Finisar Corp

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FNSR : NASDAQ : Technology
$21.03 up 0.54 | 2.64%
Today's Range: 20.49 - 21.12
Avg. Daily Volume: 1,328,200
08/29/16 - 4:00 PM ET

Financial Analysis


FINISAR CORP's gross profit margin for the fourth quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Even though sales decreased, the net income has increased, representing an increase to the bottom line. FINISAR CORP is extremely liquid. Currently, the Quick Ratio is 3.67 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 5.78% 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 FY15 Q4 FY14
Net Sales ($mil)318.79320.04
EBITDA ($mil)38.7434.43
EBIT ($mil)15.0111.51
Net Income ($mil)13.077.33


Balance Sheet Q4 FY15 Q4 FY14
Cash & Equiv. ($mil)562.48490.19
Total Assets ($mil)1646.991551.88
Total Debt ($mil)231.01221.41
Equity ($mil)1167.691103.79


Profitability Q4 FY15 Q4 FY14
Gross Profit Margin35.7335.09
EBITDA Margin12.1510.75
Operating Margin4.713.6
Sales Turnover0.770.81
Return on Assets2.130.76
Return on Equity3.011.07
Debt Q4 FY15 Q4 FY14
Current Ratio4.925.18
Debt/Capital0.170.17
Interest Expense2.983.29
Interest Coverage5.043.5


Share Data Q4 FY15 Q4 FY14
Shares outstanding (mil)107.7104.13
Div / share0.00.0
EPS0.120.07
Book value / share10.8410.6
Institutional Own % n/a n/a
Avg Daily Volume1314903.01316625.0

Valuation


BUY. FINISAR CORP's P/E ratio indicates a significant premium compared to an average of 28.55 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 25.13. For additional comparison, its price-to-book ratio of 1.89 indicates a discount versus the S&P 500 average of 2.82 and a discount versus the industry average of 3.33. The price-to-sales ratio is below the S&P 500 average and is well below 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
FNSR 64.03 Peers 28.55   FNSR 12.02 Peers 12.31

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.

 

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.

FNSR 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
FNSR 13.89 Peers 19.61   FNSR 0.22 Peers 1.03

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

FNSR 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.

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 1.89 Peers 3.33   FNSR 166.66 Peers 19.83

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 significant 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 1.75 Peers 3.22   FNSR 0.97 Peers 12.12

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 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.

FNSR significantly trails its peers on the basis of sales growth

 

 

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