Finisar Corp

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FNSR : NASDAQ : Technology
$30.96 -0.84 | -2.6%
Today's Range: 30.63 - 32.48
Avg. Daily Volume: 2084400.0
12/02/16 - 3:59 PM ET

Financial Analysis


FINISAR CORP's gross profit margin for the first quarter of its fiscal year 2016 has increased 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. FINISAR CORP is extremely liquid. Currently, the Quick Ratio is 3.91 which clearly shows the ability to cover any short-term cash needs. FNSR managed to increase the liquidity from the same period a year ago, despite already having very strong liquidity to begin with. This would indicate improved cash flow.

During the same period, stockholders' equity ("net worth") has increased by 8.03% 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 Q1 FY16 Q1 FY15
Net Sales ($mil)341.33314.03
EBITDA ($mil)52.7136.61
EBIT ($mil)28.8712.88
Net Income ($mil)23.953.39


Balance Sheet Q1 FY16 Q1 FY15
Cash & Equiv. ($mil)593.8495.69
Total Assets ($mil)1668.511567.86
Total Debt ($mil)232.02223.76
Equity ($mil)1194.121105.33


Profitability Q1 FY16 Q1 FY15
Gross Profit Margin38.5236.14
EBITDA Margin15.4411.65
Operating Margin8.464.1
Sales Turnover0.770.79
Return on Assets3.340.06
Return on Equity4.660.09
Debt Q1 FY16 Q1 FY15
Current Ratio5.184.95
Debt/Capital0.160.17
Interest Expense2.952.84
Interest Coverage9.794.54


Share Data Q1 FY16 Q1 FY15
Shares outstanding (mil)110.17106.55
Div / share0.00.0
EPS0.220.03
Book value / share10.8410.37
Institutional Own % n/a n/a
Avg Daily Volume1993906.01336138.0

Valuation


BUY. FINISAR CORP's P/E ratio indicates a significant premium compared to an average of 32.47 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 2.99 indicates valuation on par with the S&P 500 average of 2.79 and a discount versus the industry average of 3.57. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
FNSR 63.57 Peers 32.47   FNSR 17.91 Peers 14.62

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

FNSR is trading at a significant premium to its peers.

 

Premium. 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.

FNSR is trading at a premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
FNSR 16.21 Peers 19.18   FNSR 0.14 Peers 0.93

Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.

FNSR is trading at a valuation on par with 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.

FNSR 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
FNSR 2.99 Peers 3.57   FNSR 5000.00 Peers 77.07

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.

FNSR is trading at a discount to its peers.

 

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

FNSR 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
FNSR 2.77 Peers 3.14   FNSR 4.29 Peers 12.45

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.

FNSR is trading at a discount to its industry on this measurement.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

FNSR significantly trails its peers on the basis of sales growth

 

 

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