Infinera Corporation (INFN) | Investment Case

1. Company Snapshot

1.a. Company Description

Infinera Corporation provides optical transport networking equipment, software, and services worldwide.The company's product portfolio includes Infinera Groove series for modular and sled-based platforms to support a various transport network applications; Infinera 7300 series, an SDN-ready coherent optical transport system; Infinera FlexILS open optical line system that connects various Infinera and third-party terminal equipment platforms over long-distance fiber optic cable providing switching, multiplexing, amplification, and management channels; and Infinera 7090 and 7100 series for transport platforms.It also offers Infinera XTM series, a packet-optical transport platform that enables metro connectivity solutions; Infinera XTC series, a multi-terabit packet optical transport platforms that integrates digital OTN switching and optical WDM transmission; Infinera mTera series, a network transport solution; and Infinera XT series, a platform that is designed to power cloud scale network services over metro, DCI, long-haul, and subsea networks.

The company provides Infinera Cloud Xpress Family that is designed to meet the needs of internet content providers (ICPs), communication service providers, internet exchange service providers, enterprises, and other large-scale data center operators; and ICE-XR Coherent Pluggable Optics.It also offers Infinera Transcend software suite; and system software and customer support services.The company also serves telecommunications service providers, ICPs, cable providers, wholesale carriers, research and education institutions, large enterprises, and government entities.

It markets and sells its products and related support services primarily through its direct sales force.The company was formerly known as Zepton Networks.The company was incorporated in 2000 and is headquartered in San Jose, California.

Show Full description

1.b. Last Insights on INFN

Infinera's recent developments include a record revenue with webscalers, significant design wins, and substantial awards for ICE-X 400G and 800G pluggables. The company launched ICE-D to address the intra-data center opportunity driven by AI workloads and secured CHIPS & Science Act funding. Northland analyst Tim Savageaux notes that cloud providers accounted for over 40% of Infinera's revenue in Q3, and sees Nokia's post-deal $3.5B Optical unit valued at over $10B.

1.c. Company Highlights

Last Price	6.64
Change Percentage	0.00%
Open	6.66
Previous Close	6.64
Market Cap ( Millions)	1572
Volume	8706267
Year High	6.92
Year Low	4.41
M A 50	6.61
M A 200	6.33

FCF Yield	4.09%
Dividend Yield	0.00%
ROE	-32.48%
Debt / Equity	36.12%
Net Debt / EBIDTA	-548.95%
Price To Book	13.5
Price Earnings Ratio	-38.7
Price To FCF	24.47
Price To sales	2.05
EV / EBITDA	77.73

2. Transcript Summary

Unfortunately this company is not part of our coverage yet. But as part of your subscription plan you can request it by clicking just below and we'll process.

Request Coverage

3. NewsRoom

Will the Acquisition of Infinera Propel Nokia's Share Performance?

Mar -03

Source: zacks.com

Infinera (INFN) Misses Q4 Earnings Estimates

Feb -28

Source: zacks.com

Infinera Corporation Fourth Quarter and Fiscal 2024 Financial Results

Feb -28

Source: globenewswire.com

EU approves $2.3 billion takeover of Infinera by Nokia

Feb -26

Source: reuters.com

Exclusive: EU set to clear Nokia's $2.3 bln Infinera deal without conditions, sources say

Feb -14

Source: reuters.com

Undercovered Dozen: Nokia, Juniper Networks, Hanesbrands, Infinera +

Feb -01

Source: seekingalpha.com

C3ntro Telecom Upgrades Data Center Network in Mexico with Infinera's GX Series Solution

Jan -21

Source: globenewswire.com

Nokia named a 2025 top pick at Northland

Jan -08

Source: https://thefly.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.69%)

6. Segments

Optical Transport Networking Products

Expected Growth: 5.5%

Infinera's Optical Transport Networking Products' 5.5% growth is driven by increasing demand for high-speed data transmission, fueled by 5G network deployments, cloud computing, and IoT adoption. Additionally, the need for network infrastructure upgrades, growing bandwidth requirements, and Infinera's innovative product offerings, such as its XR Optics technology, contribute to this growth.

