NasdaqGS:INFN

Stock Analysis Report

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Executive Summary

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


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

-0.3%

INFN

2.3%

US Communications

1.8%

US Market


1 Year Return

14.3%

INFN

-15.6%

US Communications

14.2%

US Market

Return vs Industry: INFN exceeded the US Communications industry which returned -15.6% over the past year.

Return vs Market: INFN matched the US Market which returned 14.2% over the past year.


Shareholder returns

INFNIndustryMarket
7 Day-0.3%2.3%1.8%
30 Day-21.3%-5.8%0.04%
90 Day4.0%-9.2%9.8%
1 Year14.3%14.3%-13.3%-15.6%16.7%14.2%
3 Year-26.2%-26.2%20.6%12.4%41.6%32.2%
5 Year-69.0%-69.0%55.8%38.7%90.9%69.5%

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 ($6.24) is trading below our estimate of fair value ($28.68)

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 (3.5x) 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 13 analysts?

65.9%

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 (9.7% 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 low in 3 years time (16.4%).


Next Steps

Past Performance

How has Infinera performed over the past 5 years?

-56.8%

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 56.8% 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 (-28.9%).


Return on Equity

High ROE: INFN has a negative Return on Equity (-94.67%), 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 ($952.4M) exceed its short term liabilities ($562.1M).

Long Term Liabilities: INFN's short term assets ($952.4M) exceed its long term liabilities ($704.0M).


Debt to Equity History and Analysis

Debt Level: INFN's debt to equity ratio (162.6%) is considered high.

Reducing Debt: INFN's debt to equity ratio has increased from 22.2% to 162.6% 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 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 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?

1.4yrs

Average management tenure


CEO

Tom Fallon (58 yo)

10.67yrs

Tenure

US$2,962,093

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 ($USD2.96M) is about average for companies of similar size in the US market ($USD2.98M).

Compensation vs Earnings: Tom's compensation has been consistent with company performance over the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Thomas Fallon
CEO & Director10.67yrsUS$2.96m0.85%
$ 9.9m
Nancy Erba
Chief Financial Officer1.08yrsUS$4.29m0.049%
$ 572.0k
David Heard
Chief Operating Officer1.92yrsUS$3.49m0.11%
$ 1.3m
David Teichmann
Chief Legal Officer & Corporate Secretary1.42yrsUS$1.63m0.019%
$ 222.6k
David Welch
Founder9.92yrsUS$1.80m0.81%
$ 9.5m
Michael Fernicola
Chief Accounting Officer1.08yrsno data0.029%
$ 340.1k
Parthiban Kandappan
Chief Technical Officer1.92yrsno datano data
Ted Moreau
Head of Investor Relationsno datano datano data
Nicholas Walden
Senior Vice President of Worldwide Sales0.67yrno data0.017%
$ 195.5k
Uwe Fischer
Senior Vice President of Strategy and Corporate Development0.083yrno datano data
Robert Shore
Senior Vice President of Marketingno datano datano data
Brett Hooper
Chief Human Resources Officerno datano datano data

1.4yrs

Average Tenure

54.5yo

Average Age

Experienced Management: INFN's management team is not considered experienced ( 1.4 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Thomas Fallon
CEO & Director10.67yrsUS$2.96m0.85%
$ 9.9m
David Welch
Founder9.92yrsUS$1.80m0.81%
$ 9.5m
Gregory Dougherty
Independent Director1.67yrsUS$384.66k0.035%
$ 414.0k
Marcel Gani
Independent Director6.25yrsUS$242.12k0.16%
$ 1.8m
Paul Milbury
Independent Director10.17yrsUS$257.12k0.054%
$ 636.0k
Roger Baker
Member of Government Advisory Board4.58yrsno datano data
Kambiz Hooshmand
Independent Chairman of the Board9.92yrsUS$288.12k0.094%
$ 1.1m
Sharon Holt
Independent Director1.25yrsUS$361.44k0.038%
$ 445.7k
Diana Gowen
Member of Government Advisory Board4.58yrsno datano data
Amy Rice
Independent Director0.42yrno datano data
Mark Wegleitner
Independent Director9.33yrsUS$220.62k0.074%
$ 868.8k
Henry Sienkiewicz
Member of Government Advisory Board4.58yrsno datano data

5.4yrs

Average Tenure

59.5yo

Average Age

Experienced Board: INFN's board of directors are considered experienced (5.4 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 4.5%.


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$1.169b
  • Shares outstanding: 187.39m
  • 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, 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

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/09/18 05:54
End of Day Share Price2020/09/17 00:00
Earnings2020/06/27
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.