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Finisar

Nasdaq:FNSR
Snowflake Description

Adequate balance sheet with reasonable growth potential.

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

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. The last earnings update was 17 days ago. More info.


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FNSR Share Price and Events
7 Day Returns
1.4%
NasdaqGS:FNSR
3.9%
US Communications
2.9%
US Market
1 Year Returns
31.4%
NasdaqGS:FNSR
11.3%
US Communications
1.4%
US Market
FNSR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Finisar (FNSR) 1.4% 1.6% 10.2% 31.4% 32.8% -14.5%
US Communications 3.9% 7.2% 15.6% 11.3% 76.6% 87.3%
US Market 2.9% 2.5% 10% 1.4% 38.3% 42%
1 Year Return vs Industry and Market
  • FNSR outperformed the Communications industry which returned 11.3% over the past year.
  • FNSR outperformed the Market in United States of America which returned 1.4% over the past year.
Price Volatility
FNSR
Industry
5yr Volatility vs Market

FNSR Value

 Is Finisar 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 Finisar 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    Our intrinsic value calculation method has changed recently, learn more here.

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

NasdaqGS:FNSR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 10 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.6%
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:FNSR
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))
= 1.084 (1 + (1- 21%) (18.09%))
1.16
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.16
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.16 * 5.96%)
9.64%

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

The calculations below outline how an intrinsic value for Finisar 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:FNSR DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.64%)
2019 0.43 Est @ -65.75% 0.39
2020 0.23 Est @ -45.2% 0.19
2021 0.16 Est @ -30.82% 0.12
2022 0.13 Est @ -20.76% 0.09
2023 0.11 Est @ -13.71% 0.07
2024 0.10 Est @ -8.78% 0.06
2025 0.10 Est @ -5.33% 0.05
2026 0.09 Est @ -2.91% 0.04
2027 0.09 Est @ -1.22% 0.04
2028 0.09 Est @ -0.03% 0.04
Present value of next 10 years cash flows $1.09
NasdaqGS:FNSR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $0.09 × (1 + 2.73%) ÷ (9.64% – 2.73%)
$1.36
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1.36 ÷ (1 + 9.64%)10
$0.54
NasdaqGS:FNSR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1.09 + $0.54
$1.64
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1.64 / 117.90
$0.01
NasdaqGS:FNSR Discount to Share Price
Calculation Result
Value per share (USD) From above. $0.01
Current discount Discount to share price of $23.75
= -1 x ($23.75 - $0.01) / $0.01
-171079.6%

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

  • The current share price of Finisar is above its future cash flow value.
Often investors are willing to pay a premium for a company that has a high dividend or the potential for future growth.
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 Finisar's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Finisar's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:FNSR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-27) in USD $-0.49
NasdaqGS:FNSR Share Price ** NasdaqGS (2019-03-15) in USD $23.75
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 3,054 Publicly-Listed Companies 17.61x

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

** Primary Listing of Finisar.

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

= NasdaqGS:FNSR Share Price ÷ EPS (both in USD)

= 23.75 ÷ -0.49

-48.15x

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

  • Finisar is loss making, we can't compare its value to the US Communications industry average.
  • Finisar 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 Finisar's expected growth come at a high price?
Raw Data
NasdaqGS:FNSR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -48.15x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts
171.2%per year
United States of America Communications Industry PEG Ratio Median Figure of 21 Publicly-Listed Communications Companies 1.35x
United States of America Market PEG Ratio Median Figure of 2,109 Publicly-Listed Companies 1.47x

*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 Finisar, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Finisar's assets?
Raw Data
NasdaqGS:FNSR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-27) in USD $13.70
NasdaqGS:FNSR Share Price * NasdaqGS (2019-03-15) in USD $23.75
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 5,152 Publicly-Listed Companies 1.87x
NasdaqGS:FNSR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:FNSR Share Price ÷ Book Value per Share (both in USD)

= 23.75 ÷ 13.70

1.73x

* Primary Listing of Finisar.

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

  • Finisar is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess Finisar'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. Finisar has a total score of 1/6, 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.

