INFINERA CORP (INFN)
US45667G1031 - Common Stock
Taking everything into account, INFN scores 3 out of 10 in our fundamental rating. INFN was compared to 54 industry peers in the Communications Equipment industry. Both the profitability and financial health of INFN have multiple concerns. INFN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
INFN had positive earnings in the past year.
In the past year INFN has reported a negative cash flow from operations.
In the past 5 years INFN always reported negative net income.
INFN had negative operating cash flow in 4 of the past 5 years.
1.2 Ratios
INFN has a Return On Assets of -0.29%. This is in the better half of the industry: INFN outperforms 62.96% of its industry peers.
INFN has a better Return On Equity (-2.55%) than 61.11% of its industry peers.
With a Return On Invested Capital value of 1.03%, INFN perfoms like the industry average, outperforming 57.41% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.29% | ||
| ROE | -2.55% | ||
| ROIC | 1.03% |
ROA(3y)-9.08%
ROA(5y)-12.58%
ROE(3y)-47.85%
ROE(5y)-54.81%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
INFN has a Operating Margin of 0.76%. This is comparable to the rest of the industry: INFN outperforms 55.56% of its industry peers.
INFN's Gross Margin of 38.18% is in line compared to the rest of the industry. INFN outperforms 50.00% of its industry peers.
INFN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 0.76% | ||
| PM (TTM) | N/A | ||
| GM | 38.18% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.82%
GM growth 5Y-0.83%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), INFN is destroying value.
INFN has more shares outstanding than it did 1 year ago.
INFN has more shares outstanding than it did 5 years ago.
INFN has a worse debt/assets ratio than last year.
2.2 Solvency
INFN has an Altman-Z score of 0.37. This is a bad value and indicates that INFN is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 0.37, INFN is in line with its industry, outperforming 40.74% of the companies in the same industry.
INFN has a Debt/Equity ratio of 3.63. This is a high value indicating a heavy dependency on external financing.
Looking at the Debt to Equity ratio, with a value of 3.63, INFN is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.37 |
ROIC/WACC0.12
WACC8.51%
2.3 Liquidity
A Current Ratio of 1.69 indicates that INFN should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.69, INFN is doing worse than 62.96% of the companies in the same industry.
INFN has a Quick Ratio of 1.69. This is a bad value and indicates that INFN is not financially healthy enough and could expect problems in meeting its short term obligations.
INFN's Quick ratio of 0.95 is on the low side compared to the rest of the industry. INFN is outperformed by 72.22% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.95 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 775.00% over the past year.
Looking at the last year, INFN shows a quite strong growth in Revenue. The Revenue has grown by 10.69% in the last year.
The Revenue has been growing by 16.26% on average over the past years. This is quite good.
EPS 1Y (TTM)775%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q60%
Revenue 1Y (TTM)10.69%
Revenue growth 3Y6.59%
Revenue growth 5Y16.26%
Revenue growth Q2Q0.5%
3.2 Future
The Earnings Per Share is expected to grow by 81.92% on average over the next years. This is a very strong growth
INFN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 5.53% yearly.
EPS Next Y129.57%
EPS Next 2Y61.07%
EPS Next 3Y81.92%
EPS Next 5YN/A
Revenue Next Year5.34%
Revenue Next 2Y3.88%
Revenue Next 3Y5.53%
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 19.41, the valuation of INFN can be described as rather expensive.
Based on the Price/Earnings ratio, INFN is valued a bit cheaper than the industry average as 64.81% of the companies are valued more expensively.
Compared to an average S&P500 Price/Earnings ratio of 28.28, INFN is valued a bit cheaper.
With a Price/Forward Earnings ratio of 22.44, INFN is valued on the expensive side.
INFN's Price/Forward Earnings is on the same level as the industry average.
INFN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 20.88, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 22.44 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of INFN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 19.34 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
INFN's earnings are expected to grow with 81.92% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.15
PEG (5Y)N/A
EPS Next 2Y61.07%
EPS Next 3Y81.92%
5. Dividend
5.1 Amount
No dividends for INFN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
INFINERA CORP
NASDAQ:INFN (5/3/2024, 7:00:02 PM)
After market: 5.24 0 (0%)5.24
-0.02 (-0.38%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap1.21B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
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Min Revenue beat(4)
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Revenue beat(8)
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Revenue beat(12)
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Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 19.41 | ||
| Fwd PE | 22.44 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.15
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -0.29% | ||
| ROE | -2.55% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 0.76% | ||
| PM (TTM) | N/A | ||
| GM | 38.18% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.05
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 3.63 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.69 | ||
| Quick Ratio | 0.95 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)775%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y129.57%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)10.69%
Revenue growth 3Y6.59%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y