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Oclaro

Nasdaq:OCLR
Snowflake Description

Flawless balance sheet with reasonable growth potential.

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

Oclaro, Inc. designs, manufactures, and markets optical components, modules, and subsystems for the long-haul, metro, and data center markets worldwide. The last earnings update was 33 days ago. More info.


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OCLR Share Price and Events
7 Day Returns
-0.4%
NasdaqGS:OCLR
-4.9%
US Communications
-5.6%
US Market
1 Year Returns
16.8%
NasdaqGS:OCLR
13.6%
US Communications
-2.1%
US Market
OCLR Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Oclaro (OCLR) -0.4% -2% -8.8% 16.8% 154.9% 299%
US Communications -4.9% -3.6% -5.7% 13.6% 55.8% 88.8%
US Market -5.6% -5.1% -9.9% -2.1% 29.1% 40.3%
1 Year Return vs Industry and Market
  • OCLR outperformed the Communications industry which returned 13.6% over the past year.
  • OCLR outperformed the Market in United States of America which returned -2.1% over the past year.
Price Volatility
OCLR
Industry
5yr Volatility vs Market

Value

 Is Oclaro 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 Oclaro 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 Oclaro.

NasdaqGS:OCLR Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 8 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 10.3%
Perpetual Growth Rate 10-Year US Government Bond Rate 3%

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:OCLR
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 3%
Equity Risk Premium S&P Global 7.1%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.04
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.042 (1 + (1- 21%) (0.09%))
1.043
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.04
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.95% + (1.043 * 7.05%)
10.3%

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

The calculations below outline how an intrinsic value for Oclaro is arrived at by discounting future cash flows to their present value using the 2 stage method. We use analyst's estimates of cash flows going forward 5 years for the 1st stage, the 2nd stage assumes the company grows at a stable rate into perpetuity.

NasdaqGS:OCLR DCF 1st Stage: Next 5 year cash flow forecast
2019 2020 2021 2022 2023
Levered FCF (USD, Millions) 77.46 101.51 113.88 127.76 143.33
Source Analyst x1 Analyst x1 Est @ 12.19% Est @ 12.19% Est @ 12.19%
Present Value
Discounted (@ 10.3%)
70.23 83.44 84.86 86.31 87.79
Present value of next 5 years cash flows $412.63
NasdaqGS:OCLR DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2023 × (1 + g) ÷ (Discount Rate – g)
= $143.33 × (1 + 2.95%) ÷ (10.3% – 2.95%)
$2,007.34
Present Value of Terminal Value = Terminal Value ÷ (1 + r)5
= $2,007.34 ÷ (1 + 10.3%)5
$1,229.49
NasdaqGS:OCLR Total Equity Value
Calculation Result
Total Equity Value = Present value of next 5 years cash flows + Terminal Value
= $412.63 + $1,229.49
$1,642.12
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,642.12 / 171.61
$9.57
NasdaqGS:OCLR Discount to Share Price
Calculation Result
Value per share (USD) From above. $9.57
Current discount Discount to share price of $8.26
= -1 x ($8.26 - $9.57) / $9.57
13.7%

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

Current Discount
Amount off the current price Oclaro is available for.
Intrinsic value
14%
Share price is $8.26 vs Future cash flow value of $9.57
Current Discount Checks
For Oclaro to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Oclaro's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Oclaro's share price is below the future cash flow value, but not 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 Oclaro's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Oclaro's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:OCLR PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2018-09-29) in USD $0.27
NasdaqGS:OCLR Share Price ** NasdaqGS (2018-12-07) in USD $8.26
United States of America Communications Industry PE Ratio Median Figure of 36 Publicly-Listed Communications Companies 30.42x
United States of America Market PE Ratio Median Figure of 2,995 Publicly-Listed Companies 17.27x

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

** Primary Listing of Oclaro.

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

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

= 8.26 ÷ 0.27

30.4x

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

  • Oclaro is good value based on earnings compared to the US Communications industry average.
  • Oclaro is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Oclaro's expected growth come at a high price?
Raw Data
NasdaqGS:OCLR PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 30.4x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts
36.9%per year
United States of America Communications Industry PEG Ratio Median Figure of 25 Publicly-Listed Communications Companies 2.04x
United States of America Market PEG Ratio Median Figure of 2,106 Publicly-Listed Companies 1.21x

*Line of best fit is calculated by linear regression .

