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EXFO

Nasdaq:EXFO
Snowflake Description

Adequate balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
EXFO
Nasdaq
CA$274M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

EXFO Inc. develops, manufactures, and markets smarter network test, monitoring, and analytics solutions for communications service providers, network equipment manufacturers, and Web-scale operators. The last earnings update was 71 days ago. More info.


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  • EXFO has significant price volatility in the past 3 months.
EXFO Share Price and Events
7 Day Returns
11.3%
NasdaqGS:EXFO
1.7%
US Communications
1.2%
US Market
1 Year Returns
-11.2%
NasdaqGS:EXFO
13%
US Communications
3%
US Market
EXFO Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
EXFO (EXFO) 11.3% 5% 25.4% -11.2% 19.8% -27.2%
US Communications 1.7% 5.5% 21.9% 13% 77.2% 86.1%
US Market 1.2% 2.1% 14.6% 3% 39% 43.5%
1 Year Return vs Industry and Market
  • EXFO underperformed the Communications industry which returned 13% over the past year.
  • EXFO underperformed the Market in United States of America which returned 3% over the past year.
Price Volatility
EXFO
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of EXFO to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for EXFO.

NasdaqGS:EXFO Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 6 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.5%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:EXFO
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.08
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.085 (1 + (1- 26.5%) (14.29%))
1.133
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.13
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.133 * 5.96%)
9.48%

Discounted Cash Flow Calculation for NasdaqGS:EXFO using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for EXFO is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:EXFO DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.48%)
2019 6.63 Analyst x3 6.06
2020 13.61 Analyst x4 11.35
2021 16.59 Est @ 21.89% 12.64
2022 19.26 Est @ 16.14% 13.41
2023 21.60 Est @ 12.12% 13.73
2024 23.61 Est @ 9.3% 13.71
2025 25.34 Est @ 7.33% 13.44
2026 26.84 Est @ 5.95% 13.00
2027 28.18 Est @ 4.98% 12.47
2028 29.40 Est @ 4.31% 11.88
Present value of next 10 years cash flows $121.69
NasdaqGS:EXFO DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $29.40 × (1 + 2.73%) ÷ (9.48% – 2.73%)
$447.23
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $447.23 ÷ (1 + 9.48%)10
$180.75
NasdaqGS:EXFO Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $121.69 + $180.75
$302.44
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $302.44 / 55.39
$7.21
NasdaqGS:EXFO Discount to Share Price
Calculation Result
Exchange Rate USD/CAD
(Reporting currency to currency of TSX:EXF)
1.333
Value per Share
(CAD)
= Value per Share in USD x Exchange Rate (USD/CAD)
= $5.46 x 1.333
CA$7.28
Non-primary Listing Adjustment Factor 1 share in NasdaqGS:EXFO represents 0.75758x of TSX:EXF
(This could be a different class, a depositary receipt, a different currency, or all of these things.)
0.75758x
Value per Share
(Listing Adjusted, USD)
= Value per Share (CAD) x Listing Adjustment Factor
= CA$ 7.28 x 0.75758
$5.51
Value per share (USD) From above. $5.51
Current discount Discount to share price of $3.75
= -1 x ($3.75 - $5.51) / $5.51
32%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price EXFO is available for.
Intrinsic value
32%
Share price is $3.75 vs Future cash flow value of $5.51
Current Discount Checks
For EXFO to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • EXFO's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • EXFO's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for EXFO's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are EXFO's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:EXFO PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-11-30) in USD $-0.40
TSX:EXF Share Price ** TSX (2019-03-20) in CAD CA$4.95
TSX:EXF Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.75 $3.71
United States of America Communications Industry PE Ratio Median Figure of 33 Publicly-Listed Communications Companies 30.4x
United States of America Market PE Ratio Median Figure of 3,058 Publicly-Listed Companies 17.69x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of EXFO.

NasdaqGS:EXFO PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= TSX:EXF Share Price ÷ EPS (both in USD)

= 3.71 ÷ -0.40

-9.28x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EXFO is loss making, we can't compare its value to the US Communications industry average.
  • EXFO is loss making, we can't compare the value of its earnings to the United States of America market.
Price based on expected Growth
Does EXFO's expected growth come at a high price?
Raw Data
NasdaqGS:EXFO PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -9.28x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts
149.8%per year
United States of America Communications Industry PEG Ratio Median Figure of 21 Publicly-Listed Communications Companies 1.37x
United States of America Market PEG Ratio Median Figure of 2,103 Publicly-Listed Companies 1.48x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for EXFO, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on EXFO's assets?
Raw Data
NasdaqGS:EXFO PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-11-30) in USD $3.02
TSX:EXF Share Price * TSX (2019-03-20) in CAD CA$4.95
TSX:EXF Share Price converted to USD reporting currency Exchange rate (CAD/ USD) 0.75 $3.71
United States of America Communications Industry PB Ratio Median Figure of 67 Publicly-Listed Communications Companies 1.84x
United States of America Market PB Ratio Median Figure of 5,156 Publicly-Listed Companies 1.89x
NasdaqGS:EXFO PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= TSX:EXF Share Price ÷ Book Value per Share (both in USD)

