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Infinera

Nasdaq:INFN
Snowflake Description

Fair value with imperfect balance sheet.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
INFN
Nasdaq
$558M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Infinera Corporation provides optical transport networking equipment and software and services worldwide. The last earnings update was 42 days ago. More info.


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  • Infinera has significant price volatility in the past 3 months.
INFN Share Price and Events
7 Day Returns
-3.7%
NasdaqGS:INFN
-1.3%
US Communications
1.2%
US Market
1 Year Returns
-66.3%
NasdaqGS:INFN
15.8%
US Communications
2.3%
US Market
INFN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Infinera (INFN) -3.7% -5.7% -27.3% -66.3% -74.1% -66.1%
US Communications -1.3% 0.3% 1.1% 15.8% 76% 89.2%
US Market 1.2% 2% 2% 2.3% 37.9% 39.8%
1 Year Return vs Industry and Market
  • INFN underperformed the Communications industry which returned 15.8% over the past year.
  • INFN underperformed the Market in United States of America which returned 2.3% over the past year.
Price Volatility
INFN
Industry
5yr Volatility vs Market

Value

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

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Infinera to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Infinera.

NasdaqGS:INFN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 15 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 11.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:INFN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.1
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.097 (1 + (1- 21%) (64.12%))
1.438
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.44
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.438 * 5.96%)
11.3%

Discounted Cash Flow Calculation for NasdaqGS:INFN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Infinera is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:INFN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 11.3%)
2019 -19.20 Analyst x1 -17.25
2020 3.00 Analyst x2 2.42
2021 59.00 Analyst x1 42.79
2022 108.52 Est @ 83.93% 70.72
2023 173.16 Est @ 59.57% 101.39
2024 246.78 Est @ 42.52% 129.83
2025 322.24 Est @ 30.58% 152.32
2026 393.86 Est @ 22.23% 167.27
2027 458.37 Est @ 16.38% 174.91
2028 514.66 Est @ 12.28% 176.45
Present value of next 10 years cash flows $1,000.85
NasdaqGS:INFN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $514.66 × (1 + 2.73%) ÷ (11.3% – 2.73%)
$6,170.36
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $6,170.36 ÷ (1 + 11.3%)10
$2,115.50
NasdaqGS:INFN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $1,000.85 + $2,115.50
$3,116.35
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $3,116.35 / 177.78
$17.53
NasdaqGS:INFN Discount to Share Price
Calculation Result
Value per share (USD) From above. $17.53
Current discount Discount to share price of $3.14
= -1 x ($3.14 - $17.53) / $17.53
82.1%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Infinera is available for.
Intrinsic value
>50%
Share price is $3.14 vs Future cash flow value of $17.53
Current Discount Checks
For Infinera to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • 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 RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Infinera's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Infinera's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:INFN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-03-30) in USD $-1.88
NasdaqGS:INFN Share Price ** NasdaqGS (2019-06-19) in USD $3.14
United States of America Communications Industry PE Ratio Median Figure of 36 Publicly-Listed Communications Companies 27.86x
United States of America Market PE Ratio Median Figure of 3,092 Publicly-Listed Companies 17.87x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Infinera.

NasdaqGS:INFN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:INFN Share Price ÷ EPS (both in USD)

= 3.14 ÷ -1.88

-1.67x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
Does Infinera's expected growth come at a high price?
Raw Data
NasdaqGS:INFN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section -1.67x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts
85.8%per year
United States of America Communications Industry PEG Ratio Median Figure of 21 Publicly-Listed Communications Companies 1.22x
United States of America Market PEG Ratio Median Figure of 2,128 Publicly-Listed Companies 1.53x

*Line of best fit is calculated by linear regression .