FNSR Future Performance

 How is Finisar expected to perform in the next 1 to 3 years based on estimates from 10 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
171.2%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Finisar expected to grow at an attractive rate?
  • Finisar's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Finisar's earnings growth is expected to exceed the United States of America market average.
  • Finisar's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:FNSR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:FNSR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 10 Analysts 171.2%
NasdaqGS:FNSR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 10 Analysts 8.6%
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:FNSR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:FNSR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-04-30 1,870 1
2022-04-30 1,670 1
2021-04-30 1,528 4
2020-04-30 1,440 185 37 10
2019-04-30 1,295 178 -32 7
NasdaqGS:FNSR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-01-27 1,280 178 -57
2018-10-28 1,285 181 -98
2018-07-29 1,292 186 -87
2018-04-29 1,316 172 -48
2018-01-28 1,364 192 100
2017-10-29 1,412 209 202
2017-07-30 1,450 226 245
2017-04-30 1,449 228 249
2017-01-29 1,411 216 132
2016-10-30 1,339 194 98
2016-07-31 1,290 196 56
2016-05-01 1,263 184 35
2016-01-31 1,264 168 29

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Finisar's earnings are expected to grow significantly at over 20% yearly.
  • Finisar's revenue is expected to grow by 8.6% 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:FNSR Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 10 Analyst Estimates (S&P Global) See Below

All data from Finisar Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FNSR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-04-30
2022-04-30
2021-04-30
2020-04-30 0.30 0.46 0.14 2.00
2019-04-30 -0.28 -0.23 -0.32 2.00
NasdaqGS:FNSR Past Financials Data
Date (Data in USD Millions) EPS *
2019-01-27 -0.49
2018-10-28 -0.85
2018-07-29 -0.76
2018-04-29 -0.42
2018-01-28 0.89
2017-10-29 1.80
2017-07-30 2.20
2017-04-30 2.26
2017-01-29 1.21
2016-10-30 0.90
2016-07-31 0.52
2016-05-01 0.33
2016-01-31 0.28

*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.
  • Finisar is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Finisar'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.
Finisar has a total score of 4/6, 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.

FNSR Past Performance

  How has Finisar 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 Finisar'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.
  • Finisar does not make a profit and their year on year earnings growth rate was negative over the past 5 years.
  • Unable to compare Finisar's 1-year earnings growth to the 5-year average as it is not currently profitable.
  • Unable to compare Finisar's 1-year growth to the US Communications industry average as it is not currently profitable.
Earnings and Revenue History
Finisar'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 Finisar Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:FNSR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-27 1,280.46 -57.41 136.17 227.53
2018-10-28 1,285.23 -97.77 121.78 236.14
2018-07-29 1,292.01 -86.63 110.61 237.03
2018-04-29 1,316.48 -48.29 104.58 239.01
2018-01-28 1,363.94 100.30 101.58 237.46
2017-10-29 1,412.13 202.35 103.12 232.26
2017-07-30 1,449.78 245.26 104.55 224.95
2017-04-30 1,449.30 249.35 106.09 217.91
2017-01-29 1,410.57 132.17 106.92 209.11
2016-10-30 1,339.19 97.87 107.37 204.26
2016-07-31 1,290.46 55.75 108.50 201.99
2016-05-01 1,263.17 35.19 106.74 203.39
2016-01-31 1,264.41 29.45 108.37 204.34
2015-11-01 1,261.49 19.04 106.58 203.28
2015-08-02 1,237.34 1.04 107.76 203.49
2015-05-03 1,250.94 11.89 108.03 202.09
2015-01-25 1,236.93 33.31 107.57 199.11
2014-10-26 1,224.66 58.69 114.35 197.06
2014-07-27 1,218.40 100.02 112.80 190.83
2014-04-27 1,156.83 111.79 106.26 183.36
2014-01-26 1,094.23 86.92 104.08 176.49
2013-10-27 1,038.56 56.45 95.52 169.48
2013-07-28 979.88 26.75 90.94 164.15
2013-04-28 934.34 -5.45 94.81 158.78
2013-01-27 930.83 8.68 92.79 154.94
2012-10-28 935.43 21.00 91.46 151.69
2012-07-29 944.88 26.65 92.22 148.78
2012-04-30 952.58 42.99 92.24 146.00

*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 Finisar has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.
  • It is difficult to establish if Finisar 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 Finisar 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 Finisar'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.
Finisar 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.

FNSR Health

 How is Finisar'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 Finisar's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Finisar is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Finisar's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Finisar'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 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 Finisar Company Filings, last reported 1 month ago.

