CIENA CORP (1CIEN.MI) Stock Fundamental Analysis
BIT:1CIEN - Euronext Milan - US1717793095 - Common Stock - Currency: EUR
Overall 1CIEN gets a fundamental rating of 5 out of 10. We evaluated 1CIEN against 25 industry peers in the Communications Equipment industry. While 1CIEN has a great health rating, its profitability is only average at the moment. 1CIEN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
1CIEN had positive earnings in the past year.
1CIEN had a positive operating cash flow in the past year.
In the past 5 years 1CIEN has always been profitable.
1CIEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
Looking at the Return On Assets, with a value of 1.42%, 1CIEN is in the better half of the industry, outperforming 64.00% of the companies in the same industry.
1CIEN has a better Return On Equity (2.83%) than 64.00% of its industry peers.
1CIEN has a Return On Invested Capital (2.96%) which is in line with its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for 1CIEN is below the industry average of 9.30%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 2.83% | ||
| ROIC | 2.96% |
ROA(3y)3.02%
ROA(5y)5.6%
ROE(3y)5.85%
ROE(5y)9.7%
ROIC(3y)4.65%
ROIC(5y)6.85%
1.3 Margins
1CIEN has a better Profit Margin (1.95%) than 64.00% of its industry peers.
1CIEN's Profit Margin has declined in the last couple of years.
With a Operating Margin value of 4.54%, 1CIEN perfoms like the industry average, outperforming 60.00% of the companies in the same industry.
1CIEN's Operating Margin has declined in the last couple of years.
1CIEN's Gross Margin of 42.58% is on the low side compared to the rest of the industry. 1CIEN is outperformed by 60.00% of its industry peers.
1CIEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.54% | ||
| PM (TTM) | 1.95% | ||
| GM | 42.58% |
OM growth 3Y-29.22%
OM growth 5Y-14.61%
PM growth 3Y-46.71%
PM growth 5Y-21.68%
GM growth 3Y-3.3%
GM growth 5Y-0.16%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so 1CIEN is destroying value.
Compared to 1 year ago, 1CIEN has less shares outstanding
1CIEN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, 1CIEN has an improved debt to assets ratio.
2.2 Solvency
1CIEN has an Altman-Z score of 3.02. This indicates that 1CIEN is financially healthy and has little risk of bankruptcy at the moment.
1CIEN has a better Altman-Z score (3.02) than 72.00% of its industry peers.
The Debt to FCF ratio of 1CIEN is 7.52, which is on the high side as it means it would take 1CIEN, 7.52 years of fcf income to pay off all of its debts.
1CIEN's Debt to FCF ratio of 7.52 is in line compared to the rest of the industry. 1CIEN outperforms 48.00% of its industry peers.
1CIEN has a Debt/Equity ratio of 0.55. This is a neutral value indicating 1CIEN is somewhat dependend on debt financing.
1CIEN's Debt to Equity ratio of 0.55 is in line compared to the rest of the industry. 1CIEN outperforms 44.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 7.52 | ||
| Altman-Z | 3.02 |
ROIC/WACC0.3
WACC9.84%
2.3 Liquidity
A Current Ratio of 3.65 indicates that 1CIEN has no problem at all paying its short term obligations.
The Current ratio of 1CIEN (3.65) is better than 88.00% of its industry peers.
A Quick Ratio of 2.77 indicates that 1CIEN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.77, 1CIEN belongs to the top of the industry, outperforming 84.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.65 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
1CIEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -34.31%.
Measured over the past years, 1CIEN shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.82% on average per year.
1CIEN shows a decrease in Revenue. In the last year, the revenue decreased by -7.29%.
1CIEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.36% yearly.
EPS 1Y (TTM)-34.31%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%-3.03%
Revenue 1Y (TTM)-7.29%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%3.33%
3.2 Future
The Earnings Per Share is expected to grow by 34.52% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 9.77% on average over the next years. This is quite good.
EPS Next Y42.16%
EPS Next 2Y38.19%
EPS Next 3Y34.52%
EPS Next 5YN/A
Revenue Next Year11.05%
Revenue Next 2Y9.97%
Revenue Next 3Y9.77%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
1CIEN is valuated quite expensively with a Price/Earnings ratio of 44.49.
Based on the Price/Earnings ratio, 1CIEN is valued a bit cheaper than the industry average as 64.00% of the companies are valued more expensively.
1CIEN is valuated expensively when we compare the Price/Earnings ratio to 27.18, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 23.00 indicates a rather expensive valuation of 1CIEN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of 1CIEN is on the same level as its industry peers.
1CIEN's Price/Forward Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 35.34.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.49 | ||
| Fwd PE | 23 |
4.2 Price Multiples
1CIEN's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, 1CIEN is valued a bit more expensive than 60.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 55.36 | ||
| EV/EBITDA | 35.72 |
4.3 Compensation for Growth
1CIEN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
A more expensive valuation may be justified as 1CIEN's earnings are expected to grow with 34.52% in the coming years.
PEG (NY)1.06
PEG (5Y)N/A
EPS Next 2Y38.19%
EPS Next 3Y34.52%
5. Dividend
5.1 Amount
1CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
BIT:1CIEN (7/7/2025, 7:00:00 PM)
68.52
+17.44 (+34.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.05%
Inst Owner ChangeN/A
Ins Owners0.84%
Ins Owner ChangeN/A
Market Cap9.74B
Analysts80
Price Target78.63 (14.75%)
Short Float %N/A
Short RatioN/A
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.69%
Min EPS beat(2)-19.38%
Max EPS beat(2)52.75%
EPS beat(4)3
Avg EPS beat(4)36.59%
Min EPS beat(4)-19.38%
Max EPS beat(4)80.07%
EPS beat(8)7
Avg EPS beat(8)27.44%
EPS beat(12)9
Avg EPS beat(12)80.16%
EPS beat(16)12
Avg EPS beat(16)62.61%
Revenue beat(2)0
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-0.17%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-0.46%
Max Revenue beat(4)-0.07%
Revenue beat(8)3
Avg Revenue beat(8)0.34%
Revenue beat(12)5
Avg Revenue beat(12)1.22%
Revenue beat(16)5
Avg Revenue beat(16)0.59%
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 44.49 | ||
| Fwd PE | 23 | ||
| P/S | 2.81 | ||
| P/FCF | 55.36 | ||
| P/OCF | 32.26 | ||
| P/B | 4.07 | ||
| P/tB | 5.18 | ||
| EV/EBITDA | 35.72 |
EPS(TTM)1.54
EY2.25%
EPS(NY)2.98
Fwd EY4.35%
FCF(TTM)1.24
FCFY1.81%
OCF(TTM)2.12
OCFY3.1%
SpS24.42
BVpS16.85
TBVpS13.22
PEG (NY)1.06
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 2.83% | ||
| ROCE | 3.98% | ||
| ROIC | 2.96% | ||
| ROICexc | 4.02% | ||
| ROICexgc | 4.88% | ||
| OM | 4.54% | ||
| PM (TTM) | 1.95% | ||
| GM | 42.58% | ||
| FCFM | 5.07% |
ROA(3y)3.02%
ROA(5y)5.6%
ROE(3y)5.85%
ROE(5y)9.7%
ROIC(3y)4.65%
ROIC(5y)6.85%
ROICexc(3y)6.3%
ROICexc(5y)10.36%
ROICexgc(3y)7.56%
ROICexgc(5y)12.51%
ROCE(3y)6.25%
ROCE(5y)9.21%
ROICexcg growth 3Y-34.63%
ROICexcg growth 5Y-21.51%
ROICexc growth 3Y-35.14%
ROICexc growth 5Y-21.08%
OM growth 3Y-29.22%
OM growth 5Y-14.61%
PM growth 3Y-46.71%
PM growth 5Y-21.68%
GM growth 3Y-3.3%
GM growth 5Y-0.16%
F-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 7.52 | ||
| Debt/EBITDA | 4.82 | ||
| Cap/Depr | 109.56% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 1.85 | ||
| Cash Conversion | 110.78% | ||
| Profit Quality | 259.88% | ||
| Current Ratio | 3.65 | ||
| Quick Ratio | 2.77 | ||
| Altman-Z | 3.02 |
F-Score5
WACC9.84%
ROIC/WACC0.3
Cap/Depr(3y)80.61%
Cap/Depr(5y)72.89%
Cap/Sales(3y)2.77%
Cap/Sales(5y)2.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-34.31%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%-3.03%
EPS Next Y42.16%
EPS Next 2Y38.19%
EPS Next 3Y34.52%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.29%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%3.33%
Revenue Next Year11.05%
Revenue Next 2Y9.97%
Revenue Next 3Y9.77%
Revenue Next 5YN/A
EBIT growth 1Y-51.92%
EBIT growth 3Y-26.74%
EBIT growth 5Y-12.59%
EBIT Next Year48.48%
EBIT Next 3Y31.05%
EBIT Next 5YN/A
FCF growth 1Y143.3%
FCF growth 3Y-6.48%
FCF growth 5Y1.52%
OCF growth 1Y192.92%
OCF growth 3Y-1.69%
OCF growth 5Y4.49%