CTXS - Embedded Expectations Analysis - 2019 05 06
Citrix Systems, Inc. (CTXS:USA) currently trades near corporate averages relative to UAFRS-Based (Uniform) Earnings, with a 19.6x Uniform P/E. At these levels, markets are pricing in muted expectations for the firm, and while management has concerns about their workspace service business and seasonality, the firm's leadership position in the space suggests longer-term upside remains warranted.Specifically, management may be concerned about SSP business seasonality, Synergy conference marketing costs, and increases in their unbilled deferred revenue. Moreover, they may lack confidence in their ability to sustain Workspace service business growth, provide a holistic workspace across applications, and extend the Microsoft platform by focusing on simplicity.
However, even with potential near-term headwinds, CTXS' leadership position, historical profitability trends, and core position around major developing areas suggest market expectations are too bearish, warranting long-term upside.
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.