INFINERA CORP(NASDAQ:INFN) stock Fundamental Analysis

Fundamental Rating

Overall INFN gets a fundamental rating of 2 out of 10. We evaluated INFN against 49 industry peers in the Communications Equipment industry. INFN has a bad profitability rating. Also its financial health evaluation is rather negative. While showing a medium growth rate, INFN is valued expensive at the moment.

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1. Profitability

1.1 Basic Checks

INFN had negative earnings in the past year.

In the past year INFN had a positive cash flow from operations.

INFN had negative earnings in each of the past 5 years.

The reported operating cash flow has been mixed in the past 5 years: INFN reported negative operating cash flow in multiple years.

1.2 Ratios

INFN has a Return On Assets of -9.80%. This is in the lower half of the industry: INFN underperforms 62.75% of its industry peers.

Looking at the Return On Equity, with a value of -129.03%, INFN is doing worse than 78.43% of the companies in the same industry.

		Industry Rank	Sector 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

1.3 Margins

INFN's Gross Margin of 38.43% is in line compared to the rest of the industry. INFN outperforms 49.02% of its industry peers.

INFN's Gross Margin has improved in the last couple of years.

INFN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.

		Industry Rank	Sector 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%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

INFN does not have a ROIC to compare to the WACC, probably because it is not profitable.

The number of shares outstanding for INFN has been increased compared to 1 year ago.

INFN has more shares outstanding than it did 5 years ago.

Compared to 1 year ago, INFN has a worse debt to assets ratio.

2.2 Solvency

INFN has an Altman-Z score of 0.01. This is a bad value and indicates that INFN is not financially healthy and even has some risk of bankruptcy.

With a Altman-Z score value of 0.01, INFN is not doing good in the industry: 68.63% of the companies in the same industry are doing better.

INFN has a debt to FCF ratio of 117.95. This is a negative value and a sign of low solvency as INFN would need 117.95 years to pay back of all of its debts.

The Debt to FCF ratio of INFN (117.95) is comparable to the rest of the industry.

A Debt/Equity ratio of 5.73 is on the high side and indicates that INFN has dependencies on debt financing.

With a Debt to Equity ratio value of 5.73, INFN is not doing good in the industry: 92.16% of the companies in the same industry are doing better.

		Industry Rank	Sector Rank
Debt/Equity	5.73
Debt/FCF	117.95
Altman-Z	0.01

ROIC/WACCN/A

WACC8.48%

2.3 Liquidity

A Current Ratio of 1.51 indicates that INFN should not have too much problems paying its short term obligations.

With a Current ratio value of 1.51, INFN is not doing good in the industry: 66.67% of the companies in the same industry are doing better.

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.

INFN's Quick ratio of 1.02 is on the low side compared to the rest of the industry. INFN is outperformed by 70.59% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.51
Quick Ratio	1.02

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

The earnings per share for INFN have decreased strongly by -457.37% in the last year.

INFN shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -12.12%.

INFN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.78% yearly.

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

Based on estimates for the next years, INFN will show a very strong growth in Earnings Per Share. The EPS will grow by 151.08% on average per year.

The Revenue is expected to grow by 11.20% on average over the next years. This is quite good.

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

The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for INFN. In the last year negative earnings were reported.

The Price/Forward Earnings ratio is 25.04, which means the current valuation is very expensive for INFN.

INFN's Price/Forward Earnings is on the same level as the industry average.

Compared to an average S&P500 Price/Forward Earnings ratio of 20.77, INFN is valued a bit more expensive.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	25.04

4.2 Price Multiples

INFN's Enterprise Value to EBITDA ratio is in line with the industry average.

INFN's Price/Free Cash Flow is on the same level as the industry average.

		Industry Rank	Sector Rank
P/FCF	278.85
EV/EBITDA	324.21

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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5. Dividend

5.1 Amount

No dividends for INFN!.

		Industry Rank	Sector 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-0.39%

Ins Owners1.39%

Ins Owner Change-10.44%

Market Cap1.58B

Analysts48

Price Target6.48 (-2.41%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector 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 Rank	Sector 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 Rank	Sector 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 Rank	Sector 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

INFINERA CORP (INFN) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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