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to calculate PEG ratio for Infinera, we can't assess if its growth is good value.
Price based on value of assets
What value do investors place on Infinera's assets?
Raw Data
NasdaqGS:INFN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-03-30) in USD $3.48
NasdaqGS:INFN Share Price * NasdaqGS (2019-06-19) in USD $3.14
United States of America Communications Industry PB Ratio Median Figure of 70 Publicly-Listed Communications Companies 1.87x
United States of America Market PB Ratio Median Figure of 5,246 Publicly-Listed Companies 1.8x
NasdaqGS:INFN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:INFN Share Price ÷ Book Value per Share (both in USD)

= 3.14 ÷ 3.48

0.9x

* Primary Listing of Infinera.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Infinera is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess Infinera's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Infinera has a total score of 3/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Infinera expected to perform in the next 1 to 3 years based on estimates from 15 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
85.8%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Infinera expected to grow at an attractive rate?
  • 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.
Growth vs Market Checks
  • 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.
  • Infinera's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:INFN Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:INFN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 15 Analysts 85.8%
NasdaqGS:INFN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 15 Analysts 7.7%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 15.8%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 5.1%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 13.9%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.4%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:INFN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:INFN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-12-31 1,587 1
2022-12-31 1,512 1
2021-12-31 1,546 115 -2 5
2020-12-31 1,424 43 -82 14
2019-12-31 1,284 -96 -312 15
NasdaqGS:INFN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-03-30 1,033 -141 -310
2018-12-29 943 -99 -214
2018-09-29 807 -29 -155
2018-06-30 799 -29 -159
2018-03-31 768 -39 -180
2017-12-30 741 -22 -195
2017-09-30 726 -26 -157
2017-07-01 719 0 -131
2017-04-01 801 31 -76
2016-12-31 870 38 -24
2016-09-24 949 69 25
2016-06-25 996 97 45

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Infinera is not considered high growth as it is expected to be loss making for the next 1-3 years.
  • Infinera's revenue is expected to grow by 7.7% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:INFN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below

All data from Infinera Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:INFN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 -0.03 -0.03 -0.03 1.00
2020-12-31 -0.39 -0.09 -0.70 3.00
2019-12-31 -1.71 -1.56 -1.81 3.00
NasdaqGS:INFN Past Financials Data
Date (Data in USD Millions) EPS *
2019-03-30 -1.88
2018-12-29 -1.36
2018-09-29 -1.02
2018-06-30 -1.06
2018-03-31 -1.21
2017-12-30 -1.32
2017-09-30 -1.07
2017-07-01 -0.90
2017-04-01 -0.53
2016-12-31 -0.17
2016-09-24 0.18
2016-06-25 0.32

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Infinera will efficiently use shareholders’ funds in the future (Return on Equity greater than 20%) as it is not expected to be profitable.
X
Future performance checks
We assess Infinera's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Infinera has a total score of 1/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Infinera performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Infinera's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • 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.
Earnings and Revenue History
Infinera's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Infinera Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:INFN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-03-30 1,033.41 -309.62 231.56 259.28
2018-12-29 943.38 -214.30 205.20 244.30
2018-09-29 807.14 -154.81 179.21 220.84
2018-06-30 799.30 -159.43 180.18 226.75
2018-03-31 767.90 -180.34 180.05 227.97
2017-12-30 740.74 -194.51 180.13 224.12
2017-09-30 725.97 -156.77 187.37 225.23
2017-07-01 718.84 -130.72 186.52 219.52
2017-04-01 800.84 -76.39 186.68 221.68
2016-12-31 870.14 -23.93 179.29 220.85
2016-09-24 949.13 24.96 182.67 217.10
2016-06-25 996.15 44.64 181.14 211.71
2016-03-26 944.67 51.06 169.86 195.59
2015-12-26 886.71 51.41 163.04 180.70
2015-09-26 812.99 47.19 147.75 163.49
2015-06-27 754.07 43.53 137.44 153.08
2015-03-28 712.13 30.40 131.06 141.40
2014-12-27 668.08 13.66 127.48 133.48
2014-09-27 620.87 -4.93 125.48 126.99
2014-06-28 589.33 -6.43 122.11 124.47
2014-03-29 562.31 -21.21 120.23 124.41
2013-12-28 544.12 -32.12 118.03 124.79
2013-09-28 533.09 -38.03 118.02 120.60
2013-06-29 503.29 -60.46 120.41 115.98
2013-03-30 458.36 -80.00 121.93 115.97
2012-12-29 438.44 -85.33 123.34 117.23
2012-09-29 422.38 -88.59 123.67 121.79
2012-06-30 414.19 -91.32 122.54 125.57

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • 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.
  • 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.
  • 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.
X
Past performance checks
We assess Infinera's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Infinera has a total score of 0/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Infinera's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Infinera's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • 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.
Balance sheet
This treemap shows a more detailed breakdown of Infinera's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • High level of physical assets or inventory.
  • Debt is covered by short term assets, assets are 3.1x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Infinera Company Filings, last reported 2 months ago.

