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INFINERA CORP (INFN) Stock Fundamental Analysis

NASDAQ:INFN - Nasdaq - US45667G1031 - Common Stock - Currency: USD

6.64  -0.01 (-0.15%)

After market: 6.65 +0.01 (+0.15%)

Fundamental Rating

2

We assign a fundamental rating of 2 out of 10 to INFN. INFN was compared to 48 industry peers in the Communications Equipment industry. Both the profitability and financial health of INFN have multiple concerns. INFN is not valued too expensively and it also shows a decent growth rate.


Dividend Valuation Growth Profitability Health

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1

1. Profitability

1.1 Basic Checks

In the past year INFN has reported negative net income.
INFN had a positive operating cash flow in the past year.
In the past 5 years INFN always reported negative net income.
The reported operating cash flow has been mixed in the past 5 years: INFN reported negative operating cash flow in multiple years.
INFN Yearly Net Income VS EBIT VS OCF VS FCFINFN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 100M -100M -200M -300M

1.2 Ratios

With a Return On Assets value of -9.80%, INFN is not doing good in the industry: 62.75% of the companies in the same industry are doing better.
INFN has a worse Return On Equity (-129.03%) than 78.43% of its industry peers.
Industry RankSector Rank
ROA -9.8%
ROE -129.03%
ROIC N/A
ROA(3y)-5.29%
ROA(5y)-7.71%
ROE(3y)-61%
ROE(5y)-56.84%
ROIC(3y)N/A
ROIC(5y)N/A
INFN Yearly ROA, ROE, ROICINFN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 -20 -40 -60 -80 -100

1.3 Margins

INFN has a Gross Margin (38.43%) which is comparable to the rest of the industry.
INFN's Gross Margin has improved in the last couple of years.
The Profit Margin and Operating Margin are not available for INFN so they could not be analyzed.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 38.43%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.12%
GM growth 5Y5.37%
INFN Yearly Profit, Operating, Gross MarginsINFN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 -20 40

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1

2. Health

2.1 Basic Checks

INFN does not have a ROIC to compare to the WACC, probably because it is not profitable.
Compared to 1 year ago, INFN has more shares outstanding
Compared to 5 years ago, INFN has more shares outstanding
The debt/assets ratio for INFN is higher compared to a year ago.
INFN Yearly Shares OutstandingINFN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M
INFN Yearly Total Debt VS Total AssetsINFN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 500M 1B 1.5B

2.2 Solvency

Based on the Altman-Z score of 0.01, we must say that INFN is in the distress zone and has some risk of bankruptcy.
INFN has a Altman-Z score of 0.01. This is in the lower half of the industry: INFN underperforms 68.63% of its industry peers.
The Debt to FCF ratio of INFN is 117.95, which is on the high side as it means it would take INFN, 117.95 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of INFN (117.95) is comparable to the rest of the industry.
INFN has a Debt/Equity ratio of 5.73. This is a high value indicating a heavy dependency on external financing.
INFN has a worse Debt to Equity ratio (5.73) than 92.16% of its industry peers.
Industry RankSector Rank
Debt/Equity 5.73
Debt/FCF 117.95
Altman-Z 0.01
ROIC/WACCN/A
WACC8.48%
INFN Yearly LT Debt VS Equity VS FCFINFN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 200M 400M 600M

2.3 Liquidity

A Current Ratio of 1.51 indicates that INFN should not have too much problems paying its short term obligations.
The Current ratio of INFN (1.51) is worse than 66.67% of its industry peers.
INFN has a Quick Ratio of 1.02. This is a normal value and indicates that INFN is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.02, INFN is not doing good in the industry: 70.59% of the companies in the same industry are doing better.
Industry RankSector Rank
Current Ratio 1.51
Quick Ratio 1.02
INFN Yearly Current Assets VS Current LiabilitesINFN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 200M 400M 600M 800M 1B

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4

3. Growth

3.1 Past

INFN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -457.37%.
Looking at the last year, INFN shows a very negative growth in Revenue. The Revenue has decreased by -12.12% in the last year.
The Revenue has been growing slightly by 1.78% on average over the past years.
EPS 1Y (TTM)-457.37%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-298.93%
Revenue 1Y (TTM)-12.12%
Revenue growth 3Y-0.16%
Revenue growth 5Y1.78%
Sales Q2Q%-8.62%