NasdaqGS:FNSR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-27 1,614.95 506.45 910.61
2018-10-28 1,600.29 756.91 1,169.80
2018-07-29 1,603.45 748.47 1,158.87
2018-04-29 1,623.62 740.16 1,197.10
2018-01-28 1,640.41 731.91 1,216.29
2017-10-29 1,635.13 723.78 1,232.76
2017-07-30 1,611.16 715.72 1,232.85
2017-04-30 1,562.71 707.78 1,236.82
2017-01-29 1,414.57 699.90 1,214.27
2016-10-30 1,249.32 234.68 626.28
2016-07-31 1,194.12 232.02 593.80
2016-05-01 1,167.69 229.39 562.48
2016-01-31 1,125.83 228.56 531.06
2015-11-01 1,107.27 226.15 520.77
2015-08-02 1,105.33 223.76 495.69
2015-05-03 1,103.79 221.41 490.19
2015-01-25 1,080.30 219.07 488.86
2014-10-26 1,045.22 253.44 477.43
2014-07-27 1,048.97 254.51 497.38
2014-04-27 1,016.06 252.27 513.02
2014-01-26 976.72 254.27 554.75
2013-10-27 894.33 44.72 316.49
2013-07-28 845.78 40.02 288.43
2013-04-28 812.52 40.02 289.08
2013-01-27 800.79 40.02 265.45
2012-10-28 793.16 40.02 262.43
2012-07-29 779.12 40.02 220.41
2012-04-30 779.85 43.17 234.54
  • Finisar's level of debt (31.4%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (26% vs 31.4% today).
  • Debt is well covered by operating cash flow (35.2%, greater than 20% of total debt).
  • Finisar is making a loss, therefore interest payments are not well covered by earnings.
X
Financial health checks
We assess Finisar'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. Finisar 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.

FNSR Dividends

 What is Finisar'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 Finisar dividends. Estimated to be 0% next year.
If you bought $2,000 of Finisar 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 Finisar's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Finisar'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:FNSR 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 10 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 2005 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:FNSR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-04-30
2022-04-30
2021-04-30 0.00 1.00
2020-04-30 0.00 1.00
2019-04-30 0.00 1.00

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

  • Unable to perform a dividend volatility check as Finisar has not reported any payouts.
  • Unable to verify if Finisar's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Finisar's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Finisar has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Finisar's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Finisar'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 Finisar afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Finisar 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.

FNSR Management

 What is the CEO of Finisar'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
Michael Hurlston
COMPENSATION $10,518,279
AGE 51
TENURE AS CEO 1.2 years
CEO Bio

Mr. Michael E. Hurlston is the Chief Executive Officer and a Director of Finisar Corporation since January 11, 2018. Mr. Hurlston has industry, marketing, sales and management experience. Mr. Hurlston served as a Senior Vice President and General Manager of the Mobile Connectivity Products/Wireless Communications and Connectivity Division at Broadcom Limited until October 20, 2017. Mr. Hurlston was responsible for Broadcom’s mobility products. He held senior leadership positions in sales, marketing and general management at Broadcom Limited from November 2001 until October 2017. He joined Broadcom in 2001. Mr. Hurlston held senior marketing and engineering positions at Oren Semiconductor, Inc., Avasem, Integrated Circuit Systems, Micro Power Systems, Exar and IC Works from 1991 until 2001. He served as an Executive Vice President of Worldwide Sales at Broadcom Corporation from April 1, 2013 to February 1, 2016. Mr. Hurlston served as Senior Vice President and General Manager of Wireless Connectivity Combo at Broadcom Corp. from April 2012 to April 1, 2013. Mr. Hurlston joined Broadcom in October 2001 as the Director of Wireless Business Development and was appointed as Vice President and General Manager, Wireless LAN in May 2005 and was promoted to Senior Vice President in April 2010. He served as Director of Sales at Oren Semiconductor, Inc. He served in senior marketing positions at Radia Communications. He has been a Director of Ubiquiti Networks, Inc. since August 04, 2016. He is a member of the board of advisors of Vilynx Inc. Mr. Hurlston received a B.S.E.E., an M.S.E.E. and an M.B.A. from the University of California, Davis.