Optical Transport Networking Services

Expected Growth: 6.5%

Infinera's Optical Transport Networking Services growth is driven by increasing demand for high-speed data transmission, fueled by 5G deployments, cloud computing, and IoT adoption. Additionally, the need for network infrastructure upgrades, growing bandwidth requirements, and the shift towards open and disaggregated networks contribute to the 6.5% growth rate.

7. Detailed Products

DTN-X Family

A family of packet-optical transport systems designed for long-haul, metro, and regional networks

XTM Series

A family of packet-optical transport systems designed for metro and regional networks

Cloud Xpress Family

A family of data center interconnect (DCI) platforms designed for cloud and hyperscale data centers

Groove G30

A compact, high-density DCI platform designed for cloud and hyperscale data centers

Infinera's ICE6

A sixth-generation infinite capacity engine designed for high-speed optical transmission

Infinera's XR Optics

A technology designed for high-speed, low-power optical transmission

8. Infinera Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Infinera Corporation operates in the optical communication equipment industry, which is characterized by a moderate threat of substitutes. While there are alternative technologies available, such as wireless communication systems, they are not yet mature enough to pose a significant threat to Infinera's products.

Bargaining Power Of Customers

Infinera Corporation's customers are primarily telecommunications service providers, which have limited bargaining power due to the specialized nature of Infinera's products and the high switching costs associated with changing suppliers.

Bargaining Power Of Suppliers

Infinera Corporation relies on a limited number of suppliers for its components, which gives them some bargaining power. However, the company's large size and diversified supply chain mitigate this risk to some extent.

Threat Of New Entrants

The threat of new entrants in the optical communication equipment industry is low due to the high barriers to entry, including the need for significant investments in research and development, manufacturing, and marketing.

Intensity Of Rivalry

The optical communication equipment industry is highly competitive, with several established players competing for market share. Infinera Corporation faces intense rivalry from companies such as Ciena, Cisco Systems, and Nokia.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	76.30%
Debt Cost	3.95%
Equity Weight	23.70%
Equity Cost	12.12%
WACC	5.88%
Leverage	321.88%

11. Quality Control: Infinera Corporation passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Inefficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

BK Technologies

A-Score: 5.3/10

Value: 3.3

Growth: 7.9

Quality: 8.2

Yield: 1.0

Momentum: 10.0

Volatility: 1.3

1-Year Total Return ->

Optical Cable

A-Score: 4.4/10

Value: 6.7

Growth: 4.3

Quality: 4.7

Yield: 0.0

Momentum: 10.0

Volatility: 0.7

1-Year Total Return ->

Minim

A-Score: 4.2/10

Value: 6.2

Growth: 2.9

Quality: 4.3

Yield: 0.0

Momentum: 10.0

Volatility: 1.7

1-Year Total Return ->

Infinera

A-Score: 4.1/10

Value: 7.2

Growth: 4.1

Quality: 2.2

Yield: 0.0

Momentum: 6.0

Volatility: 5.0

1-Year Total Return ->

Viavi Solutions

A-Score: 4.0/10

Value: 1.1

Growth: 3.9

Quality: 4.8

Yield: 0.0

Momentum: 9.5

Volatility: 4.7

1-Year Total Return ->

Airgain

A-Score: 3.1/10

Value: 8.7

Growth: 2.3

Quality: 4.5

Yield: 0.0

Momentum: 0.5

Volatility: 2.7

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

31.41%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

5.88%

Infinera Corporation - US45667G1031

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on INFN

1.c. Company Highlights

Lower Quality

Medium Volatility

Fairly Valued

Earnings Miss

Revenues Miss

Stable Momentum

Earnings Beats

Revenues Beats

Strong Momentum

Less Volatile

Average Yield

Average Growth

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (5.69%)

6. Segments

Optical Transport Networking Products

Expected Growth: 5.5%

Optical Transport Networking Services

Expected Growth: 6.5%

7. Detailed Products

DTN-X Family

XTM Series

Cloud Xpress Family

Groove G30

Infinera's ICE6

Infinera's XR Optics

8. Infinera Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Infinera Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

6.64$

Current Price

6.64$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA