EXFO : NASDAQ : Technology
$3.9 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 27000.0
08/21/17 - 3:59 PM ET

Financial Analysis


EXFO INC's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have dropped, although the growth in net income underperformed the average competitor within the industry, the revenue growth did not. EXFO INC has strong liquidity. Currently, the Quick Ratio is 1.58 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has remained unchanged 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 FY17 Q3 FY16
Net Sales ($mil)58.5160.9
EBITDA ($mil)1.934.92
EBIT ($mil)-0.153.66
Net Income ($mil)-4.30.92


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)37.7146.31
Total Assets ($mil)244.49240.02
Total Debt ($mil)0.00.46
Equity ($mil)181.1181.2


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin60.7360.79
EBITDA Margin3.298.07
Operating Margin-0.256.02
Sales Turnover0.990.94
Return on Assets0.923.73
Return on Equity1.244.95
Debt Q3 FY17 Q3 FY16
Current Ratio2.242.66
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)54.753.9
Div / share0.00.0
EPS-0.080.02
Book value / share3.313.36
Institutional Own % n/a n/a
Avg Daily Volume26986.058757.0

Valuation


HOLD. EXFO INC's P/E ratio indicates a significant premium compared to an average of 25.72 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 24.23. For additional comparison, its price-to-book ratio of 1.19 indicates a significant discount versus the S&P 500 average of 3.02 and a significant discount versus the industry average of 3.32. 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 98.75 Peers 25.72   EXFO 14.97 Peers 15.46

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 21.94 Peers 610.20   EXFO NM Peers 0.80

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

Ratio not available.

 

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.

EXFO's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
EXFO 1.19 Peers 3.32   EXFO -75.00 Peers -2.85

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 0.89 Peers 3.01   EXFO 7.44 Peers 7.76

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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