Infinera Corp’s Remarkable Stock Performance
Infinera Corp (NYSE: INFN) has recently made waves among investors due to its impressive stock performance. With a market capitalization of $1.37 billion, the current stock price stands at $5.93. Over the past week, Infinera’s stock has surged by 9.98%, while over the last three months, it has seen a remarkable increase of 22.56%. According to GuruFocus’s valuation metrics, the stock is currently deemed modestly undervalued, with a GF Value of $7.89, signaling potential for investors.
Evaluating Infinera’s Profitability
In terms of profitability, Infinera Corp holds a Profitability Rank of 4/10. The company’s operating margin sits at 0.74%, outperforming 36.51% of its industry peers. However, key profitability metrics such as ROE, ROA, and ROIC are in negative territory, with ROE at -2.79%, ROA at -0.29%, and ROIC at -0.47%. Despite these figures, Infinera’s performance surpasses a significant portion of its competitors, suggesting room for improvement.
Growth Trajectory of Infinera Corp
Infinera’s growth prospects are promising, evident from its Growth Rank of 7/10. The company’s 3-year revenue growth rate per share stands at 0.10%, outperforming 39.74% of its industry peers. The 5-year revenue growth rate per share is even more impressive at 6.70%, surpassing 65.45% of competitors. Looking ahead, the estimated total revenue growth rate for the next 3 to 5 years is 6.89%, indicating a positive outlook. In terms of earnings, the 3-year EPS without NRI growth rate is a robust 41.20%, and the 5-year rate is 20.10%, highlighting strong growth potential.
Key Shareholders in Infinera Corp
Significant investors have taken substantial positions in Infinera Corp. Howard Marks (Trades, Portfolio) leads with 25,175,384 shares, representing an 11.09% share percentage. Barrow, Hanley, Mewhinney & Strauss hold 9,104,109 shares, accounting for 4.01% of the company’s shares, while Steven Cohen (Trades, Portfolio) has 1,607,300 shares, equating to 0.71% share percentage. These major holders demonstrate confidence in the company’s future prospects.
Competitive Landscape
Operating in a competitive industry, Infinera faces rivals such as Digi International Inc (DGII, Financial), Harmonic Inc (HLIT, Financial), and Knowles Corp (KN, Financial). These companies, with similar market capitalizations, are key players in the hardware industry and serve as benchmarks for the stock performance of Infinera .
Conclusion – Stock Performance of Infinera
Infinera Corp’s recent stock performance has been impressive, showcasing substantial gains over the past three months. While the company’s current valuation indicates it is modestly undervalued, there is room for improvement in profitability metrics. However, strong growth rates in revenue and earnings signal a positive trajectory. The confidence displayed by major shareholders and the company’s standing among competitors further reinforce its position in the market. As Infinera continues to innovate and expand its networking solutions, it remains an attractive prospect for value investors.
Source: GuruFocus