NasdaqGS:INFN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-03-30 617.30 357.93 183.28
2018-12-29 703.82 465.19 229.47
2018-09-29 704.32 262.58 446.89
2018-06-30 637.41 0.00 122.17
2018-03-31 671.21 147.95 264.32
2017-12-30 665.37 144.93 263.94
2017-09-30 731.94 141.99 256.36
2017-07-01 737.59 139.12 257.75
2017-04-01 748.76 136.32 264.77
2016-12-31 762.33 133.59 304.34
2016-09-24 808.31 130.92 267.64
2016-06-25 822.26 128.33 257.75
2016-03-26 806.00 125.80 275.09
2015-12-26 777.06 123.33 274.66
2015-09-26 752.92 123.22 287.32
2015-06-27 539.79 121.06 397.22
2015-03-28 507.84 118.95 333.70
2014-12-27 481.91 116.89 326.12
2014-09-27 461.96 114.89 317.58
2014-06-28 439.31 112.93 314.00
2014-03-29 426.27 111.02 311.95
2013-12-28 417.81 109.16 296.99
2013-09-28 418.74 107.35 289.45
2013-06-29 399.15 105.58 301.65
2013-03-30 352.44 0.00 161.11
2012-12-29 356.14 0.00 180.81
2012-09-29 362.50 0.00 168.86
2012-06-30 365.31 0.00 190.03
  • Infinera's level of debt (45.3%) compared to net worth is high (greater than 40%).
  • The level of debt compared to net worth has increased over the past 5 years (26% vs 45.3% today).
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 91.6% each year.
X
Financial health checks
We assess Infinera's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Infinera has a total score of 2/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Infinera dividends. Estimated to be 0% next year.
If you bought $2,000 of Infinera shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • 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.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:INFN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 15 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 16 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2011 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:INFN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-12-31
2022-12-31
2021-12-31 0.00 3.00
2020-12-31 0.00 3.00
2019-12-31 0.00 3.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • 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
What portion of Infinera's earnings are paid to the shareholders as a dividend.
  • 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.
X
Income/ dividend checks
We assess Infinera's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Infinera afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Infinera has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Tom Fallon
COMPENSATION $4,882,910
AGE 56
TENURE AS CEO 9.4 years
CEO Bio

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 served as the Chief Operating Officer at Infinera Inc. from October 2006 to December 31, 2009, President from January 1, 2010 to June 19, 2013 and as Vice President of Engineering & Operations from April 2004 to September 2006. He was responsible for both engineering and manufacturing. He served 13 years at Cisco Systems in a variety of corporate, development and manufacturing leadership roles includes Vice President of Corporate Quality and Development & Engineering Operations from August 2003 to March 2004. Mr. Fallon joined Cisco in 1994 and served as the Vice President and General Manager of the Optical Transport Business Unit of Cisco from May 2001 to August 2003, where he was responsible for the introduction of 10Gb/s capability on the ONS 15454, extended product market position in the IXC and RBOC markets and achieved TL9000 certification. He served as the Vice President of Service Provider Manufacturing, Vice President of Materials and Vice President of Global Supply at Cisco. He served several manufacturing positions at Sun Microsystems and HP. He has been a Director of Infinera Corporation since July 2009 and Hercules Capital, Inc. since July 8, 2014. He serves as a Member of President’s Development Board University of Texas. Mr. Fallon’s key areas of skill includes Client Industries, Leadership/Strategy, Governance, Strategic Planning & ?Mergers and Acquisitions. He serves as a Member of the Engineering Advisory Board of the Cockrell School at University of Texas at Austin. Mr. Fallon served as a Director of Picarro, Inc. since November 2009 until January 11, 2017. Mr. Fallon earned his Bachelors of Science Degree in Mechanical Engineering from the University of Texas at Austin and M.B.A. degrees from the University of Texas at Austin.

