INFINERA CORP(NASDAQ:INFN) stock Fundamental Analysis

Fundamental Rating

We assign a fundamental rating of 2 out of 10 to INFN. INFN was compared to 49 industry peers in the Communications Equipment industry. INFN may be in some trouble as it scores bad on both profitability and health. INFN is quite expensive at the moment. It does show a decent growth rate.

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1. Profitability

1.1 Basic Checks

In the past year INFN has reported negative net income.

In the past year INFN had a positive cash flow from operations.

In the past 5 years INFN always reported negative net income.

The reported operating cash flow has been mixed in the past 5 years: INFN reported negative operating cash flow in multiple years.

1.2 Ratios

INFN has a worse Return On Assets (-9.80%) than 62.75% of its industry peers.

The Return On Equity of INFN (-129.03%) is worse than 78.43% of its industry peers.

		Industry Rank	Sector Rank
ROA	-9.8%
ROE	-129.03%
ROIC	N/A

ROA(3y)-5.29%

ROA(5y)-7.71%

ROE(3y)-61%

ROE(5y)-56.84%

ROIC(3y)N/A

ROIC(5y)N/A

1.3 Margins

INFN's Gross Margin of 38.43% is in line compared to the rest of the industry. INFN outperforms 49.02% of its industry peers.

INFN's Gross Margin has improved in the last couple of years.

The Profit Margin and Operating Margin are not available for INFN so they could not be analyzed.

		Industry Rank	Sector Rank
OM	N/A
PM (TTM)	N/A
GM	38.43%

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y3.12%

GM growth 5Y5.37%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

INFN does not have a ROIC to compare to the WACC, probably because it is not profitable.

INFN has more shares outstanding than it did 1 year ago.

The number of shares outstanding for INFN has been increased compared to 5 years ago.

INFN has a worse debt/assets ratio than last year.

2.2 Solvency

INFN has an Altman-Z score of 0.01. This is a bad value and indicates that INFN is not financially healthy and even has some risk of bankruptcy.

INFN has a worse Altman-Z score (0.01) than 68.63% of its industry peers.

The Debt to FCF ratio of INFN is 117.95, which is on the high side as it means it would take INFN, 117.95 years of fcf income to pay off all of its debts.

The Debt to FCF ratio of INFN (117.95) is comparable to the rest of the industry.

A Debt/Equity ratio of 5.73 is on the high side and indicates that INFN has dependencies on debt financing.

INFN has a worse Debt to Equity ratio (5.73) than 92.16% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	5.73
Debt/FCF	117.95
Altman-Z	0.01

ROIC/WACCN/A

WACC8.48%

2.3 Liquidity

A Current Ratio of 1.51 indicates that INFN should not have too much problems paying its short term obligations.

INFN has a worse Current ratio (1.51) than 66.67% of its industry peers.

A Quick Ratio of 1.02 indicates that INFN should not have too much problems paying its short term obligations.

INFN has a Quick ratio of 1.02. This is in the lower half of the industry: INFN underperforms 70.59% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.51
Quick Ratio	1.02

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WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

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3. Growth

3.1 Past

INFN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -457.37%.

The Revenue for INFN has decreased by -12.12% in the past year. This is quite bad

INFN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 1.78% yearly.

EPS 1Y (TTM)-457.37%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-298.93%

Revenue 1Y (TTM)-12.12%

Revenue growth 3Y-0.16%

Revenue growth 5Y1.78%

Sales Q2Q%-8.62%

3.2 Future

Based on estimates for the next years, INFN will show a very strong growth in Earnings Per Share. The EPS will grow by 151.08% on average per year.

The Revenue is expected to grow by 11.20% on average over the next years. This is quite good.

EPS Next Y326.09%

EPS Next 2Y151.08%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue Next Year13.51%

Revenue Next 2Y11.2%

Revenue Next 3YN/A

Revenue Next 5YN/A

3.3 Evolution

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings Ratio is negative for INFN. In the last year negative earnings were reported.

The Price/Forward Earnings ratio is 25.04, which means the current valuation is very expensive for INFN.

INFN's Price/Forward Earnings ratio is in line with the industry average.

Compared to an average S&P500 Price/Forward Earnings ratio of 21.20, INFN is valued at the same level.

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	25.04

4.2 Price Multiples

The rest of the industry has a similar Enterprise Value to EBITDA ratio as INFN.

Compared to the rest of the industry, the Price/Free Cash Flow ratio of INFN is on the same level as its industry peers.

		Industry Rank	Sector Rank
P/FCF	278.85
EV/EBITDA	324.21

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.

