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INFN

InfineraNasdaqGS:INFN Stock Report

Market Cap

US$1.7b

7D

0.6%

1Y

45.1%

Updated

23 Sep, 2021

Data

Company Financials +
INFN fundamental analysis
Snowflake Score
Valuation2/6
Future Growth1/6
Past Performance0/6
Financial Health4/6
Dividends0/6

INFN Overview

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

Infinera Competitors

Cisco Systems

NasdaqGS:CSCO

US$234.2b

Arista Networks

NYSE:ANET

US$26.9b

Ubiquiti

NYSE:UI

US$18.8b

F5 Networks

NasdaqGS:FFIV

US$12.0b

Price History & Performance

Summary of all time highs, changes and price drops for Infinera
Historical stock prices
Current Share PriceUS$8.52
52 Week HighUS$5.78
52 Week LowUS$11.51
Beta1.2
1 Month Change-2.63%
3 Month Change-19.93%
1 Year Change45.15%
3 Year Change18.01%
5 Year Change-3.95%
Change since IPO-56.76%

Recent News & Updates

Aug 11
Infinera Corporation (NASDAQ:INFN) Shares Could Be 44% Below Their Intrinsic Value Estimate

Infinera Corporation (NASDAQ:INFN) Shares Could Be 44% Below Their Intrinsic Value Estimate

In this article we are going to estimate the intrinsic value of Infinera Corporation ( NASDAQ:INFN ) by estimating the...

Jul 13
Infinera (NASDAQ:INFN) Is Carrying A Fair Bit Of Debt

Infinera (NASDAQ:INFN) Is Carrying A Fair Bit Of Debt

Some say volatility, rather than debt, is the best way to think about risk as an investor, but Warren Buffett famously...

Shareholder Returns

INFNUS CommunicationsUS Market
7D0.6%-1.1%-0.5%
1Y45.1%50.9%37.5%

Return vs Industry: INFN underperformed the US Communications industry which returned 46.5% over the past year.

Return vs Market: INFN exceeded the US Market which returned 36.2% over the past year.

Price Volatility

Is INFN's price volatile compared to industry and market?
INFN volatility
INFN Beta1.2
Industry Beta0.95
Market Beta1

Stable Share Price: INFN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: INFN's weekly volatility (4%) has been stable over the past year.

About the Company

FoundedEmployeesCEOWebsite
20003,050David Heardhttps://www.infinera.com

Infinera Corporation provides optical transport networking equipment, software, and services worldwide. The company’s product portfolio includes Infinera Groove series for modular and sled-based platforms to support a various transport network applications; Infinera 7300 series, an SDN-ready coherent optical transport system; Infinera FlexILS open optical line system that connects various Infinera and third-party terminal equipment platforms over long-distance fiber optic cable providing switching, multiplexing, amplification, and management channels; and Infinera 7090 and 7100 series for transport platforms. It also offers Infinera XTM series, a packet-optical transport platform that enables metro connectivity solutions; Infinera XTC series, a multi-terabit packet optical transport platforms that integrates digital OTN switching and optical WDM transmission; Infinera mTera series, a network transport solution; and Infinera XT series, a platform that is designed to power cloud scale network services over metro, DCI, long-haul, and subsea networks.

Infinera Fundamentals Summary

How do Infinera's earnings and revenue compare to its market cap?
INFN fundamental statistics
Market CapUS$1.69b
Earnings (TTM)-US$129.74m
Revenue (TTM)US$1.36b

1.3x

P/S Ratio

-13.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
INFN income statement (TTM)
RevenueUS$1.36b
Cost of RevenueUS$868.22m
Gross ProfitUS$494.65m
ExpensesUS$624.38m
Earnings-US$129.74m

Last Reported Earnings

Jun 26, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.65
Gross Margin36.29%
Net Profit Margin-9.52%
Debt/Equity Ratio122.5%

How did INFN perform over the long term?

See historical performance and comparison

Valuation

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

46.7%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: INFN ($8.52) is trading below our estimate of fair value ($15.98)

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 (4.7x) compared to the US Communications industry average (2.2x).


Future Growth

How is Infinera forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

88.6%

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 (8.8% per year) is forecast to grow slower than the US market (9.8% per year).

High Growth Revenue: INFN's revenue (8.8% 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 (28.4%)


Past Performance

How has Infinera performed over the past 5 years?

-26.4%

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 26.4% 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 (63%).


Return on Equity

High ROE: INFN has a negative Return on Equity (-34.45%), as it is currently unprofitable.


Financial Health

How is Infinera's financial position?


Financial Position Analysis

Short Term Liabilities: INFN's short term assets ($914.2M) exceed its short term liabilities ($514.7M).

Long Term Liabilities: INFN's short term assets ($914.2M) exceed its long term liabilities ($669.2M).


Debt to Equity History and Analysis

Debt Level: INFN's debt to equity ratio (122.5%) is considered high.

Reducing Debt: INFN's debt to equity ratio has increased from 15.6% to 122.5% 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: Whilst unprofitable INFN has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: INFN is unprofitable but has sufficient cash runway for more than 3 years, even with free cash flow being positive and shrinking by 41.1% per year.


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?

2.3yrs

Average management tenure


CEO

David Heard (53 yo)

0.83

Tenure

US$4,139,626

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 ($USD4.14M) is about average for companies of similar size in the US market ($USD3.68M).

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


Leadership Team

Experienced Management: INFN's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: INFN's board of directors are considered experienced (6.4 years average tenure).


Ownership

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


Insider Trading Volume

Insider Buying: INFN insiders have only sold shares 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 11.3%.


Top Shareholders

Company Information

Infinera Corporation's 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$1.692b
  • Shares outstanding: 208.59m
  • Website: https://www.infinera.com

Number of Employees


Location

  • Infinera Corporation
  • 6373 San Ignacio Avenue
  • San Jose
  • California
  • 95119
  • United States

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/09/23 23:01
End of Day Share Price2021/09/23 00:00
Earnings2021/06/26
Annual Earnings2020/12/26


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.