NasdaqGS:ZIXI

Stock Analysis Report

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Executive Summary

Zix Corporation provides email encryption, data loss prevention (DLP), threat protection, and archiving for the secure exchange of email in the United States. More Details


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


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

Stable Share Price: ZIXI is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 8% a week.

Volatility Over Time: ZIXI's weekly volatility (8%) has been stable over the past year.


Market Performance


7 Day Return

2.2%

ZIXI

-0.7%

US Software

0.6%

US Market


1 Year Return

12.6%

ZIXI

39.4%

US Software

21.0%

US Market

Return vs Industry: ZIXI underperformed the US Software industry which returned 39.4% over the past year.

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


Shareholder returns

ZIXIIndustryMarket
7 Day2.2%-0.7%0.6%
30 Day17.9%1.0%4.2%
90 Day28.9%1.7%12.4%
1 Year12.6%12.6%40.3%39.4%23.7%21.0%
3 Year88.9%88.9%126.6%119.3%47.4%37.6%
5 Year98.3%98.3%255.6%237.5%131.6%105.9%

Long-Term 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

Valuation

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

20.2%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: ZIXI ($8.79) is trading below our estimate of fair value ($11.01)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: ZIXI is overvalued based on its PB Ratio (13.5x) compared to the US Software industry average (9.6x).


Next Steps

Future Growth

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

130.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: ZIXI's revenue (11.4% per year) is forecast to grow faster than the US market (10.2% per year).

High Growth Revenue: ZIXI's revenue (11.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if ZIXI'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?

-54.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ZIXI is currently unprofitable.

Growing Profit Margin: ZIXI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ZIXI is unprofitable, and losses have increased over the past 5 years at a rate of 54% per year.

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

Earnings vs Industry: ZIXI is unprofitable, making it difficult to compare its past year earnings growth to the Software industry (14.3%).


Return on Equity

High ROE: ZIXI has a negative Return on Equity (-4.4%), as it is currently unprofitable.


Next Steps

Financial Health

How is Zix's financial position?


Financial Position Analysis

Short Term Liabilities: ZIXI's short term assets ($43.0M) do not cover its short term liabilities ($75.1M).

Long Term Liabilities: ZIXI's short term assets ($43.0M) do not cover its long term liabilities ($192.4M).


Debt to Equity History and Analysis

Debt Level: ZIXI's debt to equity ratio (124.5%) is considered high.

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


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: Whilst unprofitable ZIXI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: ZIXI is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 10% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

Growing Dividend: Insufficient data to determine if ZIXI'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 ZIXI'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?

1.6yrs

Average management tenure


CEO

Dave Wagner (55 yo)

5yrs

Tenure

US$2,358,185

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 since 2013 until 2015. ...


CEO Compensation Analysis

Compensation vs Market: Dave's total compensation ($USD2.36M) is above average for companies of similar size in the US market ($USD1.65M).

Compensation vs Earnings: Dave's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
David Wagner
President5yrsUS$2.36m1.57%
$ 7.6m
David Rockvam
VP & CFO4.58yrsUS$1.30m0.86%
$ 4.2m
Noah Webster
Chief Legal Officer & Corporate Secretary2.58yrsUS$814.56k0.41%
$ 2.0m
Sheila Carpenter
Chief Information Officer1.58yrsno datano data
Geoffrey Bibby
Chief Marketing Officerno datano datano data
Bhavin Merchant
Chief Business Officer1yrno datano data
John Di Leo
Chief Revenue Officer1.08yrsno data0.36%
$ 1.8m
Ryan Allphin
Chief Product Officer0.17yrno data0.23%
$ 1.1m
Matt Glover
Investor Relationsno datano datano data

1.6yrs

Average Tenure

51yo

Average Age

Experienced Management: ZIXI's management team is not considered experienced ( 1.6 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
David Wagner
President5yrsUS$2.36m1.57%
$ 7.6m
Mark Bonney
Independent Director8yrsUS$156.00k0.10%
$ 480.5k
Taher Elgamal
Independent Director9.5yrsUS$158.50k0.079%
$ 380.9k
Robert Hausmann
Independent Chairman of the Board6.08yrsUS$185.00k0.18%
$ 888.8k
Amit Yoran
Member of Advisory Board16yrsno datano data
Gail Wilensky
Member of Advisory Board16yrsno datano data
Marc Mazur
Member of Advisory Board16yrsno datano data
Brandon Van Buren
Independent Director1.92yrsno datano data
Maribess Miller
Independent Director10.75yrsUS$165.00k0.13%
$ 650.0k
Maryclaire Campbell
Independent Director0.83yrno data0.055%
$ 263.7k
James Greene
Independent Director1.92yrsno datano data

8.0yrs

Average Tenure

61yo

Average Age

Experienced Board: ZIXI's board of directors are considered experienced (8 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 been diluted in the past year, with total shares outstanding growing by 2.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: Zix Corporation
  • Ticker: ZIXI
  • Exchange: NasdaqGS
  • Founded: 1988
  • Industry: Application Software
  • Sector: Software
  • Market Cap: US$482.916m
  • Shares outstanding: 54.97m
  • Website: https://www.zix.com

Number of Employees


Location

  • Zix Corporation
  • 2711 North Haskell Avenue
  • Suite 2200
  • Dallas
  • Texas
  • 75204-2960
  • 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, and archiving for the secure exchange of email in the United States. The company offers Advanced Email Threat Prote...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/15 23:40
End of Day Share Price2021/01/15 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.