NasdaqGS:CTXS

Stock Analysis Report

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Market Cap

US$12.8b

Last Updated

2021/08/04 22:00 UTC

Data Sources

Company Financials +

Executive Summary

Citrix Systems, Inc., an enterprise software company, provides workspace, app delivery and security, and professional services worldwide. More Details


Snowflake Analysis

Reasonable growth potential 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: CTXS is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CTXS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

-11.9%

CTXS

1.1%

US Software

0.9%

US Market


1 Year Return

-29.2%

CTXS

35.5%

US Software

34.7%

US Market

Return vs Industry: CTXS underperformed the US Software industry which returned 33.6% over the past year.

Return vs Market: CTXS underperformed the US Market which returned 34.4% over the past year.


Shareholder returns

CTXSIndustryMarket
7 Day-11.9%1.1%0.9%
30 Day-15.1%2.5%0.2%
90 Day-17.1%17.0%4.7%
1 Year-28.5%-29.2%36.2%35.5%36.8%34.7%
3 Year-6.3%-9.4%143.6%137.0%62.5%52.4%
5 Year53.2%17.9%355.0%331.4%123.1%98.4%

Long-Term 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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTXS ($103) is trading below our estimate of fair value ($228.24)

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


Price To Earnings Ratio

PE vs Industry: CTXS is good value based on its PE Ratio (35x) compared to the US Software industry average (50.7x).

PE vs Market: CTXS is poor value based on its PE Ratio (35x) compared to the US market (17.9x).


Price to Earnings Growth Ratio

PEG Ratio: CTXS is poor value based on its PEG Ratio (1.2x)


Price to Book Ratio

PB vs Industry: CTXS is overvalued based on its PB Ratio (43.7x) compared to the US Software industry average (6.8x).


Future Growth

How is Citrix Systems forecast to perform in the next 1 to 3 years based on estimates from 11 analysts?

29.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTXS's forecast earnings growth (29.9% per year) is above the savings rate (2%).

Earnings vs Market: CTXS's earnings (29.9% per year) are forecast to grow faster than the US market (15% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CTXS's revenue (8.7% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CTXS's revenue (8.7% 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 (154.1%).


Past Performance

How has Citrix Systems performed over the past 5 years?

11.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTXS has high quality earnings.

Growing Profit Margin: CTXS's current net profit margins (11.5%) are lower than last year (24.1%).


Past Earnings Growth Analysis

Earnings Trend: CTXS's earnings have grown by 11.4% per year over the past 5 years.

Accelerating Growth: CTXS's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CTXS had negative earnings growth (-53%) over the past year, making it difficult to compare to the Software industry average (34.2%).


Return on Equity

High ROE: Whilst CTXS's Return on Equity (124%) is outstanding, this metric is skewed due to their high level of debt.


Financial Health

How is Citrix Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CTXS's short term assets ($1.5B) do not cover its short term liabilities ($2.1B).

Long Term Liabilities: CTXS's short term assets ($1.5B) do not cover its long term liabilities ($4.3B).


Debt to Equity History and Analysis

Debt Level: CTXS's debt to equity ratio (1169.7%) is considered high.

Reducing Debt: CTXS's debt to equity ratio has increased from 59.3% to 1169.7% over the past 5 years.

Debt Coverage: CTXS's debt is not well covered by operating cash flow (17.2%).

Interest Coverage: CTXS's interest payments on its debt are well covered by EBIT (5.9x coverage).


Balance Sheet


Dividend

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

1.47%

Current Dividend Yield


Upcoming Dividend Payment

TodayAug 04 2021Ex Dividend DateSep 09 2021Dividend Pay DateSep 24 202115 days from Ex DividendBuy in the next 35 days to receive the upcoming dividend

Dividend Yield vs Market

Notable Dividend: CTXS's dividend (1.44%) is higher than the bottom 25% of dividend payers in the US market (1.32%).

High Dividend: CTXS's dividend (1.44%) is low compared to the top 25% of dividend payers in the US market (3.57%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CTXS has been paying a dividend for less than 10 years.

Growing Dividend: CTXS's dividend payments have increased, but the company has only paid a dividend for 3 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (48.9%), CTXS's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CTXS's dividends in 3 years are forecast to be well covered by earnings (23.4% payout ratio).


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

4.8yrs

Average management tenure


CEO

David Henshall (53 yo)

4.08yrs

Tenure

US$22,596,498

Compensation

Mr. David James Henshall has been Chief Executive Officer and President at Citrix Systems, Inc. since July 10, 2017. He has been a Director at Citrix Systems, Inc. since July 10, 2017. He has been Director...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD22.60M) is above average for companies of similar size in the US market ($USD11.16M).

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


Leadership Team

Experienced Management: CTXS's management team is considered experienced (4.8 years average tenure).


Board Members

Experienced Board: CTXS's board of directors are considered experienced (3.6 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$12.796b
  • Shares outstanding: 124.23m
  • Website: https://www.citrix.com

Number of Employees


Location

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

Listings


Biography

Citrix Systems, Inc., an enterprise software company, provides workspace, app delivery and security, and professional services worldwide. The company offers workspace services, including Citrix Workspace; ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/08/04 22:00
End of Day Share Price2021/08/04 00:00
Earnings2021/06/30
Annual Earnings2020/12/31


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.