EXFO : NASDAQ : Technology
$4.05 -0.25 | -5.8%
Today's Range: 4.1 - 4.3
Avg. Daily Volume: 39000.0
12/06/16 - 3:10 PM ET

Financial Analysis


EXFO INC's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased. EXFO INC is extremely liquid. Currently, the Quick Ratio is 2.07 which clearly shows the ability to cover any 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.

During the same period, stockholders' equity ("net worth") has increased by 7.12% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)62.8656.59
EBITDA ($mil)5.874.83
EBIT ($mil)4.623.34
Net Income ($mil)2.252.32


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)47.327.35
Total Assets ($mil)239.32219.0
Total Debt ($mil)0.00.0
Equity ($mil)182.93170.75


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin61.5961.68
EBITDA Margin9.338.53
Operating Margin7.355.89
Sales Turnover0.971.01
Return on Assets3.712.41
Return on Equity4.863.1
Debt Q4 FY16 Q4 FY15
Current Ratio2.822.62
Debt/Capital0.00.0
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)53.953.74
Div / share0.00.0
EPS0.040.04
Book value / share3.393.18
Institutional Own % n/a n/a
Avg Daily Volume38977.028483.0

Valuation


BUY. EXFO INC's P/E ratio indicates a discount compared to an average of 30.97 for the Communications Equipment industry and a value on par with the S&P 500 average of 25.22. For additional comparison, its price-to-book ratio of 1.27 indicates a significant discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 3.15. 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 26.88 Peers 30.97   EXFO 9.51 Peers 13.81

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 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 13.03 Peers 19.78   EXFO 0.43 Peers 1.01

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 1.27 Peers 3.15   EXFO 77.77 Peers 76.74

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.

 

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

EXFO is expected to keep pace with its peers on the basis of earnings growth.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
EXFO 1.00 Peers 2.88   EXFO 4.72 Peers 12.11

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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