Calix Inc Common Stock (CALX)

FairStock Score: 44/100 — MIXED

Key Financials

Strengths

• Generates $103 million in annual free cash flow (3.7% yield on market cap)
• Conservative balance sheet with debt-to-equity of just 0.02, providing financial flexibility
• Altman Z-Score of 8.1 confirms minimal bankruptcy risk and strong solvency
• Revenue growth of 27.1% demonstrates strong top-line momentum

Concerns

• Trades significantly above Graham Number ($11) with negative 282% margin of safety—limited downside protection

AI Analysis

Calix Inc Common Stock is a small-cap technology company valued at $2.8 billion. The business generates $1.1 billion in annual revenue with a 1.1% net margin and $103 million in free cash flow. From a quality standpoint, Calix shows solid Piotroski F-Score of 6/9 and Altman Z-Score of 8.1 confirms fortress-level solvency. On valuation, the stock is commanding a steep 87.1x multiple, with trades far above its Graham Number ($11) with no margin of safety. Growth dynamics show revenue growing at 27.1% and profit growth of 334.2%. Our composite FairStock Score of 44/100 reflects below-average fundamentals overall. Investors should weigh the business quality against the current price and their own margin of safety requirements.

Bull Case

Calix's 27% revenue growth trajectory could accelerate as it captures additional market share in the technology sector. With $103 million in annual free cash flow (3.7% yield), management has ample capital for buybacks, dividends, or accretive acquisitions.

Bear Case

At 87x earnings, any growth disappointment triggers rapid multiple compression—a 20% earnings miss plus multiple contraction to 20x implies 40%+ downside. Regulatory changes, input cost inflation, or demand normalization represent underappreciated risks that could materially impact forward estimates.

Data from SEC filings. AI analysis is for educational purposes only — not investment advice. Scoring methodology · Disclaimer