DB:IX6

Stock Analysis Report

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Executive Summary

Infinera Corporation provides optical transport networking equipment, software, and services worldwide. More Details


Snowflake Analysis

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: IX6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.1%

IX6

-1.9%

DE Communications

-7.3%

DE Market


1 Year Return

7.1%

IX6

-0.06%

DE Communications

-7.7%

DE Market

Return vs Industry: IX6 exceeded the German Communications industry which returned -1.3% over the past year.

Return vs Market: IX6 exceeded the German Market which returned -6.6% over the past year.


Shareholder returns

IX6IndustryMarket
7 Day-4.1%-1.9%-7.3%
30 Day2.8%-3.3%-7.7%
90 Day-21.8%-9.5%-4.5%
1 Year7.1%7.1%0.3%-0.06%-4.8%-7.7%
3 Year-20.0%-20.0%26.7%25.5%-9.2%-17.2%
5 Year-72.8%-72.8%-17.5%-17.6%11.4%-4.5%

Price Volatility Vs. Market

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


Simply Wall St News

No news available

Valuation

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

28.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IX6 (€5.29) is trading below our estimate of fair value (€7.44)

Significantly Below Fair Value: IX6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: IX6 is unprofitable, so we can't compare its PE Ratio to the XE Communications industry average.

PE vs Market: IX6 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 IX6's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: IX6 is overvalued based on its PB Ratio (3.7x) compared to the DE Communications industry average (2.8x).


Next Steps

Future Growth

How is Infinera forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

65.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IX6 is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: IX6 is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: IX6 is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: IX6's revenue (8.1% per year) is forecast to grow faster than the German market (5.9% per year).

High Growth Revenue: IX6's revenue (8.1% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IX6's Return on Equity is forecast to be low in 3 years time (15.2%).


Next Steps

Past Performance

How has Infinera performed over the past 5 years?

-56.8%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IX6 is currently unprofitable.

Growing Profit Margin: IX6 is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IX6 is unprofitable, and losses have increased over the past 5 years at a rate of 56.8% per year.

Accelerating Growth: Unable to compare IX6's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: IX6 is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (6.1%).


Return on Equity

High ROE: IX6 has a negative Return on Equity (-94.67%), as it is currently unprofitable.


Next Steps

Financial Health

How is Infinera's financial position?


Financial Position Analysis

Short Term Liabilities: IX6's short term assets ($952.4M) exceed its short term liabilities ($562.1M).

Long Term Liabilities: IX6's short term assets ($952.4M) exceed its long term liabilities ($704.0M).


Debt to Equity History and Analysis

Debt Level: IX6's debt to equity ratio (162.6%) is considered high.

Reducing Debt: IX6's debt to equity ratio has increased from 22.2% to 162.6% 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: IX6 has less than a year of cash runway based on its current free cash flow.

Forecast Cash Runway: Insufficient data to determine if IX6 has enough cash runway if its free cash flow continues to grow or shrink based on historical rates.


Next Steps

Dividend

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


Dividend Yield vs Market

Notable Dividend: Unable to evaluate IX6's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.

High Dividend: Unable to evaluate IX6'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 IX6's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if IX6'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 IX6'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?

1.8yrs

Average management tenure


CEO

Tom Fallon (58 yo)

10.75yrs

Tenure

US$2,962,093

Compensation

Mr. Thomas J. Fallon, also known as Tom, has been the Chief Executive Officer of Infinera Corporation since January 1, 2010 and served as its President from January 1, 2010 to June 19, 2013. He serves as M ...


CEO Compensation Analysis

Compensation vs Market: Tom's total compensation ($USD2.96M) is above average for companies of similar size in the German market ($USD1.53M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Fallon
CEO & Director10.75yrsUS$2.96m0.85%
$ 8.9m
Nancy Erba
Chief Financial Officer1.17yrsUS$4.29m0.049%
$ 511.3k
David Heard
Chief Operating Officer2yrsUS$3.49m0.12%
$ 1.2m
David Teichmann
Chief Legal Officer & Corporate Secretary1.5yrsUS$1.63m0.019%
$ 199.0k
David Welch
Founder10yrsUS$1.80m0.81%
$ 8.5m
Michael Fernicola
Chief Accounting Officer1.17yrsno data0.029%
$ 304.0k
Parthiban Kandappan
Chief Technical Officer2yrsno datano data
Nicholas Walden
Senior Vice President of Worldwide Sales0.75yrno data0.017%
$ 174.8k
Uwe Fischer
Senior Vice President of Strategy and Corporate Development0.17yrno datano data
Robert Shore
Senior Vice President of Marketingno datano datano data
Brett Hooper
Chief Human Resources Officerno datano datano data
Glenn Laxdal
Senior Vice President of Global Product Line Management2.75yrsno datano data

1.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: IX6's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Thomas Fallon
CEO & Director10.75yrsUS$2.96m0.85%
$ 8.9m
David Welch
Founder10yrsUS$1.80m0.81%
$ 8.5m
Gregory Dougherty
Independent Director1.75yrsUS$384.66k0.035%
$ 370.1k
Marcel Gani
Independent Director6.33yrsUS$242.12k0.16%
$ 1.6m
Paul Milbury
Independent Director10.25yrsUS$257.12k0.054%
$ 568.5k
Roger Baker
Member of Government Advisory Board4.58yrsno datano data
Kambiz Hooshmand
Independent Chairman of the Board10yrsUS$288.12k0.094%
$ 983.5k
Sharon Holt
Independent Director1.33yrsUS$361.44k0.038%
$ 398.4k
Diana Gowen
Member of Government Advisory Board4.58yrsno datano data
Amy Rice
Independent Director0.50yrno datano data
Mark Wegleitner
Independent Director9.42yrsUS$220.62k0.074%
$ 776.6k
Henry Sienkiewicz
Member of Government Advisory Board4.58yrsno datano data

5.5yrs

Average Tenure

59.5yo

Average Age

Experienced Board: IX6's board of directors are considered experienced (5.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: IX6 insiders have only sold shares 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 4.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Infinera Corporation
  • Ticker: IX6
  • Exchange: DB
  • Founded: 2000
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$1.218b
  • Listing Market Cap: US$1.045b
  • Shares outstanding: 187.39m
  • Website: https://www.infinera.com

Number of Employees


Location

  • Infinera Corporation
  • 140 Caspian Court
  • Sunnyvale
  • California
  • 94089
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IX6DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2007
INFNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2007
INFN *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNJun 2007

Biography

Infinera Corporation provides optical transport networking equipment, software, and services worldwide. The company’s product portfolio includes Infinera Groove series of modular and sled-based platforms t ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 22:27
End of Day Share Price2020/10/30 00:00
Earnings2020/06/27
Annual Earnings2019/12/28


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.