ADVA Optical Networking SE develops, manufactures, and sells optical and Ethernet-based networking solutions to deliver data, storage, voice, and video services worldwide.
Excellent balance sheet with reasonable growth potential.
Share Price & News
How has ADVA Optical Networking's share price performed over time and what events caused price changes?
Latest Share Price and Events
Stable Share Price: ADV's share price has been volatile over the past 3 months.
7 Day Return
1 Year Return
Return vs Industry: ADV underperformed the Austrian Communications industry which returned -26.7% over the past year.
Return vs Market: ADV underperformed the Austrian Market which returned -28.3% over the past year.
Price Volatility Vs. Market
How volatile is ADVA Optical Networking's share price compared to the market and industry in the last 5 years?
Simply Wall St News
No news available
Is ADVA Optical Networking undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: ADV (€5.17) is trading below our estimate of fair value (€7.03)
Significantly Below Fair Value: ADV is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: ADV is poor value based on its PE Ratio (36.5x) compared to the Communications industry average (15.3x).
PE vs Market: ADV is poor value based on its PE Ratio (36.5x) compared to the Austrian market (11.7x).
Price to Earnings Growth Ratio
PEG Ratio: ADV is poor value based on its PEG Ratio (1.2x)
Price to Book Ratio
PB vs Industry: ADV is good value based on its PB Ratio (1x) compared to the XE Communications industry average (1.3x).
How is ADVA Optical Networking forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: ADV's forecast earnings growth (30.4% per year) is above the savings rate (-0.1%).
Earnings vs Market: ADV's earnings (30.4% per year) are forecast to grow faster than the Austrian market (11.3% per year).
High Growth Earnings: earnings are expected to grow significantly over the next 3 years.
Revenue vs Market: ADV's revenue (6.4% per year) is forecast to grow faster than the Austrian market (2% per year).
High Growth Revenue: ADV's revenue (6.4% per year) is forecast to grow slower than 20% per year.
Earnings per Share Growth Forecasts
Future Return on Equity
Future ROE: ADV's Return on Equity is forecast to be low in 3 years time (7%).
How has ADVA Optical Networking performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: ADV has a large one-off loss of €7.0M impacting its December 31 2019 financial results.
Growing Profit Margin: ADV's current net profit margins (1.3%) are lower than last year (1.9%).
Past Earnings Growth Analysis
Earnings Trend: ADV's earnings have declined by -22.3% per year over the past 5 years.
Accelerating Growth: ADV's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.
Earnings vs Industry: ADV had negative earnings growth (-27.2%) over the past year, making it difficult to compare to the Communications industry average (21.9%).
Return on Equity
High ROE: ADV's Return on Equity (2.8%) is considered low.
How is ADVA Optical Networking's financial position?
Financial Position Analysis
Short Term Liabilities: ADV's short term assets (€269.2M) exceed its short term liabilities (€159.1M).
Long Term Liabilities: ADV's short term assets (€269.2M) exceed its long term liabilities (€121.4M).
Debt to Equity History and Analysis
Debt Level: ADV's debt to equity ratio (31.7%) is considered satisfactory.
Reducing Debt: ADV's debt to equity ratio has increased from 17.1% to 31.7% over the past 5 years.
Debt Coverage: ADV's debt is well covered by operating cash flow (82.6%).
Interest Coverage: ADV's interest payments on its debt are well covered by EBIT (7.7x coverage).
Inventory Level: ADV has a high level of physical assets or inventory.
Debt Coverage by Assets: ADV's debt is covered by short term assets (assets are 3.3x debt).
What is ADVA Optical Networking's current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate ADV's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.
High Dividend: Unable to evaluate ADV's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if ADV's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if ADV's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of ADV's dividend in 3 years as they are not forecast to pay a notable one for the Austrian market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Brian Protiva (55yo)
Mr. Brian L. Protiva co-founded ADVA Optical Networking, Inc. (ADVA) in 1994 and has been Chief Executive Officer since 2001. Mr. Protiva is the Co-Founder of ADVA AG Optical Networking. Mr. Protiva serves ...
CEO Compensation Analysis
Compensation vs Market: Brian's total compensation ($USD518.90K) is below average for companies of similar size in the Austrian market ($USD905.98K).
Compensation vs Earnings: Brian's compensation has been consistent with company performance over the past year.
|Chief Technology Officer||13.17yrs||€413.00k||no data|
|Chief Marketing & Sales Officer and Member of Management Board||no data||€415.00k||no data|
|Senior Vice President of Marketing & Investor Relations||no data||no data||no data|
Experienced Management: ADV's management team is seasoned and experienced (13.2 years average tenure).
|Vice Chairwoman of Supervisory Board||6.75yrs||€90.00k||no data|
|Chairman of Supervisory Board||5.17yrs||€100.00k||no data|
|Member of the Supervisory Board||1.75yrs||€45.00k||no data|
Experienced Board: ADV's board of directors are considered experienced (5.2 years average tenure).
Who are the major shareholders and have insiders been buying or selling?
Insider Trading Volume
Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
ADVA Optical Networking SE's company bio, employee growth, exchange listings and data sources
- Name: ADVA Optical Networking SE
- Ticker: ADV
- Exchange: WBAG
- Founded: 1994
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: €257.849m
- Shares outstanding: 50.17m
- Website: https://www.adva.com
Number of Employees
- ADVA Optical Networking SE
- Campus Martinsried
- Fraunhoferstrasse 9a
|Ticker||Exchange||Primary Security||Security Type||Country||Currency||Listed on|
|ADVO.F||OTCPK (Pink Sheets LLC)||Yes||Bearer Shares||US||USD||Mar 1999|
|ADV||DB (Deutsche Boerse AG)||Yes||Bearer Shares||DE||EUR||Mar 1999|
|ADV||XTRA (XETRA Trading Platform)||Yes||Bearer Shares||DE||EUR||Mar 1999|
|0NOL||LSE (London Stock Exchange)||Yes||Bearer Shares||GB||EUR||Mar 1999|
|ADVD||BATS-CHIXE (BATS 'Chi-X Europe')||Yes||Bearer Shares||GB||EUR||Mar 1999|
|ADV||SWX (SIX Swiss Exchange)||Yes||Bearer Shares||CH||CHF||Mar 1999|
|ADV||WBAG (Wiener Boerse AG)||Yes||Bearer Shares||AT||EUR||Mar 1999|
|ADV||ETLX (Eurotlx)||Yes||Bearer Shares||IT||EUR||Mar 1999|
ADVA Optical Networking SE develops, manufactures, and sells optical and Ethernet-based networking solutions to deliver data, storage, voice, and video services worldwide. It offers open optical transport solutions, such as FSP 3000 open terminals, FSP 3000 open line systems, pluggables and subsystems, and optical access solutions; packet edge and aggregation products, including carrier Ethernet and programmable multilayer edge, metro aggregation, and edge computing products; and network virtualization products comprising ensemble connectors, orchestrators, and harmony ecosystems, as well as operates ensemble virtualization director, a management platform for the creation and deployment of virtualized services. The company also provides disaggregated networking, such as packet optical terminals and ensemble activators; timing and synchronization products; network infrastructure assurance products; and automated network management products, such as ensemble optical and sync director, and ensemble controllers, as well as a Pro-Vision orchestration and service management platform. In addition, it provides professional services to plan, operate, and maintain the networks. The company sells its products to telecommunications service providers, private companies, universities, and government agencies directly, as well as through a network of distribution partners. The company was founded in 1994 and is headquartered in Munich, Germany.
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2020/03/27 23:16|
|End of Day Share Price||2020/03/27 00:00|
Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.