FNSR  Finisar Corporation

Exchange

NASDAQ

Sector

Technology

Industry

Semiconductors

Market Cap.

2.68B

Vuru Grade

24.89/100

Current Price

$23.54
+0.27 (+1.16%)

Growth Price

$18.58
Overvalued by 21.08%

Company Metrics

  • P/E 11.07
  • P/S 1.83
  • P/B 1.64
  • EPS 2.13
  • Cash ROIC 3.47%
  • Cash Ratio 4.91
  • Dividend 0 / 0%
  • Avg. Vol. 3.04M
  • Shares 113.85M
  • Market Cap. 2.68B

Company Description

Finisar Corporation designs, develops, manufactures, and markets optical subsystems and components that are used to interconnect equipment in short-distance local area networks (LANs), storage area networks (SANs), longer distance metropolitan area networks (MANs), fiber-to-the-home networks, cable television networks, and wide area networks. Its optical subsystems primarily include transmitters, ... more


Download 10 Years of Financial Statements:
Income Statement   Balance Sheet   Cash Flow

News

There is no news available at this time.
Growth Rate Assumed by Market

We did a reverse valuation to calculate the growth rate the market is assuming for FNSR to be considered fairly valued at its current market price. It's useful to compare this to the growth rate we're assuming for the Growth Price.

Future Free Cash Flow Growth Rate

This is the annual growth rate we've applied to calculate FNSR's Free Cash Flow for the next 10 years. To calculate it, we looked at several time periods of the last 10 years. Feel free to adjust it, but we limit the initial growth rate to 20% and slow it down over the years. Otherwise, long-term sustainability issues come into play.

Discount Rate

The discount rate is the annual rate of return an investor requires to take the risk of investing in a single stock. To account for that risk, this should be above 8-10%, as this is the avg. annual rate of return for the S&P500 over the past 100 years.

$23.54 Current Price

$18.58 Growth Price (DCF)

Overvalued by 21.08%


Growth Rate Assumed by Market: 17.40%


Future Free Cash Flow Growth Rate: 0.0%


Discount Rate: 15.0%


Show Free Cash Flow numbers

$8.18 NCA Price

Overvalued by 65.24%

$35.07 Book Price

Undervalued by 48.99%


Poor Cash Return on Invested Capital over the past 5 years

FNSR has been unable to consistently generate sufficient returns from its investments in buildings, projects and equipment. This could be due to poor management, lack of an economic moat or the capital intensive nature of the business.

FNSR has only created $3.47 of cash for every $100 invested.
Figures in USD. Fiscal year ends in April
20132014201520162017
Free Cash Flow 57.45M -31.08M -35.60M 64.78M 85.84M
divided by
Invested Capital 576.93M 738.09M 856.17M 851.10M 1.05B
Cash ROIC 9.96% -4.21% -4.16% 7.61% 8.17%

Poor Return on Equity over the past 5 years

FNSR has shown an inability to deliver strong results for shareholders. This could be due to poor management, FNSR operating in a highly competitive industry, or having a weak business in general.

FNSR has only generated $6.00 of Earnings for every $100 of Shareholders' Equity.
Figures in USD. Fiscal year ends in April
20132014201520162017
Net Income -8.07M 111.54M 11.89M 35.19M 249.35M
divided by
Stockholders' Equity 806.81M 1.02B 1.10B 1.17B 1.56B
Return on Equity -1.00% 10.98% 1.08% 3.01% 15.96%

Mediocre Business Performance over the past 10 years

FNSR isn't a strong business and might be consistently attempting to fuel growth with debt or has trouble staying profitable. The lack of predictability in free cash flow should be concerning for the reliability of future earnings.

FNSR has been unable to consistently create value for shareholders.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Free Cash Flow 7.42M -23.54M -19.64M 31.29M -3.26M 57.45M -31.08M -35.60M 64.78M 85.84M

Very Strong Balance Sheet

FNSR has more Cash than its Total Liabilities, resulting in $2.28 Net Cash per share. In other words, if you buy FNSR today, the price you're paying for shares is actually $21.26 because $2.28 of Cash is included in the current share price. This much Cash is very healthy. It can help FNSR sustain itself in the face of any economic turmoil and makes a stock buyback more of a possibility.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Cash 110.02M 37.22M 207.02M 314.77M 234.54M 289.08M 513.02M 490.19M 562.48M 1.24B
Current Assets 260.64M 248.50M 496.22M 693.41M 667.22M 674.30M 1.06B 1.06B 1.15B 1.91B
Total Assets 493.49M 380.70M 626.73M 885.15M 969.43M 1.01B 1.50B 1.55B 1.65B 2.54B
Current Liabilities 193.71M 104.30M 156.34M 133.99M 132.42M 141.84M 246.43M 205.52M 233.41M 251.80M
Total Liabilities 371.52M 265.91M 278.08M 185.99M 197.90M 201.04M 481.49M 448.09M 479.30M 977.18M
Stockholder' Equity 121.97M 114.79M 348.65M 699.16M 771.52M 806.81M 1.02B 1.10B 1.17B 1.56B
Current Ratio 1.35 2.38 3.17 5.18 5.04 4.75 4.32 5.18 4.92 7.58
TL-to-TA 0.75 0.70 0.44 0.21 0.20 0.20 0.32 0.29 0.29 0.38

