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INFINERA CORP (INFN) Stock Fundamental Analysis

NASDAQ:INFN - Nasdaq - US45667G1031 - Common Stock - Currency: USD

6.65  0 (0%)

After market: 6.5808 -0.07 (-1.04%)

Fundamental Rating

2

Overall INFN gets a fundamental rating of 2 out of 10. We evaluated INFN against 51 industry peers in the Communications Equipment industry. INFN has a bad profitability rating. Also its financial health evaluation is rather negative. INFN does not seem to be growing, but still is valued expensively.


Dividend Valuation Growth Profitability Health

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1

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.
INFN had negative earnings in each of the past 5 years.
The reported operating cash flow has been mixed in the past 5 years: INFN reported negative operating cash flow in multiple years.
INFN Yearly Net Income VS EBIT VS OCF VS FCFINFN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100M -100M -200M -300M

1.2 Ratios

INFN's Return On Assets of -7.38% is on the low side compared to the rest of the industry. INFN is outperformed by 60.00% of its industry peers.
INFN has a worse Return On Equity (-83.02%) than 78.00% of its industry peers.
Industry RankSector Rank
ROA -7.38%
ROE -83.02%
ROIC N/A
ROA(3y)-5.61%
ROA(5y)-10.5%
ROE(3y)-35.57%
ROE(5y)-51.04%
ROIC(3y)N/A
ROIC(5y)N/A
INFN Yearly ROA, ROE, ROICINFN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 -20 -40 -60 -80 -100

1.3 Margins

INFN has a Gross Margin (38.77%) which is comparable to the rest of the industry.
INFN's Gross Margin has improved in the last couple of years.
INFN does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
Industry RankSector Rank
OM N/A
PM (TTM) N/A
GM 38.77%
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y8.17%
GM growth 5Y2.44%
INFN Yearly Profit, Operating, Gross MarginsINFN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

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1

2. Health

2.1 Basic Checks

INFN does not have a ROIC to compare to the WACC, probably because it is not profitable.
The number of shares outstanding for INFN has been increased compared to 1 year ago.
INFN has more shares outstanding than it did 5 years ago.
INFN has a worse debt/assets ratio than last year.
INFN Yearly Shares OutstandingINFN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
INFN Yearly Total Debt VS Total AssetsINFN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 500M 1B 1.5B

2.2 Solvency

Based on the Altman-Z score of 0.11, we must say that INFN is in the distress zone and has some risk of bankruptcy.
INFN has a Altman-Z score of 0.11. This is in the lower half of the industry: INFN underperforms 64.00% of its industry peers.
The Debt to FCF ratio of INFN is 33.72, which is on the high side as it means it would take INFN, 33.72 years of fcf income to pay off all of its debts.
INFN has a Debt to FCF ratio (33.72) which is in line with its industry peers.
INFN has a Debt/Equity ratio of 4.98. This is a high value indicating a heavy dependency on external financing.
INFN has a worse Debt to Equity ratio (4.98) than 92.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 4.98
Debt/FCF 33.72
Altman-Z 0.11
ROIC/WACCN/A
WACC8.48%
INFN Yearly LT Debt VS Equity VS FCFINFN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 200M 400M 600M

2.3 Liquidity

INFN has a Current Ratio of 1.58. This is a normal value and indicates that INFN is financially healthy and should not expect problems in meeting its short term obligations.
INFN's Current ratio of 1.58 is on the low side compared to the rest of the industry. INFN is outperformed by 62.00% of its industry peers.
INFN has a Quick Ratio of 1.58. This is a bad value and indicates that INFN is not financially healthy enough and could expect problems in meeting its short term obligations.
Looking at the Quick ratio, with a value of 0.97, INFN is doing worse than 74.00% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.58
Quick Ratio 0.97
INFN Yearly Current Assets VS Current LiabilitesINFN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 200M 400M 600M 800M 1B

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3

3. Growth

3.1 Past

The earnings per share for INFN have decreased strongly by -140.74% in the last year.
Looking at the last year, INFN shows a very negative growth in Revenue. The Revenue has decreased by -11.48% in the last year.
INFN shows quite a strong growth in Revenue. Measured over the last years, the Revenue has been growing by 11.34% yearly.
EPS 1Y (TTM)-140.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
Revenue 1Y (TTM)-11.48%
Revenue growth 3Y5.99%
Revenue growth 5Y11.34%
Sales Q2Q%-9.68%

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 29.96% on average per year.
INFN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.29% yearly.
EPS Next Y-151%
EPS Next 2Y7.38%
EPS Next 3Y29.96%
EPS Next 5YN/A
Revenue Next Year-10.88%
Revenue Next 2Y-0.83%
Revenue Next 3Y3.29%
Revenue Next 5YN/A

3.3 Evolution

The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
INFN Yearly Revenue VS EstimatesINFN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 500M 1B 1.5B
INFN Yearly EPS VS EstimatesINFN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0 0.5 -0.5

