CIENA CORP (CIEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIEN - US1717793095 - Common Stock
243.42 USD
-0.37 (-0.15%)
243.35 USD
-0.07 (-0.03%)
CIEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. While CIEN has a great health rating, its profitability is only average at the moment. CIEN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
- CIEN had positive earnings in the past year.
- In the past year CIEN had a positive cash flow from operations.
- In the past 5 years CIEN has always been profitable.
- Of the past 5 years CIEN 4 years had a positive operating cash flow.
1.2 Ratios
- CIEN's Return On Assets of 2.10% is fine compared to the rest of the industry. CIEN outperforms 64.58% of its industry peers.
- Looking at the Return On Equity, with a value of 4.52%, CIEN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- CIEN has a better Return On Invested Capital (5.08%) than 68.75% of its industry peers.
- CIEN had an Average Return On Invested Capital over the past 3 years of 4.76%. This is significantly below the industry average of 12.15%.
- The 3 year average ROIC (4.76%) for CIEN is below the current ROIC(5.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.52% | ||
| ROIC | 5.08% |
ROA(3y)2.71%
ROA(5y)4.29%
ROE(3y)5.48%
ROE(5y)7.73%
ROIC(3y)4.76%
ROIC(5y)5.64%
1.3 Margins
- Looking at the Profit Margin, with a value of 2.59%, CIEN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
- CIEN's Profit Margin has declined in the last couple of years.
- CIEN's Operating Margin of 6.52% is fine compared to the rest of the industry. CIEN outperforms 70.83% of its industry peers.
- CIEN's Operating Margin has declined in the last couple of years.
- CIEN has a Gross Margin of 42.04%. This is comparable to the rest of the industry: CIEN outperforms 52.08% of its industry peers.
- In the last couple of years the Gross Margin of CIEN has declined.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.52% | ||
| PM (TTM) | 2.59% | ||
| GM | 42.04% |
OM growth 3Y-2.73%
OM growth 5Y-14.83%
PM growth 3Y-14.99%
PM growth 5Y-24.04%
GM growth 3Y-0.72%
GM growth 5Y-2.12%
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
- The debt/assets ratio for CIEN has been reduced compared to a year ago.
2.2 Solvency
- CIEN has an Altman-Z score of 7.26. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
- Looking at the Altman-Z score, with a value of 7.26, CIEN belongs to the top of the industry, outperforming 87.50% of the companies in the same industry.
- CIEN has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as CIEN would need 2.31 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.31, CIEN is doing good in the industry, outperforming 60.42% of the companies in the same industry.
- CIEN has a Debt/Equity ratio of 0.56. This is a neutral value indicating CIEN is somewhat dependend on debt financing.
- With a Debt to Equity ratio value of 0.56, CIEN is not doing good in the industry: 72.92% of the companies in the same industry are doing better.
- Even though the debt/equity ratio score it not favorable for CIEN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 7.26 |
ROIC/WACC0.54
WACC9.49%
2.3 Liquidity
- CIEN has a Current Ratio of 2.73. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
- CIEN has a better Current ratio (2.73) than 72.92% of its industry peers.
- A Quick Ratio of 2.12 indicates that CIEN has no problem at all paying its short term obligations.
- CIEN has a Quick ratio of 2.12. This is in the better half of the industry: CIEN outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
- CIEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.05%, which is quite impressive.
- Measured over the past years, CIEN shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.13% on average per year.
- Looking at the last year, CIEN shows a quite strong growth in Revenue. The Revenue has grown by 18.79% in the last year.
- CIEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.19% yearly.
EPS 1Y (TTM)45.05%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%68.52%
Revenue 1Y (TTM)18.79%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%20.27%
3.2 Future
- CIEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 48.77% yearly.
- Based on estimates for the next years, CIEN will show a quite strong growth in Revenue. The Revenue will grow by 14.43% on average per year.
EPS Next Y106.21%
EPS Next 2Y62.18%
EPS Next 3Y48.77%
EPS Next 5YN/A
Revenue Next Year26.29%
Revenue Next 2Y21%
Revenue Next 3Y18.49%
Revenue Next 5Y14.43%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
- The Price/Earnings ratio is 92.20, which means the current valuation is very expensive for CIEN.
- The rest of the industry has a similar Price/Earnings ratio as CIEN.
- The average S&P500 Price/Earnings ratio is at 27.38. CIEN is valued rather expensively when compared to this.
