XTRA:ADV

Stock Analysis Report

ADVA Optical Networking

Executive Summary

ADVA Optical Networking SE develops, manufactures, and sells optical and Ethernet-based networking solutions to deliver data, storage, voice, and video services worldwide.


Snowflake Analysis

Excellent balance sheet with proven track record.


Similar Companies

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.


Market Performance


7 Day Return

-3.1%

ADV

-2.0%

DE Communications

-0.5%

DE Market


1 Year Return

21.2%

ADV

21.9%

DE Communications

16.6%

DE Market

Return vs Industry: ADV underperformed the German Communications industry which returned 26.5% over the past year.

Return vs Market: ADV exceeded the German Market which returned 17.1% over the past year.


Shareholder returns

ADVIndustryMarket
7 Day-3.1%-2.0%-0.5%
30 Day1.4%0.09%0.8%
90 Day25.7%6.6%6.6%
1 Year21.2%21.2%22.6%21.9%20.2%16.6%
3 Year7.3%7.3%13.6%13.2%17.1%6.8%
5 Year173.2%173.2%106.1%105.7%29.7%11.9%

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

Valuation

Is ADVA Optical Networking undervalued compared to its fair value and its price relative to the market?

50.09x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: ADV (€8.33) is trading above our estimate of fair value (€7.98)

Significantly Below Fair Value: ADV is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: ADV is poor value based on its PE Ratio (51.1x) compared to the Communications industry average (18.1x).

PE vs Market: ADV is poor value based on its PE Ratio (51.1x) compared to the German market (20.6x).


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 (1.6x) compared to the DE Communications industry average (3.1x).


Next Steps

Future Growth

How is ADVA Optical Networking forecast to perform in the next 1 to 3 years based on estimates from 5 analysts?

42.4%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ADV's forecast earnings growth (42.4% per year) is above the savings rate (-0.4%).

Earnings vs Market: ADV's earnings (42.4% per year) are forecast to grow faster than the German market (13.2% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: ADV's revenue (7% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: ADV's revenue (7% 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 (6.6%).


Next Steps

Past Performance

How has ADVA Optical Networking performed over the past 5 years?

-20.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ADV has high quality earnings.

Growing Profit Margin: ADV's current net profit margins (1.5%) are higher than last year (1%).


Past Earnings Growth Analysis

Earnings Trend: ADV's earnings have declined by -20% per year over the past 5 years.

Accelerating Growth: ADV's earnings growth over the past year (60%) exceeds its 5-year average (-20% per year).

Earnings vs Industry: ADV earnings growth over the past year (60%) exceeded the Communications industry 49.1%.


Return on Equity

High ROE: ADV's Return on Equity (3.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is ADVA Optical Networking's financial position?


Financial Position Analysis

Short Term Liabilities: ADV's short term assets (€256.5M) exceed its short term liabilities (€156.3M).

Long Term Liabilities: ADV's short term assets (€256.5M) exceed its long term liabilities (€118.5M).


Debt to Equity History and Analysis

Debt Level: ADV's debt to equity ratio (30.2%) is considered satisfactory.

Reducing Debt: ADV's debt to equity ratio has increased from 19.9% to 30.2% over the past 5 years.

Debt Coverage: ADV's debt is well covered by operating cash flow (83.7%).

Interest Coverage: ADV's interest payments on its debt are well covered by EBIT (8.2x coverage).


Balance Sheet

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).


Next Steps

Dividend

What is ADVA Optical Networking's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.6%industryaverage3.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

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 German market.


Next Steps

Management

What is the CEO of ADVA Optical Networking's salary, the management and board of directors tenure and is there insider trading?

5.0yrs

Average board tenure


CEO

Brian Protiva (55yo)

18.7yrs

Tenure

€642,000

Compensation

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 ($USD714.21K) is about average for companies of similar size in the German market ($USD817.80K).

Compensation vs Earnings: Brian's compensation has increased by more than 20% in the past year.


Board Age and Tenure

5.0yrs

Average Tenure

Experienced Board: ADV's board of directors are considered experienced (5 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Ownership Breakdown

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


Management Team

  • Brian Protiva (55yo)

    Co-Founder

    • Tenure: 18.7yrs
    • Compensation: €642.00k
  • Scott St. John (50yo)

    Chief Marketing & Sales Officer and Member of Management Board

    • Compensation: €625.00k
  • Christoph Glingener (51yo)

    Chief Technology Officer

    • Compensation: €417.00k
  • Stephan Rettenberger

    Senior Vice President of Marketing & Investor Relations

    • Ulrich Dopfer (46yo)

      President

      • Tenure: 5yrs
      • Compensation: €415.00k

    Board Members

    • Johanna Hey (49yo)

      Vice Chairwoman of Supervisory Board

      • Tenure: 6.6yrs
      • Compensation: €90.00k
    • Nikos Theodosopoulos (56yo)

      Chairman of Supervisory Board

      • Tenure: 5yrs
      • Compensation: €100.00k
    • Michael Aquino

      Member of the Supervisory Board

      • Tenure: 1.6yrs
      • Compensation: €25.00k

    Company Information

    ADVA Optical Networking SE's company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: ADVA Optical Networking SE
    • Ticker: ADV
    • Exchange: XTRA
    • Founded: 1994
    • Industry: Communications Equipment
    • Sector: Tech
    • Market Cap: €409.849m
    • Shares outstanding: 50.17m
    • Website: https://www.adva.com

    Number of Employees


    Location

    • ADVA Optical Networking SE
    • Campus Martinsried
    • Fraunhoferstrasse 9a
    • Munich
    • Bavaria
    • 82152
    • Germany

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    ADVO.FOTCPK (Pink Sheets LLC)YesBearer SharesUSUSDMar 1999
    ADVDB (Deutsche Boerse AG)YesBearer SharesDEEURMar 1999
    ADVXTRA (XETRA Trading Platform)YesBearer SharesDEEURMar 1999
    0NOLLSE (London Stock Exchange)YesBearer SharesGBEURMar 1999
    ADVDBATS-CHIXE (BATS 'Chi-X Europe')YesBearer SharesGBEURMar 1999
    ADVSWX (SIX Swiss Exchange)YesBearer SharesCHCHFMar 1999
    ADVWBAG (Wiener Boerse AG)YesBearer SharesATEURMar 1999
    ADVETLX (Eurotlx)YesBearer SharesITEURMar 1999

    Biography

    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 scalable optical transport solutions, such as FSP 3000 AgileConnect, FSP 3000 CloudConnect, and FSP 3000 AccessConnect; 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, controllers, and orchestrators, 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 connectors; timing and synchronization products; network infrastructure assurance products; and automated network management products, such as ensemble optical and sync director, and FSP network manager, 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

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/16 20:55
    End of Day Share Price2020/01/16 00:00
    Earnings2019/09/30
    Annual Earnings2018/12/31


    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.