CEO Compensation
  • Tom's compensation has increased whilst company is loss making.
  • Tom's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Infinera management team in years:

5.3
Average Tenure
56
Average Age
  • The average tenure for the Infinera management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Tom Fallon

TITLE
CEO & Director
COMPENSATION
$5M
AGE
56
TENURE
9.4 yrs

Dave Welch

TITLE
Founder
COMPENSATION
$2M
AGE
57
TENURE
18.4 yrs

Brad Feller

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
44
TENURE
5.3 yrs

David Heard

TITLE
Chief Operating Officer
COMPENSATION
$2M
AGE
50
TENURE
0.7 yrs

Bob Jandro

TITLE
Senior Vice President of Worldwide Sales
COMPENSATION
$1M
AGE
63
TENURE
6.1 yrs

Parthiban Kandappan

TITLE
Chief Technical Officer
TENURE
0.7 yrs

Jeff Hustis

TITLE
Head of Investor Relations

David Teichmann

TITLE
Chief Legal Officer & Corporate Secretary
AGE
61
TENURE
0.2 yrs

Rob Shore

TITLE
Senior Vice President of Marketing

Brett Hooper

TITLE
Chief Human Resources Officer
AGE
54
Board of Directors Tenure

Average tenure and age of the Infinera board of directors in years:

6.5
Average Tenure
57
Average Age
  • The tenure for the Infinera board of directors is about average.
Board of Directors

Kambiz Hooshmand

TITLE
Chairman of the Board
COMPENSATION
$297K
AGE
57
TENURE
8.7 yrs

Tom Fallon

TITLE
CEO & Director
COMPENSATION
$5M
AGE
56
TENURE
9.9 yrs

Dave Welch

TITLE
Founder
COMPENSATION
$2M
AGE
57
TENURE
8.7 yrs

Paul Milbury

TITLE
Director
COMPENSATION
$263K
AGE
69
TENURE
8.9 yrs

Mark Wegleitner

TITLE
Director
COMPENSATION
$236K
AGE
67
TENURE
8.1 yrs

Marcel Gani

TITLE
Director
COMPENSATION
$252K
AGE
65
TENURE
5 yrs

Raj Patel

TITLE
Independent Director
COMPENSATION
$231K
AGE
49
TENURE
3.8 yrs

Henry Sienkiewicz

TITLE
Member of Government Advisory Board
TENURE
3.3 yrs

Roger Baker

TITLE
Member of Government Advisory Board
TENURE
3.3 yrs

Diana Gowen

TITLE
Member of Government Advisory Board
TENURE
3.3 yrs
Who owns this company?
Recent Insider Trading
  • More shares have been bought than sold by Infinera insiders in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
28. May 19 Buy David Heard Individual 24. May 19 24. May 19 25,000 $3.13 $78,245
15. May 19 Buy Thomas Fallon Individual 15. May 19 15. May 19 50,000 $3.32 $165,915
14. May 19 Buy Marcel Gani Individual 14. May 19 14. May 19 100,000 $3.15 $314,790
03. Dec 18 Buy Robert Jandro Individual 30. Nov 18 30. Nov 18 40,000 $4.24 $169,568
14. Nov 18 Buy Brad Feller Individual 14. Nov 18 14. Nov 18 40,000 $4.50 $180,000
09. Nov 18 Buy David Heard Individual 09. Nov 18 09. Nov 18 20,000 $4.74 $94,868
09. Nov 18 Buy Thomas Fallon Individual 09. Nov 18 09. Nov 18 50,000 $4.63 $231,605
X
Management checks
We assess Infinera's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Infinera has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Need To Know: Infinera Corporation (NASDAQ:INFN) Insiders Have Been Buying Shares

So shareholders might well want to know whether insiders have been buying or selling shares in Infinera Corporation (NASDAQ:INFN). … As Peter Lynch said, 'insiders might sell their shares for any number of reasons, but they buy them for only one: they think the price will rise.' View our latest analysis for Infinera The Last 12 Months Of Insider Transactions At Infinera In the last twelve months, the biggest single purchase by an insider was when Director Marcel Gani bought US$315k worth of shares at a price of US$3.15 per share. … In the last twelve months Infinera insiders were buying shares, but not selling.

Simply Wall St -

If You Had Bought Infinera (NASDAQ:INFN) Stock Three Years Ago, You'd Be Sitting On A 76% Loss, Today

So consider, for a moment, the misfortune of Infinera Corporation (NASDAQ:INFN) investors who have held the stock for three years as it declined a whopping 76%. … In the last three years Infinera saw its revenue shrink by 1.5% per year. … The share price fall of 38% (per year, over three years) is a stern reminder that money-losing companies are expected to grow revenue.