- A Price/Forward Earnings ratio of 44.71 indicates a quite expensive valuation of CIEN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CIEN is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of CIEN to the average of the S&P500 Index (24.29), we can say CIEN is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.2 | ||
| Fwd PE | 44.71 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.61 | ||
| EV/EBITDA | 76.14 |
4.3 Compensation for Growth
- CIEN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CIEN's earnings are expected to grow with 48.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y62.18%
EPS Next 3Y48.77%
5. Dividend
5.1 Amount
- No dividends for CIEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
243.42
-0.37 (-0.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)12-11 2025-12-11/bmo
Earnings (Next)03-09 2026-03-09/bmo
Inst Owners102.21%
Inst Owner Change-0.86%
Ins Owners0.74%
Ins Owner Change4.64%
Market Cap34.34B
Revenue(TTM)4.77B
Net Income(TTM)123.34M
Analysts80
Price Target250.43 (2.88%)
Short Float %5.23%
Short Ratio2.38
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2
Avg EPS beat(2)20.21%
Min EPS beat(2)15.65%
Max EPS beat(2)24.77%
EPS beat(4)3
Avg EPS beat(4)18.11%
Min EPS beat(4)-20.72%
Max EPS beat(4)52.75%
EPS beat(8)6
Avg EPS beat(8)24.95%
EPS beat(12)10
Avg EPS beat(12)26.08%
EPS beat(16)12
Avg EPS beat(16)61.49%
Revenue beat(2)2
Avg Revenue beat(2)2.22%
Min Revenue beat(2)1.7%
Max Revenue beat(2)2.73%
Revenue beat(4)3
Avg Revenue beat(4)1.38%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)2.73%
Revenue beat(8)3
Avg Revenue beat(8)0.56%
Revenue beat(12)7
Avg Revenue beat(12)1.35%
Revenue beat(16)8
Avg Revenue beat(16)1.05%
PT rev (1m)62%
PT rev (3m)85.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)43.14%
EPS NY rev (1m)0%
EPS NY rev (3m)23.18%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.2 | ||
| Fwd PE | 44.71 | ||
| P/S | 7.2 | ||
| P/FCF | 51.61 | ||
| P/OCF | 42.6 | ||
| P/B | 12.58 | ||
| P/tB | 17.31 | ||
| EV/EBITDA | 76.14 |
EPS(TTM)2.64
EY1.08%
EPS(NY)5.44
Fwd EY2.24%
FCF(TTM)4.72
FCFY1.94%
OCF(TTM)5.71
OCFY2.35%
SpS33.81
BVpS19.35
TBVpS14.06
PEG (NY)0.87
PEG (5Y)N/A
Graham Number33.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.52% | ||
| ROCE | 6.82% | ||
| ROIC | 5.08% | ||
| ROICexc | 7.13% | ||
| ROICexgc | 9.25% | ||
| OM | 6.52% | ||
| PM (TTM) | 2.59% | ||
| GM | 42.04% | ||
| FCFM | 13.95% |
ROA(3y)2.71%
ROA(5y)4.29%
ROE(3y)5.48%
ROE(5y)7.73%
ROIC(3y)4.76%
ROIC(5y)5.64%
ROICexc(3y)6.46%
ROICexc(5y)8.29%
ROICexgc(3y)8.08%
ROICexgc(5y)10.06%
ROCE(3y)6.39%
ROCE(5y)7.57%
ROICexgc growth 3Y6.23%
ROICexgc growth 5Y-15.58%
ROICexc growth 3Y2.33%
ROICexc growth 5Y-16.48%
OM growth 3Y-2.73%
OM growth 5Y-14.83%
PM growth 3Y-14.99%
PM growth 5Y-24.04%
GM growth 3Y-0.72%
GM growth 5Y-2.12%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 100.33% | ||
| Cap/Sales | 2.95% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 178.68% | ||
| Profit Quality | 539.41% | ||
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 7.26 |
F-Score7
WACC9.49%
ROIC/WACC0.54
Cap/Depr(3y)92.47%
Cap/Depr(5y)80.47%
Cap/Sales(3y)2.93%
Cap/Sales(5y)2.69%
Profit Quality(3y)337.97%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)45.05%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%68.52%
EPS Next Y106.21%
EPS Next 2Y62.18%
EPS Next 3Y48.77%
EPS Next 5YN/A
Revenue 1Y (TTM)18.79%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%20.27%
Revenue Next Year26.29%
Revenue Next 2Y21%
Revenue Next 3Y18.49%
Revenue Next 5Y14.43%
EBIT growth 1Y62.04%
EBIT growth 3Y6.51%
EBIT growth 5Y-9.56%
EBIT Next Year128.95%
EBIT Next 3Y50.34%
EBIT Next 5Y28.36%
FCF growth 1Y76.05%
FCF growth 3YN/A
FCF growth 5Y10.11%
OCF growth 1Y56.67%
OCF growth 3YN/A
OCF growth 5Y10.3%
CIENA CORP / CIEN FAQ
Can you provide the ChartMill fundamental rating for CIENA CORP?
ChartMill assigns a fundamental rating of 5 / 10 to CIEN.
What is the valuation status for CIEN stock?
ChartMill assigns a valuation rating of 3 / 10 to CIENA CORP (CIEN). This can be considered as Overvalued.
Can you provide the profitability details for CIENA CORP?
CIENA CORP (CIEN) has a profitability rating of 5 / 10.
What is the financial health of CIENA CORP (CIEN) stock?
The financial health rating of CIENA CORP (CIEN) is 8 / 10.