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 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

-1.2%

NPTN

0.7%

US Semiconductor

0.06%

US Market


1 Year Return

-3.2%

NPTN

40.4%

US Semiconductor

19.3%

US Market

Return vs Industry: NPTN underperformed the US Semiconductor industry which returned 40.4% over the past year.

Return vs Market: NPTN underperformed the US Market which returned 19.3% over the past year.


Shareholder returns

NPTNIndustryMarket
7 Day-1.2%0.7%0.06%
30 Day-16.5%3.2%1.7%
90 Day-7.5%16.7%9.0%
1 Year-3.2%-3.2%43.1%40.4%21.8%19.3%
3 Year-33.2%-33.2%96.2%85.6%49.5%39.9%
5 Year103.8%103.8%157.0%132.4%73.1%54.1%

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?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: NPTN ($7.5) is trading below our estimate of fair value ($55.01)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: NPTN is good value based on its PB Ratio (2.4x) 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 9 analysts?

134.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: NPTN's revenue (11.2% per year) is forecast to grow faster than the US market (7.6% per year).

High Growth Revenue: NPTN's revenue (11.2% 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?

-40.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: NPTN is currently unprofitable.

Growing Profit Margin: NPTN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: NPTN is unprofitable, and losses have increased over the past 5 years at a rate of -40% per year.

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

Earnings vs Industry: NPTN is unprofitable, making it difficult to compare its past year earnings growth to the Semiconductor industry (-28%).


Return on Equity

High ROE: NPTN has a negative Return on Equity (-17.25%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is NeoPhotonics's financial position?


Financial Position Analysis

Short Term Liabilities: NPTN's short term assets ($217.7M) exceed its short term liabilities ($103.8M).

Long Term Liabilities: NPTN's short term assets ($217.7M) exceed its long term liabilities ($71.6M).


Debt to Equity History and Analysis

Debt Level: NPTN's debt to equity ratio (31.7%) is considered satisfactory.

Reducing Debt: NPTN's debt to equity ratio has increased from 29.1% to 31.7% over the past 5 years.


Balance Sheet

Inventory Level: NPTN has a high level of physical assets or inventory.

Debt Coverage by Assets: NPTN's debt is covered by short term assets (assets are 4.6x 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 NPTN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: NPTN is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 0.5% per year.


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 payouts.

High Dividend: Unable to evaluate NPTN'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 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?

5.4yrs

Average management tenure


CEO

Tim Jenks (64yo)

21.8yrs

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

Compensation vs Market: Tim's total compensation ($USD2.03M) is about average for companies of similar size in the US market ($USD1.66M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Timothy Jenks
Chairman21.8yrsUS$2.03m0.98% $3.5m
Elizabeth Eby
Senior VP of Finance & CFO2.5yrsUS$1.06m0.48% $1.7m
Chi Cheung
COO & Senior VP11.3yrsUS$1.06mno data
Yang-Chiah Yee
Senior Vice President of Global Sales1.9yrsUS$1.61m0.037% $133.9k
Wupen Yuen
Senior VP7.3yrsUS$1.03m0.19% $704.0k
Winston Way
VP & CTO3.4yrsno datano data
Judi Otteson
VP & General Counsel0yrsno datano data
G. Lipscomb
Vice President of Marketing17.3yrsno datano data
Mona Taylor
Senior Vice President of Human Resources1.4yrsno datano data

5.4yrs

Average Tenure

53.5yo

Average Age

Experienced Management: NPTN's management team is seasoned and experienced (5.4 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Timothy Jenks
Chairman21.8yrsUS$2.03m0.98% $3.5m
Bandel Carano
Independent Director15.9yrsUS$104.45kno data
Charles Abbe
Lead Independent Director6.7yrsUS$166.15k0.18% $637.7k
Michael Sophie
Independent Director13.3yrsUS$165.58k0.052% $189.9k
Rajiv Ramaswami
Director & Member of Technical Advisory Board9.8yrsUS$154.08k0.050% $181.8k
Ihab Tarazi
Director & Member of Technical Advisory Board4.3yrsUS$156.95k0.028% $102.5k
Yanbing Li
Director0.6yrsno data0.022% $80.6k

8.2yrs

Average Tenure

59yo

Average Age

Experienced Board: NPTN's board of directors are considered experienced (8.2 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 4.8%.


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$361.808m
  • Shares outstanding: 48.24m
  • 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 Analysis2020/02/21 00:44
End of Day Share Price2020/02/20 00:00
Earnings2019/09/30
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.