Zix Corporation

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ZIXI : NASDAQ :
$4.06 | %
Today's Range: 3.91 - 4.06
Avg. Daily Volume: 0
07/29/16 - 4:00 PM ET

Financial Analysis


ZIX CORP's gross profit margin for the second 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, representing a decrease to the bottom line. ZIX CORP has weak liquidity. Currently, the Quick Ratio is 0.72 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

At the same time, stockholders' equity ("net worth") has significantly decreased by 25.64% 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 Q2 FY16 Q2 FY15
Net Sales ($mil)14.9313.3
EBITDA ($mil)1.512.44
EBIT ($mil)0.951.9
Net Income ($mil)0.561.12


Balance Sheet Q2 FY16 Q2 FY15
Cash & Equiv. ($mil)20.7327.97
Total Assets ($mil)78.688.95
Total Debt ($mil)0.00.0
Equity ($mil)45.7461.52


Profitability Q2 FY16 Q2 FY15
Gross Profit Margin86.1385.86
EBITDA Margin10.1118.36
Operating Margin6.3414.25
Sales Turnover0.730.58
Return on Assets6.174.89
Return on Equity10.617.08
Debt Q2 FY16 Q2 FY15
Current Ratio0.811.32
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY16 Q2 FY15
Shares outstanding (mil)55.7257.84
Div / share0.00.0
EPS0.010.02
Book value / share0.821.06
Institutional Own % n/a n/a
Avg Daily Volume206876.0361598.0

Valuation


HOLD. ZIX CORP's P/E ratio indicates a discount compared to an average of 60.10 for the Software industry and a significant premium compared to the S&P 500 average of 25.10. To use another comparison, its price-to-book ratio of 5.21 indicates a significant premium versus the S&P 500 average of 2.81 and a significant discount versus the industry average of 7.03. 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 53.50 Peers 60.10   ZIXI 13.57 Peers 21.79

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 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 15.29 Peers 50.43   ZIXI 0.32 Peers 0.86

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 5.21 Peers 7.03   ZIXI 0.00 Peers -27.76

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.

 

Neutral. Higher earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

The growth rate for ZIXI is not available.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
ZIXI 4.14 Peers 5.87   ZIXI 10.87 Peers 5.30

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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