CEO Compensation
  • Insufficient data for Michael to compare compensation growth.
  • Michael's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

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

5.8
Average Tenure
51
Average Age
  • The average tenure for the Finisar management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Michael Hurlston

TITLE
CEO & Director
COMPENSATION
$11M
AGE
51
TENURE
1.2 yrs

Jerry Rawls

TITLE
Co-Founder & Director
COMPENSATION
$12M
AGE
73

Kurt Adzema

TITLE
CFO, Principal Accounting Officer & Executive VP of Finance
COMPENSATION
$1M
AGE
49
TENURE
9 yrs

Joseph Young

TITLE
Executive Vice President of Global Operations
COMPENSATION
$1M
AGE
61
TENURE
8.2 yrs

Todd Swanson

TITLE
Chief Operating Officer
COMPENSATION
$1M
AGE
47
TENURE
0.9 yrs

Julie Eng

TITLE
Executive Vice President of Datacom R&D
COMPENSATION
$1M
AGE
51
TENURE
3.4 yrs

John Clark

TITLE
CTO & Executive VP
COMPENSATION
$1M
AGE
68
TENURE
3.4 yrs

Chris Brown

TITLE
Chief Counsel
COMPENSATION
$1M
AGE
51
TENURE
8.2 yrs

Victoria McDonald

TITLE
Director of Corporate Communications

Mark Colyar

TITLE
Senior VP of Operations & Engineering and GM
COMPENSATION
$1M
AGE
54
TENURE
10.6 yrs
Board of Directors Tenure

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

6
Average Tenure
69
Average Age
  • The tenure for the Finisar board of directors is about average.
Board of Directors

Robert Stephens

TITLE
Chairman
COMPENSATION
$288K
AGE
72
TENURE
1.2 yrs

Michael Hurlston

TITLE
CEO & Director
COMPENSATION
$11M
AGE
51
TENURE
1.2 yrs

Jerry Rawls

TITLE
Co-Founder & Director
COMPENSATION
$12M
AGE
73
TENURE
30 yrs

Mike Child

TITLE
Director
COMPENSATION
$278K
AGE
63
TENURE
8.8 yrs

Roger Ferguson

TITLE
Independent Director
COMPENSATION
$283K
AGE
75
TENURE
19.6 yrs

Tom Pardun

TITLE
Director
COMPENSATION
$275K
AGE
74
TENURE
9.3 yrs

Mike Dreyer

TITLE
Director
COMPENSATION
$275K
AGE
54
TENURE
3.3 yrs

Leen Simonet-Lauriks

TITLE
Director
COMPENSATION
$275K
AGE
66
TENURE
2 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
11. Jan 19 Buy Magnetar Capital, LLC Company 02. Jan 19 03. Jan 19 235,564 $21.66 $5,077,230
02. Jan 19 Sell Magnetar Capital, LLC Company 26. Dec 18 31. Dec 18 -127,105 $21.52 $-2,701,446
20. Dec 18 Sell Magnetar Capital, LLC Company 02. Nov 18 30. Nov 18 -133,812 $23.35 $-3,124,510
20. Dec 18 Buy Magnetar Capital, LLC Company 09. Nov 18 10. Dec 18 6,087,012 $23.40 $142,437,907
X
Management checks
We assess Finisar'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. Finisar 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.

FNSR News

Simply Wall St News

Before You Buy Finisar Corporation's (NASDAQ:FNSR), Consider This

Beta is a widely used metric to measure a stock's exposure to market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … In comparison a stock with a beta of over one tends to be move in a similar direction to the market in the long term, but with greater changes in price.

Simply Wall St -

Why Finisar Corporation (NASDAQ:FNSR) Could Be A Buy

Finisar Corporation (NASDAQ:FNSR), a communications company based in United States, saw a significant share price rise of over 20% in the past couple of months on the NasdaqGS. … NasdaqGS:FNSR Future Profit Mar 8th 18 Future outlook is an important aspect when you’re looking at buying a stock, especially if you are an investor looking for growth in your portfolio. … Buying a great company with a robust outlook at a cheap price is always a good investment, so let’s also take a look at the company's future expectations.

Simply Wall St -

Was Finisar Corporation's (NASDAQ:FNSR) Earnings Growth Better Than The Industry's?

See our latest analysis for Finisar Did FNSR's recent earnings growth beat the long-term trend and the industry? … This means on average, Finisar has been able to steadily raise its earnings over the past couple of years as well. … Eyeballing growth from a sector-level, the US communications industry has been growing its average earnings by double-digit 17.74% in the prior twelve months, and 11.35% over the past five years.