NasdaqGS:OCLR PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 30.4x ÷ 36.9%

0.82x

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

  • Oclaro is good value based on expected growth next year.
Price based on value of assets
What value do investors place on Oclaro's assets?
Raw Data
NasdaqGS:OCLR PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2018-09-29) in USD $3.52
NasdaqGS:OCLR Share Price * NasdaqGS (2018-12-07) in USD $8.26
United States of America Communications Industry PB Ratio Median Figure of 67 Publicly-Listed Communications Companies 1.9x
United States of America Market PB Ratio Median Figure of 5,017 Publicly-Listed Companies 1.77x
NasdaqGS:OCLR PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

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

= 8.26 ÷ 3.52

2.34x

* Primary Listing of Oclaro.

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

  • Oclaro is overvalued based on assets compared to the US Communications industry average.
X
Value checks
We assess Oclaro'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. Oclaro has a total score of 2/6, 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 Oclaro expected to perform in the next 1 to 3 years based on estimates from 8 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
36.9%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Oclaro expected to grow at an attractive rate?
  • Oclaro's earnings growth is expected to exceed the low risk savings rate of 3%.
Growth vs Market Checks
  • Oclaro's earnings growth is expected to exceed the United States of America market average.
  • Oclaro's revenue growth is expected to exceed the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:OCLR Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:OCLR Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 8 Analysts 36.9%
NasdaqGS:OCLR Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 8 Analysts 11.5%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 23.1%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 5.3%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.1%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.3%

*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:OCLR Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (2 months ago) See Below
Future Estimates Average of up to 8 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:OCLR Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-06-30 786 1
2021-06-30 678 2
2020-06-30 616 91 5
2019-06-30 542 135 68 8
NasdaqGS:OCLR Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2018-09-29 519 104 46
2018-06-30 543 125 62
2018-03-31 572 129 112
2017-12-30 606 136 139
2017-09-30 621 139 151
2017-07-01 601 96 128
2017-04-01 577 75 84
2016-12-31 516 40 46
2016-10-01 456 13 15
2016-07-02 408 8 9
2016-03-26 365 -4 -17
2015-12-26 347 -9 -27

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Oclaro's earnings are expected to grow significantly at over 20% yearly.
  • Oclaro's revenue is expected to grow by 11.5% 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:OCLR 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 8 Analyst Estimates (S&P Global) See Below

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

NasdaqGS:OCLR Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-06-30
2021-06-30
2020-06-30 0.52 0.52 0.52 1.00
2019-06-30 0.39 0.42 0.36 2.00
NasdaqGS:OCLR Past Financials Data
Date (Data in USD Millions) EPS *
2018-09-29 0.27
2018-06-30 0.37
2018-03-31 0.66
2017-12-30 0.83
2017-09-30 0.90
2017-07-01 0.81
2017-04-01 0.58
2016-12-31 0.35
2016-10-01 0.13
2016-07-02 0.08
2016-03-26 -0.16
2015-12-26 -0.25

*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.
  • Oclaro is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Oclaro'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.
Oclaro has a total score of 4/6, 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 Oclaro 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 Oclaro'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.
  • Oclaro has delivered over 20% year on year earnings growth in the past 5 years.
  • Oclaro's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Oclaro's 1-year earnings growth is negative, it can't be compared to the US Communications industry average.
Earnings and Revenue History
Oclaro'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 Oclaro Company Filings, last reported 2 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:OCLR Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2018-09-29 519.23 46.19 66.01 64.23
2018-06-30 543.17 62.45 64.49 64.50
2018-03-31 571.61 112.06 63.34 63.96
2017-12-30 606.50 139.47 62.07 62.02
2017-09-30 621.07 151.00 58.54 60.42
2017-07-01 600.97 127.86 58.46 57.09
2017-04-01 576.77 83.68 57.29 54.01
2016-12-31 515.64 45.55 55.61 50.91
2016-10-01 455.86 15.44 55.04 48.23
2016-07-02 407.91 8.58 53.46 46.07
2016-03-26 364.92 -17.13 51.70 42.45
2015-12-26 346.89 -27.41 50.70 42.81
2015-09-26 339.59 -31.77 51.55 43.45
2015-06-27 341.28 -48.23 53.76 46.42
2015-03-28 355.00 -45.65 55.10 52.45
2014-12-27 367.37 -58.13 60.49 55.34
2014-09-27 383.46 -91.97 65.40 60.04
2014-06-28 390.87 -102.13 70.94 64.22
2014-03-29 390.34 -134.47 75.13 67.94
2013-12-28 396.49 -148.83 76.78 72.55
2013-09-28 405.64 -122.33 77.97 76.83
2013-06-29 404.63 -120.30 78.62 79.27
2013-03-30 413.69 -80.61 76.12 77.73
2012-12-29 400.86 -60.73 71.93 73.54
2012-09-29 375.27 -80.02 66.61 69.86
2012-06-30 194.21 -64.00 49.49 43.53
2012-03-31 390.20 -99.31 63.57 68.60
2011-12-31 417.17 -91.98 64.76 70.78

