CIENA CORP (CIEN) Stock Fundamental Analysis
NYSE:CIEN - US1717793095 - Common Stock
97.89 USD
+5.15 (+5.55%)
98.4 USD
+0.51 (+0.52%)
We assign a fundamental rating of 5 out of 10 to CIEN. CIEN was compared to 48 industry peers in the Communications Equipment industry. CIEN has an excellent financial health rating, but there are some minor concerns on its profitability. While showing a medium growth rate, CIEN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
CIEN had positive earnings in the past year.
CIEN had a positive operating cash flow in the past year.
Each year in the past 5 years CIEN has been profitable.
CIEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
CIEN's Return On Assets of 1.85% 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 3.77%, CIEN is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 3.34%, CIEN is in the better half of the industry, outperforming 64.58% 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 13.48%.
| Industry Rank | Sector 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%
1.3 Margins
The Profit Margin of CIEN (2.45%) is better than 62.50% of its industry peers.
CIEN's Profit Margin has declined in the last couple of years.
The Operating Margin of CIEN (4.86%) is better than 62.50% of its industry peers.
CIEN's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 41.94%, CIEN perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
CIEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.86% | ||
| PM (TTM) | 2.45% | ||
| 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%
2. Health
2.1 Basic Checks
CIEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CIEN has less shares outstanding
Compared to 5 years ago, CIEN has less shares outstanding
CIEN has a better debt/assets ratio than last year.
2.2 Solvency
CIEN has an Altman-Z score of 3.34. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
CIEN has a Altman-Z score of 3.34. This is in the better half of the industry: CIEN outperforms 70.83% of its industry peers.
CIEN has a debt to FCF ratio of 5.28. This is a neutral value as CIEN would need 5.28 years to pay back of all of its debts.
CIEN's Debt to FCF ratio of 5.28 is in line compared to the rest of the industry. CIEN outperforms 47.92% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that CIEN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, CIEN is doing worse than 68.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 3.34 |
ROIC/WACC0.33
WACC10.01%
2.3 Liquidity
A Current Ratio of 3.40 indicates that CIEN has no problem at all paying its short term obligations.
CIEN has a better Current ratio (3.40) than 81.25% of its industry peers.
A Quick Ratio of 2.60 indicates that CIEN has no problem at all paying its short term obligations.
CIEN has a Quick ratio of 2.60. This is in the better half of the industry: CIEN outperforms 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.4 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
The earnings per share for CIEN have decreased strongly by -14.10% in the last year.
The Earnings Per Share has been decreasing by -2.82% on average over the past years.
CIEN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.86%.
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
Based on estimates for the next years, CIEN will show a very strong growth in Earnings Per Share. The EPS will grow by 34.61% on average per year.
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 Y26.73%
EPS Next 2Y36.5%
EPS Next 3Y34.61%
EPS Next 5YN/A
Revenue Next Year14.73%
Revenue Next 2Y12.4%
Revenue Next 3Y11.37%
Revenue Next 5Y10.17%
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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
A Price/Earnings ratio of 50.20 indicates a quite expensive valuation of CIEN.
Compared to the rest of the industry, the Price/Earnings ratio of CIEN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.17. CIEN is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 28.87 indicates a quite expensive valuation of CIEN.
CIEN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 22.78. CIEN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.2 | ||
| Fwd PE | 28.87 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIEN is on the same level as its industry peers.
CIEN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.4 | ||
| EV/EBITDA | 38.37 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as CIEN's earnings are expected to grow with 34.61% in the coming years.
PEG (NY)1.88
PEG (5Y)N/A
EPS Next 2Y36.5%
EPS Next 3Y34.61%
5. Dividend
5.1 Amount
No dividends for CIEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
97.89
+5.15 (+5.55%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.45%
Inst Owner Change1.22%
Ins Owners0.56%
Ins Owner Change-0.49%
Market Cap13.84B
Analysts80.83
Price Target86.69 (-11.44%)
Short Float %4.1%
Short Ratio2.8
Dividend
| Industry Rank | Sector 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)0%
PT rev (3m)8.65%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.85%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.85%
Revenue NQ rev (1m)0.17%
Revenue NQ rev (3m)6.11%
Revenue NY rev (1m)0.04%
Revenue NY rev (3m)3.34%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 50.2 | ||
| Fwd PE | 28.87 | ||
| P/S | 3.25 | ||
| P/FCF | 47.4 | ||
| P/OCF | 30.74 | ||
| P/B | 4.98 | ||
| P/tB | 6.34 | ||
| EV/EBITDA | 38.37 |
EPS(TTM)1.95
EY1.99%
EPS(NY)3.39
Fwd EY3.46%
FCF(TTM)2.07
FCFY2.11%
OCF(TTM)3.18
OCFY3.25%
SpS30.17
BVpS19.64
TBVpS15.45
PEG (NY)1.88
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 3.77% | ||
| ROCE | 4.49% | ||
| ROIC | 3.34% | ||
| ROICexc | 4.59% | ||
| ROICexgc | 5.57% | ||
| OM | 4.86% | ||
| PM (TTM) | 2.45% | ||
| GM | 41.94% | ||
| FCFM | 6.85% |
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.28 | ||
| Debt/EBITDA | 4.48 | ||
| Cap/Depr | 118.05% | ||
| Cap/Sales | 3.71% | ||
| Interest Coverage | 2.31 | ||
| Cash Conversion | 131.93% | ||
| Profit Quality | 279.18% | ||
| Current Ratio | 3.4 | ||
| Quick Ratio | 2.6 | ||
| Altman-Z | 3.34 |
F-Score6
WACC10.01%
ROIC/WACC0.33
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 Y26.73%
EPS Next 2Y36.5%
EPS Next 3Y34.61%
EPS Next 5YN/A
Revenue 1Y (TTM)2.86%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%23.61%
Revenue Next Year14.73%
Revenue Next 2Y12.4%
Revenue Next 3Y11.37%
Revenue Next 5Y10.17%
EBIT growth 1Y-26.68%
EBIT growth 3Y-26.74%
EBIT growth 5Y-12.59%
EBIT Next Year39.59%
EBIT Next 3Y31.71%
EBIT Next 5Y23.31%
FCF growth 1Y181.25%
FCF growth 3Y-6.48%
FCF growth 5Y1.52%
OCF growth 1Y276.07%
OCF growth 3Y-1.69%
OCF growth 5Y4.49%