OCLARO INC's gross profit margin for the second quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. OCLARO INC has strong liquidity. Currently, the Quick Ratio is 1.86 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has decreased by 13.68% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY16||Q2 FY15|
|Net Sales ($mil)||94.13||86.82|
|Net Income ($mil)||0.16||-12.28|
|Balance Sheet||Q2 FY16||Q2 FY15|
|Cash & Equiv. ($mil)||115.68||78.98|
|Total Assets ($mil)||334.89||297.41|
|Total Debt ($mil)||65.49||6.31|
|Profitability||Q2 FY16||Q2 FY15|
|Gross Profit Margin||32.19||20.84|
|Return on Assets||-8.18||-26.75|
|Return on Equity||-18.12||-33.17|
|Debt||Q2 FY16||Q2 FY15|
|Share Data||Q2 FY16||Q2 FY15|
|Shares outstanding (mil)||111.05||109.0|
|Div / share||0.0||0.0|
|Book value / share||1.36||1.61|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3318366.0||1795596.0|
SELL. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 3.74 indicates a premium versus the S&P 500 average of 2.74 and a premium 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. After reviewing these and other key valuation criteria, OCLARO INC proves to trade at a premium to investment alternatives within the industry.
|OCLR NM||Peers 24.72||OCLR NM||Peers 16.45|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
OCLR's P/E is negative making this valuation measure meaningless.
Neutral. 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.
OCLR's P/CF is negative making the measure meaningless.
|OCLR 25.45||Peers 18.09||OCLR NA||Peers 1.39|
Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.
OCLR is trading at a significant premium to 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.
Ratio not available.
|OCLR 3.74||Peers 3.33||OCLR 55.36||Peers 48.42|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
OCLR is trading at a premium to its peers.
Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
OCLR is expected to have an earnings growth rate that exceeds its peers.
|OCLR 1.63||Peers 3.07||OCLR -5.58||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.
OCLR 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.
OCLR significantly trails its peers on the basis of sales growth
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