*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.
  • Oclaro has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Oclaro used its assets more efficiently than the US Communications industry average last year based on Return on Assets.
  • Oclaro has become profitable over the past 3 years. This is considered to be a significant improvement in its use of capital (Return on Capital Employed).
X
Past performance checks
We assess Oclaro'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.
Oclaro has a total score of 3/6, 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 Oclaro'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 Oclaro's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Oclaro is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Oclaro's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Oclaro'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 468x 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 Oclaro Company Filings, last reported 2 months ago.

NasdaqGS:OCLR Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2018-09-29 604.87 1.23 341.92
2018-06-30 592.02 3.24 323.13
2018-03-31 582.27 3.55 304.40
2017-12-30 566.15 3.40 290.11
2017-09-30 543.83 3.58 279.51
2017-07-01 513.67 3.75 256.83
2017-04-01 452.20 3.95 254.07
2016-12-31 408.25 4.00 242.74
2016-10-01 378.48 5.23 228.58
2016-07-02 166.61 67.92 95.93
2016-03-26 152.94 67.69 106.08
2015-12-26 151.25 65.49 114.06
2015-09-26 149.42 65.87 105.14
2015-06-27 153.00 65.99 111.84
2015-03-28 161.93 67.28 119.81
2014-12-27 175.24 6.31 74.62
2014-09-27 187.68 7.81 89.39
2014-06-28 207.93 9.93 99.07
2014-03-29 229.84 10.94 117.60
2013-12-28 249.64 11.68 141.72
2013-09-28 191.32 39.77 92.16
2013-06-29 154.13 105.80 84.84
2013-03-30 201.14 100.17 63.59
2012-12-29 245.38 106.08 78.20
2012-09-29 251.48 85.09 73.82
2012-06-30 167.65 25.50 61.76
2012-03-31 176.64 25.50 50.54
2011-12-31 189.88 19.50 53.63
  • Oclaro's level of debt (0.2%) compared to net worth is satisfactory (less than 40%).
  • The level of debt compared to net worth has been reduced over the past 5 years (20.3% vs 0.2% today).
  • Debt is well covered by operating cash flow (8434%, greater than 20% of total debt).
  • Oclaro earns more interest than it pays, coverage of interest payments is not a concern.
X
Financial health checks
We assess Oclaro'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. Oclaro has a total score of 6/6, 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 Oclaro'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 Oclaro dividends.
If you bought $2,000 of Oclaro 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 Oclaro's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Oclaro'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:OCLR 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 8 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 2.7%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1981 Stocks 2.6%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.9%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.5%
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:OCLR Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-06-30
2021-06-30
2020-06-30
2019-06-30

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

  • Unable to perform a dividend volatility check as Oclaro has not reported any payouts.
  • Unable to verify if Oclaro's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Oclaro's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Oclaro has not reported any payouts.
Future Payout to shareholders
  • Insufficient estimate data to determine if a dividend will be paid in 3 years and that it will be sustainable.
X
Income/ dividend checks
We assess Oclaro's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.9%) - 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 Oclaro afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Oclaro 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 Oclaro'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
Greg Dougherty
COMPENSATION $4,856,430
AGE 58
TENURE AS CEO 5.5 years
CEO Bio

