Calix Inc (CALX, Financial) has recently demonstrated a notable performance in the stock market, with a 1.48% gain over the past week and an impressive 35.28% surge over the past three months. As of the latest data, the stock is trading at $38.10 with a market capitalization of $2.51 billion. According to GuruFocus, the current GF Value of Calix Inc is $52.96, suggesting that the stock is modestly undervalued. This valuation marks a shift from three months ago when it was considered significantly undervalued at a GF Value of $65.63.
Overview of Calix Inc
Calix Inc, a prominent player in the software industry, specializes in developing and marketing Calix cloud, systems, and software platforms. These platforms are designed to enable service providers of various sizes to innovate and transform their operations. The company's solutions offer real-time data and insights, helping customers simplify their businesses and enhance subscriber experiences. While the majority of Calix's revenue is generated in the United States, the company also has a presence in regions such as the Middle East & Africa, Europe, and Asia Pacific.
Assessing Profitability
Calix's Profitability Rank stands at 5/10, reflecting an average performance within the industry. The company's Operating Margin is currently at -1.00%, which is better than 39.62% of its peers. In terms of Return on Equity (ROE), Calix has a rate of 0.34%, surpassing 42.13% of competitors. Additionally, its Return on Assets (ROA) at 0.27% is higher than 46.25% of industry counterparts. However, the Return on Invested Capital (ROIC) stands at -4.36%, which is still better than 35.53% of similar companies. Historically, Calix has been profitable in 4 out of the past 10 years.
Growth Prospects
Calix's Growth Rank is 6/10, indicating a potential for above-average growth. The company has achieved a 19.80% revenue growth over the past three years, outperforming 73.25% of its industry peers. Over a five-year period, the revenue growth rate stands at 13.80%, which is also higher than 69.27% of competitors. Despite a 13.10% decline in EPS over the past three years, this performance is still better than 24.6% of similar firms. Looking ahead, the estimated future EPS growth rate is an impressive 52.01%, surpassing 83.59% of industry peers.
Investor Confidence and Market Position
Top investors in Calix include Chuck Royce (Trades, Portfolio), holding 45,594 shares, Jim Simons with 32,218 shares, and Baillie Gifford (Trades, Portfolio) owning 14,972 shares. These holdings reflect a strong investor confidence in the company's market strategy and growth potential. In comparison to its competitors, Calix holds a competitive position with a market cap closely aligned with Progress Software Corp (PRGS, Financial) at $2.49 billion, and not far behind JFrog Ltd (FROG, Financial) at $4.33 billion and Agilysys Inc (AGYS, Financial) at $3.05 billion.
Conclusion
In conclusion, Calix Inc's recent stock performance and market valuation suggest a robust potential for growth and profitability. The company's strategic focus on innovative software solutions and expanding global presence positions it well within the competitive landscape. With solid investor backing and a promising growth trajectory, Calix Inc appears to be a compelling choice for investors looking at the software industry.
This article, generated by GuruFocus, is designed to provide general insights and is not tailored financial advice. Our commentary is rooted in historical data and analyst projections, utilizing an impartial methodology, and is not intended to serve as specific investment guidance. It does not formulate a recommendation to purchase or divest any stock and does not consider individual investment objectives or financial circumstances. Our objective is to deliver long-term, fundamental data-driven analysis. Be aware that our analysis might not incorporate the most recent, price-sensitive company announcements or qualitative information. GuruFocus holds no position in the stocks mentioned herein.
