ZIXI : NASDAQ : Technology
$5.15 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 221300.0
02/21/17 - 4:00 PM ET

Financial Analysis


ZIX CORP's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. ZIX CORP has weak liquidity. Currently, the Quick Ratio is 0.91 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 13.56% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is in a position in which financial difficulties could develop in the future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)15.5814.33
EBITDA ($mil)3.993.41
EBIT ($mil)3.352.88
Net Income ($mil)1.940.8


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)26.4628.66
Total Assets ($mil)82.3687.29
Total Debt ($mil)0.00.0
Equity ($mil)49.0756.77


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin86.7486.12
EBITDA Margin25.6123.81
Operating Margin21.4920.09
Sales Turnover0.730.63
Return on Assets7.085.74
Return on Equity11.898.83
Debt Q4 FY16 Q4 FY15
Current Ratio1.01.14
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)53.6156.55
Div / share0.00.0
EPS0.040.01
Book value / share0.921.0
Institutional Own % n/a n/a
Avg Daily Volume209378.0161146.0

Valuation


BUY. ZIX CORP's P/E ratio indicates a discount compared to an average of 52.26 for the Software industry and a significant premium compared to the S&P 500 average of 26.35. To use another comparison, its price-to-book ratio of 5.43 indicates a significant premium versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 8.61. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average. Upon assessment of these and other key valuation criteria, ZIX CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ZIXI 45.18 Peers 52.26   ZIXI 17.47 Peers 22.80

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

ZIXI is trading at a discount to its peers.

 

Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

ZIXI is trading at a discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
ZIXI 15.78 Peers 58.04   ZIXI 0.29 Peers 0.83

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

ZIXI is trading at a significant discount to its peers.

 

Discount. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

ZIXI trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
ZIXI 5.43 Peers 8.61   ZIXI 37.50 Peers 37.37

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

ZIXI is trading at a significant discount to its peers.

 

Average. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

ZIXI is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ZIXI 4.43 Peers 6.10   ZIXI 9.92 Peers 7.50

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

ZIXI is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

ZIXI has a sales growth rate that significantly exceeds its peers.

 

 

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