Finisar Corp

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FNSR : NASDAQ : Technology
$25.25 | %
Today's Range: 24.59 - 25.52
Avg. Daily Volume: 4206600.0
05/26/17 - 4:00 PM ET

Financial Analysis


FINISAR CORP's gross profit margin for the third 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 5.87 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.

At the same time, stockholders' equity ("net worth") has greatly increased by 25.64% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)380.59309.21
EBITDA ($mil)78.2634.92
EBIT ($mil)55.311.4
Net Income ($mil)46.3912.08


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1214.27531.06
Total Assets ($mil)2391.671597.73
Total Debt ($mil)699.9228.56
Equity ($mil)1414.571125.83


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin41.7735.89
EBITDA Margin20.5611.29
Operating Margin14.533.69
Sales Turnover0.590.79
Return on Assets5.521.84
Return on Equity9.342.61
Debt Q3 FY16 Q3 FY15
Current Ratio7.134.97
Debt/Capital0.330.17
Interest Expense5.362.89
Interest Coverage10.313.94


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)111.28107.52
Div / share0.00.0
EPS0.40.11
Book value / share12.7110.47
Institutional Own % n/a n/a
Avg Daily Volume4332288.02808149.0

Valuation


BUY. This stock's P/E ratio indicates a discount compared to an average of 22.98 for the Communications Equipment industry and a discount compared to the S&P 500 average of 25.02. For additional comparison, its price-to-book ratio of 1.82 indicates a discount versus the S&P 500 average of 3.00 and a discount versus the industry average of 3.14. The price-to-sales ratio is below the S&P 500 average and is well below the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, FINISAR CORP 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
FNSR 19.73 Peers 22.98   FNSR 11.82 Peers 13.72

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

FNSR 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.

FNSR 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
FNSR 9.97 Peers 19.77   FNSR 0.04 Peers 0.92

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 significant 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 1.82 Peers 3.14   FNSR 333.33 Peers 5.86

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 1.82 Peers 2.92   FNSR 11.55 Peers 13.77

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 trails its peers on the basis of sales growth

 

 

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