Calix, Inc (NYSE: CALX)

Sector: Technology Industry: Software - Infrastructure CIK: 0001406666
Market Cap 3.75 Bn
P/B 4.56
P/E -517.40
P/S 4.02
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,...

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Price action

Investment thesis

Bull case

  • 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.

Bear case

  • 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.

Geographical Breakdown of Revenue (2024)

Segments Breakdown of Revenue (2024)

Peer comparison

Companies in the Software - Infrastructure
S.No. Ticker Company Market Cap P/E P/S Total Debt (Qtr)
1 MSFT Microsoft Corp 3,563.59 Bn 33.97 12.13 60.56 Bn
2 ORCL Oracle Corp 561.87 Bn 36.43 9.21 124.39 Bn
3 PLTR Palantir Technologies Inc. 413.65 Bn 377.64 106.17 0.24 Bn
4 PANW Palo Alto Networks Inc 126.45 Bn 113.19 13.23 0.35 Bn
5 CRWD CrowdStrike Holdings, Inc. 116.42 Bn -370.56 25.50 0.82 Bn
6 SNPS Synopsys Inc 86.06 Bn 64.60 12.20 14.29 Bn
7 NET Cloudflare, Inc. 62.78 Bn -609.27 31.18 3.50 Bn
8 FTNT Fortinet, Inc. 60.83 Bn 32.47 9.28 1.00 Bn

Industry comparisons

Current Valuation Value Ind Avg Percentile
EV to Assets EV to Assets 3.77 2.69
EV to Cash from Ops. EV/CFO 35.28 28.91
EV to Debt EV to Debt 396.79 19.83
EV to EBIT EV/EBIT -468.91 -9.95
EV to EBITDA EV/EBITDA 333.81 6.82
EV to Free Cash Flow [EV/FCF] EV/FCF 43.05 26.09
EV to Market Cap EV to Market Cap 0.98 0.36
EV to Revenue EV/Rev 3.94 -9.34
Price to Book Value [P/B] P/B 4.56 3.88
Price to Earnings [P/E] P/E -517.40 -10.66
Dividend Metrics Value Ind Avg Percentile
Dividend Coverage Ratio Div Coverage (Qtr) 0.00 -0.30
Dividend Payout Ratio % Div Payout % (Qtr) 0.00 2.71
Dividend per Basic Share Div per Share (Qtr) 0.00 0.10
FCF Dividend Payout Ratio % FCF Div Payout % (Qtr) 0.00 1.68
Interest Coverage Int. cover (Qtr) 0.60 -14.20
Growth Metrics Value Ind Avg Percentile
Capex Growth (1y) % Capex 1y % (Qtr) -11.51 -408.01
Cash and Equivalents Growth (1y) % Cash & Equiv 1y % (Qtr) 52.36 226.39
Dividend Growth (1y) % Dividend Growth (1y) % 0.00 -0.28
EBIAT Growth (1y) % EBIAT 1y % (Qtr) 140.65 25.27
EBITDA Growth (1y) % EBITDA 1y % (Qtr) 164.37 47.48
EBIT Growth (1y) % EBIT 1y % (Qtr) 78.83 20.13
EBT Growth (1y) % EBT 1y % (Qtr) 120.50 14.16
EPS Growth (1y) % EPS 1y % (Qtr) 64.29 67.50
FCF Growth (1y) % FCF 1y % (Qtr) 67.28 296.60
Gross Profit Growth (1y) % Gross Profit 1y % (Qtr) 15.64 46.75
Liquidity Ratios Value Ind Avg Percentile
Asset Utilization Ratio Asset Util Ratio (Qtr) 0.96 0.67
Cash Payout Ratio Cash Payout (Qtr) 0.00 0.01
Cash Ratio Cash Ratio (Qtr) 0.77 1.22
Current Ratio Curr Ratio (Qtr) 5.02 2.59
Debt to Equity Ratio Debt/Equity (Qtr) 0.01 -0.96
Interest Cover Ratio Int Coverage (Qtr) 0.60 -14.20
Times Interest Earned Times Interest Earned (Qtr) 0.60 -14.20
Profitability Value Ind Avg Percentile
EBITDA Margin % EBITDA Margin % (Qtr) 1.10 -548.16
EBIT Margin % EBIT Margin % (Qtr) -0.84 -199.84
EBT Margin % EBT Margin % (Qtr) 0.55 -607.20
Gross Margin % Gross Margin % (Qtr) 56.20 51.88
Net Profit Margin % Net Margin % (Qtr) -0.80 -610.00