ADV:XETRA-ADVA Optical Networking SE (EUR)

COMMON STOCK | Communication Equipment | XETRA

Last Closing Price

EUR 5.14

Change

-0.11 (-2.10)%

Market Cap

EUR 0.26B

Volume

0.24M

Average Target Price

EUR 7.13 (+38.62%)
Average Analyst Rating

Verdict

Fundamental Analysis

Verdict

About

ADVA Optical Networking SE develops, manufactures, and sells optical and Ethernet-based networking solutions to deliver data, storage, voice, and video services worldwide. It offers open optical transport solutions, such as FSP 3000 open terminals, FSP 3000 open line systems, pluggables and subsystems, and optical access solutions; packet edge and aggregation products, including carrier Ethernet and programmable multilayer edge, metro aggregation, and edge computing products; and network virtualization products comprising ensemble connectors, orchestrators, and harmony ecosystems, as well as operates ensemble virtualization director, a management platform for the creation and deployment of virtualized services. The company also provides disaggregated networking, such as packet optical terminals and ensemble activators; timing and synchronization products; network infrastructure assurance products; and automated network management products, such as ensemble optical and sync director, and ensemble controllers, as well as a Pro-Vision orchestration and service management platform. In addition, it provides professional services to plan, operate, and maintain the networks. The company sells its products to telecommunications service providers, private companies, universities, and government agencies directly, as well as through a network of distribution partners. The company was founded in 1994 and is headquartered in Munich, Germany.

Technical Indicators

Unadjusted Closing Price

Adjusted Closing Price

Share Volume

Relative Performance (Total Returns)

Compare
Relative Returns (From:    To: 2020-03-27 )

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ETFs Containing ADV

Symbol Name Weight Mer Price(Change) Market Cap

N/A

Market Performance

  Market Performance vs.
Industry/Classification (Communication Equipment)
Market Performance vs. Exchange
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
YTD  
Capital Gain -36.46% 18% F 14% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -36.46% 18% F 14% F
Trailing 12 Months  
Capital Gain -42.25% 36% F 10% F
Dividend Return N/A N/A N/A N/A N/A
Total Return -42.25% 36% F 9% F
Trailing 5 Years  
Capital Gain 17.35% 89% B+ 78% C+
Dividend Return N/A N/A N/A N/A N/A
Total Return 17.35% 67% D+ 74% C
Average Annual (5 Year Horizon)  
Capital Gain 0.75% 73% C 80% B-
Dividend Return N/A N/A N/A N/A N/A
Total Return 0.75% 55% F 77% C+
Risk Return Profile  
Volatility (Standard Deviation) 33.40% 9% F 10% F
Risk Adjusted Return 2.24% 55% F 37% F
Market Capitalization 0.26B 55% F 53% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Key Financial Ratios

  Ratio vs. Industry/Classification
(Communication Equipment)
Ratio vs. Market
  Value Sector Median Percentile Rank Grade Market Median Percentile Rank Grade
Market Value  
Price / Earning Ratio 37.50 67% D+ 16% F
Price/Book Ratio 1.03 80% B- 62% D-
Price / Cash Flow Ratio 3.94 45% F 62% D-
EV/EBITDA 7.95 44% F 53% F
Management Effectiveness  
Return on Equity 2.82% 78% C+ 27% F
Return on Invested Capital 4.70% 18% F 40% F
Return on Assets 2.16% 40% F 41% F
Debt to Equity Ratio 24.14% 80% B- 70% C-
Technical Ratios  
Short Ratio N/A N/A N/A N/A N/A
Short Percent N/A N/A N/A N/A N/A
Beta 1.24 9% F 13% F
Letter Grade Percentage Letter Grade Percentage Letter Grade Percentage
A+ 97%-100% A 93%-96% A- 90%-92%
B+ 97%-89% B 83%-86% B- 80%-82%
C+ 77%-79% C 73%-76% C- 70%-72%
D+ 67%-69% D 63%-66% D- 60%-62%
F 0%-59%

Annual Financials (EUR)

Quarterly Financials (EUR)

Analyst Rating

Target Price Action Rating Action Analyst Rating Price Date

Fundamental Analysis Breakdown

This is a composite scorecard based on the application of evaluation criteria deemed most important by analysts. This is not a buy or sell recommendation.

What to like:
Underpriced compared to book value

The stock is trading low compared to its peers on a price to book value basis and is in the top quartile. It may be underpriced but do check its financial performance to make sure there is no specific reason.

Superior return on equity

The company management has delivered better return on equity in the most recent 4 quarters then its peers, placing it in the top quartile.

Low debt

The company is less leveraged than its peers ,, and is among the top quartile, which makes it more flexible. However, do check the news and look at its sector. Sometimes this is low because the company is not growing and has no growth potential.

Positive cash flow

The company had positive total cash flow in the most recent four quarters.

Positive free cash flow

The company had positive total free cash flow in the most recent four quarters.

High Gross Profit to Asset Ratio

This stock is in the top quartile compared to its peers on Gross Profit to Asset Ratio. This is a popular measure among value investors for showing superior returns in the long run.

What to not like:
High volatility

The total returns for this company are volatile and above median for its sector over the past 5 years. Make sure you have the risk tolerance for investing in such stock.

Overpriced on cashflow basis

The stock is trading high compared to its peers on a price to cash flow basis. It is priced above the median for its sectors. Proceed with caution if you are considering to buy.

Poor capital utilization

The company management has delivered below median return on invested capital in the most recent 4 quarters compared to its peers.

Poor return on assets

The company management has delivered below median return on assets in the most recent 4 quarters compared to its peers.