= 3.71 ÷ 3.02

1.23x

* Primary Listing of EXFO.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • EXFO is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess EXFO's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. EXFO has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is EXFO expected to perform in the next 1 to 3 years based on estimates from 6 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
149.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is EXFO expected to grow at an attractive rate?
  • EXFO's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • EXFO's earnings growth is expected to exceed the United States of America market average.
  • EXFO's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:EXFO Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:EXFO Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 6 Analysts 149.8%
NasdaqGS:EXFO Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 6 Analysts 6.3%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 15.2%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:EXFO Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:EXFO Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2020-08-31 309 28 10 5
2019-08-31 292 21 -4 6
NasdaqGS:EXFO Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-11-30 275 10 -22
2018-08-31 270 14 -12
2018-05-31 263 16 -7
2018-02-28 250 8 -5
2017-11-30 245 16 0
2017-08-31 243 13 1
2017-05-31 243 14 2
2017-02-28 246 19 7
2016-11-30 239 20 10
2016-08-31 233 24 9
2016-05-31 226 21 9
2016-02-29 223 17 8

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • EXFO's earnings are expected to grow significantly at over 20% yearly.
  • EXFO's revenue is expected to grow by 6.3% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:EXFO Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below

All data from EXFO Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:EXFO Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2020-08-31 0.18 0.18 0.17 2.00
2019-08-31 -0.06 0.00 -0.13 3.00
NasdaqGS:EXFO Past Financials Data
Date (Data in USD Millions) EPS *
2018-11-30 -0.40
2018-08-31 -0.22
2018-05-31 -0.13
2018-02-28 -0.10
2017-11-30 0.00
2017-08-31 0.02
2017-05-31 0.04
2017-02-28 0.14
2016-11-30 0.19
2016-08-31 0.17
2016-05-31 0.16
2016-02-29 0.15

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if EXFO will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess EXFO's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
EXFO has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has EXFO performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare EXFO's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • EXFO does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare EXFO's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare EXFO's 1-year growth to the US Communications industry average as it is not currently profitable.
Earnings and Revenue History
EXFO's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from EXFO Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:EXFO Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-11-30 275.36 -22.05 98.67 55.85
2018-08-31 269.55 -11.90 95.89 53.94
2018-05-31 263.31 -7.11 93.37 50.85
2018-02-28 249.60 -5.44 88.97 46.70
2017-11-30 244.91 0.23 85.65 44.87
2017-08-31 243.30 0.85 84.05 44.94
2017-05-31 243.18 2.26 85.26 45.82
2017-02-28 245.57 7.48 84.50 45.17
2016-11-30 239.14 10.44 83.51 44.07
2016-08-31 232.58 8.90 82.17 42.69
2016-05-31 226.32 8.53 80.54 41.55
2016-02-29 223.20 8.17 80.23 41.17
2015-11-30 220.60 5.14 80.83 41.52
2015-08-31 222.09 4.86 81.61 43.24
2015-05-31 225.24 4.18 83.14 43.93
2015-02-28 231.34 5.28 84.38 44.76
2014-11-30 231.53 3.01 85.75 45.22
2014-08-31 230.81 0.26 86.43 44.85
2014-05-31 231.95 3.38 86.37 44.31
2014-02-28 226.94 0.85 86.64 44.14
2013-11-30 238.33 2.23 88.17 45.03
2013-08-31 242.15 1.34 88.76 45.36
2013-05-31 238.42 -6.18 88.41 46.05
2013-02-28 239.06 -9.03 90.03 47.65
2012-11-30 243.40 -8.12 90.63 48.09
2012-08-31 249.97 -3.59 92.96 48.97
2012-05-31 257.22 4.59 93.77 50.10

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • It is difficult to establish if EXFO has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if EXFO has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.
  • It is difficult to establish if EXFO improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.
X
Past performance checks
We assess EXFO's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
EXFO has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is EXFO's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up EXFO's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • EXFO is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • EXFO's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of EXFO's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 4.3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from EXFO Company Filings, last reported 3 months ago.

