NasdaqGM:EMKR

Stock Analysis Report

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Executive Summary

EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in the United States, Canada, Asia, Europe, and internationally. More Details


Snowflake Analysis

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events

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


Market Performance


7 Day Return

-8.1%

EMKR

-7.1%

US Communications

-4.1%

US Market


1 Year Return

15.2%

EMKR

-20.6%

US Communications

12.0%

US Market

Return vs Industry: EMKR exceeded the US Communications industry which returned -20.6% over the past year.

Return vs Market: EMKR exceeded the US Market which returned 12% over the past year.


Shareholder returns

EMKRIndustryMarket
7 Day-8.1%-7.1%-4.1%
30 Day4.9%-6.7%-0.2%
90 Day-2.6%-21.3%2.8%
1 Year15.2%15.2%-18.3%-20.6%14.6%12.0%
3 Year-55.1%-55.1%7.0%-0.2%35.8%26.8%
5 Year-38.3%-52.6%28.6%14.2%75.2%55.6%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is EMCORE 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: EMKR ($3.41) is trading below our estimate of fair value ($8.82)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: EMKR is good value based on its PB Ratio (1.4x) compared to the US Communications industry average (1.7x).


Next Steps

Future Growth

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

103.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: EMKR is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2.2%).

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

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

Revenue vs Market: EMKR's revenue (13.5% per year) is forecast to grow faster than the US market (10% per year).

High Growth Revenue: EMKR's revenue (13.5% 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 EMKR's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has EMCORE performed over the past 5 years?

-65.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: EMKR is currently unprofitable.

Growing Profit Margin: EMKR is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: EMKR is unprofitable, and losses have increased over the past 5 years at a rate of 65.3% per year.

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

Earnings vs Industry: EMKR is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-7.9%).


Return on Equity

High ROE: EMKR has a negative Return on Equity (-31.38%), as it is currently unprofitable.


Next Steps

Financial Health

How is EMCORE's financial position?


Financial Position Analysis

Short Term Liabilities: EMKR's short term assets ($83.0M) exceed its short term liabilities ($27.3M).

Long Term Liabilities: EMKR's short term assets ($83.0M) exceed its long term liabilities ($20.0M).


Debt to Equity History and Analysis

Debt Level: EMKR's debt to equity ratio (9%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if EMKR's debt to equity ratio has reduced 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: EMKR has sufficient cash runway for more than a year based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

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

3.0yrs

Average management tenure


CEO

Jeff Rittichier (60 yo)

5.75yrs

Tenure

US$1,390,711

Compensation

Mr. Jeffrey S. Rittichier, also known as Jeff, has been the Chief Executive Officer of EMCORE Corporation since January 3, 2015 and serves as its President. Mr. Rittichier has an extensive record of accomp ...


CEO Compensation Analysis

Compensation vs Market: Jeff's total compensation ($USD1.39M) is above average for companies of similar size in the US market ($USD593.13K).

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


Leadership Team

NamePositionTenureCompensationOwnership
Jeffrey Rittichier
CEO, President & Director5.75yrsUS$1.39m0.88%
$ 879.7k
Iain Black
Senior Vice President of Operations2.5yrsUS$445.94k0.044%
$ 43.7k
Albert Lu
Senior Vice President of Engineering3.58yrsUS$466.12k0.076%
$ 76.3k
Thomas Minichiello
Chief Financial Officer1.17yrsno data0.056%
$ 55.8k
Mark Gordon
Director of Accounting1.75yrsno datano data
Hank Blauvelt
Chief Technology Officer5.75yrsno datano data
Ryan Hochgesang
VP, General Counsel & Secretaryno datano datano data
Gyo Shinozaki
Vice President of Marketingno datano datano data
Marc Cavagnolo
Vice President of Corporate Development3.42yrsno datano data
David Wojciechowski
VP & GM of Defense Optoelectronics0.50yrUS$440.32kno data

3.0yrs

Average Tenure

57yo

Average Age

Experienced Management: EMKR's management team is considered experienced (3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Jeffrey Rittichier
CEO, President & Director5.75yrsUS$1.39m0.88%
$ 879.7k
Stephen Domenik
Independent Chairman of the Board0.75yrUS$111.98k0.25%
$ 255.0k
Rex Jackson
Independent Director4.83yrsUS$123.48k0.13%
$ 126.2k
Noel Heiks
Independent Director1.08yrsUS$34.08k0.035%
$ 34.8k
Bruce Grooms
Independent Director1.33yrsUS$57.98k0.044%
$ 44.2k

1.3yrs

Average Tenure

60yo

Average Age

Experienced Board: EMKR's board of directors are not considered experienced ( 1.3 years average tenure), which suggests a new board.


Ownership

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


Insider Trading Volume

Insider Buying: EMKR 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 2.3%.


Top Shareholders

Company Information

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


Key Information

  • Name: EMCORE Corporation
  • Ticker: EMKR
  • Exchange: NasdaqGM
  • Founded: 1984
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$100.282m
  • Shares outstanding: 29.41m
  • Website: https://www.emcore.com

Number of Employees


Location

  • EMCORE Corporation
  • 2015 West Chestnut Street
  • Alhambra
  • California
  • 91803
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
EMKRNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDMar 1997
ER2NDB (Deutsche Boerse AG)YesCommon StockDEEURMar 1997

Biography

EMCORE Corporation, together with its subsidiaries, provides advanced mixed-signal optics products in the United States, Canada, Asia, Europe, and internationally. The company offers cable television (CATV ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/30 03:23
End of Day Share Price2020/10/29 00:00
Earnings2020/06/30
Annual Earnings2019/09/30


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.