NasdaqGS:FNSR

Stock Analysis Report

Executive Summary

Finisar Corporation provides components and subsystems to networking equipment manufacturers, data center operators, telecom service providers, consumer electronics, and automotive companies in the United States, China, Malaysia, and internationally.

Snowflake

Fundamentals

Adequate balance sheet with reasonable growth potential.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

3.3%

FNSR

-2.0%

US Communications

1.3%

US Market


1 Year Return

26.5%

FNSR

0.8%

US Communications

5.9%

US Market

Return vs Industry: FNSR exceeded the US Communications industry which returned 0.8% over the past year.

Return vs Market: FNSR exceeded the US Market which returned 5.9% over the past year.


Shareholder returns

FNSRIndustryMarket
7 Day3.3%-2.0%1.3%
30 Day6.4%-6.5%-1.9%
90 Day5.7%-16.8%-1.8%
1 Year26.5%26.5%3.1%0.8%8.3%5.9%
3 Year-21.0%-21.0%50.2%40.8%45.6%36.2%
5 Year42.9%42.9%92.9%72.8%66.1%47.9%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

Is Finisar undervalued compared to its fair value and its price relative to the market?

1.77x

Price to Book (PB) ratio


Share Price vs. Fair Value

Undervalued: Insufficient data to calculate FNSR's fair value to establish if it is undervalued.

Significantly Undervalued: Insufficient data to calculate FNSR's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: FNSR is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

Low PEG Ratio: Insufficient data to calculate FNSR's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: FNSR is good value based on its PB Ratio (1.8x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

How is Finisar forecast to perform in the next 1 to 3 years based on estimates from 8 analysts?

169.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: FNSR's revenue (8.9% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: FNSR's revenue (8.9% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: FNSR's Return on Equity is forecast to be low in 3 years time (7.7%).


Next Steps

Past Performance

How has Finisar performed over the past 5 years?

-21.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: FNSR is unprofitable, and losses have increased over the past 5 years at a rate of -21.6% per year.

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

Earnings vs Industry: FNSR is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (22.8%).


Return on Equity

High ROE: FNSR has a negative Return on Equity (-2.69%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: FNSR is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: FNSR is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is Finisar's financial position?


Financial Position Analysis

Short Term Liabilities: FNSR's short term assets ($1.5B) exceeds its short term liabilities ($219.1M)

Long Term Liabilities: FNSR's short term assets (1.5B) exceeds its long term liabilities (561.7M)


Debt to Equity History and Analysis

Debt Level: FNSR's debt to equity ratio (32%) is considered satisfactory

Reducing Debt: FNSR's debt to equity ratio has increased from 24.3% to 32% over the past 5 years.

Debt Coverage: FNSR's debt is well covered by operating cash flow (25.1%).

Interest Coverage: Insufficient data to determine if FNSR's interest payments on its debt are well covered by EBIT.


Balance Sheet

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

Debt Coverage by Assets: FNSR's debt is covered by short term assets (assets are 2.902020x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.8%industryaverage3.0%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

High Dividend: Unable to evaluate FNSR's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if FNSR's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if FNSR'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 FNSR's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

6.3yrs

Average management tenure


CEO

Joe Young (62yo)

0.08yrs

Tenure

US$2,180,094

Compensation

Mr. Joseph A. Young, also known as Joe, has been Interim Chief Executive at Finisar Corporation since August 3, 2019. Mr. Young has been an Executive Vice President of Global Operations at Finisar Corporat ...


CEO Compensation Analysis

Compensation vs. Market: Joe has recently become CEO, making it difficult to compare their total compensation against companies of similar size in the US market.

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


Management Age and Tenure

6.3yrs

Average Tenure

53yo

Average Age

Experienced Management: FNSR's management team is seasoned and experienced (6.3 years average tenure).


