The story remains frustratingly consistent at CA, Inc. (CA).
In a software investing world, where share price performance is often
correlated pretty closely with revenue growth and margins, CA scores
strongly on the second metric, but consistently poorly on the first. The
basic investment thesis at CA hasn't really changed much in several
years now - the mainframe business is an excellent source of high-margin
revenue and cash flow, but the company just cannot seem to generate
enough growth in the Enterprise business. Talking about improved
go-to-market strategies and more consistent sales execution hits the
right buzzwords for the sell-side community, but it's hard to say that
the implication in CA's price of little-to-no growth unfairly maligns
the company.
Read more here:
Growth Is The Question, Answer, Problem, And Solution For CA, Inc
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