Infinera
Market Cap
US$1.9b
Last Updated
2021/02/24 23:34 UTC
Data Sources
Company Financials +
Executive Summary
Infinera Corporation provides optical transport networking equipment, software, and services worldwide. More Details
Rewards
Risk Analysis
Currently unprofitable and not forecast to become profitable over the next 3 years
Snowflake Analysis
Mediocre balance sheet and slightly overvalued.
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 is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 7% a week.
Volatility Over Time: INFN's weekly volatility (7%) has been stable over the past year.
Market Performance
7 Day Return
-10.3%
INFN
-2.1%
US Communications
-1.4%
US Market
1 Year Return
35.0%
INFN
16.2%
US Communications
37.1%
US Market
Return vs Industry: INFN exceeded the US Communications industry which returned 14% over the past year.
Return vs Market: INFN matched the US Market which returned 34.1% over the past year.
Shareholder returns
| INFN | Industry | Market | |
|---|---|---|---|
| 7 Day | -10.3% | -2.1% | -1.4% |
| 30 Day | -2.5% | 0.5% | 1.6% |
| 90 Day | 12.2% | 11.3% | 7.3% |
| 1 Year | 35.0%35.0% | 19.3%16.2% | 40.2%37.1% |
| 3 Year | -5.0%-5.0% | 10.8%3.5% | 62.5%52.1% |
| 5 Year | -38.7%-38.7% | 88.8%67.9% | 133.9%108.0% |
Long-Term 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
1 week ago | Simply Wall St
Infinera (NASDAQ:INFN) Is Making Moderate Use Of Debt1 month ago | Simply Wall St
Read This Before Buying Infinera Corporation (NASDAQ:INFN) Shares2 months ago | Simply Wall St
Infinera's (NASDAQ:INFN) Shareholders Are Down 58% On Their SharesValuation
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 ($9.45) is trading below our estimate of fair value ($44.86)
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 US 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 (4.5x) compared to the US Communications industry average (3.1x).
Next Steps
Future Growth
How is Infinera forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?
59.3%
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 (8.6% per year) is forecast to grow slower than the US market (10.5% per year).
High Growth Revenue: INFN's revenue (8.6% 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 high in 3 years time (22.7%)
Next Steps
Past Performance
How has Infinera performed over the past 5 years?
-43.6%
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 43.6% 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 (-4%).
Return on Equity
High ROE: INFN has a negative Return on Equity (-48.49%), 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 ($1.1B) exceed its short term liabilities ($633.9M).
Long Term Liabilities: INFN's short term assets ($1.1B) exceed its long term liabilities ($672.3M).
Debt to Equity History and Analysis
Debt Level: INFN's debt to equity ratio (124.7%) is considered high.
Reducing Debt: INFN's debt to equity ratio has increased from 15.9% to 124.7% over the past 5 years.
Balance Sheet
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 sufficient cash runway for more than a year 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 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 recent payouts.
High Dividend: Unable to evaluate INFN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent 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?
1.5yrs
Average management tenure
CEO
David Heard (52 yo)
0.25
Tenure
US$3,488,868
Compensation
Mr. David W. Heard serves as Chief Executive Officer and Director at Infinera Corporation since November 23, 2020. He had been Chief Operating Officer of Infinera Corporation since October 1, 2018 until No...
CEO Compensation Analysis
Compensation vs Market: David's total compensation ($USD3.49M) is about average for companies of similar size in the US market ($USD3.68M).
Compensation vs Earnings: David's compensation has increased whilst the company is unprofitable.
Leadership Team
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.25yr | US$3.49m | 0.11% $ 2.2m | |
| Chief Financial Officer | 1.5yrs | US$4.29m | 0.047% $ 903.6k | |
| Chief Legal Officer & Corporate Secretary | 1.83yrs | US$1.63m | 0.018% $ 351.7k | |
| Founder | 10.33yrs | US$1.80m | 0.57% $ 10.8m | |
| Chief Accounting Officer | 1.5yrs | no data | 0% $ 0 | |
| Chief Technology Officer | 2.33yrs | no data | no data | |
| Head of Investor Relations | no data | no data | no data | |
| Senior Vice President of Worldwide Sales | 1.08yrs | no data | 0.0064% $ 122.4k | |
| Senior Vice President of Strategy and Corporate Development | 0.50yr | no data | no data | |
| Senior Vice President of Marketing | no data | no data | no data | |
| Chief Human Resources Officer | no data | no data | no data | |
| Senior Vice President of Global Product Line Management | 3.08yrs | no data | no data |
1.5yrs
Average Tenure
53yo
Average Age
Experienced Management: INFN's management team is not considered experienced ( 1.5 years average tenure), which suggests a new team.
Board Members
| Name | Position | Tenure | Compensation | Ownership |
|---|---|---|---|---|
| CEO & Director | 0.25yr | US$3.49m | 0.11% $ 2.2m | |
| Founder | 10.33yrs | US$1.80m | 0.57% $ 10.8m | |
| Independent Director | 6.67yrs | US$242.12k | 0.15% $ 2.9m | |
| Independent Director | 10.58yrs | US$257.12k | 0.053% $ 1.0m | |
| Member of Government Advisory Board | 5yrs | no data | no data | |
| Independent Director | 11.17yrs | US$288.12k | 0.065% $ 1.2m | |
| Independent Director | 1.67yrs | US$361.44k | 0.037% $ 704.2k | |
| Member of Government Advisory Board | 5yrs | no data | no data | |
| Chairman of the Board | 0.25yr | no data | no data | |
| Director | 11.58yrs | US$2.96m | 0.92% $ 17.4m | |
| Independent Director | 9.75yrs | US$220.62k | 0.057% $ 1.1m | |
| Member of Government Advisory Board | 5yrs | no data | no data |
5.8yrs
Average Tenure
59yo
Average Age
Experienced Board: INFN's board of directors are considered experienced (5.8 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 11.4%.
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$1.903b
- Shares outstanding: 201.40m
- Website: https://www.infinera.com
Number of Employees
Location
- Infinera Corporation
- 140 Caspian Court
- Sunnyvale
- California
- 94089
- United States
Listings
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| IX6 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Jun 2007 |
| INFN | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Jun 2007 |
| INFN * | BMV (Bolsa Mexicana de Valores) | Yes | Common Stock | MX | MXN | Jun 2007 |
Biography
Infinera Corporation provides optical transport networking equipment, software, and services worldwide. The company’s product portfolio includes Infinera Groove series of modular and sled-based platforms t...
Company Analysis and Financial Data Status
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2021/02/24 23:34 |
| End of Day Share Price | 2021/02/24 00:00 |
| Earnings | 2020/12/26 |
| Annual Earnings | 2020/12/26 |
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.