Mr. Gregory P. Dougherty, also known as Greg, has been the Chief Executive Officer of Oclaro, Inc since June 6, 2013 and its Interim President of Integrated Photonics Business since October 1, 2015. Mr. Dougherty served as a Senior Advisor of Picarro Inc. Mr. Dougherty served as the Chief Executive Officer of Picarro. He served as the Chief Operating Officer of JDS Uniphase Corp. in June 2001. Mr. Dougherty joined JDS as an Executive President and Chief Operating Officer of the Amplification and Transmission Business Group in February 2001 upon the closing of the SDL merger with it. He served as the Chief Operating Officer of SDL Inc. since August 1998. Mr. Dougherty joined SDL in March 1997 as a Vice President of the Communications Business Unit and Corporate Marketing and Sales. In June 1997, he was appointed a Vice President of Communications and Information Products of SDL. In December 1997, Mr. Dougherty was appointed a Vice President of the Components Group of SDL. He also served as the President of SDL Optics. During his career at SDL, Mr. Dougherty held a variety of leadership positions. His experience in fiber optic communications also includes senior marketing positions with AT&T's Microelectronics Group and marketing and engineering positions at Codenoll Technology and Laser Diode, Incorporated. Prior to joining SDL, from 1989 to 1997, he was a Director of Product Management and Marketing at Lucent Technologies Microelectronics in the Opt Electronics Strategic Business Unit. From 1984 to 1989 Mr. Dougherty was employed at Laser Diode, Inc. in marketing and sales positions. He is a Member of the Advisory Board for Global Catalyst Partners, LP. Mr. Dougherty has been a Director of Avanex Corp. since April 27, 2005. Mr. Dougherty has been a Director of Oclaro, Inc. since April 2009. Mr. Dougherty served as a Director of Picarro. He serves on the Board of Directors at T Networks and the local chapter of the Ronald McDonald House. Mr. Dougherty graduated with a B.S. degree in Optics from the University of Rochester in 1983.

CEO Compensation
  • Greg's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.
  • Greg'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 Oclaro management team in years:

4.4
Average Tenure
54
Average Age
  • The tenure for the Oclaro management team is about average.
Management Team

Greg Dougherty

TITLE
CEO & Director
COMPENSATION
$5M
AGE
58
TENURE
5.5 yrs

Pete Mangan

TITLE
Chief Financial Officer
COMPENSATION
$2M
AGE
59
TENURE
5.1 yrs

Craig Cocchi

TITLE
Chief Operating Officer
COMPENSATION
$1M
AGE
53
TENURE
1.7 yrs

David Teichmann

TITLE
Executive VP
COMPENSATION
$2M
AGE
61
TENURE
4.9 yrs

Yves LeMaitre

TITLE
Chief Strategy Officer
COMPENSATION
$2M
AGE
54

Mike Fernicola

TITLE
Chief Accounting Officer
TENURE
5.1 yrs

Lisa Paul

TITLE
Executive Vice President of Human Resources
AGE
54
TENURE
4.1 yrs

Adam Carter

TITLE
Chief Commercial Officer
COMPENSATION
$1M
AGE
54
TENURE
4.4 yrs

Thomas Gordon Mason

TITLE
President of Integrated Photonics Business
AGE
51
TENURE
2.3 yrs

Walter Jankovic

TITLE
President of Optical Connectivity Business
AGE
49
TENURE
0.8 yrs
Board of Directors Tenure

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

6.4
Average Tenure
59.5
Average Age
  • The tenure for the Oclaro board of directors is about average.
Board of Directors