Simply Wall St -

What Investors Should Know About Finisar Corporation's (NASDAQ:FNSR) Financial Strength

Moreover, FNSR has produced $227.8M in operating cash flow in the last twelve months, resulting in an operating cash to total debt ratio of 32.19%, meaning that FNSR’s debt is appropriately covered by operating cash. … At the current liabilities level of $251.8M liabilities, it appears that the company has been able to meet these obligations given the level of current assets of $1,908.9M, with a current ratio of 7.58x. … In FNSR's, case, the ratio of 6.66x suggests that interest is appropriately covered, which means that lenders may be less hesitant to lend out more funding as FNSR’s high interest coverage is seen as responsible and safe practice.Next Steps: Although FNSR’s debt level is towards the higher end of the spectrum, its cash flow coverage seems adequate to meet obligations which means its debt is being efficiently utilised.

Simply Wall St -

Is It Time To Buy Finisar Corporation (NASDAQ:FNSR) Based Off Its PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for FNSR Price per share = $23.7 Earnings per share = $1.803 ∴ Price-Earnings Ratio = $23.7 ÷ $1.803 = 13.1x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you are inadvertently comparing lower risk firms with FNSR, then FNSR’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price. … If this assumption does not hold true, FNSR’s lower P/E ratio may be because firms in our peer group are being overvalued by the market.

Simply Wall St -

How Did Finisar Corporation's (FNSR) 17.49% ROE Fare Against The Industry?

However, ROE only measures returns against equity, not debt. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of FNSR’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:FNSR Last Perf Dec 7th 17 The first component is profit margin, which measures how much of sales is retained after the company pays for all its expenses.

Simply Wall St -

Why Finisar Corporation (FNSR) Could Be A Buy

Although value investors would argue that it’s the intrinsic value relative to the price that matter the most, a more compelling investment thesis would be high growth potential at a cheap price. … Currently, FNSR appears to be trading around its fair value, but given the uncertainty from negative returns in the future, this could be the right time to reduce the risk in your portfolio. … The stock appears to be trading at fair value, which means there’s less benefit from mispricing.

Simply Wall St -

Calculating The Fair Value Of Finisar Corporation (FNSR)

5-year cash flow forecast 2017 2018 2019 2020 2021 Levered FCF (USD, Millions) $162.70 $106.70 $201.10 $219.07 $238.65 Source Analyst x1 Analyst x2 Analyst x1 Extrapolated @ (8.94%) Extrapolated @ (8.94%) Present Value Discounted @ 11.52% $145.89 $85.79 $144.99 $141.63 $138.35 Present Value of 5-year Cash Flow (PVCF)= $657 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … Terminal Value (TV) = FCF2021 × (1 + g) ÷ (r – g) = $239 × (1 + 2.5%) ÷ (11.5% – 2.5%) = $2,702 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $2,702 / ( 1 + 11.5%)5 = $1,566 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $2,223. … NasdaqGS:FNSR Intrinsic Value Nov 3rd 17 The assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

FNSR Company Info

Description

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. The company’s optical subsystems primarily include transmitters, receivers, transceivers, transponders, and active optical cables, which provide the fundamental optical-electrical or optoelectronic interface for interconnecting the electronic equipment used in wireline networks comprising switches, routers, and servers, as well as wireless networks, such as antennas and base stations. It also offers wavelength selective switches that are used to switch network traffic from one optical fiber to various other fibers without converting to an electronic signal. In addition, the company provides packaged laser, receivers, and photodetectors for data communication and telecommunication applications; and passive optical components for telecommunication applications. It markets its products through direct sales force, as well as distributors, manufacturers’ representatives and resellers, and system integrators; and to the manufacturers of storage systems and telecommunication equipment, as well as to their contract manufacturers. Finisar Corporation was founded in 1987 and is headquartered in Sunnyvale, California.

Details
Name: Finisar Corporation
FNSR
Exchange: NasdaqGS
Founded: 1987
$2,800,204,610
117,903,352
Website: http://www.finisar.com
Address: Finisar Corporation
1389 Moffett Park Drive,
Sunnyvale,
California, 94089,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS FNSR Common Stock Nasdaq Global Select US USD 12. Nov 1999
DB FISN Common Stock Deutsche Boerse AG DE EUR 12. Nov 1999
XTRA FISN Common Stock XETRA Trading Platform DE EUR 12. Nov 1999
LSE 0IM7 Common Stock London Stock Exchange GB USD 12. Nov 1999
Number of employees
Current staff
Staff numbers
13,000
Finisar employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/17 23:36
End of day share price update: 2019/03/15 00:00
Last estimates confirmation: 2019/03/04
Last earnings filing: 2019/02/28
Last earnings reported: 2019/01/27
Last annual earnings reported: 2018/04/29


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.