Low or No Reinvestment of Profits over the past 10 years

FNSR has either been retaining a small amount of their earnings or has done so inconsistently. A lack of consistency could be due to FNSR operating at a loss or them having such a strong economic moat they feel comfortable spending profits on growth. Be wary of future prospects and if applicable, inspect the moat's sustainability.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Retained Earnings -1.43B -1.70B -1.70B -1.61B -1.57B -1.57B -1.46B -1.45B -1.41B -1.16B
Retained Earnings Growth - -18.73% 0.12% 5.19% 2.67% -0.35% 7.11% 0.81% 2.43% 17.65%

Loss Making Entity over the past 10 years

FNSR has been unable to maintain profitability. It's Costs of Sales have outstripped Revenue consistently. This is a huge red flag, unless the company has been investing heavily for the future. However, even that is dubious since accurately predicting the future of a company like that is extremely difficult.

$1.87 of every $100 of Revenue have been a loss, on average over the past 10 years.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Net Income -76.43M -254.81M 14.13M 88.10M 43.01M -8.07M 111.54M 11.89M 35.19M 249.35M
divided by
Revenue 440.18M 541.24M 629.88M 948.79M 952.58M 934.34M 1.16B 1.25B 1.26B 1.45B
Net Profit Margin -17.36% -47.08% 2.24% 9.29% 4.52% -0.86% 9.64% 0.95% 2.79% 17.20%

Satisfactory Pricing Power over the past 10 years

Consistency is vital. FNSR has been able to maintain gross margins fairly consistently, which is a strong indication of their ability to raise prices with inflation. This potentially leaves flexibility in inflationary environments to raise prices on consumers and maintain profitability.

$30.61 of every $100 worth of sales have been Gross Profit, on average over the past 10 years.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Gross Profit 141.52M 168.38M 179.74M 312.27M 273.34M 257.04M 397.00M 350.91M 354.65M 503.65M
divided by
Revenue 440.18M 541.24M 629.88M 948.79M 952.58M 934.34M 1.16B 1.25B 1.26B 1.45B
Gross Margin 32.15% 31.11% 28.54% 32.91% 28.70% 27.51% 34.32% 28.05% 28.08% 34.75%

High Capital Intensity over the past 10 years

FNSR spends large amounts of capital buying new equipment or investing in new facilities to stay competitive. Over the long term, those costs may have to be fuelled by debt. Look at the growth of Shareholders' Equity to see if this strategy is having a positive or negative impact.

320.51% of Profits are being spent on Capital Expenditures, like Property, Plant, & Equipment, required to run the business.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Capital Expenditure 31.91M 23.92M 31.41M 64.14M 78.32M 90.84M 130.19M 149.19M 118.83M 141.99M
divided by
Net Income -76.43M -254.81M 14.13M 88.10M 43.01M -8.07M 111.54M 11.89M 35.19M 249.35M
Capital Expenditure Ratio -41.75% -9.39% 222.26% 72.80% 182.07% -1,126.39% 116.72% 1,255.09% 337.64% 56.95%

No Dividend History over the past 10 years

FNSR has never distributed dividends or has recently suspended their dividend distribution.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Dividend Paid - - - - - - - - - -
divided by
Shares Outstanding 38.59M 52.56M 64.95M 92.72M 94.19M 92.86M 104.11M 104.97M 108.87M 114.10M
Dividend Paid Per Share - - - - - - - - - -
Price at Year End 3.04 9.07 28.25 16.75 15.70 23.69 19.56 14.58 30.27 24.43
Dividend Yield - - - - - - - - - -

History of Stock Buybacks over the past 10 years

FNSR has some history of delivering increased value for shareholders in the form of stock buybacks. These have helped improve financial metrics and increase each shareholders' relative ownership stake in the company, due to fewer shares outstanding and holding the same number of shares.
Figures in USD. Fiscal year ends in April
2008200920102011201220132014201520162017
Shares Outstanding 38.59M 52.56M 64.95M 92.72M 94.19M 92.86M 104.11M 104.97M 108.87M 114.10M
Stock Bought Back - -26.58% -19.08% -29.94% -1.56% 1.43% -10.81% -0.82% -3.58% -4.58%
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