OCLR : NASDAQ : Technology
$7.38 -0.04 | -0.47%
Today's Range: 7.28 - 7.54
Avg. Daily Volume: 2,910,200
08/25/16 - 3:07 PM ET

Financial Analysis


OCLARO INC's gross profit margin for the fourth quarter of its fiscal year 2016 has significantly increased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. OCLARO INC has strong liquidity. Currently, the Quick Ratio is 1.73 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 8.89% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)125.1982.19
EBITDA ($mil)17.41-4.09
EBIT ($mil)12.86-8.58
Net Income ($mil)11.84-13.87


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)96.64115.12
Total Assets ($mil)359.05325.88
Total Debt ($mil)67.9265.99
Equity ($mil)166.61153.0


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin35.5424.47
EBITDA Margin13.91-4.97
Operating Margin10.27-10.44
Sales Turnover1.141.05
Return on Assets2.38-17.39
Return on Equity5.14-31.52
Debt Q4 FY16 Q4 FY15
Current Ratio2.643.02
Debt/Capital0.290.3
Interest Expense1.261.26
Interest Coverage10.21-6.81


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)112.1109.89
Div / share0.00.0
EPS0.09-0.13
Book value / share1.491.39
Institutional Own % n/a n/a
Avg Daily Volume2885710.03181565.0

Valuation


BUY. OCLARO INC's P/E ratio indicates a significant premium compared to an average of 28.38 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 25.30. For additional comparison, its price-to-book ratio of 4.90 indicates a significant premium versus the S&P 500 average of 2.83 and a significant premium versus the industry average of 3.25. The price-to-sales ratio is similar to the S&P 500 average, but it is significantly below the industry average, indicating a discount. After reviewing these and other key valuation criteria, OCLARO INC proves to trade at a premium 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
OCLR 121.33 Peers 28.38   OCLR NA Peers 12.15

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

OCLR is trading at a significant premium to its peers.

 

Neutral. The P/CF ratio is the stock’s price divided by the sum of the company's cash flow from operations. It is useful for comparing companies with different capital requirements or financing structures.

Ratio not available.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
OCLR 15.17 Peers 19.40   OCLR 0.32 Peers 1.02

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

OCLR 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.

OCLR 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
OCLR 4.90 Peers 3.25   OCLR 113.33 Peers 19.97

Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

OCLR is trading at a significant premium to its peers.

 

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

OCLR 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
OCLR 2.00 Peers 3.18   OCLR 19.52 Peers 12.20

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.

OCLR 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.

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

 

 

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