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CIENA CORP (CIEN) Stock Fundamental Analysis

NYSE:CIEN - New York Stock Exchange, Inc. - US1717793095 - Common Stock - Currency: USD

77.75  -0.7 (-0.89%)

After market: 77.75 0 (0%)

Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to CIEN. CIEN was compared to 50 industry peers in the Communications Equipment industry. Both the profitability and the financial health of CIEN get a neutral evaluation. Nothing too spectacular is happening here. CIEN is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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5

1. Profitability

1.1 Basic Checks

In the past year CIEN was profitable.
CIEN had a positive operating cash flow in the past year.
CIEN had positive earnings in each of the past 5 years.
Of the past 5 years CIEN 4 years had a positive operating cash flow.
CIEN Yearly Net Income VS EBIT VS OCF VS FCFCIEN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 500M 1B

1.2 Ratios

CIEN has a Return On Assets of 1.85%. This is in the better half of the industry: CIEN outperforms 66.00% of its industry peers.
CIEN's Return On Equity of 3.77% is fine compared to the rest of the industry. CIEN outperforms 68.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.34%, CIEN is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CIEN is significantly below the industry average of 13.82%.
Industry RankSector Rank
ROA 1.85%
ROE 3.77%
ROIC 3.34%
ROA(3y)3.02%
ROA(5y)5.6%
ROE(3y)5.85%
ROE(5y)9.7%
ROIC(3y)4.65%
ROIC(5y)6.85%
CIEN Yearly ROA, ROE, ROICCIEN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20 40

1.3 Margins

CIEN's Profit Margin of 2.46% is fine compared to the rest of the industry. CIEN outperforms 66.00% of its industry peers.
In the last couple of years the Profit Margin of CIEN has declined.
Looking at the Operating Margin, with a value of 4.85%, CIEN is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CIEN has declined.
CIEN has a Gross Margin (41.94%) which is comparable to the rest of the industry.
CIEN's Gross Margin has been stable in the last couple of years.
Industry RankSector Rank
OM 4.85%
PM (TTM) 2.46%
GM 41.94%
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%
CIEN Yearly Profit, Operating, Gross MarginsCIEN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10 20 30 40

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6

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CIEN is destroying value.
The number of shares outstanding for CIEN has been reduced compared to 1 year ago.
Compared to 5 years ago, CIEN has less shares outstanding
Compared to 1 year ago, CIEN has an improved debt to assets ratio.
CIEN Yearly Shares OutstandingCIEN Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M
CIEN Yearly Total Debt VS Total AssetsCIEN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B 4B 5B

2.2 Solvency

An Altman-Z score of 2.93 indicates that CIEN is not a great score, but indicates only limited risk for bankruptcy at the moment.
The Altman-Z score of CIEN (2.93) is better than 68.00% of its industry peers.
The Debt to FCF ratio of CIEN is 5.28, which is a neutral value as it means it would take CIEN, 5.28 years of fcf income to pay off all of its debts.
CIEN has a Debt to FCF ratio (5.28) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.55 indicates that CIEN is somewhat dependend on debt financing.
CIEN has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: CIEN underperforms 66.00% of its industry peers.
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 5.28
Altman-Z 2.93
ROIC/WACC0.34
WACC9.75%
CIEN Yearly LT Debt VS Equity VS FCFCIEN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 1B 2B 3B

2.3 Liquidity

CIEN has a Current Ratio of 3.40. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
CIEN's Current ratio of 3.40 is fine compared to the rest of the industry. CIEN outperforms 80.00% of its industry peers.
CIEN has a Quick Ratio of 2.60. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
CIEN has a Quick ratio of 2.60. This is in the better half of the industry: CIEN outperforms 80.00% of its industry peers.
Industry RankSector Rank
Current Ratio 3.4
Quick Ratio 2.6
CIEN Yearly Current Assets VS Current LiabilitesCIEN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 1B 2B 3B

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5

3. Growth

3.1 Past

CIEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.10%.
CIEN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.82% yearly.
Looking at the last year, CIEN shows a small growth in Revenue. The Revenue has grown by 2.86% in the last year.
The Revenue has been growing slightly by 2.36% on average over the past years.
EPS 1Y (TTM)-14.1%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%55.56%
Revenue 1Y (TTM)2.86%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%23.61%

3.2 Future

CIEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 35.07% yearly.
Based on estimates for the next years, CIEN will show a quite strong growth in Revenue. The Revenue will grow by 10.17% on average per year.
EPS Next Y26.81%
EPS Next 2Y36.78%
EPS Next 3Y35.07%
EPS Next 5YN/A
Revenue Next Year14.65%
Revenue Next 2Y12.17%
Revenue Next 3Y11.33%
Revenue Next 5Y10.17%

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.
CIEN Yearly Revenue VS EstimatesCIEN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2B 4B 6B
CIEN Yearly EPS VS EstimatesCIEN Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 1 2 3 4

