Editor's Note: TheStreet ratings do not represent the views of TheStreet's staff or its contributors. Ratings are established by computer based on metrics for performance (which includes growth, stock performance, efficiency and valuation) and risk (volatility and solvency). Companies with poor cash flow or high debt levels tend to earn lower ratings in our model.
NEW YORK (
) has been reiterated by TheStreet Ratings as a buy with a ratings score of B . The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, growth in earnings per share and increase in net income. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity.
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Highlights from the ratings report include:
- The revenue growth came in higher than the industry average of 4.6%. Since the same quarter one year prior, revenues rose by 15.9%. This growth in revenue appears to have trickled down to the company's bottom line, improving the earnings per share.
- CTXS has no debt to speak of therefore resulting in a debt-to-equity ratio of zero, which we consider to be a relatively favorable sign. To add to this, CTXS has a quick ratio of 1.50, which demonstrates the ability of the company to cover short-term liquidity needs.
- Investors have apparently begun to recognize positive factors similar to those we have mentioned in this report, including earnings growth. This has helped drive up the company's shares by a sharp 28.81% over the past year, a rise that has exceeded that of the S&P 500 Index. Regarding the stock's future course, although almost any stock can fall in a broad market decline, CTXS should continue to move higher despite the fact that it has already enjoyed a very nice gain in the past year.
- CITRIX SYSTEMS INC has improved earnings per share by 13.9% in the most recent quarter compared to the same quarter a year ago. The company has demonstrated a pattern of positive earnings per share growth over the past two years. We feel that this trend should continue. During the past fiscal year, CITRIX SYSTEMS INC increased its bottom line by earning $1.88 versus $1.45 in the prior year. This year, the market expects an improvement in earnings ($2.80 versus $1.88).
- The net income growth from the same quarter one year ago has exceeded that of the S&P 500 and greatly outperformed compared to the Software industry average. The net income increased by 12.3% when compared to the same quarter one year prior, going from $81.94 million to $92.01 million.
Citrix Systems, Inc. designs, develops, and markets technology solutions to deliver IT services on-demand worldwide. The company has a P/E ratio of 40.5, above the average computer software & services industry P/E ratio of 38.3 and above the S&P 500 P/E ratio of 17.7. Citrix Systems has a market cap of $13.69 billion and is part of the
industry. Shares are up 27.9% year to date as of the close of trading on Wednesday.
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--Written by a member of TheStreet Ratings Staff.