Simply Wall St -

What Kind Of Shareholders Own Infinera Corporation (NASDAQ:INFN)?

Institutions will often hold stock in bigger companies, and we expect to see insiders owning a noticeable percentage of the smaller ones. … We also tend to see lower insider ownership in companies that were previously publicly owned. … Infinera has a market capitalization of US$857m, so we would expect some institutional investors to have noticed the stock.

Simply Wall St -

Is Infinera Corporation (NASDAQ:INFN) Spending Too Much Money?

Infinera Corporation (NASDAQ:INFN) shareholders, and potential investors, need to understand how much cash the business makes from its core operational activities, as well as how much is invested back into the business. … Today we will examine Infinera’s ability to generate cash flows, as well as the level of capital expenditure it is expected to incur over the next couple of years, which will result in how much money goes to you. … Infinera’s free cash flow (FCF) is the level of cash flow the business generates from its operational activities, after it reinvests in the company as capital expenditure

Simply Wall St -

Have Insiders Been Buying Infinera Corporation (NASDAQ:INFN) Shares?

So we'll take a look at whether insiders have been buying or selling shares in Infinera Corporation (NASDAQ:INFN). … However, most countries require that the company discloses such transactions to the market. … The Last 12 Months Of Insider Transactions At Infinera.

Simply Wall St -

Is Infinera Corporation (NASDAQ:INFN) A Financially Sound Company?

While small-cap stocks, such as Infinera Corporation (NASDAQ:INFN) with its market cap of US$642m, are popular for their explosive growth, investors should also be aware of their balance sheet to judge whether the company can survive a downturn. … Evaluating financial health as part of your investment thesis is

Simply Wall St -

How Should Investors React To Infinera Corporation's (NASDAQ:INFN) CEO Pay?

How Does Thomas Fallon's Compensation Compare With Similar Sized Companies. … At the time of writing our data says that Infinera Corporation has a market cap of US$754m, and is paying total annual CEO compensation of US$4.9m. … While we always look at total compensation first, we note that the salary component is less, at US$630k

Simply Wall St -

Does Infinera Corporation (NASDAQ:INFN) Need To Issue More Shares?

Given that Infinera is spending more money than it earns, it will need to fund its expenses via external sources of capital. … Looking at Infinera’s latest financial data, I will gauge when the company may run out of cash and need to raise more money. … Currently, Infinera has US$447m in cash holdings and producing negative cash flows from its day-to-day activities of -US$29m

Simply Wall St -

Should You Buy Infinera Corporation (NASDAQ:INFN)?

saw significant share price volatility over the past couple of months on the NasdaqGS, rising to the highs of $12.1 and falling to the lows of $8.77. … A question to answer is whether Infinera's current trading price of $9.55 reflective of the actual value of the? … Let’s take a look at Infinera’s outlook and value based on the most recent financial data to see if there are any catalysts for a price change

Simply Wall St -

Want To Invest In Infinera Corporation (NASDAQ:INFN)? Here's How It Performed Lately

After reading Infinera Corporation's (NASDAQ:INFN) most recent earnings announcement (31 March 2018), I found it useful to look back at how the company has performed in the past and compare this against the latest numbers. … View our latest analysis for Infinera Was INFN's recent earnings decline worse than the long-term trend and the industry? … I use the ‘latest twelve-month’ data, which annualizes the latest 6-month earnings release, or some times, the latest annual report is already the most recent financial data.

Simply Wall St -

Company Info

Description

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.

Details
Name: Infinera Corporation
INFN
Exchange: NasdaqGS
Founded: 2000
$558,232,038
177,780,904
Website: http://www.infinera.com
Address: Infinera Corporation
140 Caspian Court,
Sunnyvale,
California, 94089,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS INFN Common Stock Nasdaq Global Select US USD 07. Jun 2007
DB IX6 Common Stock Deutsche Boerse AG DE EUR 07. Jun 2007
Number of employees
Current staff
Staff numbers
3,876
Infinera employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/06/20 00:15
End of day share price update: 2019/06/19 00:00
Last estimates confirmation: 2019/06/03
Last earnings filing: 2019/05/09
Last earnings reported: 2019/03/30
Last annual earnings reported: 2018/12/29


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.