CALX

Calix Inc

TMT


Presented:05/07/2021
Price:$48.00
Cap:$3.02B
Current Price:$38.99
Cap:$2.57B

Presented

Date05/07/2021
Price$48.00
Market Cap$3.02B
Ent Value$2.34B
P/E Ratio51.95x
Book Value$5.01
Div Yield0%
Shares O/S62.85M
Ave Daily Vol893,924
Short Int5.08%

Current

Price$38.99
Market Cap$2.57B
Calix, Inc. provides cloud and software platforms, systems and services required to realize the unified access network. The firm offers broadband communications access systems and software for fiber and copper-based network architectures that enable communications service providers to transform their networks and connect to their residential and business subscribers. It enables communication service providers to provide a wide range of revenue-generating services from basic voice and data to advanced broadband services over legacy and next-generation access networks. The firm focuses on communications service providers access networks with the portion of the network, which governs available bandwidth and determines the range and quality of services that can be offered to subscribers. It also develops and sells carrier-class hardware and software products. The company was founded by Michael L. Hatfield and Carl E. Russo in August 1999 and is headquartered in San Jose, CA.

Publicly traded companies mentioned herein: Calix Inc (CALX), salesforce.com Inc (CRM)

Highlights

The presenter is long shares of Calix Inc (CALX), which spent the past decade rebuilding itself and transitioning from a communications hardware provider to a services company that sells subscription software to small internet service providers (ISPs). CALX currently trades at ~$48 per share and has a ~$3B market cap. He considers this materially undervalued given his outlook that CALX will generate $1 – $5 per subscriber per month in two years and potentially reach “tens of millions” of subscribers globally. 

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Idea Discussion

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