NasdaqGS:EXFO Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-11-30 166.92 29.39 20.06
2018-08-31 177.92 19.52 15.04
2018-05-31 183.38 20.50 19.48
2018-02-28 192.64 12.70 13.58
2017-11-30 195.08 2.11 19.46
2017-08-31 196.79 0.00 39.21
2017-05-31 181.10 0.00 37.71
2017-02-28 187.61 0.00 52.42
2016-11-30 183.90 0.00 39.34
2016-08-31 181.40 0.00 47.30
2016-05-31 181.20 0.46 46.31
2016-02-29 173.37 0.46 44.38
2015-11-30 170.81 0.31 29.36
2015-08-31 169.23 0.00 27.35
2015-05-31 178.85 0.00 29.88
2015-02-28 176.46 0.00 32.94
2014-11-30 219.71 0.00 57.61
2014-08-31 231.37 0.00 59.85
2014-05-31 229.83 0.00 52.74
2014-02-28 222.09 0.00 51.71
2013-11-30 234.23 0.30 52.60
2013-08-31 236.45 0.30 50.25
2013-05-31 236.95 0.58 54.80
2013-02-28 239.82 0.58 56.38
2012-11-30 249.25 0.87 58.99
2012-08-31 253.28 0.85 67.10
2012-05-31 244.16 1.11 69.74
  • EXFO's level of debt (17.6%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (0.1% vs 17.6% today).
  • Debt is well covered by operating cash flow (32.4%, greater than 20% of total debt).
  • EXFO is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess EXFO's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. EXFO has a total score of 4/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from EXFO dividends.
If you bought $2,000 of EXFO shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate EXFO's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate EXFO's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:EXFO Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 6 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:EXFO Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2020-08-31
2019-08-31

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as EXFO has not reported any payouts.
  • Unable to verify if EXFO's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of EXFO's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as EXFO 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.
X
Income/ dividend checks
We assess EXFO's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can EXFO afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. EXFO has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Philippe Morin
COMPENSATION $701,271
AGE 52
TENURE AS CEO 1.9 years
CEO Bio

Mr. Philippe Morin has been the Chief Executive Officer at EXFO Inc since April 1, 2017 and served as its Chief Operating Officer since November 9, 2015 until April 1,2017. Mr. Morin served as Senior Vice President of Worldwide Sales & Field Operations at CIENA Corporation until October 31, 2015. Mr. Morin served as Senior Vice President of Global Field Organization at CIENA Corporation since August 1, 2011 and served as Senior Vice President of Global Products Group from March 2010 to August 1, 2011. Mr. Morin served as the President of Metro Ethernet Networks of Nortel Networks Ltd. and Nortel Networks Corporation since May 16, 2006 and was accountable for P&L, R&D and product development as well as all aspects of running this business which encompasses its Optical and Carrier Ethernet portfolios. Mr. Morin served as Senior Vice-President of Optical Networks of Nortel and served as its Vice President and General Manager. He has been at Nortel for 19 years and held a number of leadership roles in manufacturing, marketing, sales and product management, both in North America and Europe. From January 2003 to May 2006, Mr. Morin held the position of General Manager, Optical Networks where he helped to ensure Nortel's continued leadership and business momentum in optical networks. From 2001 to 2003, Mr. Morin held the position of Leader Brand Management of Optical Networks and was responsible for Optical Networks LC investment decisions. He has been Director of EXFO Inc since January 2018. He serves as a Director of International Institute of Telecommunications and serves as a Governor of the Jeune Chambre de Commerce de Montréal. Mr. Morin holds a Bachelor of Electrical Engineering degree from Université Laval in Quebec City and a Master of Business Administration (MBA) degree from McGill University in Montréal.

CEO Compensation
  • Philippe's compensation has been consistent with company performance over the past year.
  • Philippe's remuneration is lower than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the EXFO management team in years:

11.6
Average Tenure
55.5
Average Age
  • The average tenure for the EXFO management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Germain Lamonde

TITLE
Founder & Executive Chairman
COMPENSATION
$587K

Philippe Morin

TITLE
CEO & Director
COMPENSATION
$701K
AGE
52
TENURE
1.9 yrs

Pierre Plamondon

TITLE
CFO & VP of Finance
COMPENSATION
$416K
AGE
60
TENURE
23.2 yrs

Dana Yearian

TITLE
Vice President of Sales - Americas
COMPENSATION
$504K
TENURE
12.6 yrs

Wim te Niet

TITLE
Vice President of Sales - Europe
COMPENSATION
$485K
TENURE
2.6 yrs

Vikas Arora

TITLE
Chief Technology Officer
TENURE
10.7 yrs

Vance Oliver

TITLE
Director of Investor Relations

Benoit Ringuette

TITLE
General Counsel & Corporate Secretary
TENURE
14.9 yrs

Julie Lamontagne

TITLE
Vice President of Human Resources
AGE
43
TENURE
1.3 yrs

Stephen Bull

TITLE
Vice President of Research & Development
COMPENSATION
$365K
AGE
59
TENURE
19.3 yrs
Board of Directors Tenure

