EXFO : NASDAQ : Technology
$5.45 up 0.05 | 0.93%
Today's Range: 5.35 - 5.5
Avg. Daily Volume: 98200.0
02/24/17 - 1:50 PM ET

Financial Analysis


EXFO INC's gross profit margin for the first quarter of its fiscal year 2017 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. EXFO INC is extremely liquid. Currently, the Quick Ratio is 2.02 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 7.66% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)61.7955.23
EBITDA ($mil)6.064.91
EBIT ($mil)4.733.64
Net Income ($mil)3.31.77


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)39.3429.36
Total Assets ($mil)236.72222.86
Total Debt ($mil)0.00.31
Equity ($mil)183.9170.81


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin63.0863.54
EBITDA Margin9.818.88
Operating Margin7.666.58
Sales Turnover1.010.99
Return on Assets4.42.5
Return on Equity5.673.26
Debt Q1 FY17 Q1 FY16
Current Ratio2.852.61
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)54.4453.89
Div / share0.00.0
EPS0.060.03
Book value / share3.383.17
Institutional Own % n/a n/a
Avg Daily Volume90963.039763.0

Valuation


BUY. EXFO INC's P/E ratio indicates a discount compared to an average of 37.73 for the Communications Equipment industry and a value on par with the S&P 500 average of 26.35. To use another comparison, its price-to-book ratio of 1.58 indicates a discount versus the S&P 500 average of 2.94 and a significant discount versus the industry average of 3.72. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, EXFO INC proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
EXFO 28.16 Peers 37.73   EXFO 14.12 Peers 15.72

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

EXFO is trading at a significant discount 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.

EXFO is trading at a 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
EXFO 15.97 Peers 19.07   EXFO 0.39 Peers 1.03

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

EXFO 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.

EXFO 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
EXFO 1.58 Peers 3.72   EXFO 90.00 Peers 1.54

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.

EXFO is trading at a significant discount to its peers.

 

Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

EXFO is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EXFO 1.22 Peers 3.40   EXFO 8.40 Peers 19.14

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.

EXFO 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.

EXFO significantly trails its peers on the basis of sales growth

 

 

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