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3

4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 39.87, which means the current valuation is very expensive for CIEN.
CIEN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 27.30, CIEN is valued a bit more expensive.
CIEN is valuated rather expensively with a Price/Forward Earnings ratio of 22.84.
CIEN's Price/Forward Earnings ratio is in line with the industry average.
CIEN is valuated at similar levels of the S&P average when we compare the Price/Forward Earnings ratio to 21.76, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 39.87
Fwd PE 22.84
CIEN Price Earnings VS Forward Price EarningsCIEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

CIEN's Enterprise Value to EBITDA is on the same level as the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CIEN is on the same level as its industry peers.
Industry RankSector Rank
P/FCF 37.86
EV/EBITDA 32.65
CIEN Per share dataCIEN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

CIEN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CIEN's earnings are expected to grow with 35.07% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.49
PEG (5Y)N/A
EPS Next 2Y36.78%
EPS Next 3Y35.07%

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0

5. Dividend

5.1 Amount

CIEN does not give a dividend.
Industry RankSector Rank
Dividend Yield N/A

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CIENA CORP

NYSE:CIEN (7/11/2025, 8:04:00 PM)

After market: 77.75 0 (0%)

77.75

-0.7 (-0.89%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)06-05 2025-06-05/bmo
Earnings (Next)09-02 2025-09-02/amc
Inst Owners100.7%
Inst Owner Change-0.01%
Ins Owners0.8%
Ins Owner Change-4.33%
Market Cap11.05B
Analysts80.87
Price Target83.55 (7.46%)
Short Float %3.46%
Short Ratio2.32
Dividend
Industry RankSector Rank
Dividend Yield N/A
Yearly DividendN/A
Dividend Growth(5Y)N/A
DPN/A
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)16.01%
Min EPS beat(2)-20.72%
Max EPS beat(2)52.75%
EPS beat(4)2
Avg EPS beat(4)11.39%
Min EPS beat(4)-20.72%
Max EPS beat(4)52.75%
EPS beat(8)6
Avg EPS beat(8)22.44%
EPS beat(12)9
Avg EPS beat(12)78.89%
EPS beat(16)11
Avg EPS beat(16)59.69%
Revenue beat(2)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-0.07%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-0.46%
Max Revenue beat(4)1.16%
Revenue beat(8)3
Avg Revenue beat(8)0.22%
Revenue beat(12)6
Avg Revenue beat(12)1.5%
Revenue beat(16)6
Avg Revenue beat(16)0.75%
PT rev (1m)4.72%
PT rev (3m)-1.03%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.85%
EPS NY rev (1m)-10.79%
EPS NY rev (3m)-10.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.84%
Revenue NY rev (1m)3.18%
Revenue NY rev (3m)3.25%
Valuation
Industry RankSector Rank
PE 39.87
Fwd PE 22.84
P/S 2.59
P/FCF 37.86
P/OCF 24.52
P/B 3.98
P/tB 5.06
EV/EBITDA 32.65
EPS(TTM)1.95
EY2.51%
EPS(NY)3.4
Fwd EY4.38%
FCF(TTM)2.05
FCFY2.64%
OCF(TTM)3.17
OCFY4.08%
SpS30
BVpS19.53
TBVpS15.36
PEG (NY)1.49
PEG (5Y)N/A
Profitability
Industry RankSector Rank
ROA 1.85%
ROE 3.77%
ROCE 4.49%
ROIC 3.34%
ROICexc 4.58%
ROICexgc 5.56%
OM 4.85%
PM (TTM) 2.46%
GM 41.94%
FCFM 6.84%
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-Score6
Asset Turnover0.75
Health
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 5.28
Debt/EBITDA 4.48
Cap/Depr 118.43%
Cap/Sales 3.72%
Interest Coverage 2.3
Cash Conversion 132.17%
Profit Quality 278.52%
Current Ratio 3.4
Quick Ratio 2.6
Altman-Z 2.93
F-Score6
WACC9.75%
ROIC/WACC0.34
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)-14.1%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%55.56%
EPS Next Y26.81%
EPS Next 2Y36.78%
EPS Next 3Y35.07%
EPS Next 5YN/A
Revenue 1Y (TTM)2.86%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%23.61%
Revenue Next Year14.65%
Revenue Next 2Y12.17%
Revenue Next 3Y11.33%
Revenue Next 5Y10.17%
EBIT growth 1Y-26.68%
EBIT growth 3Y-26.74%
EBIT growth 5Y-12.59%
EBIT Next Year48.32%
EBIT Next 3Y30.77%
EBIT Next 5Y23.31%
FCF growth 1Y181.24%
FCF growth 3Y-6.48%
FCF growth 5Y1.52%
OCF growth 1Y276.24%
OCF growth 3Y-1.69%
OCF growth 5Y4.49%