NYSE:NPTN

Stock Analysis Report

Executive Summary

NeoPhotonics Corporation develops, manufactures, and sells optoelectronic products that transmit, receive, and switch high speed digital optical signals for communications networks.

Snowflake

Fundamentals

Excellent balance sheet and fair value.

Risks

  • NeoPhotonics has significant price volatility in the past 3 months.

Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

7.9%

NYSE:NPTN

1.3%

US Semiconductor

0.2%

US Market


1 Year Return

-30.7%

NYSE:NPTN

4.8%

US Semiconductor

-0.7%

US Market

NPTN underperformed the Semiconductor industry which returned 4.8% over the past year.

NPTN underperformed the Market in United States of America which returned -0.7% over the past year.


Share holder returns

NPTNIndustryMarket
7 Day7.9%1.3%0.2%
30 Day31.0%-1.9%-2.7%
90 Day62.4%11.4%1.6%
1 Year-30.7%-30.7%6.8%4.8%1.6%-0.7%
3 Year-57.7%-57.7%73.2%63.1%40.0%30.9%
5 Year127.4%127.4%110.5%89.2%53.8%36.8%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is NeoPhotonics undervalued based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

NeoPhotonics's share price is below the future cash flow value, and at a moderate discount (> 20%).

NeoPhotonics's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

NeoPhotonics is loss making, we can't compare its value to the US Semiconductor industry average.

NeoPhotonics is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for NeoPhotonics, we can't assess if its growth is good value.


Price Based on Value of Assets

NeoPhotonics is good value based on assets compared to the US Semiconductor industry average.


Next Steps

Future Growth

How is NeoPhotonics expected to perform in the next 1 to 3 years based on estimates from 10 analysts?

11.6%

Forecasted annual revenue growth


Earnings and Revenue Growth Estimates


Future Annual Growth Analysis

NeoPhotonics's revenue is expected to grow by 11.6% yearly, however this is not considered high growth (20% yearly).

Unable to determine if NeoPhotonics is high growth as no earnings estimate data is available.

NeoPhotonics's revenue growth is expected to exceed the United States of America market average.

Unable to compare NeoPhotonics's earnings growth to the United States of America market average as no estimate data is available.

Unable to compare NeoPhotonics's earnings growth to the low risk savings rate as no estimate data is available.


Earnings per Share Growth Estimates


Future Return on Equity

Unable to establish if NeoPhotonics will efficiently use shareholders’ funds in the future without estimates of Return on Equity.


Next Steps

Past Performance

How has NeoPhotonics performed over the past 5 years?

-36.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

NeoPhotonics does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare NeoPhotonics's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare NeoPhotonics's 1-year growth to the US Semiconductor industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if NeoPhotonics has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if NeoPhotonics has efficiently used its assets last year compared to the US Semiconductor industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if NeoPhotonics improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is NeoPhotonics's financial position?


Financial Position Analysis

NeoPhotonics is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

NeoPhotonics's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

NeoPhotonics's level of debt (32.6%) compared to net worth is satisfactory (less than 40%).

The level of debt compared to net worth has increased over the past 5 years (29.6% vs 32.6% today).


Balance Sheet

High level of physical assets or inventory.

Debt is covered by short term assets, assets are 4.3x 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.

Whilst loss making NeoPhotonics has sufficient cash runway for more than 3 years if it maintains the current positive free cash flow level.

Whilst loss making NeoPhotonics has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by -26.2% per year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate NeoPhotonics's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate NeoPhotonics's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as NeoPhotonics has not reported any payouts.

Unable to verify if NeoPhotonics's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as NeoPhotonics has not reported any payouts.


Future Payout to Shareholders

Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.


Next Steps

Management

What is the CEO of NeoPhotonics's salary, the management and board of directors tenure and is there insider trading?

8.8yrs

Average management tenure


CEO

Tim Jenks (64yo)

21.3yrs

Tenure

US$2,033,419

Compensation

Mr. Timothy Storrs Jenks, also known as Tim, has been the President and Chief Executive Officer of Neophotonics Corp. since April 1998 and serves as the Chairman and has been its Director since April 1998. ...


CEO Compensation Analysis

Tim's remuneration is higher than average for companies of similar size in United States of America.

