EXFO : NASDAQ : Technology
$4.65 up 0.05 | 1.1%
Today's Range: 4.6 - 4.65
Avg. Daily Volume: 94700.0
04/27/17 - 10:27 AM 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 Volume102954.049369.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 39.04 for the Communications Equipment industry and a premium compared to the S&P 500 average of 24.92. For additional comparison, its price-to-book ratio of 1.35 indicates a significant discount versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 3.38. 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 33.21 Peers 39.04   EXFO 12.97 Peers 17.26

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

EXFO is trading at a 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 16.61 Peers 19.00   EXFO 1.06 Peers 0.97

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 1.35 Peers 3.38   EXFO -6.67 Peers 7.61

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 1.03 Peers 3.24   EXFO 10.01 Peers 25.06

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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