NYSE:NPTN

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Executive Summary

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


Snowflake Analysis

Excellent balance sheet and fair value.


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

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


Market Performance


7 Day Return

0.4%

NPTN

3.8%

US Semiconductor

2.3%

US Market


1 Year Return

90.3%

NPTN

36.2%

US Semiconductor

6.7%

US Market

Return vs Industry: NPTN exceeded the US Semiconductor industry which returned 36.2% over the past year.

Return vs Market: NPTN exceeded the US Market which returned 6.7% over the past year.


Shareholder returns

NPTNIndustryMarket
7 Day0.4%3.8%2.3%
30 Day1.6%8.1%6.0%
90 Day3.7%24.7%18.9%
1 Year90.3%90.3%38.9%36.2%9.0%6.7%
3 Year11.9%11.9%81.8%72.0%36.6%27.7%
5 Year0.3%0.3%200.0%170.6%64.2%46.1%

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 compared to its fair value and its price relative to the market?

36.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NPTN ($9.02) is trading below our estimate of fair value ($14.29)

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


Price To Earnings Ratio

PE vs Industry: NPTN is poor value based on its PE Ratio (129.9x) compared to the US Semiconductor industry average (37x).

PE vs Market: NPTN is poor value based on its PE Ratio (129.9x) compared to the US market (16.2x).


Price to Earnings Growth Ratio

PEG Ratio: NPTN is poor value based on its PEG Ratio (2.1x)


Price to Book Ratio

PB vs Industry: NPTN is good value based on its PB Ratio (2.6x) compared to the US Semiconductor industry average (3.2x).


Next Steps

Future Growth

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

61.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: NPTN's forecast earnings growth (61.1% per year) is above the savings rate (2.2%).

Earnings vs Market: NPTN's earnings (61.1% per year) are forecast to grow faster than the US market (22.9% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: NPTN's revenue (8.1% per year) is forecast to grow slower than the US market (9.4% per year).

High Growth Revenue: NPTN'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: Insufficient data to determine if NPTN's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has NeoPhotonics performed over the past 5 years?

-35.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NPTN has high quality earnings.

Growing Profit Margin: NPTN became profitable in the past.


Past Earnings Growth Analysis

Earnings Trend: NPTN has become profitable over the past 5 years, growing earnings by -35.2% per year.

Accelerating Growth: NPTN has become profitable in the last year, making the earnings growth rate difficult to compare to its 5-year average.

Earnings vs Industry: NPTN has become profitable in the last year, making it difficult to compare its past year earnings growth to the Semiconductor industry (-10.8%).


Return on Equity

High ROE: NPTN's Return on Equity (2%) is considered low.


Next Steps

Financial Health

How is NeoPhotonics's financial position?


Financial Position Analysis

Short Term Liabilities: NPTN's short term assets ($243.5M) exceed its short term liabilities ($110.1M).

Long Term Liabilities: NPTN's short term assets ($243.5M) exceed its long term liabilities ($64.5M).


Debt to Equity History and Analysis

Debt Level: NPTN's debt to equity ratio (24.3%) is considered satisfactory.

Reducing Debt: NPTN's debt to equity ratio has reduced from 40.1% to 24.3% over the past 5 years.

Debt Coverage: NPTN's debt is well covered by operating cash flow (125.4%).

Interest Coverage: NPTN's interest payments on its debt are not well covered by EBIT (2.8x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

3.8yrs

Average management tenure


CEO

Tim Jenks (65yo)

22.25yrs

Tenure

US$1,757,935

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

Compensation vs Market: Tim's total compensation ($USD1.76M) is about average for companies of similar size in the US market ($USD2.16M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Jenks
Chairman22.25yrsUS$1.76m0.79% $3.5m
Elizabeth Eby
Senior VP of Finance & CFO2.92yrsUS$858.69k0.53% $2.3m
Chi Cheung
COO & Senior VP11.67yrsUS$871.12kno data
Yang-Chiah Yee
Senior Vice President of Global Sales2.33yrsUS$811.35k0.078% $342.7k
Wupen Yuen
Senior VP7.75yrsUS$860.94k0.22% $983.0k
Winston Way
VP & CTO3.83yrsno datano data
Barbara Rogan
Senior VP & General Counsel0.33yrno datano data
G. Lipscomb
Vice President of Marketing17.67yrsno datano data
Mona Taylor
Senior Vice President of Human Resources1.83yrsno datano data

3.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: NPTN's management team is considered experienced (3.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Jenks
Chairman22.25yrsUS$1.76m0.79% $3.5m
Bandel Carano
Independent Director16.33yrsUS$137.10k0.022% $97.9k
Charles Abbe
Lead Independent Director7.08yrsUS$149.20k0.20% $864.8k
Michael Sophie
Independent Director13.67yrsUS$152.60k0.074% $326.4k
Rajiv Ramaswami
Independent Director & Member of Technical Advisory Board10.17yrsUS$142.10k0.072% $316.5k
Ihab Tarazi
Independent Director & Member of Technical Advisory Board4.33yrsUS$142.60k0.050% $221.2k
Yanbing Li
Independent Director1yrUS$118.48k0.022% $97.0k

8.6yrs

Average Tenure

58yo

Average Age

Experienced Board: NPTN's board of directors are considered experienced (8.6 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: Insufficient data to determine if 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 4.9%.


Top Shareholders

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$439.779m
  • Shares outstanding: 48.76m
  • 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 products, including transmitter, receiver, and switching products for 100G (gigabits per second) and optical transmission applications over distances of 2 to 2,000 kilometers; optical components for coherent systems, including narrow linewidth tunable transmit and local oscillator lasers (NLW-ITLA) that generate ultra-pure wavelength or color for coherent transmission, as well as coherent micro-modulators, which encode the information on the intensity and phase of the optical beam; and integrated coherent receivers (ICRs) that decode the phase and polarization encoded coherent signals. The company also engages in developing pluggable coherent modules that combine NLW-ITLA with ICR and a coherent modulator; and offers 100G products for the client side and datacenter applications. In addition, it offers network products and solutions, including application-specific passive optical functionalities in modules or sub-system configurations; transceiver modules for various low speed access and mobile backhaul applications; and products for test and measurement, instrumentation, industrial, and research applications. The company sells its products to network equipment manufacturers through a direct sales force in North America, Europe, and Asia. The company was formerly known as NanoGram Corporation and changed its name to NeoPhotonics Corporation in 2002. NeoPhotonics Corporation was founded in 1996 and is headquartered in San Jose, California. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/07/13 07:02
End of Day Share Price2020/07/10 00:00
Earnings2020/03/31
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.