OCLR : NASDAQ : Technology
$10.11 | %
Today's Range: 9.52 - 10.28
Avg. Daily Volume: 9100100.0
03/24/17 - 4:00 PM ET

Financial Analysis


OCLARO INC's gross profit margin for the second quarter of its fiscal year 2017 has significantly increased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. OCLARO INC is extremely liquid. Currently, the Quick Ratio is 2.83 which clearly shows the ability to cover any short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 169.91% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)153.9194.13
EBITDA ($mil)38.596.43
EBIT ($mil)33.412.49
Net Income ($mil)30.270.16


Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)243.46115.68
Total Assets ($mil)551.22334.89
Total Debt ($mil)4.065.49
Equity ($mil)408.25151.25


Profitability Q2 FY17 Q2 FY16
Gross Profit Margin42.6932.19
EBITDA Margin25.066.83
Operating Margin21.712.65
Sales Turnover0.941.04
Return on Assets8.26-8.18
Return on Equity11.15-18.12
Debt Q2 FY17 Q2 FY16
Current Ratio3.732.74
Debt/Capital0.010.3
Interest Expense0.01.2
Interest Coverage0.02.08


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)166.49111.05
Div / share0.00.0
EPS0.180.0
Book value / share2.451.36
Institutional Own % n/a n/a
Avg Daily Volume8847338.05243317.0

Valuation


BUY. The current P/E ratio indicates a discount compared to an average of 40.95 for the Communications Equipment industry and a premium compared to the S&P 500 average of 26.73. For additional comparison, its price-to-book ratio of 3.74 indicates a premium versus the S&P 500 average of 2.98 and a premium versus the industry average of 3.48. The current price-to-sales ratio is well above the S&P 500 average, but below the industry average. The valuation analysis reveals that, OCLARO INC seems to be trading 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
OCLR 31.66 Peers 40.95   OCLR 50.20 Peers 17.88

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

OCLR is trading at a discount 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.

OCLR is trading at a significant 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
OCLR 10.93 Peers 19.38   OCLR 0.04 Peers 1.02

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

OCLR 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.

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 3.74 Peers 3.48   OCLR 216.00 Peers 5.89

Average. 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.

OCLR is trading at a valuation on par with 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 2.96 Peers 3.33   OCLR 48.64 Peers 21.45

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.

OCLR is trading at a 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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