Calix, Inc (CALX) Stock Analysis and Metrics

Sector: Technology Industry: Software - Infrastructure CIK: 0001406666

P/B 4.78

P/E -541.80

P/S 4.21

Market Cap 3.93 Bn

ROIC (Qtr) -0.67

Div Yield % 0.00

Rev 1y % (Qtr) 32.09

Total Debt (Qtr) 9.27 Mn

Debt/Equity (Qtr) 0.01

About

Calix, Inc., a company with the ticker symbol CALX, operates in the broadband service provider (BSP) industry. The company was established in 1999 with a mission to help BSPs transform their businesses by providing actionable data and insights to simplify network operations, marketing, and customer support. Calix offers a comprehensive platform that integrates cloud, software, and systems, enabling BSPs to cater to the residential and small business market. The platform, which includes Calix Cloud, Intelligent Access EDGE, and Revenue EDGE, gathers,...

Calix, Inc., a company with the ticker symbol CALX, operates in the broadband service provider (BSP) industry. The company was established in 1999 with a mission to help BSPs transform their businesses by providing actionable data and insights to simplify network operations, marketing, and customer support.

Calix offers a comprehensive platform that integrates cloud, software, and systems, enabling BSPs to cater to the residential and small business market. The platform, which includes Calix Cloud, Intelligent Access EDGE, and Revenue EDGE, gathers, analyzes, and applies machine learning to deliver real-time insights to key business functions. This allows BSPs to enhance their brand through increased subscriber acquisition, loyalty, and revenue, while reducing operating costs. Calix's platform is designed to provide a range of managed services, including SmartLife, SmartHome, and SmartTown.

The company generates revenue by providing high-quality broadband services to its customers. Calix Cloud is a cloud-based platform that offers real-time insights and analytics to help BSPs optimize their network operations and improve customer experience. Intelligent Access EDGE is a software platform that enables BSPs to manage and optimize their broadband networks, while Revenue EDGE is a suite of services that helps BSPs grow their revenue and improve customer loyalty.

Calix has a strong position within the industry, with a focus on innovation and customer engagement. The company has a dedicated team of engineers and researchers committed to developing new products and services that meet the evolving needs of BSPs. Calix's competitive advantages include its ability to provide a comprehensive platform that integrates cloud, software, and systems, as well as its expertise in data analytics and machine learning.

The company's customers span all sizes of broadband subscriber count, from a few hundred to over six million. Notable customers include ALLO Communications, Connect Holding II, LLC, CityFibre Holdings Limited, and Verizon Communications, Inc. The diverse customer base is a testament to Calix's ability to provide solutions that meet the needs of a wide range of BSPs.

Calix faces competition from several companies, including ADTRAN, Inc., Ciena Corporation, CommScope Inc., and Huawei Technologies Co., Ltd. However, Calix's unique platform and expertise in data analytics and machine learning position it well to compete in the market.

Calix's culture and values are centered around innovation, collaboration, and customer satisfaction. The company prioritizes the ongoing professional growth of its team, providing training and development opportunities, as well as a commitment to diversity, equity, and inclusion. Calix's commitment to its employees is evident in its wellness initiatives, including a quarterly wellness allowance to help employees reach their personal wellness goals and support a healthy lifestyle.

Calix's brand names and/or trade names of its products and services include Calix Cloud, Intelligent Access EDGE, Revenue EDGE, SmartLife, SmartHome, and SmartTown. These brands are synonymous with high-quality broadband services and innovative solutions that meet the evolving needs of BSPs.

Stock Price Chart

Analysis

Pros

Strong operating cash flow of 104.27M provides robust 11.25x coverage of total debt 9.27M, indicating excellent debt servicing capability and financial flexibility.
Strong tangible asset base of 860.19M provides 92.78x coverage of total debt 9.27M, indicating robust asset backing and low credit risk.
Tangible assets of 860.19M provide exceptional 19.58x coverage of deferred revenue 43.93M, showing strong service capability backing.
Robust free cash flow of 85.45M exceeds capital expenditure of 18.82M by 4.54x, indicating strong organic growth funding capability.
Short-term investments of 244.61M provide solid 2.39x coverage of other current liabilities 102.50M, indicating strong liquidity.

