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 Analysis

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

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


Market Performance


7 Day Return

3.3%

FNSR

-1.3%

US Communications

1.5%

US Market


1 Year Return

26.5%

FNSR

-5.8%

US Communications

20.1%

US Market

Return vs Industry: FNSR exceeded the US Communications industry which returned 6.7% over the past year.

Return vs Market: FNSR exceeded the US Market which returned 24.7% over the past year.


Shareholder returns

FNSRIndustryMarket
7 Day3.3%-1.3%1.5%
30 Day6.4%-3.7%1.4%
90 Day5.7%3.7%8.7%
1 Year26.5%26.5%-3.8%-5.8%22.7%20.1%
3 Year-21.0%-21.0%33.1%25.0%50.1%40.5%
5 Year42.9%42.9%59.4%41.7%73.1%54.1%

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

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

Significantly Below Fair Value: 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

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 (1.9x).


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 become profitable over the next 3 years, which is considered faster growth than the savings rate (2.7%).

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

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

Revenue vs Market: FNSR's revenue (8.9% per year) is forecast to grow faster than the US market (7.5% 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

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

Quality Earnings: FNSR is currently unprofitable.

Growing Profit Margin: FNSR is currently unprofitable.


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 (12.6%).


Return on Equity

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


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Finisar's financial position?


Financial Position Analysis

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

Long Term Liabilities: FNSR's short term assets ($1.5B) exceed 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.


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 2.9x debt).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: FNSR has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: FNSR has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years0%

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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

How experienced are the management team and are they aligned to shareholders interests?

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's total compensation ($USD2.18M) is below average for companies of similar size in the US market ($USD4.99M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Joseph Young
Executive VP of Global Operations & Interim Chief Executive0.08yrsUS$2.18m0.11% $3.0m
Todd Swanson
COO & Interim Chief Executive0.08yrsUS$2.18m0.11% $3.2m
Jerry Rawls
Co-Founder & Director30.5yrsUS$304.77k0.35% $9.9m
Kurt Adzema
Executive VP of Finance & CFO9.5yrsUS$2.03m0.11% $3.2m
Julie Eng
Executive Vice President of Datacom R&D3.9yrsUS$1.68m0.018% $504.8k
Martin Zirngibl
Chief Technical Officer0yrsno datano data
Christopher Brown
Chief Counsel8.7yrsUS$1.24m0.053% $1.5m
Victoria McDonald
Director of Corporate Communications0yrsno datano data
Jianhui Zhou
Senior Vice President of Worldwide Sales0yrsno datano data
Mark Colyar
Senior VP of Operations & Engineering and GM11.1yrsUS$1.00mno data

6.3yrs

Average Tenure

53yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Jerry Rawls
Co-Founder & Director30.5yrsUS$304.77k0.35% $9.9m
Michael Child
Director9.3yrsUS$278.48k0.067% $1.9m
Roger Ferguson
Independent Director20.1yrsUS$327.98k0.027% $782.5k
Robert Stephens
Chairman of the Board1.7yrsUS$310.98k0.040% $1.1m
Thomas Pardun
Director9.8yrsUS$274.98k0.060% $1.7m
Helene Simonet-Lauriks
Director2.5yrsUS$274.98k0.025% $704.3k
Michael Dreyer
Director3.8yrsUS$274.98k0.046% $1.3m

9.3yrs

Average Tenure

73yo

Average Age

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


Ownership

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


Insider Trading Volume

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


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

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 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 lasers 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. 


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.