NasdaqGS:INFN

Stock Analysis Report

Executive Summary

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

Snowflake

Fundamentals

Fair value with imperfect balance sheet.

Risks

  • Infinera has significant price volatility in the past 3 months.

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

1.9%

NasdaqGS:INFN

-1.0%

US Communications

-1.6%

US Market


1 Year Return

-46.8%

NasdaqGS:INFN

-5.4%

US Communications

-3.0%

US Market

INFN underperformed the Communications industry which returned -1.9% over the past year.

INFN underperformed the Market in United States of America which returned -0% over the past year.


Share holder returns

INFNIndustryMarket
7 Day1.9%-1.0%-1.6%
30 Day32.9%-16.6%-5.8%
90 Day54.0%-11.8%0.2%
1 Year-46.8%-46.8%-3.3%-5.4%-0.8%-3.0%
3 Year-43.8%-43.8%47.4%38.0%38.0%29.1%
5 Year-54.2%-54.2%74.8%56.9%50.8%34.1%

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 based on future cash flows and its price relative to the stock market?

>50%

Discount to future cash flow value


Intrinsic Value Based on Future Cash Flows

Infinera's share price is below the future cash flow value, and at a moderate discount (> 20%).

Infinera's share price is below the future cash flow value, and at a substantial discount (> 40%).


Price Based on Earnings

Infinera is loss making, we can't compare its value to the US Communications industry average.

Infinera is loss making, we can't compare the value of its earnings to the United States of America market.


Price Based on Expected Growth

Unable to calculate PEG ratio for Infinera, we can't assess if its growth is good value.


Price Based on Value of Assets

Infinera is good value based on assets compared to the US Communications industry average.


Next Steps

Future Growth

How is Infinera expected 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 Estimates


Future Annual Growth Analysis

Infinera's revenue is expected to grow by 6.7% yearly, however this is not considered high growth (20% yearly).

Infinera is not considered high growth as it is expected to be loss making for the next 1-3 years.

Infinera's revenue growth is positive but not above the United States of America market average.

Unable to compare Infinera's earnings growth to the United States of America market average as it is expected to be loss making during the next 1-3 years.

Unable to compare Infinera's earnings growth to the low risk savings rate as it is expected to be loss making during the next 1-3 years.


Earnings per Share Growth Estimates


Future Return on Equity

Infinera is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).


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

Infinera does not make a profit and their year on year earnings growth rate was negative over the past 5 years.

Unable to compare Infinera's 1-year earnings growth to the 5-year average as it is not currently profitable.

Unable to compare Infinera's 1-year growth to the US Communications industry average as it is not currently profitable.


Return on Equity

It is difficult to establish if Infinera has efficiently used shareholders’ funds last year (Return on Equity greater than 20%) as it is loss-making.


Return on Assets

It is difficult to establish if Infinera has efficiently used its assets last year compared to the US Communications industry average (Return on Assets) as it is loss-making.


Return on Capital Employed

It is difficult to establish if Infinera improved its use of capital last year versus 3 years ago (Return on Capital Employed) as it is currently loss-making.


Next Steps

Financial Health

How is Infinera's financial position?


Financial Position Analysis

Infinera is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.

Infinera's cash and other short term assets cover its long term commitments.


Debt to Equity History and Analysis

Infinera's level of debt (55.9%) compared to net worth is high (greater than 40%).

The level of debt compared to net worth has increased over the past 5 years (25.7% vs 55.9% today).


Balance Sheet

High level of physical assets or inventory.

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.

Infinera has less than a year of cash runway based on current free cash flow.

Infinera has less than a year of cash runway if free cash flow continues to grow at historical rates of 84.8% each year.


Next Steps

Dividend

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


Dividend Yield and Payments Analysis

Unable to evaluate Infinera's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.

Unable to evaluate Infinera's dividend against the top 25% market benchmark as the company has not reported any payouts.

Unable to perform a dividend volatility check as Infinera has not reported any payouts.

Unable to verify if Infinera's dividend has been increasing as the company has not reported any payouts.


Current Payout to Shareholders

Unable to calculate sustainability of dividends as Infinera has not reported any payouts.


Future Payout to Shareholders

No need to calculate the sustainability of Infinera's dividends in 3 years as they are not expected to pay a notable one for United States of America.


Next Steps

Management

What is the CEO of Infinera's salary, the management and board of directors tenure and is there insider trading?

5.4yrs

Average management tenure


CEO

Tom Fallon (57yo)

9.6yrs

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. Mr. Fallon ser ...


CEO Compensation Analysis

Tom's remuneration is higher than average for companies of similar size in United States of America.

Tom's compensation has increased whilst company is loss making.


Management Age and Tenure

5.4yrs

Average Tenure

57yo

Average Age

The average tenure for the Infinera management team is over 5 years, this suggests they are a seasoned and experienced team.


Board Age and Tenure

6.7yrs

Average Tenure

58yo

Average Age

The tenure for the Infinera board of directors is about average.


Insider Trading

No 3 month open market individual insider trading information.


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
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
Role
Chief Financial Officer
Chief Financial Officer
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: 8.8yrs
    • Compensation: US$1.80m
  • David Teichmann (62yo)

    Chief Legal Officer & Corporate Secretary

    • Tenure: 0.3yrs
  • David Heard (51yo)

    Chief Operating Officer

    • Tenure: 0.8yrs
    • Compensation: US$2.29m
  • Brett Hooper (55yo)

    Chief Human Resources Officer

    • Tenure: 0.0yrs
  • Bob Jandro (64yo)

    Senior Vice President of Worldwide Sales

    • Tenure: 6.3yrs
    • Compensation: US$1.41m
  • Tom Fallon (57yo)

    CEO & Director

    • Tenure: 9.6yrs
    • Compensation: US$4.88m
  • Ted Moreau

    Head of Investor Relations

    • Tenure: 0.0yrs
  • Parthiban Kandappan

    Chief Technical Officer

    • Tenure: 0.8yrs
  • Brad Feller (45yo)

    Chief Financial Officer

    • Tenure: 5.4yrs
    • Compensation: US$1.75m
  • Rob Shore

    Senior Vice President of Marketing

    • Tenure: 0.0yrs

Board Members

  • Dave Welch (58yo)

    Founder

    • Tenure: 8.8yrs
    • Compensation: US$1.80m
  • Marcel Gani (66yo)

    Director

    • Tenure: 5.2yrs
    • Compensation: US$252.07k
  • Paul Milbury (70yo)

    Director

    • Tenure: 9.1yrs
    • Compensation: US$263.44k
  • Roger Baker

    Member of Government Advisory Board

    • Tenure: 3.5yrs
  • Kambiz Hooshmand (58yo)

    Chairman of the Board

    • Tenure: 8.8yrs
    • Compensation: US$296.94k
  • Diana Gowen

    Member of Government Advisory Board

    • Tenure: 3.5yrs
  • Tom Fallon (57yo)

    CEO & Director

    • Tenure: 9.6yrs
    • Compensation: US$4.88m
  • Mark Wegleitner (68yo)

    Director

    • Tenure: 8.3yrs
    • Compensation: US$235.57k
  • Henry Sienkiewicz

    Member of Government Advisory Board

    • Tenure: 3.5yrs
  • Raj Patel (50yo)

    Independent Director

    • Tenure: 3.9yrs
    • 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$870.076m
  • 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 Analysis2019/08/24 00:13
End of Day Share Price2019/08/23 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.