NasdaqGS:CTXS

Stock Analysis Report

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Executive Summary

Citrix Systems, Inc. provides workspace, networking, and professional services worldwide. More Details


Snowflake Analysis

Fair value with limited growth.


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 less volatile than 75% 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

2.9%

CTXS

2.1%

US Software

0.6%

US Market


1 Year Return

12.9%

CTXS

46.9%

US Software

22.7%

US Market

Return vs Industry: CTXS underperformed the US Software industry which returned 50.4% over the past year.

Return vs Market: CTXS underperformed the US Market which returned 21% over the past year.


Shareholder returns

CTXSIndustryMarket
7 Day2.9%2.1%0.6%
30 Day10.9%10.8%13.1%
90 Day-15.0%-2.6%4.5%
1 Year14.2%12.9%47.9%46.9%25.5%22.7%
3 Year47.7%44.0%150.3%142.3%49.0%39.1%
5 Year106.1%59.9%233.0%214.9%98.3%76.5%

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?

25.0%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CTXS ($125.59) is trading below our estimate of fair value ($167.34)

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 (26.3x) compared to the US Software industry average (58.1x).

PE vs Market: CTXS is poor value based on its PE Ratio (26.3x) compared to the US market (19.3x).


Price to Earnings Growth Ratio

PEG Ratio: CTXS is poor value based on its PEG Ratio (4.2x)


Price to Book Ratio

PB vs Industry: CTXS is overvalued based on its PB Ratio (224.5x) compared to the US Software industry average (8.2x).


Next Steps

Future Growth

How is Citrix Systems forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

6.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CTXS's forecast earnings growth (6.2% per year) is above the savings rate (2.2%).

Earnings vs Market: CTXS's earnings (6.2% per year) are forecast to grow slower than the US market (21.9% per year).

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

Revenue vs Market: CTXS's revenue (5.1% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: CTXS's revenue (5.1% 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 (115.3%).


Next Steps

Past Performance

How has Citrix Systems performed over the past 5 years?

18.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CTXS has high quality earnings.

Growing Profit Margin: CTXS's current net profit margins (18.5%) are lower than last year (21.3%).


Past Earnings Growth Analysis

Earnings Trend: CTXS's earnings have grown by 18.3% 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 (-6.5%) over the past year, making it difficult to compare to the Software industry average (8.9%).


Return on Equity

High ROE: Whilst CTXS's Return on Equity (871.32%) is outstanding, this metric is skewed due to their high level of debt.


Next Steps

Financial Health

How is Citrix Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CTXS's short term assets ($1.7B) do not cover its short term liabilities ($1.9B).

Long Term Liabilities: CTXS's short term assets ($1.7B) do not cover its long term liabilities ($2.6B).


Debt to Equity History and Analysis

Debt Level: CTXS's debt to equity ratio (2445.5%) is considered high.

Reducing Debt: CTXS's debt to equity ratio has increased from 63.2% to 2445.5% over the past 5 years.

Debt Coverage: CTXS's debt is well covered by operating cash flow (60.7%).

Interest Coverage: CTXS's interest payments on its debt are well covered by EBIT (13.2x coverage).


Balance Sheet


Next Steps

Dividend

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

1.11%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CTXS's dividend (1.11%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.5%).

High Dividend: CTXS's dividend (1.11%) is low compared to the top 25% of dividend payers in the US market (4.18%).


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 has only been paying a dividend for 2 years, and since then payments have not increased.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (29.3%), CTXS's dividend payments are well covered by earnings.


Future Payout to Shareholders

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


Next Steps

Management

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

4.1yrs

Average management tenure


CEO

David Henshall (52 yo)

3.33yrs

Tenure

US$14,513,856

Compensation

Mr. David James Henshall has been Chief Executive Officer and President at Citrix Systems, Inc. since July 10, 2017. He has been Director at New Relic, Inc. since August 19, 2020. Mr. Henshall served as an...


CEO Compensation Analysis

Compensation vs Market: David's total compensation ($USD14.51M) is above average for companies of similar size in the US market ($USD10.98M).

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


Leadership Team

NamePositionTenureCompensationOwnership
David Henshall
CEO, President & Director3.33yrsUS$14.51m0.26%
$ 40.5m
Arlen Shenkman
Executive VP & CFO1.17yrsUS$6.83m0.0092%
$ 1.4m
Jessica Soisson
VP, Chief Accounting Officer & Corporate Controller4.58yrsUS$3.06m0.0044%
$ 677.3k
Antonio Gomes
Executive VP & Chief Legal Officer5.58yrsUS$5.05m0.075%
$ 11.6m
Mark Ferrer
Executive VP & Chief Revenue Officer3.08yrsUS$5.09m0.014%
$ 2.2m
Paul Hough
Executive VP & Chief Product Officer4.08yrsUS$5.20m0.032%
$ 5.0m
Mark Schmitz
COO & Executive VP1.33yrsno data0.013%
$ 2.1m
Traci Tsuchiguchi
Vice President of Investor Relationsno datano datano data
Timothy Minahan
Executive VP of Business Strategy & Chief Marketing Officer5yrsUS$2.79m0.037%
$ 5.8m
Isaac Leonard
Senior Director of Corporate Development & Corporate Venture Capitalno datano datano data
Donna Kimmel
Executive VP & Chief People Officer5yrsUS$6.28m0.040%
$ 6.1m
Parag Arora
Country Head & Area Vice President of India Subcontinentno datano datano data

4.1yrs

Average Tenure

51yo

Average Age

Experienced Management: CTXS's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
David Henshall
CEO, President & Director3.33yrsUS$14.51m0.26%
$ 40.5m
Murray Demo
Independent Director15.75yrsUS$329.09k0.0092%
$ 1.4m
Robert Knowling
Independent Director0.083yrno datano data
Robert Calderoni
Chairman of the Board5.33yrsUS$517.72k0.041%
$ 6.3m
Thomas Hogan
Independent Director1.92yrsUS$469.43k0.0032%
$ 494.8k
Nanci Caldwell
Lead Independent Director2.58yrsUS$450.64k0.00034%
$ 52.6k
Robert Daleo
Independent Director7.5yrsUS$493.10k0.00015%
$ 23.2k
Ajei Gopal
Independent Director3.17yrsUS$343.02kno data
J. Sherman
Independent Director0.67yrno datano data
Peter Sacripanti
Independent Director4.92yrsUS$385.73k0.011%
$ 1.7m
Moira Kilcoyne
Independent Director2.42yrsUS$472.21k0.0040%
$ 617.0k

3.2yrs

Average Tenure

60yo

Average Age

Experienced Board: CTXS's board of directors are considered experienced (3.2 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$15.463b
  • Shares outstanding: 123.12m
  • 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
C1TX34BOVESPA (Bolsa de Valores de Sao Paulo)BDR EACH 2 REPR 1 COMBRBRLDec 2019

Biography

Citrix Systems, Inc. provides workspace, networking, and professional services worldwide. The company offers workspace services, including Citrix Virtual Apps and Desktops; Citrix Content Collaboration, a ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/02 00:04
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.