Finisar Corp

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FNSR : NASDAQ : Technology
$27.18 | %
Today's Range: 27.09 - 27.62
Avg. Daily Volume: 3008200.0
07/21/17 - 4:00 PM ET

Financial Analysis


FINISAR CORP's gross profit margin for the fourth 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 6.19 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 33.82% 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 ($mil)357.53318.79
EBITDA ($mil)64.9938.74
EBIT ($mil)40.9315.01
Net Income ($mil)130.2513.07


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)1236.82562.48
Total Assets ($mil)2539.881646.99
Total Debt ($mil)707.78231.01
Equity ($mil)1562.711167.69


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin41.5835.73
EBITDA Margin18.1712.15
Operating Margin11.454.71
Sales Turnover0.570.77
Return on Assets9.812.13
Return on Equity15.953.01
Debt Q4 FY16 Q4 FY15
Current Ratio7.584.92
Debt/Capital0.310.17
Interest Expense8.922.98
Interest Coverage4.595.04


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)111.52107.7
Div / share0.00.0
EPS1.130.12
Book value / share14.0110.84
Institutional Own % n/a n/a
Avg Daily Volume3045971.04304892.0

Valuation


BUY. FINISAR CORP's P/E ratio indicates a significant discount compared to an average of 24.53 for the Communications Equipment industry and a significant discount compared to the S&P 500 average of 24.66. To use another comparison, its price-to-book ratio of 1.95 indicates a discount versus the S&P 500 average of 3.07 and a significant discount versus the industry average of 3.46. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly 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 12.55 Peers 24.53   FNSR 13.39 Peers 15.04

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

FNSR is trading at a significant 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 10.77 Peers 21.77   FNSR NM Peers 1.09

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.

 

Neutral. 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's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
FNSR 1.95 Peers 3.46   FNSR 581.25 Peers 10.25

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 2.11 Peers 3.07   FNSR 14.73 Peers 11.02

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.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

FNSR has a sales growth rate that significantly exceeds its peers.

 

 

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