FINISAR CORP's gross profit margin for the third quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. FINISAR CORP is extremely liquid. Currently, the Quick Ratio is 3.74 which clearly shows the ability to cover any short-term cash needs. FNSR managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 11.25% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||306.28||294.02|
|Net Income ($mil)||1.68||27.06|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||488.86||554.75|
|Total Assets ($mil)||1521.36||1427.79|
|Total Debt ($mil)||219.25||254.27|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||34.91||41.73|
|Return on Assets||2.18||6.08|
|Return on Equity||3.08||8.95|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||103.88||96.72|
|Div / share||0.0||0.0|
|Book value / share||10.4||10.04|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||1195904.0||1340960.0|
HOLD. FINISAR CORP's P/E ratio indicates a significant premium compared to an average of 35.40 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 20.83. To use another comparison, its price-to-book ratio of 2.08 indicates a discount versus the S&P 500 average of 2.88 and a significant discount versus the industry average of 3.70. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount.
|FNSR 65.45||Peers 35.40||FNSR 25.17||Peers 30.75|
Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.
FNSR is trading at a significant premium to its peers.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
FNSR is trading at a discount to its peers.
|FNSR 17.14||Peers 22.36||FNSR NM||Peers 1.44|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
FNSR is trading at a valuation on par with its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
FNSR's negative PEG ratio makes this valuation measure meaningless.
|FNSR 2.08||Peers 3.70||FNSR -61.18||Peers 129.35|
Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
FNSR is trading at a significant discount to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, FNSR is expected to significantly trail its peers on the basis of its earnings growth rate.
|FNSR 1.81||Peers 3.50||FNSR 13.04||Peers 4.32|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
FNSR is trading at a significant discount to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
FNSR has a sales growth rate that significantly exceeds its peers.
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