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Calix Inc (CALX)
NYSE:CALX
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Calix
(NYSE:CALX)
56Neutral
Positive Factors
Growth Opportunities
Management relayed confidence in re-accelerating growth driven by private equity broadband funding, increasing demand from medium and large customer segments, and updates on the competitive landscape among other topics.
Market Positioning
CALX is uniquely positioned to benefit from the rural fiber build due to low competitive concerns and a focus on fiber deployments.
Negative Factors
Customer Segment Challenges
Continued weakness in 3Q revenue stemmed primarily from its large and medium-sized customer segments, collectively -50% y/y.
Calix (CALX) vs. S&P 500 (SPY)
Market Cap
$1.96B
Dividend YieldN/A
Average Volume (3M)753.02K
Price to Earnings (P/E)―
Beta (1Y)1.23
Revenue Growth-20.02%
EPS Growth-193.84%
CountryUS
Employees1,820
SectorTechnology
Sector Strength45
IndustrySoftware
Share Statistics
EPS (TTM)-0.45
Shares Outstanding66,689,040
10 Day Avg. Volume776,731
30 Day Avg. Volume753,025
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)2.36
Price to Cash Flow (P/CF)31.90
P/FCF Ratio48.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$47.71Price Target Upside51.60% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering7
Calix Business Overview & Revenue Model
Company DescriptionCalix, Inc. (CALX) is a communications technology company that specializes in providing solutions to broadband service providers. The company offers a comprehensive suite of cloud and software platforms, systems, and services designed to support the delivery of a range of services over broadband networks. Calix helps its customers build and manage high-performance networks that enable them to offer enhanced services to their subscribers, thereby improving their operational efficiencies and business outcomes.
How the Company Makes MoneyCalix generates revenue primarily through the sale of its software platforms, systems, and professional services to broadband service providers. The company's revenue streams include the sale of access systems and software licenses, as well as services such as maintenance, support, and training. Calix also earns money through subscriptions to its cloud-based solutions, which provide network management, analytics, and subscriber experience management tools. Key factors contributing to its earnings include the increasing demand for high-speed internet and the ongoing digital transformation efforts by broadband service providers. Calix's strategic partnerships with leading telecommunications companies further bolster its revenue by expanding its market reach and facilitating the adoption of its solutions.
Calix Financial Statement Overview
Summary
Calix's financial performance is mixed, with a strong balance sheet but operational challenges. The company has zero debt, enhancing stability, yet faces recent losses and declining equity. Cash flow is positive but inconsistent. Restoring profitability and maintaining cash flow growth are crucial.Income Statement
Calix experienced fluctuating revenue with a notable decline from 2023 to 2024. The gross profit margin remains healthy; however, the company reported a negative EBIT and net income in 2024, indicating operational challenges. Previous years showed profitability, suggesting potential recovery if managed effectively.55
Neutral
Balance Sheet
The balance sheet is strong with zero debt in 2024, enhancing financial stability. The equity ratio is robust, indicating high asset coverage by equity. Despite these strengths, the declining stockholders' equity from 2023 suggests potential risks in maintaining financial health.65
Positive
Cash Flow
Operating cash flow improved in 2024, and the company maintains positive free cash flow, indicating efficient management of cash resources. However, the free cash flow growth rate is inconsistent, reflecting potential volatility in cash generation.60
Neutral
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 831.52M | 1.04B | 867.83M | 679.39M | 541.24M | Gross Profit |
| 453.59M | 518.32M | 435.43M | 356.59M | 267.02M | EBIT |
| -43.03M | 25.59M | 52.61M | 73.94M | 36.85M | EBITDA |
| -43.03M | 42.22M | 66.92M | 91.17M | 52.69M | Net Income Common Stockholders |
| -29.75M | 29.32M | 41.01M | 238.38M | 33.48M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 297.09M | 220.35M | 241.72M | 204.34M | 133.79M | Total Assets |
| 939.27M | 941.87M | 884.84M | 742.03M | 427.35M | Total Debt |
| 8.02M | 11.56M | 12.39M | 12.38M | 12.95M | Net Debt |
| -35.14M | -51.85M | -66.68M | -38.96M | -67.86M | Total Liabilities |
| 158.33M | 222.88M | 205.27M | 173.60M | 147.03M | Stockholders Equity |
| 780.94M | 718.98M | 679.57M | 568.43M | 280.32M |
| Cash Flow | Free Cash Flow | |||
| 50.35M | 38.40M | 13.12M | 46.33M | 43.59M | Operating Cash Flow |
| 68.40M | 56.25M | 27.18M | 56.79M | 51.41M | Investing Cash Flow |
| -109.53M | -6.25M | -24.08M | -110.66M | -60.80M | Financing Cash Flow |
| 20.90M | -65.93M | 25.06M | 24.38M | 42.15M |
Calix Technical Analysis
Negative
31.47
Price Trends
37.56
Negative
36.15
Negative
36.26
Negative
Market Momentum
-1.91
Positive
30.36
Neutral
14.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CALX, the sentiment is Negative. The current price of 31.47 is below the 20-day moving average (MA) of 37.03, below the 50-day MA of 37.56, and below the 200-day MA of 36.26, indicating a bearish trend. The MACD of -1.91 indicates Positive momentum. The RSI at 30.36 is Neutral, neither overbought nor oversold. The STOCH value of 14.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CALX.
