Quantenna Communications, Inc. designs, develops, and markets wireless communication solutions enabling wireless local area networking in the Asia-Pacific, Europe, the Middle East, Africa, and the Americas.
The last earnings update was 51 days ago.
Discounted Cash Flow Calculation for DB:419 using 2 Stage Free Cash Flow to Equity Model
The calculations below outline how an intrinsic value for
is arrived at by discounting future cash flows to their present value using the 2 stage method.
We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.
DB:419 DCF 1st Stage: Next 10 year cash flow forecast
Amount off the current price
is available for.
Share price is
vs Future cash flow value of
Current Discount Checks
to be considered undervalued it must be available for at least 20% below the
current price. Less than 40% is even better.
Quantenna Communications's share price is below the future cash flow value, and at a moderate discount (> 20%).
Quantenna Communications's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for
it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing
when they are out of season, or how much your home is worth.
The amount the stock market is willing to pay for
is considered below, and whether this is a fair price.
Price based on past earnings
Quantenna Communications's earnings available for a low price, and how does
this compare to other companies in the same industry?
Quantenna Communications's earnings are expected to grow significantly at over 20% yearly.
Quantenna Communications's revenue is expected to grow by 14% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can
be gauged below. We look back 3 years and see if they were any good at
predicting what actually occurred. We also show the highest and lowest estimates
looking forward to see if there is a wide range.
Quantenna Communications's performance over the past 5 years by checking for:
Has earnings increased in past 5 years? (1 check)
Has the earnings growth in the last year exceeded that of the
industry? (1 check)
Is the recent earnings growth over the last year higher than the average annual growth over the
past 5 years? (1 check)
Is the Return on Equity (ROE) higher than 20%? (1 check)
Is the Return on Assets (ROA) above industry average? (1 check)
Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent
earnings report. Some checks require at least 3 or 5 years worth of data.
has a total score of
2/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
A company's financial position is much like your own financial position,
it includes everything you own
The boxes below represent the relative size of what makes up
Quantenna Communications's finances.
The net worth of a company is the difference between its assets and liabilities.
Quantenna Communications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
Quantenna Communications's cash and other short term assets cover its long term commitments.
This treemap shows a more detailed breakdown of
Quantenna Communications's finances. If any of them are yellow this
indicates they may be out of proportion and red means they relate to one of the
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
Low level of unsold assets.
Quantenna Communications has no debt, it does not need to be covered by short term assets.
Nearly all companies have debt. Debt in itself isn’t
however if the debt is too high, or the company can’t afford to pay the interest
on its debts this may have impacts in the future.
The graphic below shows equity (available funds) and debt, we ideally want to
see the red area (debt) decreasing.
If there is any debt we look at the companies capability to repay it, and
whether the level has increased over the past 5 years.
Management is one of the most important areas of a company. We look at
unreasonable CEO compensation, how long the team and board of directors have
been around for and insider trading.
TENURE AS CEO
Dr. Sam Heidari Ph.D. has been the Chairman of the Board of Quantenna Communications, Inc. since June 2016 and has been its Chief Executive Officer since March 2011. Dr. Heidari served as Interim Chief Executive Officer and Vice President of Research and Development of Quantenna Communications, Inc. from July 2009 to February 2011. Dr. Heidari served as Vice President of Systems and Software Engineering at Quantenna Communications, Inc. Prior to Quantenna, Dr. Heidari served as the Chief Technology Officer and a Vice President of Ikanos Communications, Inc., from August 2006 to July 2009 where he previously held many management positions, including the Vice President of Engineering. Dr. Heidari joined Ikanos Communications via acquisition of Doradus Technologies, Inc., where he served as the President and Chief Executive Officer. Prior to Doradus Technologies, he held senior management and technical positions in the areas of xDSL, cellular and satellite communications at Sony Electronics, Linkabit Wireless and Torrey Communications. He serves as Chairman of SiTune Corporation. He serves on the advisory board for the Department of Electrical Engineering at the University of Southern California. Dr. Heidari is a major Contributor in the IEEE, ITU-T, TTC and TIA-TR standard organizations. He is a Senior Member of IEEE. Dr. Heidari has authored and published over a dozen refereed journals and conference papers. He holds 20 U.S. patents and has over 10 patents pending. He has been an Executive Director at Quantenna Communications, Inc. since March 2011. Dr. Heidari earned his M.S. and Ph.D. degrees from University of Southern California and a B.S. degree from Northeastern University, all in Electrical Engineering.
Sam's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
Sam's remuneration is higher than average for companies of similar size in Germany.
Management Team Tenure
Average tenure and age of the
management team in years:
The tenure for the Quantenna Communications management team is about average.
Chairman of the Board & CEO
Chief Financial Officer
Senior Vice President of Worldwide Sales
Senior Vice President of Operations & Quality
Director of Investor Relations
Acting VP of Human Resources
Senior Vice President of Silicon & Systems Engineering
Senior Vice President of Product & Program Management
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The average tenure for the Quantenna Communications board of directors is less than 3 years, this suggests a new board.
Quantenna Communications, Inc. designs, develops, and markets wireless communication solutions enabling wireless local area networking in the Asia-Pacific, Europe, the Middle East, Africa, and the Americas. Its solutions portfolio comprises radio frequency chips and digital baseband chips, which support the IEEE Wi-Fi standards, including 802.11n, 802.11ac, and the draft Wi-Fi 6 standard. Quantenna Communications, Inc. offers its products for home networking applications, including home gateways, repeaters, and set-top boxes, as well as retail, outdoor, small and medium business, enterprise, industrial, and consumer electronics applications. The company sells its Wi-Fi solutions directly to original equipment manufacturers and original design manufacturers; and third-party distributors. Quantenna Communications, Inc. was founded in 2005 and is headquartered in San Jose, California.
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