ZIXI : NASDAQ : Technology
$5.77 | %
Today's Range: 5.72 - 5.83
Avg. Daily Volume: 396800.0
06/23/17 - 4:00 PM ET

Financial Analysis


ZIX CORP's gross profit margin for the first quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. ZIX CORP has weak liquidity. Currently, the Quick Ratio is 0.76 which shows a lack of ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.

During the same period, stockholders' equity ("net worth") has remained virtually unchanged only decreasing by 3.73% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)15.8914.33
EBITDA ($mil)3.243.0
EBIT ($mil)2.672.47
Net Income ($mil)1.781.57


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)23.4327.09
Total Assets ($mil)86.5784.75
Total Debt ($mil)0.00.0
Equity ($mil)51.2853.27


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin85.8686.02
EBITDA Margin20.3820.95
Operating Margin16.7717.23
Sales Turnover0.710.66
Return on Assets6.976.38
Return on Equity11.7810.15
Debt Q1 FY17 Q1 FY16
Current Ratio0.841.07
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)54.455.72
Div / share0.00.0
EPS0.030.03
Book value / share0.940.96
Institutional Own % n/a n/a
Avg Daily Volume394049.0250084.0

Valuation


BUY. The current P/E ratio indicates a significant discount compared to an average of 70.17 for the Software industry and a significant premium compared to the S&P 500 average of 25.75. To use another comparison, its price-to-book ratio of 6.18 indicates a significant premium versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 9.04. 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 53.00 Peers 70.17   ZIXI 20.25 Peers 29.09

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 17.67 Peers 44.61   ZIXI 0.34 Peers 0.80

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 6.18 Peers 9.04   ZIXI 22.22 Peers 77.19

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 5.14 Peers 6.80   ZIXI 10.25 Peers 8.69

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 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 exceeds its peers.

 

 

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