DB:ER2N

Stock Analysis Report

Executive Summary

EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in the United States, Canada, Asia, Europe, and internationally.


Snowflake Analysis

Fair value with mediocre balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: ER2N has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

2.6%

ER2N

-13.8%

DE Communications

-5.7%

DE Market


1 Year Return

-11.6%

ER2N

-12.1%

DE Communications

6.1%

DE Market

Return vs Industry: ER2N matched the German Communications industry which returned -12.1% over the past year.

Return vs Market: ER2N underperformed the German Market which returned 6.1% over the past year.


Shareholder returns

ER2NIndustryMarket
7 Day2.6%-13.8%-5.7%
30 Day3.2%-13.6%-5.7%
90 Day11.9%-17.7%-3.6%
1 Year-11.6%-11.6%-11.6%-12.1%9.3%6.1%
3 Year-63.2%-63.2%-18.7%-18.9%8.9%-0.7%
5 Year-12.8%-33.5%72.4%72.1%13.6%-2.0%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

Is EMCORE 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: ER2N (€3.2) is trading below our estimate of fair value (€8.75)

Significantly Below Fair Value: ER2N is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: ER2N is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: ER2N is unprofitable, so we can't compare its PE Ratio to the German market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate ER2N's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: ER2N is good value based on its PB Ratio (1.3x) compared to the DE Communications industry average (3x).


Next Steps

Future Growth

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

103.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: ER2N is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: ER2N is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: ER2N is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: ER2N's revenue (16.5% per year) is forecast to grow faster than the German market (5.1% per year).

High Growth Revenue: ER2N's revenue (16.5% 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 ER2N's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has EMCORE performed over the past 5 years?

-69.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: ER2N is currently unprofitable.

Growing Profit Margin: ER2N is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: ER2N is unprofitable, and losses have increased over the past 5 years at a rate of -69.4% per year.

Accelerating Growth: Unable to compare ER2N's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: ER2N is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (31.6%).


Return on Equity

High ROE: ER2N has a negative Return on Equity (-41.75%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is EMCORE's financial position?


Financial Position Analysis

Short Term Liabilities: ER2N's short term assets ($68.0M) exceed its short term liabilities ($25.0M).

Long Term Liabilities: ER2N's short term assets ($68.0M) exceed its long term liabilities ($5.9M).


Debt to Equity History and Analysis

Debt Level: ER2N's debt to equity ratio (5.9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if ER2N's debt to equity ratio has reduced over the past 5 years.


Balance Sheet

Inventory Level: ER2N has a high level of physical assets or inventory.

Debt Coverage by Assets: ER2N's debt is covered by short term assets (assets are 15.3x debt).


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: ER2N has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if ER2N has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

What is EMCORE's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.8%industryaverage2.0%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate ER2N's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate ER2N'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 ER2N's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if ER2N'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 ER2N's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

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

2.8yrs

Average management tenure


CEO

Jeff Rittichier (59yo)

5.1yrs

Tenure

US$1,390,711

Compensation

Mr. Jeffrey S. Rittichier, also known as Jeff, has been the Chief Executive Officer of EMCORE Corporation since January 3, 2015 and serves as its President. Mr. Rittichier has an extensive record of accomp ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD1.39M) is above average for companies of similar size in the German market ($USD415.76K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Rittichier
CEO, President & Director5.1yrsUS$1.39m0.83% $773.1k
Iain Black
Senior Vice President of Operations1.8yrsUS$445.94k0.026% $24.5k
Albert Lu
Senior Vice President of Engineering2.9yrsUS$466.12k0.072% $67.2k
Thomas Minichiello
Chief Financial Officer0.5yrsno datano data
Mark Gordon
Director of Accounting1.1yrsno datano data
Hank Blauvelt
Chief Technology Officer5.1yrsno datano data
Ryan Hochgesang
VP, General Counsel & Secretary0yrsno datano data
David Wojciechowski
Vice President of Sales4.8yrsUS$440.32kno data
Gyo Shinozaki
Vice President of Marketing0yrsno datano data
Marc Cavagnolo
Vice President of Corporate Development2.8yrsno datano data

2.8yrs

Average Tenure

56yo

Average Age

Experienced Management: ER2N's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Rittichier
CEO, President & Director5.1yrsUS$1.39m0.83% $773.1k
Stephen Domenik
Independent Chairman of the Board0.08yrsUS$111.98k0.14% $131.0k
Rex Jackson
Independent Director4.2yrsUS$123.48k0.079% $73.9k
Noel Heiks
Independent Director0.4yrsUS$34.08kno data
Bruce Grooms
Independent Director0.7yrsUS$57.98kno data

0.7yrs

Average Tenure

59yo

Average Age

Experienced Board: ER2N's board of directors are not considered experienced ( 0.7 years average tenure), which suggests a new board.


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: ER2N insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3.3%.


Top Shareholders

Company Information

EMCORE Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: EMCORE Corporation
  • Ticker: ER2N
  • Exchange: DB
  • Founded: 1984
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$101.776m
  • Listing Market Cap: US$93.552m
  • Shares outstanding: 29.08m
  • Website: https://www.emcore.com

Number of Employees


Location

  • EMCORE Corporation
  • 2015 West Chestnut Street
  • Alhambra
  • California
  • 91803
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMKRNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMar 1997
ER2NDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1997

Biography

EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in the United States, Canada, Asia, Europe, and internationally. The company offers cable television (CATV) products, including forward and return-path analog lasers, receivers, photodetectors, and subassembly components; and analog and digital fiber-optic transmitters, quadrature amplitude modulation transmitters, optical switches, and CATV fiber amplifiers for the CATV, satellite communications, and wireless markets. It also provides high-power gain chips products, photodiode products, and GPON fiber-to-the-premises (FTTP) and data center chip products for the telecommunications, FTTP, long-term evolution, and data center markets. In addition, the company offers navigation systems products, such as fiber optic gyroscope, quartz MEMS gyroscope, and inertial measurement unit and navigation system primarily for the aerospace and defense markets. It sells its products through direct sales force, application engineers, third party sales representatives, and distributors. EMCORE Corporation was founded in 1984 and is headquartered in Alhambra, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/25 20:52
End of Day Share Price2020/02/25 00:00
Earnings2019/12/31
Annual Earnings2019/09/30


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.