TSX:EXF

Stock Analysis Report

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Executive Summary

EXFO Inc. provides test, monitoring and analytics solutions for fixed and mobile communications service providers, web-scale operators, and network equipment. More Details


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

How has EXFO's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: EXF's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-2.7%

EXF

1.2%

CA Communications

1.0%

CA Market


1 Year Return

-16.7%

EXF

-6.2%

CA Communications

-5.7%

CA Market

Return vs Industry: EXF underperformed the Canadian Communications industry which returned -5% over the past year.

Return vs Market: EXF underperformed the Canadian Market which returned -8% over the past year.


Shareholder returns

EXFIndustryMarket
7 Day-2.7%1.2%1.0%
30 Day-10.9%-3.8%-2.6%
90 Day11.3%9.0%5.5%
1 Year-16.7%-16.7%-4.2%-6.2%-2.4%-5.7%
3 Year-13.4%-13.4%-14.1%-20.2%7.3%-3.0%
5 Year8.3%8.3%3.0%-9.3%37.4%16.3%

Price Volatility Vs. Market

How volatile is EXFO's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is EXFO undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: EXF (CA$4.39) is trading below our estimate of fair value (CA$30.11)

Significantly Below Fair Value: EXF is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: EXF is unprofitable, so we can't compare its PE Ratio to the CA Communications industry average.

PE vs Market: EXF is unprofitable, so we can't compare its PE Ratio to the Canadian market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate EXF's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: EXF is good value based on its PB Ratio (1.1x) compared to the CA Communications industry average (1.4x).


Next Steps

Future Growth

How is EXFO forecast to perform in the next 1 to 3 years based on estimates from 6 analysts?

123.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EXF is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: EXF is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: EXF's is expected to become profitable in the next 3 years.

Revenue vs Market: EXF's revenue (9.8% per year) is forecast to grow faster than the Canadian market (5.2% per year).

High Growth Revenue: EXF's revenue (9.8% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if EXF's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has EXFO performed over the past 5 years?

-52.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EXF is currently unprofitable.

Growing Profit Margin: EXF is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EXF is unprofitable, and losses have increased over the past 5 years at a rate of 52.3% per year.

Accelerating Growth: Unable to compare EXF's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: EXF is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-24%).


Return on Equity

High ROE: EXF has a negative Return on Equity (-3.76%), as it is currently unprofitable.


Next Steps

Financial Health

How is EXFO's financial position?


Financial Position Analysis

Short Term Liabilities: EXF's short term assets ($138.8M) exceed its short term liabilities ($107.2M).

Long Term Liabilities: EXF's short term assets ($138.8M) exceed its long term liabilities ($23.4M).


Debt to Equity History and Analysis

Debt Level: EXF's debt to equity ratio (23.3%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if EXF's debt to equity ratio has reduced over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: EXF has sufficient cash runway for more than a year based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if EXF has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is EXFO current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

Notable Dividend: Unable to evaluate EXF's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate EXF's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if EXF's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if EXF'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 EXF's dividend in 3 years as they are not forecast to pay a notable one for the Canadian market.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

2.2yrs

Average management tenure


CEO

Philippe Morin (54 yo)

3.42yrs

Tenure

US$806,998

Compensation

Mr. Philippe Morin has been the Chief Executive Officer at EXFO Inc since April 1, 2017 and served as its Chief Operating Officer since November 9, 2015 until April 1,2017. Mr. Morin served as Senior Vice ...


CEO Compensation Analysis

Compensation vs Market: Philippe's total compensation ($USD807.00K) is about average for companies of similar size in the Canadian market ($USD687.70K).

Compensation vs Earnings: Philippe's compensation has increased whilst the company is unprofitable.


Leadership Team

NamePositionTenureCompensationOwnership
Germain Lamonde
Founder & Executive Chairman20.67yrsUS$541.15k4.27%
$ 10.3m
Philippe Morin
CEO & Director3.42yrsUS$807.00k1.24%
$ 3.0m
Pierre Plamondon
CFO & VP of Finance24.67yrsUS$449.68k0.20%
$ 487.1k
Gabriel Duford
Chief Technology Officer0.25yrno datano data
Jean-Luc Labarre
Chief Information Officer0.083yrno data0.0086%
$ 20.6k
Vance Oliver
Director of Investor Relationsno datano datano data
Benoit Ringuette
General Counsel & Corporate Secretary16.42yrsno data0.0020%
$ 4.8k
Louis Adam
Chief Marketing Officer0.083yrno datano data
Suzanne Daneau
Vice President of Human Resources0.92yrno datano data
Stephen Bull
Vice President of Research & Development20.75yrsUS$364.79k0.087%
$ 209.8k

2.2yrs

Average Tenure

61yo

Average Age

Experienced Management: EXF's management team is considered experienced (2.2 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Germain Lamonde
Founder & Executive Chairman20.67yrsUS$541.15k4.27%
$ 10.3m
Philippe Morin
CEO & Director3.42yrsUS$807.00k1.24%
$ 3.0m
Claude Séguin
Independent Director7.5yrsUS$65.30k0.0090%
$ 21.7k
François Côté
Independent Lead Director4.67yrsUS$69.07k0.012%
$ 28.1k
Randy Tornes
Independent Director7.5yrsUS$79.00kno data
Angela Logothetis
Independent Director3.67yrsUS$79.00kno data

6.1yrs

Average Tenure

62yo

Average Age

Experienced Board: EXF's board of directors are considered experienced (6.1 years average tenure).


Ownership

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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

Company Information

EXFO Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EXFO Inc.
  • Ticker: EXF
  • Exchange: TSX
  • Founded: 1985
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: CA$241.173m
  • Shares outstanding: 55.70m
  • Website: https://www.exfo.com

Number of Employees


Location

  • EXFO Inc.
  • 400 Godin Avenue
  • Quebec City
  • Quebec
  • G1M 2K2
  • Canada

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EXFONasdaqGS (Nasdaq Global Select)YesSubordinate Voting SharesUSUSDJun 2000
EXFTSX (The Toronto Stock Exchange)YesSubordinate Voting SharesCACADJun 2000
EEZDB (Deutsche Boerse AG)YesSubordinate Voting SharesDEEURJun 2000

Biography

EXFO Inc. provides test, monitoring and analytics solutions for fixed and mobile communications service providers, web-scale operators, and network equipment. It offers field network testing products, such ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/29 00:28
End of Day Share Price2020/09/28 00:00
Earnings2020/05/31
Annual Earnings2019/08/31


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.