NasdaqGS:INFN

Stock Analysis Report

Executive Summary

Infinera Corporation provides optical transport networking equipment and software and services worldwide.

Snowflake

Fundamentals

Slightly overvalued with imperfect balance sheet.


Similar Companies

Share Price & News

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


Latest Share Price and Events


Market Performance


7 Day Return

5.8%

INFN

2.6%

US Communications

0.07%

US Market


1 Year Return

-6.9%

INFN

3.2%

US Communications

8.9%

US Market

Return vs Industry: INFN underperformed the US Communications industry which returned 3.2% over the past year.

Return vs Market: INFN underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

INFNIndustryMarket
7 Day5.8%2.6%0.07%
30 Day3.3%-2.8%-0.3%
90 Day50.4%-14.1%-1.6%
1 Year-6.9%-6.9%5.6%3.2%11.3%8.9%
3 Year-36.5%-36.5%53.8%44.0%46.3%36.8%
5 Year-59.3%-59.3%94.0%72.9%62.1%44.3%

Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INFN ($5.64) is trading below our estimate of fair value ($21.51)

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


Price To Earnings Ratio

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

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


Price to Book Ratio

PB vs Industry: INFN is overvalued based on its PB Ratio (2x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

How is Infinera forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

87.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

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

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

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

Revenue vs Market: INFN's revenue (6.7% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: INFN's revenue (6.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: INFN's Return on Equity is forecast to be low in 3 years time (3.6%).


Next Steps

Past Performance

How has Infinera performed over the past 5 years?

-66.8%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: INFN is unprofitable, and losses have increased over the past 5 years at a rate of -66.8% per year.

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

Earnings vs Industry: INFN is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (23.8%).


Return on Equity

High ROE: INFN has a negative Return on Equity (-77.92%), as it is currently unprofitable.


Return on Assets

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


Return on Capital Employed

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


Next Steps

Financial Health

How is Infinera's financial position?


Financial Position Analysis

Short Term Liabilities: INFN's short term assets ($822.2M) exceeds its short term liabilities ($532.4M)

Long Term Liabilities: INFN's short term assets (822.2M) exceeds its long term liabilities (466.5M)


Debt to Equity History and Analysis

Debt Level: INFN's debt to equity ratio (55.9%) is considered high

Reducing Debt: INFN's debt to equity ratio has increased from 25.7% to 55.9% over the past 5 years.


Balance Sheet

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

Debt Coverage by Assets: INFN's debt is covered by short term assets (assets are 2.855080x 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: INFN has less than a year of cash runway based on its current free cash flow.

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


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

Growing Dividend: Insufficient data to determine if INFN'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 INFN'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 Infinera's salary, the management and board of directors tenure and is there insider trading?

1.0yrs

Average management tenure


CEO

Tom Fallon (57yo)

9.8yrs

Tenure

US$4,882,910

Compensation

Mr. Thomas J. Fallon, also known as Tom, has been the Chief Executive Officer of Infinera Corporation since January 1, 2010 and served as its President from January 1, 2010 to June 19, 2013. He serves as M ...


CEO Compensation Analysis

Compensation vs. Market: Tom's total compensation ($USD4.88M) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

1.0yrs

Average Tenure

57yo

Average Age

Experienced Management: INFN's management team is not considered experienced ( 1 years average tenure), which suggests a new team.


Board Age and Tenure

6.9yrs

Average Tenure

58yo

Average Age

Experienced Board: INFN's board of directors are considered experienced (6.9 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$78,24528 May 19
David Heard
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares25,000
Max PriceUS$3.13
BuyUS$165,91515 May 19
Thomas Fallon
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares50,000
Max PriceUS$3.32
BuyUS$314,79014 May 19
Marcel Gani
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares100,000
Max PriceUS$3.15
BuyUS$169,56803 Dec 18
Robert Jandro
EntityIndividual
Role
Head of Sales
Senior Vice President of Worldwide Sales
Shares40,000
Max PriceUS$4.24
BuyUS$180,00014 Nov 18
Brad Feller
EntityIndividual
Shares40,000
Max PriceUS$4.50
BuyUS$94,86809 Nov 18
David Heard
EntityIndividual
Role
Chief Operating Officer
Chief Operating Officer
Shares20,000
Max PriceUS$4.74
BuyUS$231,60509 Nov 18
Thomas Fallon
EntityIndividual
Role
Chief Executive Officer
CEO & Director
Shares50,000
Max PriceUS$4.63

Ownership Breakdown


Management Team

  • Dave Welch (58yo)

    Founder

    • Tenure: 9yrs
    • Compensation: US$1.80m
  • David Teichmann (62yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 0.5yrs
  • David Heard (51yo)

    Chief Operating Officer

    • Tenure: 1yrs
    • Compensation: US$2.29m
  • Bob Jandro (64yo)

    Senior Vice President of Worldwide Sales

    • Tenure: 6.4yrs
    • Compensation: US$1.41m
  • Tom Fallon (57yo)

    CEO & Director

    • Tenure: 9.8yrs
    • Compensation: US$4.88m
  • Ted Moreau

    Head of Investor Relations

    • Tenure: 0yrs
  • Parthiban Kandappan

    Chief Technical Officer

    • Tenure: 1yrs
  • Mike Fernicola (47yo)

    Chief Accounting Officer

    • Tenure: 0.2yrs
  • Nancy Erba (52yo)

    Senior VP of Strategic Finance & CFO

    • Tenure: 0.2yrs
  • Rob Shore

    Senior Vice President of Marketing

    • Tenure: 0yrs

Board Members

  • Dave Welch (58yo)

    Founder

    • Tenure: 9yrs
    • Compensation: US$1.80m
  • Marcel Gani (66yo)

    Independent Director

    • Tenure: 5.3yrs
    • Compensation: US$252.07k
  • Paul Milbury (70yo)

    Independent Director

    • Tenure: 9.3yrs
    • Compensation: US$263.44k
  • Roger Baker

    Member of Government Advisory Board

    • Tenure: 3.7yrs
  • Kambiz Hooshmand (58yo)

    Independent Chairman of the Board

    • Tenure: 9yrs
    • Compensation: US$296.94k
  • Diana Gowen

    Member of Government Advisory Board

    • Tenure: 3.7yrs
  • Tom Fallon (57yo)

    CEO & Director

    • Tenure: 9.8yrs
    • Compensation: US$4.88m
  • Mark Wegleitner (68yo)

    Independent Director

    • Tenure: 8.4yrs
    • Compensation: US$235.57k
  • Henry Sienkiewicz

    Member of Government Advisory Board

    • Tenure: 3.7yrs
  • Raj Patel (50yo)

    Independent Director

    • Tenure: 4.1yrs
    • Compensation: US$230.57k

Company Information

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


Key Information

  • Name: Infinera Corporation
  • Ticker: INFN
  • Exchange: NasdaqGS
  • Founded: 2000
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$1.012b
  • Shares outstanding: 179.40m
  • Website: https://www.infinera.com

Number of Employees


Location

  • Infinera Corporation
  • 140 Caspian Court
  • Sunnyvale
  • California
  • 94089
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
IX6DB (Deutsche Boerse AG)YesCommon StockDEEURJun 2007
INFNNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDJun 2007

Biography

Infinera Corporation provides optical transport networking equipment and software and services worldwide. The company’s product portfolio consists of Infinera DTN-X Family of terabit-class transport networ ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/21 23:58
End of Day Share Price2019/10/21 00:00
Earnings2019/06/29
Annual Earnings2018/12/29


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.