CTXS - Embedded Expectations Analysis - 2018 05 08
Citrix Systems, Inc. (CTXS:USA) currently trades near corporate averages relative to UAFRS-based (Uniform) Earnings, with a 22.9x Uniform P/E. At these levels, markets are pricing in muted expectations for the firm, which likely supports longer-term outperformance should CTXS improve profitability from current levels despite the potential for near-term headwinds given management's negative sentiment, as analysts expectSpecifically, management may lack confidence in their ability to further integrate Citrix Workspace into their solutions, and may have concerns about their ability to extend their offerings into new areas such as security, analytics, and a secured digital perimeter. Moreover, they may have concerns about the sustainability of Citrix Cloud and CSP bookings strength, and may lack confidence in their demand generation investments
That said, market expectations for Uniform ROA to remain at current lows still appear too bearish. As such, multiple expansion and equity upside remain warranted in the long-term
Citrix Systems is an enterprise software company. The company markets and licenses its solutions through multiple channels worldwide, including selling through resellers, direct and over the Web. The company's partner community comprises thousands of value-added resellers known as Citrix Solution Advisors, value-added distributors, systems integrators, independent software vendors, original equipment manufacturers and Citrix Service Providers. The company provides solutions and services that it categorizes into three inter-related and complementary areas: Workspace, Networking and Professional Services.
In 2009, just as the dust was settling from the last major equity and credit market crises, we launched a boutique research firm with the intention of breaking Wall Street’s biases and broken incentives:
- GAAP and IFRS have failed to provide rules for reliable financial statement reporting
- Stock analyst recommendations are not grounded in disciplined financial analysis
- Credit agencies have been set up to grossly fail in their responsibilities to investors and the public markets
- Utter lack of willingness of major research firms to employ the the most advanced forensic analysis available
We sought to provide investors and company analysts with a source of information that changed all that.
Many years later, our business model remains because little has changed on Wall Street.
- Corporate credit ratings remain years behind the fundamental underpinnings of company performance
- Stock analysts continue to make recommendations with deeply inherent biases
- Research firms have failed to break down the walls between credit, equity, and macroeconomic research
- The governing accounting bodies have created more leeway for mis-estimates and mis-classifications as financials have become unwieldy and overwhelming
The integrity of Valens Research is founded in our disciplined processes and analytics. No “star” analysts. No corporate advisory relationships. No-nonsense opinions and recommendations.
Unfortunately, this report is not available for the investor type or country you selected.
Browse all ResearchPool reportsReport is subscription only.
Thank you, your report is ready.
Thank you, your report is ready.