Board Age and Tenure

9.3yrs

Average Tenure

73yo

Average Age

Experienced Board: FNSR's board of directors are considered experienced (9.3 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$5,077,23011 Jan 19
Magnetar Capital, LLC
EntityCompany
Shares235,564
Max PriceUS$21.66
SellUS$2,701,44602 Jan 19
Magnetar Capital, LLC
EntityCompany
Shares127,105
Max PriceUS$21.52
SellUS$3,124,51020 Dec 18
Magnetar Capital, LLC
EntityCompany
Shares133,812
Max PriceUS$23.35
BuyUS$142,437,90720 Dec 18
Magnetar Capital, LLC
EntityCompany
Shares6,087,012
Max PriceUS$23.40

Ownership Breakdown


Management Team

  • Jerry Rawls (74yo)

    Co-Founder & Director

    • Tenure: 30.5yrs
    • Compensation: US$304.77k
  • Kurt Adzema (50yo)

    Executive VP of Finance & CFO

    • Tenure: 9.5yrs
    • Compensation: US$2.03m
  • Jianhui Zhou (54yo)

    Senior Vice President of Worldwide Sales

    • Tenure: 0yrs
  • Joe Young (62yo)

    Executive VP of Global Operations & Interim Chief Executive

    • Tenure: 0.08yrs
    • Compensation: US$2.18m
  • Chris Brown (52yo)

    Chief Counsel

    • Tenure: 8.7yrs
    • Compensation: US$1.24m
  • Mark Colyar (55yo)

    Senior VP of Operations & Engineering and GM

    • Tenure: 11.1yrs
    • Compensation: US$1.00m
  • Victoria McDonald

    Director of Corporate Communications

    • Tenure: 0yrs
  • Todd Swanson (48yo)

    COO & Interim Chief Executive

    • Tenure: 0.08yrs
    • Compensation: US$2.18m
  • Julie Eng (52yo)

    Executive Vice President of Datacom R&D

    • Tenure: 3.9yrs
    • Compensation: US$1.68m
  • Martin Zirngibl

    Chief Technical Officer

    • Tenure: 0yrs

Board Members

  • Mike Child (64yo)

    Director

    • Tenure: 9.3yrs
    • Compensation: US$278.48k
  • Roger Ferguson (76yo)

    Independent Director

    • Tenure: 20.1yrs
    • Compensation: US$327.98k
  • Jerry Rawls (74yo)

    Co-Founder & Director

    • Tenure: 30.5yrs
    • Compensation: US$304.77k
  • Robert Stephens (73yo)

    Chairman of the Board

    • Tenure: 1.7yrs
    • Compensation: US$310.98k
  • Tom Pardun (75yo)

    Director

    • Tenure: 9.8yrs
    • Compensation: US$274.98k
  • Leen Simonet-Lauriks (67yo)

    Director

    • Tenure: 2.5yrs
    • Compensation: US$274.98k
  • Mike Dreyer (55yo)

    Director

    • Tenure: 3.8yrs
    • Compensation: US$274.98k

Company Information

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


Key Information

  • Name: Finisar Corporation
  • Ticker: FNSR
  • Exchange: NasdaqGS
  • Founded: 1987
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$2.855b
  • Shares outstanding: 120.11m
  • Website: https://www.finisar.com

Number of Employees


Location

  • Finisar Corporation
  • 1389 Moffett Park Drive
  • Sunnyvale
  • California
  • 94089
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
FNSRNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDNov 1999
FISNDB (Deutsche Boerse AG)YesCommon StockDEEURNov 1999
FISNXTRA (XETRA Trading Platform)YesCommon StockDEEURNov 1999
0IM7LSE (London Stock Exchange)YesCommon StockGBUSDNov 1999

Biography

Finisar Corporation provides components and subsystems to networking equipment manufacturers, data center operators, telecom service providers, consumer electronics, and automotive companies in the United  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/09/24 23:36
End of Day Share Price2019/09/23 00:00
Earnings2019/07/28
Annual Earnings2019/04/28


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.