Tim's compensation has increased whilst company is loss making.


Management Age and Tenure

8.8yrs

Average Tenure

53.5yo

Average Age

The average tenure for the NeoPhotonics management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

7.7yrs

Average Tenure

59yo

Average Age

The tenure for the NeoPhotonics board of directors is about average.


Insider Trading

More shares have been bought than sold by NeoPhotonics individual insiders in the past 3 months.


Recent Insider Transactions

SellUS$2,140,94031 May 19
RUSNANO Management Company LLC
EntityCompany
Shares375,500
Max PriceUS$5.73
BuyUS$178,50030 May 19
Elizabeth Eby
EntityIndividual
Role
Chief Accounting Officer
Senior VP of Finance & CFO
Shares50,000
Max PriceUS$3.57
SellUS$112,58919 Mar 19
Timothy Jenks
EntityIndividual
Role
Chief Executive Officer
Chairman
Shares16,999
Max PriceUS$6.62
SellUS$10,314,01627 Nov 18
RUSNANO Management Company LLC
EntityCompany
Shares1,214,200
Max PriceUS$8.96
SellUS$203,78329 Aug 18
Wupen Yuen
EntityIndividual
Role
Senior Key Executive
Senior VP
Shares22,877
Max PriceUS$8.93

Ownership Breakdown


Management Team

  • Tim Jenks (64yo)

    Chairman

    • Tenure: 21.3yrs
    • Compensation: US$2.03m
  • G. Lipscomb (67yo)

    Vice President of Marketing

    • Tenure: 16.8yrs
  • Raymond Cheung (51yo)

    COO & Senior VP

    • Tenure: 10.8yrs
    • Compensation: US$1.06m
  • Wupen Yuen (49yo)

    Senior VP

    • Tenure: 6.8yrs
    • Compensation: US$1.03m
  • Yang-Chiah Yee (52yo)

    Senior Vice President of Global Sales

    • Tenure: 1.4yrs
    • Compensation: US$1.61m
  • Mona Taylor

    Senior Vice President of Human Resources

    • Tenure: 0.9yrs
  • Beth Eby (55yo)

    Senior VP of Finance & CFO

    • Tenure: 0.0yrs
    • Compensation: US$1.06m
  • Judi Otteson

    VP & General Counsel

    • Tenure: 0.0yrs

Board Members

  • Bandel Carano (57yo)

    Director

    • Tenure: 15.4yrs
    • Compensation: US$104.45k
  • Jay Abbe (78yo)

    Lead Independent Director

    • Tenure: 6.2yrs
    • Compensation: US$166.15k
  • Mike Sophie (61yo)

    Director

    • Tenure: 12.8yrs
    • Compensation: US$165.58k
  • Tim Jenks (64yo)

    Chairman

    • Tenure: 21.3yrs
    • Compensation: US$2.03m
  • Rajiv Ramaswami (53yo)

    Director & Member of Technical Advisory Board

    • Tenure: 9.3yrs
    • Compensation: US$154.08k
  • Ihab Tarazi (52yo)

    Director & Member of Technical Advisory Board

    • Tenure: 3.8yrs
    • Compensation: US$156.95k
  • Yanbing Li

    Director

    • Tenure: 0.1yrs

Company Information

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


Key Information

  • Name: NeoPhotonics Corporation
  • Ticker: NPTN
  • Exchange: NYSE
  • Founded: 1996
  • Industry: Semiconductors
  • Sector: Semiconductors
  • Market Cap: US$298.668m
  • Shares outstanding: 47.41m
  • Website: https://www.neophotonics.com

Number of Employees


Location

  • NeoPhotonics Corporation
  • 2911 Zanker Road
  • San Jose
  • California
  • 95134
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
NPTNNYSE (New York Stock Exchange)YesCommon SharesUSUSDFeb 2011
4NODB (Deutsche Boerse AG)YesCommon SharesDEEURFeb 2011

Biography

NeoPhotonics Corporation develops, manufactures, and sells optoelectronic products that transmit, receive, and switch high speed digital optical signals for communications networks. It offers high speed pr ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/08/22 00:15
End of Day Share Price2019/08/21 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.