Citrix Systems (CTXS) Is Today's Post-Market Loser Stock

Editor's Note: Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of TheStreet, Inc. or any of its contributors including Jim Cramer or Stephanie Link.

Trade-Ideas LLC identified Citrix Systems ( CTXS) as a post-market laggard candidate. In addition to specific proprietary factors, Trade-Ideas identified Citrix Systems as such a stock due to the following factors:

  • CTXS has an average dollar-volume (as measured by average daily share volume multiplied by share price) of $283.3 million.
  • CTXS is down 3.6% today from today's close.

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More details on CTXS:

Citrix Systems, Inc. provides cloud computing solutions that enable information technology (IT) and service providers to build private and public clouds worldwide. The company operates in two divisions, Enterprise and Online Services. CTXS has a PE ratio of 43.3. Currently there are 14 analysts that rate Citrix Systems a buy, 1 analyst rates it a sell, and 9 rate it a hold.

The average volume for Citrix Systems has been 1.7 million shares per day over the past 30 days. Citrix Systems has a market cap of $13.5 billion and is part of the technology sector and computer software & services industry. The stock has a beta of 2.24 and a short float of 1.7% with 0.61 days to cover. Shares are up 10.2% year to date as of the close of trading on Friday.

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TheStreetRatings.com Analysis:

TheStreet Quant Ratings rates Citrix Systems as a buy. The company's strengths can be seen in multiple areas, such as its robust revenue growth, reasonable valuation levels, good cash flow from operations, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had lackluster performance in the stock itself.

Highlights from the ratings report include:
  • The revenue growth came in higher than the industry average of 5.7%. Since the same quarter one year prior, revenues rose by 18.7%. This growth in revenue does not appear to have trickled down to the company's bottom line, displayed by a decline in earnings per share.
  • Net operating cash flow has increased to $208.90 million or 24.53% when compared to the same quarter last year. The firm also exceeded the industry average cash flow growth rate of -17.33%.
  • 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. Although the company had a strong debt-to-equity ratio, its quick ratio of 0.88 is somewhat weak and could be cause for future problems.
  • CITRIX SYSTEMS INC's earnings per share declined by 30.6% in the most recent quarter compared to the same quarter a year ago. The company has suffered a declining pattern of earnings per share over the past year. However, we anticipate this trend reversing over the coming year. During the past fiscal year, CITRIX SYSTEMS INC reported lower earnings of $1.86 versus $1.88 in the prior year. This year, the market expects an improvement in earnings ($3.01 versus $1.86).

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