EXFO : NASDAQ : Technology
$3.33 up 0.03 | 0.91%
Today's Range: 3.30 - 3.34
Avg. Daily Volume: 29,300
08/24/16 - 1:09 PM ET

Financial Analysis


EXFO INC's gross profit margin for the third quarter of its fiscal year 2016 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 has strong liquidity. Currently, the Quick Ratio is 1.91 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.

At the same time, stockholders' equity ("net worth") has remained virtually unchanged only increasing by 1.31% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)60.957.78
EBITDA ($mil)4.924.09
EBIT ($mil)3.662.48
Net Income ($mil)0.920.56


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)46.3129.88
Total Assets ($mil)240.02231.45
Total Debt ($mil)0.460.0
Equity ($mil)181.2178.85


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin60.7961.44
EBITDA Margin8.077.07
Operating Margin6.024.29
Sales Turnover0.940.97
Return on Assets3.731.8
Return on Equity4.952.33
Debt Q3 FY16 Q3 FY15
Current Ratio2.662.56
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)53.953.84
Div / share0.00.0
EPS0.020.01
Book value / share3.363.32
Institutional Own % n/a n/a
Avg Daily Volume27735.027084.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 28.38 for the Communications Equipment industry and a discount compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 0.98 indicates a significant discount versus the S&P 500 average of 2.83 and a significant discount versus the industry average of 3.25. 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 20.63 Peers 28.38   EXFO 8.49 Peers 12.15

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 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
EXFO 12.22 Peers 19.40   EXFO 0.17 Peers 1.02

Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.

EXFO is trading at a discount to 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 0.98 Peers 3.25   EXFO 128.57 Peers 19.97

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 0.79 Peers 3.18   EXFO 0.48 Peers 12.20

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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