57yo)

    Independent Director

    • Tenure: 1.3yrs
    • 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: CTXS
  • Exchange: NasdaqGS
  • Founded: 1989
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$13.508b
  • Shares outstanding: 130.90m
  • 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
CTXSWBAG (Wiener Boerse AG)YesCommon StockATEURDec 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 Analysis2019/10/21 23:33
End of Day Share Price2019/10/21 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.