Cons

Operating cash flow of 104.27M barely covers its investment activities of (34.50M), with a coverage ratio of -3.02, indicating heavy reliance on external financing for growth which may not be sustainable in a tighter credit environment.
Investment activities of (34.50M) provide weak support for R&D spending of 182.68M, which is -0.19x, suggesting potentially insufficient investment in innovation relative to other capital deployment.
The company's operating cash flow of 104.27M shows concerning coverage of stock compensation expenses of 88.05M, with a 1.18 ratio indicating potential earnings quality issues.
Operating earnings of (7.84M) show weak coverage of depreciation charges of 18.05M, with a -0.43 ratio indicating high capital intensity and potential reinvestment needs.
Operating cash flow of 104.27M is outpaced by equity issuance of (36.99M) (-2.82 ratio), indicating concerning reliance on equity markets for funding operations.

Peer Comparison

Companies in the Software - Infrastructure

S.No.	Ticker	Company	Market Cap	P/E	P/S	Total Debt (Qtr)
1	MSFT	Microsoft Corp	3,542.10 Bn	33.76	12.06	60.56 Bn
2	ORCL	Oracle Corp	533.93 Bn	34.61	8.75	124.39 Bn
3	PLTR	Palantir Technologies Inc.	437.56 Bn	399.47	112.31	0.24 Bn
4	PANW	Palo Alto Networks Inc	125.16 Bn	112.03	13.10	0.35 Bn
5	CRWD	CrowdStrike Holdings, Inc.	120.85 Bn	-384.67	26.47	0.82 Bn
6	SNPS	Synopsys Inc	71.69 Bn	35.89	11.14	15.14 Bn
7	NET	Cloudflare, Inc.	67.84 Bn	-658.43	33.70	3.50 Bn
8	FTNT	Fortinet, Inc.	63.33 Bn	33.80	9.66	1.00 Bn

Industry Comparisons

Current Valuation

Metric	Value	Industry
EV to Assets	3.95	2.56
EV to Cash from Ops.	36.98	38.32
EV to Debt	415.87	-11.37
EV to EBIT	-491.47	-12.79
EV to EBITDA	349.87	7.72
EV to Free Cash Flow [EV/FCF]	45.12	24.22
EV to Market Cap	0.98	0.58
EV to Revenue	4.13	-35.00
Price to Book Value [P/B]	4.78	3.74
Price to Earnings [P/E]	-541.80	-18.61

Dividend Metrics

Metric	Value	Industry
Dividend Coverage Ratio	0.00	-0.30
Dividend Payout Ratio %	0.00	2.69
Dividend per Basic Share	0.00	0.10
FCF Dividend Payout Ratio %	0.00	1.67
Interest Coverage	0.60	-13.15

Growth Metrics

Metric	Value	Industry
Capex Growth (1y) %	-11.51	-404.11
Cash and Equivalents Growth (1y) %	52.36	226.02
Dividend Growth (1y) %	0.00	-0.27
EBIAT Growth (1y) %	140.65	31.15
EBITDA Growth (1y) %	164.37	49.02
EBIT Growth (1y) %	78.83	25.85
EBT Growth (1y) %	120.50	17.82
EPS Growth (1y) %	64.29	70.69
FCF Growth (1y) %	67.28	295.45
Gross Profit Growth (1y) %	15.64	49.96

Liquidity Ratios

Metric	Value	Industry
Asset Utilization Ratio	0.96	0.68
Cash Payout Ratio	0.00	0.02
Cash Ratio	0.77	1.21
Current Ratio	5.02	2.57
Debt to Equity Ratio	0.01	-0.93
Interest Cover Ratio	0.60	-13.15
Times Interest Earned	0.60	-13.15

Profitability

Metric	Value	Industry
EBITDA Margin %	1.10	-544.82
EBIT Margin %	-0.84	-197.78
EBT Margin %	0.55	-602.74
Gross Margin %	56.20	52.06
Net Profit Margin %	-0.80	-605.52

Calix, Inc (NYSE: CALX)