NasdaqGS:INFN

Stock Analysis Report

Executive Summary

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


Snowflake Analysis

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

Stable Share Price: INFN's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

14.2%

INFN

5.5%

US Communications

7.2%

US Market


1 Year Return

20.2%

INFN

-27.1%

US Communications

-10.4%

US Market

Return vs Industry: INFN exceeded the US Communications industry which returned -28.7% over the past year.

Return vs Market: INFN exceeded the US Market which returned -12.7% over the past year.


Shareholder returns

INFNIndustryMarket
7 Day14.2%5.5%7.2%
30 Day-19.4%-1.6%-12.6%
90 Day-31.0%-16.4%-19.4%
1 Year20.2%20.2%-25.6%-27.1%-8.5%-10.4%
3 Year-46.8%-46.8%12.8%6.3%15.8%8.3%
5 Year-71.5%-71.5%43.6%28.1%35.8%21.0%

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 ($5.14) is trading below our estimate of fair value ($45.28)

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 (2.4x) compared to the US Communications industry average (1.3x).


Next Steps

Future Growth

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

82.7%

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 (7.3% 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 (16%).


Next Steps

Past Performance

How has Infinera performed over the past 5 years?

-65.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: INFN is currently unprofitable.

Growing Profit Margin: INFN is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: INFN is unprofitable, and losses have increased over the past 5 years at a rate of -65.3% 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 (-13.2%).


Return on Equity

High ROE: INFN has a negative Return on Equity (-100.02%), as it is currently unprofitable.


Next Steps

Financial Health

How is Infinera's financial position?


Financial Position Analysis

Short Term Liabilities: INFN's short term assets ($942.8M) exceed its short term liabilities ($715.3M).

Long Term Liabilities: INFN's short term assets ($942.8M) exceed its long term liabilities ($526.5M).


Debt to Equity History and Analysis

Debt Level: INFN's debt to equity ratio (91.9%) is considered high.

Reducing Debt: INFN's debt to equity ratio has increased from 24.2% to 91.9% 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 2.7x 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

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.


Stability and Growth of Payments

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

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

1.1yrs

Average management tenure


CEO

Tom Fallon (57yo)

10.17s

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 ($USD4.88M) is above average for companies of similar size in the US market ($USD3.18M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Fallon
CEO & Director10.17yrsUS$4.88m0.81% $8.1m
David Welch
Founder9.42yrsUS$1.80m0.88% $8.9m
David Heard
Chief Operating Officer1.42yrsUS$2.29m0.064% $640.0k
Nancy Erba
Chief Financial Officer0.58yrno datano data
Michael Fernicola
Chief Accounting Officer0.58yrno datano data
Parthiban Kandappan
Chief Technical Officer1.42yrsno datano data
Ted Moreau
Head of Investor Relationsno datano datano data
David Teichmann
Chief Legal Officer & Corporate Secretary0.83yrno datano data
Nicholas Walden
Senior Vice President of Worldwide Sales0.17yrno datano data
Robert Shore
Senior Vice President of Marketingno datano datano data

1.1yrs

Average Tenure

52yo

Average Age

Experienced Management: INFN's management team is not considered experienced ( 1.2 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Thomas Fallon
CEO & Director10.17yrsUS$4.88m0.81% $8.1m
David Welch
Founder9.42yrsUS$1.80m0.88% $8.9m
Marcel Gani
Independent Director5.67yrsUS$252.07k0.13% $1.3m
Paul Milbury
Independent Director9.67yrsUS$263.44k0.040% $396.5k
Roger Baker
Member of Government Advisory Board4yrsno datano data
Kambiz Hooshmand
Independent Chairman of the Board9.42yrsUS$296.94k0.067% $671.8k
Diana Gowen
Member of Government Advisory Board4yrsno datano data
Mark Wegleitner
Independent Director8.83yrsUS$235.57k0.047% $468.5k
Henry Sienkiewicz
Member of Government Advisory Board4yrsno datano data
Rajal Patel
Independent Director4.42yrsUS$230.57k0.033% $330.0k

7.3yrs

Average Tenure

58yo

Average Age

Experienced Board: INFN's board of directors are considered experienced (7.3 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.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 13.5%.


Top Shareholders

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$1.003b
  • Shares outstanding: 183.03m
  • 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
IX6BRSE (Berne Stock Exchange)YesCommon StockCHCHFJun 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 network platforms, including the XTC Series, XTS Series, and XT Series; Infinera DTN-X XTC series multi-terabit packet optical transport platforms that integrate digital OTN switching and optical WDM transmission; and Infinera DTN-X XT series for terrestrial applications and XTS series for subsea applications. It also provides Infinera hiT 7300, mTera Series, 7100 Series, 7090 Family, and 8600 Series; Infinera XTM Series packet-optical transport platform that enables high-performance metro networks with service-aware, application-specific capabilities; Infinera Groove G30; and Infinera Cloud Xpress Family designed to meet the varying needs of ICPs, communication service providers, Internet exchange service providers, enterprises, and other large-scale data center operators. In addition, the company offers Infinera FlexILS open line system platform that connects various Infinera and third-party terminal equipment platforms over long-distance fiber optic cable providing switching, multiplexing, amplification, and management channels. Further, it provides transcend software suite; Infinera CNOS, a hardware-independent network operating system; and a range of support services for all hardware and software products. The company also serves telecommunications service providers, Internet content providers, cable providers, wholesale and enterprise carriers, research and education institutions, enterprise customers, and government entities. It markets and sells its products and related support services primarily through its direct sales force. The company was formerly known as Zepton Networks. Infinera Corporation was founded in 2000 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 Analysis2020/03/31 01:31
End of Day Share Price2020/03/30 00:00
Earnings2019/12/28
Annual Earnings2019/12/28


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.