EXFO : NASDAQ : Technology
$5.25 up 0.05 | 0.96%
Today's Range: 5.2 - 5.25
Avg. Daily Volume: 35700.0
06/27/17 - 3:59 PM ET

Financial Analysis


EXFO INC's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. EXFO INC has strong liquidity. Currently, the Quick Ratio is 1.98 which shows the ability to cover 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 8.21% 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 FY17 Q2 FY16
Net Sales ($mil)60.0353.6
EBITDA ($mil)4.524.97
EBIT ($mil)2.793.76
Net Income ($mil)1.013.96


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)52.4244.38
Total Assets ($mil)246.45225.53
Total Debt ($mil)0.00.46
Equity ($mil)187.61173.37


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin61.764.73
EBITDA Margin7.539.26
Operating Margin4.657.01
Sales Turnover1.00.99
Return on Assets3.033.81
Return on Equity3.984.96
Debt Q2 FY17 Q2 FY16
Current Ratio2.72.73
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)54.5753.95
Div / share0.00.0
EPS0.020.07
Book value / share3.443.21
Institutional Own % n/a n/a
Avg Daily Volume36202.0111864.0

Valuation


BUY. EXFO INC's P/E ratio indicates a significant premium compared to an average of 24.63 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 25.75. For additional comparison, its price-to-book ratio of 1.53 indicates a significant discount versus the S&P 500 average of 3.09 and a significant discount versus the industry average of 3.44. The price-to-sales ratio is well below both the S&P 500 average and 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
EXFO 37.50 Peers 24.63   EXFO 14.64 Peers 15.21

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

EXFO is trading at a significant premium to its peers.

 

Average. 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 valuation on par 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 18.10 Peers 21.69   EXFO 1.00 Peers 1.07

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

EXFO is trading at a premium to its peers.

 

Average. 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 valuation on par to its peers.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EXFO 1.53 Peers 3.44   EXFO -6.67 Peers 7.87

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.

 

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

However, EXFO 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
EXFO 1.17 Peers 3.05   EXFO 10.01 Peers 10.68

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

EXFO is keeping pace with its peers on the basis of sales growth.

 

 

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