ZIXI : NASDAQ : Technology
$4.49 up 0.04 | 0.9%
Today's Range: 4.42 - 4.54
Avg. Daily Volume: 161100.0
12/07/16 - 4:00 PM ET

Financial Analysis


ZIX CORP's gross profit margin for the third quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. ZIX CORP has weak liquidity. Currently, the Quick Ratio is 0.81 which shows a lack of ability to cover short-term cash needs. The liquidity decreased from the same period a year ago, despite already having weak liquidity to begin with. This would indicate deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has decreased by 12.61% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)15.3114.01
EBITDA ($mil)3.124.07
EBIT ($mil)2.553.51
Net Income ($mil)1.771.93


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)24.7724.06
Total Assets ($mil)81.8183.87
Total Debt ($mil)0.00.0
Equity ($mil)46.8653.63


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin86.3586.71
EBITDA Margin20.3529.06
Operating Margin16.6825.02
Sales Turnover0.720.63
Return on Assets5.746.1
Return on Equity10.029.55
Debt Q3 FY16 Q3 FY15
Current Ratio0.891.05
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)53.6155.86
Div / share0.00.0
EPS0.030.03
Book value / share0.870.96
Institutional Own % n/a n/a
Avg Daily Volume165695.0188398.0

Valuation


BUY. This stock's P/E ratio indicates a premium compared to an average of 48.55 for the Software industry and a significant premium compared to the S&P 500 average of 25.45. To use another comparison, its price-to-book ratio of 5.09 indicates a significant premium versus the S&P 500 average of 2.82 and a significant discount versus the industry average of 7.66. The price-to-sales ratio is well above the S&P 500 average, but well below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
ZIXI 55.63 Peers 48.55   ZIXI 14.58 Peers 22.11

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

ZIXI is trading at a premium 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 significant 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 15.89 Peers 27.61   ZIXI 0.31 Peers 0.75

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 5.09 Peers 7.66   ZIXI -11.12 Peers 25.17

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.

 

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

However, ZIXI is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ZIXI 4.05 Peers 5.58   ZIXI 10.59 Peers 4.80

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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