Marissa Peterson

TITLE
Chairperson
COMPENSATION
$213K
AGE
56
TENURE
5.5 yrs

Greg Dougherty

TITLE
CEO & Director
COMPENSATION
$5M
AGE
58
TENURE
9.7 yrs

Joel Smith

TITLE
Director
COMPENSATION
$193K
AGE
72
TENURE
9.7 yrs

Kendall Cowan

TITLE
Director
COMPENSATION
$206K
AGE
64
TENURE
6.4 yrs

Denise Haylor

TITLE
Director
AGE
54
TENURE
2.3 yrs

Ted Collins

TITLE
Director
COMPENSATION
$188K
AGE
75
TENURE
10.6 yrs

Bill Smith

TITLE
Director
COMPENSATION
$186K
AGE
61
TENURE
6.4 yrs

Ian Small

TITLE
Director
COMPENSATION
$374K
AGE
53
TENURE
1.3 yrs
Who owns this company?
Recent Insider Trading
  • No 3 month insider trading information.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
25. Oct 18 Sell Magnetar Capital, LLC Company 30. Aug 18 28. Sep 18 -2,451,817 $9.62 $-22,663,233
25. Oct 18 Buy Magnetar Capital, LLC Company 31. Aug 18 28. Sep 18 2,323,158 $9.54 $21,456,500
23. Jul 18 Sell Magnetar Capital, LLC Company 05. Jun 18 29. Jun 18 -109,718 $8.92 $-978,123
23. Jul 18 Buy Magnetar Capital, LLC Company 08. Jun 18 13. Jul 18 935,159 $9.11 $8,363,134
X
Management checks
We assess Oclaro'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. Oclaro 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

External News
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Simply Wall St News

Taking A Look At Oclaro Inc's (NASDAQ:OCLR) ROE

This article is for those who would like to learn about Return On Equity (ROE). … One way to conceptualize this, is that for each $1 of shareholders' equity it has, the company made $0.076 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Oclaro Inc (NASDAQ:OCLR) Excessively Paying Its CEO?

Recognizing whether CEO incentives are aligned with shareholders is a crucial part of investing. … Incentives can be in the form of compensation, which should always be structured in a way that promotes value-creation to shareholders. … CEOs leading companies of similar size and profitability

Simply Wall St -

Did Oclaro Inc (NASDAQ:OCLR) Create Value For Shareholders?

and want to begin learning the link between company’s fundamentals and stock market performance. … This can be measured by looking at the company’s financial leverage. … Peeling the layers of ROE – trisecting a company’s profitability

Simply Wall St -

Understanding Your Return On Investment In Oclaro Inc (NASDAQ:OCLR)

and looking to gauge the potential return on investment in Oclaro Inc (NASDAQ:OCLR). … Your equity share is granted in return for the capital provided to the business to operate, and in order for an investment to be successful the business has to create earnings from the funds that make up this capital. … Therefore, looking at how efficiently Oclaro is able to use capital to create earnings will help us understand your potential return.

Simply Wall St -

Should You Be Tempted To Buy Oclaro Inc (NASDAQ:OCLR) At Its Current PE Ratio?

and want to better understand how you can grow your money by investing in Oclaro Inc (NASDAQ:OCLR). … Oclaro Inc (NASDAQ:OCLR) is trading with a trailing P/E of 13.2x, which is lower than the industry average of 31x. … While OCLR might seem like an attractive stock to buy, it is important to understand the assumptions behind the P/E ratio before you make any investment decisions

Simply Wall St -

How Does Oclaro Inc's (NASDAQ:OCLR) Earnings Growth Stack Up Against Industry Performance?

When Oclaro Inc (NASDAQ:OCLR) announced its most recent earnings (31 March 2018), I did two things: looked at its past earnings track record, then look at what is happening in the industry. … Did OCLR beat its long-term earnings growth trend and its industry. … OCLR recently turned a profit of US$112.06m (most recent trailing twelve-months) compared to its average loss of -US$30.33m over the past five years

Simply Wall St -

A Look At The Intrinsic Value Of Oclaro Inc (NASDAQ:OCLR)

5-year cash flow estimate 2018 2019 2020 2021 2022 Levered FCF ($, Millions) $58.58 $86.85 $95.71 $105.47 $116.22 Source Analyst x1 Analyst x1 Extrapolated @ (10.2%) Extrapolated @ (10.2%) Extrapolated @ (10.2%) Present Value Discounted @ 9.06% $53.71 $73.03 $73.79 $74.57 $75.35 Present Value of 5-year Cash Flow (PVCF)= $350 We now need to calculate the Terminal Value, which accounts for all the future cash flows after the five years. … Terminal Value (TV) = FCF2022 × (1 + g) ÷ (r – g) = $116 × (1 + 2.5%) ÷ (9.1% – 2.5%) = $1,808 Present Value of Terminal Value (PVTV) = TV / (1 + r)5 = $1,808 / ( 1 + 9.1%)5 = $1,172 The total value is the sum of cash flows for the next five years and the discounted terminal value, which results in the Total Equity Value, which in this case is $1,523. … NasdaqGS:OCLR Intrinsic Value May 8th 18 The assumptions I'd like to point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

What is Behind Oclaro Inc's (NASDAQ:OCLR) Superior ROE?