3.2 Future

The Earnings Per Share is expected to grow by 151.08% on average over the next years. This is a very strong growth
INFN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 11.20% yearly.
EPS Next Y326.09%
EPS Next 2Y151.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year13.51%
Revenue Next 2Y11.2%
Revenue Next 3YN/A
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 accelerating.
INFN Yearly Revenue VS EstimatesINFN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
INFN Yearly EPS VS EstimatesINFN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5

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4

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for INFN. In the last year negative earnings were reported.
With a Price/Forward Earnings ratio of 25.04, INFN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Forward Earnings ratio of INFN is on the same level as its industry peers.
INFN is valuated rather cheaply when we compare the Price/Forward Earnings ratio to 37.64, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 25.04
INFN Price Earnings VS Forward Price EarningsINFN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 10 -10 20 30

4.2 Price Multiples

INFN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of INFN is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 278.85
EV/EBITDA 324.21
INFN Per share dataINFN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4

4.3 Compensation for Growth

INFN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as INFN's earnings are expected to grow with 151.08% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y151.08%
EPS Next 3YN/A

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0

5. Dividend

5.1 Amount

INFN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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INFINERA CORP

NASDAQ:INFN (2/27/2025, 8:00:01 PM)

After market: 6.65 +0.01 (+0.15%)

6.64

-0.01 (-0.15%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)02-20 2025-02-20/amc
Earnings (Next)04-29 2025-04-29/amc
Inst Owners93.07%
Inst Owner Change-0.56%
Ins Owners1.39%
Ins Owner Change-10.6%
Market Cap1.58B
Analysts48
Price Target6.48 (-2.41%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)0
Avg Revenue beat(2)-7.22%
Min Revenue beat(2)-13.76%
Max Revenue beat(2)-0.69%
Revenue beat(4)1
Avg Revenue beat(4)-5.96%
Min Revenue beat(4)-13.76%
Max Revenue beat(4)1.3%
Revenue beat(8)4
Avg Revenue beat(8)-3.07%
Revenue beat(12)6
Avg Revenue beat(12)-1.9%
Revenue beat(16)7
Avg Revenue beat(16)-1.81%
PT rev (1m)-1.16%
PT rev (3m)-1.16%
EPS NQ rev (1m)-50%
EPS NQ rev (3m)-50%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)-1.32%
Revenue NQ rev (3m)-1.32%
Revenue NY rev (1m)2.86%
Revenue NY rev (3m)2.86%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 25.04
P/S 1.11
P/FCF 278.85
P/OCF 19.59
P/B 13.56
P/tB N/A
EV/EBITDA 324.21
EPS(TTM)-0.64
EYN/A
EPS(NY)0.27
Fwd EY3.99%
FCF(TTM)0.02
FCFY0.36%
OCF(TTM)0.34
OCFY5.11%
SpS5.96
BVpS0.49
TBVpS-0.52
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -9.8%
ROE -129.03%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 38.43%
FCFM 0.4%
ROA(3y)-5.29%
ROA(5y)-7.71%
ROE(3y)-61%
ROE(5y)-56.84%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3YN/A
ROICexcg growth 5YN/A
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.12%
GM growth 5Y5.37%
F-Score2
Asset Turnover0.92
Health
Industry RankSector Rank
Debt/Equity 5.73
Debt/FCF 117.95
Debt/EBITDA 102.98
Cap/Depr 120.34%
Cap/Sales 5.29%
Interest Coverage N/A
Cash Conversion 1243.91%
Profit Quality N/A
Current Ratio 1.51
Quick Ratio 1.02
Altman-Z 0.01
F-Score2
WACC8.48%
ROIC/WACCN/A
Cap/Depr(3y)84.82%
Cap/Depr(5y)68.59%
Cap/Sales(3y)4.03%
Cap/Sales(5y)3.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-457.37%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-298.93%
EPS Next Y326.09%
EPS Next 2Y151.08%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue 1Y (TTM)-12.12%
Revenue growth 3Y-0.16%
Revenue growth 5Y1.78%
Sales Q2Q%-8.62%
Revenue Next Year13.51%
Revenue Next 2Y11.2%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y-1485.78%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year854.17%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y144.26%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y62.96%
OCF growth 3Y42.13%
OCF growth 5YN/A