Average tenure and age of the EXFO board of directors in years:

4.6
Average Tenure
60
Average Age
  • The tenure for the EXFO board of directors is about average.
Board of Directors

Germain Lamonde

TITLE
Founder & Executive Chairman
COMPENSATION
$587K
TENURE
19.2 yrs

Philippe Morin

TITLE
CEO & Director
COMPENSATION
$701K
AGE
52
TENURE
1.2 yrs

Claude Séguin

TITLE
Independent Director
COMPENSATION
$68K
AGE
68
TENURE
6.1 yrs

François Côté

TITLE
Lead Director
COMPENSATION
$72K
AGE
60
TENURE
3.2 yrs

Randy Tornes

TITLE
Independent Director
COMPENSATION
$79K
TENURE
6.1 yrs

Angela Logothetis

TITLE
Independent Director
COMPENSATION
$79K
TENURE
2.2 yrs
Who owns this company?
Recent Insider Trading
  • EXFO insiders have only sold shares in the past 3 months, but not in substantial volumes.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
26. Jan 19 Sell Stéphane Chabot Individual 15. Jan 19 15. Jan 19 -1,250 $3.33 $-4,168
26. Jan 19 Sell Kurt Meske Individual 15. Jan 19 15. Jan 19 -600 $3.33 $-2,001
26. Jan 19 Sell Robert Fitts Individual 15. Jan 19 15. Jan 19 -1,500 $3.33 $-5,002
26. Jan 19 Sell Benoit Ringuette Individual 15. Jan 19 15. Jan 19 -2,500 $3.33 $-8,336
18. Nov 18 Buy Claude Séguin Individual 13. Nov 18 14. Nov 18 2,900 $3.66 $10,239
18. Nov 18 Buy Germain Lamonde Individual 13. Nov 18 15. Nov 18 59,500 $3.69 $214,032
12. Nov 18 Buy Germain Lamonde Individual 07. Nov 18 09. Nov 18 29,000 $3.02 $86,622
X
Management checks
We assess EXFO's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. EXFO has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Company Info

Description

EXFO Inc. develops, manufactures, and markets smarter network test, monitoring, and analytics solutions for communications service providers, network equipment manufacturers, and Web-scale operators. It offers field network testing products, such as copper/DSL testing, dispersion analysis, fiber inspection, live fiber detection, network protocol testing, optical power and loss testing, ORL tester, optical time domain reflectometry and iOLM, spectral testing, test function virtualization, and test reporting and automation products, as well as modular test platforms. The company also provides lab and manufacturing testing network protocol testing products, network simulation and load testing products, optical benchtop kits, optical communication analyzers, optical light sources, optical power meters, optical spectrum analyzers, switch and utility modules, test platforms, variable attenuators, tunable filters, and optical component testers; and monitoring and assurance products, such as fiber monitoring, network probe, network topology management, monitoring and troubleshooting, RAN optimization, and real-time analytics. In addition, it offers mobile portfolio that consists of network simulators and optical radio frequency test solutions for turning up and troubleshooting fiber-based mobile networks; PC-centric and open-ended platforms with cloud-based software applications; and Internet protocol assurance services, as well as testing services for 2G, 3G, 4G/LTE, and 5G mobile networks. The company sells products through its direct sales force, sales representatives, and distributors in the Americas, Europe, the Middle-East, Africa, and the Asia-Pacific. EXFO Inc. was founded in 1985 and is headquartered in Quebec, Canada.

Details
Name: EXFO Inc.
EXFO
Exchange: NasdaqGS
Founded: 1985
CA$205,676,229
55,390,063
Website: http://www.exfo.com
Address: EXFO Inc.
400 Godin Avenue,
Quebec,
Quebec, G1M 2K2,
Canada
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
TSX EXF Subordinate Voting Shares The Toronto Stock Exchange CA CAD 30. Jun 2000
NasdaqGS EXFO Subordinate Voting Shares Nasdaq Global Select US USD 30. Jun 2000
DB EEZ Subordinate Voting Shares Deutsche Boerse AG DE EUR 30. Jun 2000
Number of employees
Current staff
Staff numbers
1,803
EXFO employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/20 23:36
End of day share price update: 2019/03/20 00:00
Last estimates confirmation: 2019/03/11
Last earnings filing: 2019/01/08
Last earnings reported: 2018/11/30
Last annual earnings reported: 2018/08/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.