- Zix's growth metrics are improving. This trend is expected to flow to the bottom line in the coming quarters.
- The market continues to value Zix modestly due to its highly leveraged capital structure.
- There are also worries about the sustainability of revenue growth given its modest cash position.
- These developments continue to make Zix's risk/reward opportunity favorable.
- Assuming double-digit ARR growth in 2021, Zix's valuation will remain cheap at a sales multiple of 3x using the current enterprise value.
For further details see:
Zix: The Market Will Soon Give Way