NYSE:IPHI

Stock Analysis Report

Executive Summary

Inphi Corporation provides high-speed analog and mixed signal semiconductor solutions for the communications, datacenter, and computing markets worldwide.


Snowflake Analysis

Exceptional growth potential with adequate balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

1.1%

IPHI

3.0%

US Semiconductor

0.9%

US Market


1 Year Return

99.7%

IPHI

41.1%

US Semiconductor

20.0%

US Market

Return vs Industry: IPHI exceeded the US Semiconductor industry which returned 41.1% over the past year.

Return vs Market: IPHI exceeded the US Market which returned 20.1% over the past year.


Shareholder returns

IPHIIndustryMarket
7 Day1.1%3.0%0.9%
30 Day1.7%4.3%1.4%
90 Day19.0%14.5%8.8%
1 Year99.7%99.7%43.8%41.1%22.5%20.0%
3 Year64.5%64.5%95.3%84.7%49.9%40.3%
5 Year358.3%358.3%159.7%134.9%73.2%54.1%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

45.3%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: IPHI ($84.56) is trading below our estimate of fair value ($154.51)

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


Price To Earnings Ratio

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

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


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: IPHI is overvalued based on its PB Ratio (11.2x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

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

80.9%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: IPHI is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: IPHI is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: IPHI's is expected to become profitable in the next 3 years.

Revenue vs Market: IPHI's revenue (24.7% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: IPHI's revenue (24.7% per year) is forecast to grow faster than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: IPHI's Return on Equity is forecast to be high in 3 years time (26%)


Next Steps

Past Performance

How has Inphi performed over the past 5 years?

-36.1%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: IPHI is currently unprofitable.

Growing Profit Margin: IPHI is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: IPHI is unprofitable, and losses have increased over the past 5 years at a rate of -36.1% per year.

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

Earnings vs Industry: IPHI is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-27.7%).


Return on Equity

High ROE: IPHI has a negative Return on Equity (-21.04%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Inphi's financial position?


Financial Position Analysis

Short Term Liabilities: IPHI's short term assets ($555.6M) exceed its short term liabilities ($291.8M).

Long Term Liabilities: IPHI's short term assets ($555.6M) exceed its long term liabilities ($337.6M).


Debt to Equity History and Analysis

Debt Level: IPHI's debt to equity ratio (133.7%) is considered high.

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


Balance Sheet

Inventory Level: IPHI has a low level of unsold assets or inventory.

Debt Coverage by Assets: IPHI's debt is covered by short term assets (assets are 1.2x 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: Whilst unprofitable IPHI has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: IPHI is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 25.6% per year.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage1.9%forecastin3Years0%

Current dividend yield vs market & industry

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

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

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


Next Steps

Management

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

5.8yrs

Average management tenure


CEO

Ford Tamer (57yo)

8yrs

Tenure

US$10,172,566

Compensation

Dr. Ford G. Tamer, Ph.D. serves as Chief Executive Officer and President at Inphi Corporation since February 1, 2012. Dr. Tamer serves as Chief Executive Officer at Telegent Systems, Inc. since June 2010 a ...


CEO Compensation Analysis

Compensation vs Market: Ford's total compensation ($USD10.17M) is above average for companies of similar size in the US market ($USD4.89M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ford Tamer
President8yrsUS$10.17m0.41% $16.0m
John Edmunds
Senior VP12.1yrsUS$3.19m0.38% $14.7m
Ron Torten
Senior Vice President of Operations & Information Technology5.8yrsUS$2.44m0.017% $672.0k
Richard Ogawa
General Counsel7.1yrsUS$2.05m0.018% $681.6k
Charles Roach
Senior Vice President of Worldwide Sales3.8yrsUS$2.48m0.12% $4.7m
Loi Nguyen
Founder & Senior VP of Optical Interconnect0yrsno datano data
Vernon Essi
Senior Director of Investor Relations & Corporate Development1.1yrsno datano data
Sun Kim
CHRO & SVP of Human Resources2.1yrsno datano data
Lawrence Tse
Senior Vice President of Engineering2.8yrsno datano data
Radha Nagarajan
Chief Technology Officer of Interconnect6.7yrsno datano data

5.8yrs

Average Tenure

56yo

Average Age

Experienced Management: IPHI's management team is seasoned and experienced (5.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ford Tamer
President8yrsUS$10.17m0.41% $16.0m
Diosdado Banatao
Chairman19.2yrsUS$252.50k0.0080% $308.2k
David Liddle
Independent Director7.6yrsUS$240.00k0.089% $3.4m
Sam Srinivasan
Lead Director9yrsUS$260.00k0.046% $1.8m
Nicholas Brathwaite
Independent Director6.4yrsUS$223.00k0.065% $2.5m
Tsugio Makimoto
Member of Technical Advisory Panel11.2yrsno datano data
Hirokazu Hashimoto
Member of Advisory Board0yrsno datano data
In-Baik Jeon
Member of Technical Advisory Panel0yrsno datano data
Frederick Weber
Member of Technical Advisory Panel0yrsno datano data
Randy Wilhelm
Member of Technical Advisory Panel0yrsno datano data

8.5yrs

Average Tenure

73yo

Average Age

Experienced Board: IPHI's board of directors are considered experienced (8.5 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: IPHI 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 3.5%.


Top Shareholders

Company Information

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


Key Information

  • Name: Inphi Corporation
  • Ticker: IPHI
  • Exchange: NYSE
  • Founded: 2000
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$3.862b
  • Shares outstanding: 45.67m
  • Website: https://www.inphi.com

Number of Employees


Location

  • Inphi Corporation
  • 2953 Bunker Hill Lane
  • Suite 300
  • Santa Clara
  • California
  • 95054
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IPHINYSE (New York Stock Exchange)YesCommon StockUSUSDNov 2010
IN0DB (Deutsche Boerse AG)YesCommon StockDEEURNov 2010
IN0BRSE (Berne Stock Exchange)YesCommon StockCHCHFNov 2010
IPHI *BMV (Bolsa Mexicana de Valores)YesCommon StockMXMXNNov 2010

Biography

Inphi Corporation provides high-speed analog and mixed signal semiconductor solutions for the communications, datacenter, and computing markets worldwide. Its analog and mixed signal semiconductor solutions offer high signal integrity at various data speeds and reduce system power consumption. The company’s semiconductor solutions address bandwidth bottlenecks in networks, maximize throughput and minimize latency in computing environments, and enable the rollout of communications and datacenter infrastructures. Its solutions provide a high-speed interface between analog and mixed signals, and digital information in high-performance systems, such as telecommunications transport systems, enterprise networking equipment, and datacenters. The company also provides 25G to 600G high-speed analog and mixed semiconductor solutions for the communications market. Its products perform a range of functions, such as amplifying, encoding, multiplexing, demultiplexing, and retiming signals at speeds up to 400 Gbps. Inphi Corporation sells its products directly through its sales force, as well as through a network of sales representatives and distributors to original equipment manufacturers. The company was formerly known as TCom Communications, Inc. and changed its name to Inphi Corporation in February 2001. Inphi Corporation was incorporated in 2000 and is headquartered in Santa Clara, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/18 00:29
End of Day Share Price2020/02/14 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.