INFN's earnings are expected to grow with 151.08% in the coming years. This may justify a more expensive valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y151.08%

EPS Next 3YN/A

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5. Dividend

5.1 Amount

No dividends for INFN!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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INFINERA CORP

NASDAQ:INFN (2/27/2025, 8:00:01 PM)

After market: 6.65 +0.01 (+0.15%)

6.64

-0.01 (-0.15%)

Chartmill FA Rating

GICS SectorInformation Technology

GICS IndustryGroupTechnology Hardware & Equipment

GICS IndustryCommunications Equipment

Earnings (Last)02-20 2025-02-20/amc

Earnings (Next)04-29 2025-04-29/amc

Inst Owners93.07%

Inst Owner Change-0.39%

Ins Owners1.39%

Ins Owner Change-10.44%

Market Cap1.58B

Analysts48

Price Target6.48 (-2.41%)

Short Float %N/A

Short RatioN/A

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Yearly DividendN/A

Dividend Growth(5Y)N/A

DPN/A

Div Incr Years0

Div Non Decr Years0

Ex-DateN/A

Surprises & Revisions

EPS beat(2)N/A

Avg EPS beat(2)N/A

Min EPS beat(2)N/A

Max EPS beat(2)N/A

EPS beat(4)N/A

Avg EPS beat(4)N/A

Min EPS beat(4)N/A

Max EPS beat(4)N/A

EPS beat(8)N/A

Avg EPS beat(8)N/A

EPS beat(12)N/A

Avg EPS beat(12)N/A

EPS beat(16)N/A

Avg EPS beat(16)N/A

Revenue beat(2)0

Avg Revenue beat(2)-7.22%

Min Revenue beat(2)-13.76%

Max Revenue beat(2)-0.69%

Revenue beat(4)1

Avg Revenue beat(4)-5.96%

Min Revenue beat(4)-13.76%

Max Revenue beat(4)1.3%

Revenue beat(8)4

Avg Revenue beat(8)-3.07%

Revenue beat(12)6

Avg Revenue beat(12)-1.9%

Revenue beat(16)7

Avg Revenue beat(16)-1.81%

PT rev (1m)-1.16%

PT rev (3m)-1.16%

EPS NQ rev (1m)-50%

EPS NQ rev (3m)-50%

EPS NY rev (1m)0%

EPS NY rev (3m)0%

Revenue NQ rev (1m)-1.32%

Revenue NQ rev (3m)-1.32%

Revenue NY rev (1m)2.86%

Revenue NY rev (3m)2.86%

Valuation

		Industry Rank	Sector Rank
PE	N/A
Fwd PE	25.04
P/S	1.11
P/FCF	278.85
P/OCF	19.59
P/B	13.56
P/tB	N/A
EV/EBITDA	324.21

EPS(TTM)-0.64

EYN/A

EPS(NY)0.27

Fwd EY3.99%

FCF(TTM)0.02

FCFY0.36%

OCF(TTM)0.34

OCFY5.11%

SpS5.96

BVpS0.49

TBVpS-0.52

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-9.8%
ROE	-129.03%
ROCE	N/A
ROIC	N/A
ROICexc	N/A
ROICexgc	N/A
OM	N/A
PM (TTM)	N/A
GM	38.43%
FCFM	0.4%

ROA(3y)-5.29%

ROA(5y)-7.71%

ROE(3y)-61%

ROE(5y)-56.84%

ROIC(3y)N/A

ROIC(5y)N/A

ROICexc(3y)N/A

ROICexc(5y)N/A

ROICexgc(3y)N/A

ROICexgc(5y)N/A

ROCE(3y)N/A

ROCE(5y)N/A

ROICexcg growth 3YN/A

ROICexcg growth 5YN/A

ROICexc growth 3YN/A

ROICexc growth 5YN/A

OM growth 3YN/A

OM growth 5YN/A

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y3.12%

GM growth 5Y5.37%

F-Score2

Asset Turnover0.92

Health

		Industry Rank	Sector Rank
Debt/Equity	5.73
Debt/FCF	117.95
Debt/EBITDA	102.98
Cap/Depr	120.34%
Cap/Sales	5.29%
Interest Coverage	N/A
Cash Conversion	1243.91%
Profit Quality	N/A
Current Ratio	1.51
Quick Ratio	1.02
Altman-Z	0.01

F-Score2

WACC8.48%

ROIC/WACCN/A

Cap/Depr(3y)84.82%

Cap/Depr(5y)68.59%

Cap/Sales(3y)4.03%

Cap/Sales(5y)3.57%

Profit Quality(3y)N/A

Profit Quality(5y)N/A

High Growth Momentum

Growth

EPS 1Y (TTM)-457.37%

EPS 3YN/A

EPS 5YN/A

EPS Q2Q%-298.93%

EPS Next Y326.09%

EPS Next 2Y151.08%

EPS Next 3YN/A

EPS Next 5YN/A

Revenue 1Y (TTM)-12.12%

Revenue growth 3Y-0.16%

Revenue growth 5Y1.78%

Sales Q2Q%-8.62%

Revenue Next Year13.51%

Revenue Next 2Y11.2%

Revenue Next 3YN/A

Revenue Next 5YN/A

EBIT growth 1Y-1485.78%

EBIT growth 3YN/A

EBIT growth 5YN/A

EBIT Next Year854.17%

EBIT Next 3YN/A

EBIT Next 5YN/A

FCF growth 1Y144.26%

FCF growth 3YN/A

FCF growth 5YN/A

OCF growth 1Y62.96%

OCF growth 3Y42.13%

OCF growth 5YN/A

INFINERA CORP (INFN) Stock Fundamental Analysis

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

More info and screens

2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

More info and screens

3. Growth

3.1 Past

3.2 Future

3.3 Evolution

More info and screens

4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

More info and screens

5. Dividend

5.1 Amount

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