CTXS

Citrix Systems, Inc.

TMT


Presented:12/18/2019
Price:$111.27
Cap:$14.49B
Current Price:$103.90
Cap:$13.18B

Presented

Date12/18/2019
Price$111.27
Market Cap$14.49B
Ent Value$13.27B
P/E Ratio23.83x
Book Value$5.49
Div Yield1%
Shares O/S130.22M
Ave Daily Vol1,679,515
Short Int4.41%

Current

Price$103.90
Market Cap$13.18B
Citrix Systems, Inc. engages in the design, development, and marketing of information technology solutions. It provides digital workspace that unifies apps, data, and services. It markets and licenses its products directly to customers through web, systems integrators, value-added resellers, and service providers. The company was founded by Edward E. Iacobucci on April 17, 1989 and is headquartered in Fort Lauderdale, FL.

Publicly traded companies mentioned herein: Citrix Systems Inc (CTXS), Dell Technologies Inc (DELL), VMware Inc (VMW)

Highlights

The presenter is short shares of Citrix Systems Inc (CTXS) believing that the infrastructure software company is facing secular headwinds in the desktop virtualization market and a deterioration of revenue growth. Citrix currently has a $15B market cap and the stock trades at forward consensus estimates of ~17x EBIT and 16x FCF. Based on secular headwinds and a deterioration in revenue growth, the presenter believes Citrix’s 2021 FCF will be in line with what it is today at ~$6, and sees the stock trading down to the mid-$80s at a 14x FCF multiple.

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Idea Discussion

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