Finisar Corporation provides components and subsystems to networking equipment manufacturers, data center operators, telecom service providers, consumer electronics, and automotive companies in the United States, China, Malaysia, and internationally.
The last earnings update was 50 days ago.
Discounted Cash Flow Calculation for DB:FISN 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:FISN DCF 1st Stage: Next 10 year cash flow forecast
The current share price of
is above its future cash flow value.
Often investors are willing to pay a
for a company that has a high dividend or the potential for future growth.
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
Finisar's earnings available for a low price, and how does
this compare to other companies in the same industry?
Finisar's earnings are expected to grow significantly at over 20% yearly.
Finisar's revenue is expected to grow by 8.4% 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.
Finisar'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
0/6, see the detailed checks below.
Note: We use GAAP Net Income excluding extraordinary items in all our calculations.
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
Mr. Michael E. Hurlston is the Chief Executive Officer and a Director of Finisar Corporation since January 11, 2018. Mr. Hurlston has industry, marketing, sales and management experience. Mr. Hurlston served as a Senior Vice President and General Manager of the Mobile Connectivity Products/Wireless Communications and Connectivity Division at Broadcom Limited until October 20, 2017. Mr. Hurlston was responsible for Broadcom’s mobility products. He held senior leadership positions in sales, marketing and general management at Broadcom Limited from November 2001 until October 2017. He joined Broadcom in 2001. Mr. Hurlston held senior marketing and engineering positions at Oren Semiconductor, Inc., Avasem, Integrated Circuit Systems, Micro Power Systems, Exar and IC Works from 1991 until 2001. He served as an Executive Vice President of Worldwide Sales at Broadcom Corporation from April 1, 2013 to February 1, 2016. Mr. Hurlston served as Senior Vice President and General Manager of Wireless Connectivity Combo at Broadcom Corp. from April 2012 to April 1, 2013. Mr. Hurlston joined Broadcom in October 2001 as the Director of Wireless Business Development and was appointed as Vice President and General Manager, Wireless LAN in May 2005 and was promoted to Senior Vice President in April 2010. He served as Director of Sales at Oren Semiconductor, Inc. He served in senior marketing positions at Radia Communications. He has been a Director of Ubiquiti Networks, Inc. since August 04, 2016. He is a member of the board of advisors of Vilynx Inc. Mr. Hurlston received a B.S.E.E., an M.S.E.E. and an M.B.A. from the University of California, Davis.
Insufficient data for Michael to compare compensation growth.
Michael'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 average tenure for the Finisar management team is over 5 years, this suggests they are a seasoned and experienced team.
CEO & Director
Co-Founder & Director
CFO, Principal Accounting Officer & Executive VP of Finance
Executive Vice President of Global Operations
Chief Operating Officer
Executive Vice President of Datacom R&D
Chief Technical Officer
Director of Corporate Communications
Senior Vice President of Worldwide Sales
Board of Directors Tenure
Average tenure and age of the
board of directors in years:
The tenure for the Finisar board of directors is about average.
Finisar Corporation provides components and subsystems to networking equipment manufacturers, data center operators, telecom service providers, consumer electronics, and automotive companies in the United States, China, Malaysia, and internationally. The company’s optical subsystems primarily include transmitters, receivers, transceivers, transponders, and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in wireline networks comprising switches, routers, and servers, as well as wireless networks, such as antennas and base stations. It also offers wavelength selective switches that are used to switch network traffic from one optical fiber to various other fibers without converting to an electronic signal. In addition, the company provides packaged laser, receivers, and photodetectors for data communication and telecommunication applications; and passive optical components for telecommunication applications. It markets its products through direct sales force, as well as distributors, manufacturers’ representatives and resellers, and system integrators; and to the manufacturers of storage systems and telecommunication equipment, as well as to their contract manufacturers. Finisar Corporation was founded in 1987 and is headquartered in Sunnyvale, California.
Simply Wall Street Pty Ltd (ACN 600 056 611), is a Corporate Authorised Representative (Authorised Representative Number: 467183) of Sanlam Private Wealth Pty Ltd (AFSL No. 337927). Any advice contained in this website is general advice only and has been prepared without considering your objectives, financial situation or needs. You should not rely on any advice and/or information contained in this website and before making any investment decision we recommend that you consider whether it is appropriate for your situation and seek appropriate financial, taxation and legal advice. Please read our Financial Services Guide before deciding whether to obtain financial services from us.