Check out our latest analysis for Oclaro Breaking down ROE — the mother of all ratios Return on Equity (ROE) is a measure of Oclaro’s profit relative to its shareholders’ equity. … Return on Equity = Net Profit ÷ Shareholders Equity ROE is measured against cost of equity in order to determine the efficiency of Oclaro’s equity capital deployed. … This is called the Dupont Formula: Dupont Formula ROE = profit margin × asset turnover × financial leverage ROE = (annual net profit ÷ sales) × (sales ÷ assets) × (assets ÷ shareholders’ equity) ROE = annual net profit ÷ shareholders’ equity NasdaqGS:OCLR Last Perf Apr 28th 18 Essentially, profit margin shows how much money the company makes after paying for all its expenses.

Simply Wall St -

Why I Sold Oclaro Inc (NASDAQ:OCLR)

Oclaro Inc (NASDAQ:OCLR) is a company I've been following for a while, and my main concern is around the sustainability of the business going forward. … Although OCLR seems to be managing its financials well, and appears to be trading around its intrinsic value, meaning we can buy its shares at a fair price, I would rather buy an outstanding business at an OK price. … My problem is, OCLR doesn't seem to be an outstanding business, and here's why.

Simply Wall St -

Is Oclaro Inc (NASDAQ:OCLR) A Buy At Its Current PE Ratio?

Formula Price-Earnings Ratio = Price per share ÷ Earnings per share P/E Calculation for OCLR Price per share = $7.4 Earnings per share = $0.831 ∴ Price-Earnings Ratio = $7.4 ÷ $0.831 = 8.9x The P/E ratio isn’t a metric you view in isolation and only becomes useful when you compare it against other similar companies. … For example, if you are inadvertently comparing lower risk firms with OCLR, then OCLR’s P/E would naturally be lower than its peers, since investors would value those with lower risk with a higher price. … If this assumption does not hold true, OCLR’s lower P/E ratio may be because firms in our peer group are being overvalued by the market.

Simply Wall St -

Company Info

Map
Description

Oclaro, Inc. designs, manufactures, and markets optical components, modules, and subsystems for the long-haul, metro, and data center markets worldwide. The company’s products generate, detect, combine, and separate light signals in optical communications networks. It offers client side transceivers, including pluggable transceivers; line side transceivers; tunable laser transmitters, such as discrete lasers and co-packaged laser modulators; lithium niobate modulators to manipulate the phase or the amplitude of an optical signal; transponder modules for transmitter and receiver functions; and discrete lasers and receivers for metro and long-haul applications. The company markets its products through direct sales force, as well as through sales representatives and resellers. It serves network equipment manufacturers of telecommunications and datacom systems, hyperscale data center operators, and datacom module manufacturers. The company was formerly known as Bookham, Inc. and changed its name to Oclaro, Inc. in April 2009. Oclaro, Inc. was founded in 1988 and is headquartered in San Jose, California.

Details
Name: Oclaro, Inc.
OCLR
Exchange: NasdaqGS
Founded: 1988
$1,417,491,058
171,609,087
Website: http://www.oclaro.com
Address: Oclaro, Inc.
225 Charcot Avenue,
San Jose,
California, 95131,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS OCLR Common Stock Nasdaq Global Select US USD 11. Jul 2003
DB FKJ1 Common Stock Deutsche Boerse AG DE EUR 11. Jul 2003
LSE 0KAP Common Stock London Stock Exchange GB USD 11. Jul 2003
Number of employees
Current staff
Staff numbers
1,701
Oclaro employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2018/12/11 01:42
End of day share price update: 2018/12/07 00:00
Last estimates confirmation: 2018/12/05
Last earnings filing: 2018/11/08
Last earnings reported: 2018/09/29
Last annual earnings reported: 2018/06/30


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.