Calix Risk Analysis
Calix disclosed 39 risk factors in its most recent earnings report. Calix reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Calix Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $241.36B | 27.19 | 20.02% | 2.58% | -5.34% | -30.57% | |
58 Neutral | $28.39B | 14,433.30 | 0.15% | 2.04% | -5.59% | ― | |
58 Neutral | $21.35B | 10.05 | -19.26% | 2.35% | 5.02% | -22.63% | |
56 Neutral | $1.96B | ― | -3.97% | ― | -20.02% | -193.84% | |
55 Neutral | $678.81M | ― | -123.20% | ― | -19.70% | -70.40% | |
51 Neutral | $1.01B | ― | 17.08% | ― | -28.32% | 73.59% |
* Technology Sector Average
Performance Comparison
CALX
Calix
31.47
-2.60
-7.63%
ADTN
Adtran
8.50
2.95
53.15%
CSCO
Cisco Systems
60.67
12.09
24.89%
ERIC
Telefonaktiebolaget LM Ericsson
8.24
2.74
49.82%
COMM
CommScope Holding
4.63
3.08
198.71%
Calix Earnings Call Summary
Earnings Call Date: Jan 29, 2025 | % Change Since: -14.65% | Next Earnings Date: Apr 28, 2025
Earnings Call Sentiment Positive
The earnings call highlighted strong revenue growth, record gross margins, and new customer wins, showcasing the company's strategic progress. However, attention was drawn to potential margin pressure and uncertainty regarding government programs. Overall, the positive aspects, such as growth in RPOs and new customer acquisitions, outweigh the concerns.Highlights
Strong Revenue and Growth in RPOs
Fourth quarter revenue reached $206 million, at the high end of guidance, with a sequential quarterly growth of 2.6%. RPOs (Remaining Performance Obligations) grew 10% sequentially to $326 million and increased 34% year-over-year.
Record Non-GAAP Gross Margin
Achieved a record non-GAAP gross margin of 55.5% in the fourth quarter, driven by strong demand for Platform Cloud and managed services.
New Customer Wins
Added 18 new ESP customers in Q4, with the majority being competitive takeaways. Additionally, 21 customers adopted the platform, and 32 customers deployed managed services for the first time.
Strong Balance Sheet
Ended the year with record cash and investments of $297 million. Inventory turns were strong at 3.1, exceeding the target range when excluding component inventory.
Lowlights
Margin Pressure from Mix Shift
Guidance indicates that non-GAAP gross margin improvement for 2025 will be at the lower end of the target financial model due to a mix shift towards subscriber systems.
Uncertainty in Government Program Impact
Concerns over potential risks from government programs were mentioned, although currently considered 'noise' with no substantial impact yet.
Company Guidance
During the Calix Fourth Quarter 2024 earnings call, the company provided optimistic guidance for the upcoming fiscal year. They reported strong fourth-quarter revenue of $206 million, which was at the high end of their guidance range and marked a 2.6% sequential growth. The demand for Platform Cloud and managed services was robust, as evidenced by a 10% sequential increase in Remaining Performance Obligations (RPOs) to $326 million, representing a 34% year-over-year growth. The company achieved a record non-GAAP gross margin of 55.5% in Q4. For Q1 2025, Calix anticipates revenue between $204 million and $210 million, with a flat to slightly increased non-GAAP gross margin due to product mix. They expect annual gross margin improvement at the lower end of their target financial model of 100 to 200 basis points. Calix also plans to keep operating expenses flat to slightly up in 2025 compared to 2024. Their strategic focus remains on expanding their footprint, landing new broadband service providers, and consistently expanding their platform, cloud, and managed services, helping their customers transform into broadband experience providers.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.