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2

4. Valuation

4.1 Price/Earnings Ratio

INFN reported negative earnings for the last year, which makes the Price/Earnings Ratio negative.
INFN is valuated quite expensively with a Price/Forward Earnings ratio of 25.08.
The rest of the industry has a similar Price/Forward Earnings ratio as INFN.
INFN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 22.68, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE N/A
Fwd PE 25.08
INFN Price Earnings VS Forward Price EarningsINFN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 0 20 -20 -40 -60

4.2 Price Multiples

INFN's Enterprise Value to EBITDA ratio is in line with the industry average.
The rest of the industry has a similar Price/Free Cash Flow ratio as INFN.
Industry RankSector Rank
P/FCF 78.25
EV/EBITDA 106.18
INFN Per share dataINFN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 2 4 6

4.3 Compensation for Growth

INFN's earnings are expected to grow with 29.96% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y7.38%
EPS Next 3Y29.96%

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0

5. Dividend

5.1 Amount

INFN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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INFINERA CORP

NASDAQ:INFN (2/21/2025, 8:00:01 PM)

After market: 6.5808 -0.07 (-1.04%)

6.65

0 (0%)

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-98.8%
Ins Owners1.39%
Ins Owner Change0.22%
Market Cap1.57B
Analysts52
Price Target6.55 (-1.5%)
Short Float %11.81%
Short Ratio36
Dividend
Industry RankSector 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)1
Avg EPS beat(2)-35.44%
Min EPS beat(2)-100%
Max EPS beat(2)29.13%
EPS beat(4)2
Avg EPS beat(4)-20.13%
Min EPS beat(4)-100%
Max EPS beat(4)29.13%
EPS beat(8)6
Avg EPS beat(8)57.56%
EPS beat(12)9
Avg EPS beat(12)70.73%
EPS beat(16)13
Avg EPS beat(16)96.89%
Revenue beat(2)1
Avg Revenue beat(2)-6.23%
Min Revenue beat(2)-13.76%
Max Revenue beat(2)1.3%
Revenue beat(4)2
Avg Revenue beat(4)-5.74%
Min Revenue beat(4)-13.76%
Max Revenue beat(4)1.3%
Revenue beat(8)5
Avg Revenue beat(8)-1.81%
Revenue beat(12)7
Avg Revenue beat(12)-1.7%
Revenue beat(16)7
Avg Revenue beat(16)-1.95%
PT rev (1m)0%
PT rev (3m)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)0%
EPS NY rev (1m)0%
EPS NY rev (3m)-130%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)0%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.61%
Valuation
Industry RankSector Rank
PE N/A
Fwd PE 25.08
P/S 1.08
P/FCF 78.25
P/OCF 17.84
P/B 11.77
P/tB N/A
EV/EBITDA 106.18
EPS(TTM)-0.11
EYN/A
EPS(NY)0.27
Fwd EY3.99%
FCF(TTM)0.08
FCFY1.28%
OCF(TTM)0.37
OCFY5.61%
SpS6.16
BVpS0.57
TBVpS-0.51
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA -7.38%
ROE -83.02%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM N/A
PM (TTM) N/A
GM 38.77%
FCFM 1.38%
ROA(3y)-5.61%
ROA(5y)-10.5%
ROE(3y)-35.57%
ROE(5y)-51.04%
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 3Y8.17%
GM growth 5Y2.44%
F-Score3
Asset Turnover0.97
Health
Industry RankSector Rank
Debt/Equity 4.98
Debt/FCF 33.72
Debt/EBITDA 33.13
Cap/Depr 103.08%
Cap/Sales 4.68%
Interest Coverage N/A
Cash Conversion 438.41%
Profit Quality N/A
Current Ratio 1.58
Quick Ratio 0.97
Altman-Z 0.11
F-Score3
WACC8.48%
ROIC/WACCN/A
Cap/Depr(3y)61.21%
Cap/Depr(5y)49.56%
Cap/Sales(3y)3.23%
Cap/Sales(5y)2.98%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-140.74%
EPS 3YN/A
EPS 5YN/A
EPS Q2Q%-100%
EPS Next Y-151%
EPS Next 2Y7.38%
EPS Next 3Y29.96%
EPS Next 5YN/A
Revenue 1Y (TTM)-11.48%
Revenue growth 3Y5.99%
Revenue growth 5Y11.34%
Sales Q2Q%-9.68%
Revenue Next Year-10.88%
Revenue Next 2Y-0.83%
Revenue Next 3Y3.29%
Revenue Next 5YN/A
EBIT growth 1Y-469.22%
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next Year19.76%
EBIT Next 3Y49.83%
EBIT Next 5YN/A
FCF growth 1Y124.36%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y347.3%
OCF growth 3YN/A
OCF growth 5YN/A