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Finisar Corp
FNSR : NASDAQ : Technology
$16.02 -0.05 | -0.31%
Today's Range: 15.96 - 16.35
Avg. Daily Volume: 1,337,200
05/05/16 - 2:23 PM ET

Financial Analysis


FINISAR CORP's gross profit margin for the third quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. FINISAR CORP is extremely liquid. Currently, the Quick Ratio is 3.68 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 4.21% 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 FY15 Q3 FY14
Net Sales ($mil)309.21306.28
EBITDA ($mil)34.9233.75
EBIT ($mil)11.410.21
Net Income ($mil)12.081.68


Balance Sheet Q3 FY15 Q3 FY14
Cash & Equiv. ($mil)531.06488.86
Total Assets ($mil)1597.731521.36
Total Debt ($mil)228.56219.25
Equity ($mil)1125.831080.3


Profitability Q3 FY15 Q3 FY14
Gross Profit Margin35.8934.89
EBITDA Margin11.2911.01
Operating Margin3.693.33
Sales Turnover0.790.81
Return on Assets1.842.18
Return on Equity2.613.08
Debt Q3 FY15 Q3 FY14
Current Ratio4.975.34
Debt/Capital0.170.17
Interest Expense2.892.64
Interest Coverage3.943.87


Share Data Q3 FY15 Q3 FY14
Shares outstanding (mil)107.52103.88
Div / share0.00.0
EPS0.110.02
Book value / share10.4710.4
Institutional Own % n/a n/a
Avg Daily Volume1312656.01282156.0

Valuation


HOLD. FINISAR CORP's P/E ratio indicates a significant premium compared to an average of 24.72 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 23.99. To use another comparison, its price-to-book ratio of 1.62 indicates a discount versus the S&P 500 average of 2.74 and a significant discount versus the industry average of 3.33. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
FNSR 63.00 Peers 24.72   FNSR 10.81 Peers 16.45

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 significant discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FNSR 14.60 Peers 18.09   FNSR 0.08 Peers 1.39

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.

 

Discount. 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 trades at a significant discount to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FNSR 1.62 Peers 3.33   FNSR -18.19 Peers 48.42

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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
FNSR 1.45 Peers 3.07   FNSR 2.22 Peers 6.79

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

FNSR significantly trails its peers on the basis of sales growth

 

 

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