Momentum Stock Watch: Zix Corporation (ZIXI)

Company Profile:

Zix Corporation (ZixCorp) offers e-mail encryption, data loss prevention and bring-your-own-device (BYOD) security to meet business data protection and compliance needs. The Company operates in the segment of e-mail encryption and security solutions. The Company’s Zix Email Encryption enables the secure exchange of e-mails that include sensitive information through a secure messaging service. The Company also offers ZixDirectory, which is an e-mail encryption community designed to share identities of its members; Best Method of Delivery, which is designed to deliver e-mail according to the sender’s encryption policy, and ZixGateway, which is an enterprise gateway that automatically decrypts the message. The Company also offers ZixDLP, which is an e-mail-specific data loss prevention (DLP) solution. The Company’s ZixOne is a mobile e-mail application that solves the information technology (IT) challenge created by the BYOD trend in the workplace.

Recent News:

For the second quarter ended June 30, 2016, revenue increased 12% to a record $14.9 million, total quarterly orders increased 18% to a record $20.4 million, non-GAAP fully diluted earnings per share increased 63% to $0.06.

Cash and cash equivalents at quarter-end totaled $20.7 million compared to $27.1 million at the end of the prior quarter. The decrease in cash and cash equivalents was primarily due to $8.8 million used to repurchase the company’s common shares during the quarter under our previously announced repurchase program.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

ZIXI’s strengths can be seen in its better profitability and strong solvency. Its revenue has increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in Stochastic Oscillator and RSI is increasing to 42.69. We rate Zix Corporation (ZIXI) a STRONG BUY.

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