CIENA CORP (CIEN) Stock Fundamental Analysis
USA - NYSE:CIEN - US1717793095 - Common Stock
163.61 USD
+3.95 (+2.47%)
164.362 USD
+0.75 (+0.46%)
Overall CIEN gets a fundamental rating of 5 out of 10. We evaluated CIEN against 48 industry peers in the Communications Equipment industry. CIEN is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
CIEN had positive earnings in each of the past 5 years.
CIEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.45%, CIEN is doing good in the industry, outperforming 60.42% of the companies in the same industry.
Looking at the Return On Equity, with a value of 5.05%, CIEN is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
CIEN's Return On Invested Capital of 4.09% is fine compared to the rest of the industry. CIEN outperforms 66.67% of its industry peers.
CIEN had an Average Return On Invested Capital over the past 3 years of 4.65%. This is significantly below the industry average of 12.89%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 5.05% | ||
| ROIC | 4.09% |
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
CIEN's Profit Margin of 3.10% is fine compared to the rest of the industry. CIEN outperforms 60.42% of its industry peers.
In the last couple of years the Profit Margin of CIEN has declined.
CIEN's Operating Margin of 5.60% is fine compared to the rest of the industry. CIEN outperforms 64.58% of its industry peers.
In the last couple of years the Operating Margin of CIEN has declined.
CIEN's Gross Margin of 41.57% is in line compared to the rest of the industry. CIEN outperforms 54.17% of its industry peers.
In the last couple of years the Gross Margin of CIEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.6% | ||
| PM (TTM) | 3.1% | ||
| GM | 41.57% |
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 CIEN is destroying value.
CIEN has less shares outstanding than it did 1 year ago.
CIEN has less shares outstanding than it did 5 years ago.
CIEN has a better debt/assets ratio than last year.
2.2 Solvency
CIEN has an Altman-Z score of 5.26. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
With a decent Altman-Z score value of 5.26, CIEN is doing good in the industry, outperforming 79.17% of the companies in the same industry.
The Debt to FCF ratio of CIEN is 2.54, which is a good value as it means it would take CIEN, 2.54 years of fcf income to pay off all of its debts.
CIEN has a Debt to FCF ratio (2.54) which is in line with its industry peers.
A Debt/Equity ratio of 0.55 indicates that CIEN is somewhat dependend on debt financing.
CIEN's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. CIEN is outperformed by 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 5.26 |
ROIC/WACC0.43
WACC9.54%
2.3 Liquidity
A Current Ratio of 3.28 indicates that CIEN has no problem at all paying its short term obligations.
CIEN has a Current ratio of 3.28. This is in the better half of the industry: CIEN outperforms 79.17% of its industry peers.
A Quick Ratio of 2.55 indicates that CIEN has no problem at all paying its short term obligations.
CIEN's Quick ratio of 2.55 is fine compared to the rest of the industry. CIEN outperforms 77.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.28 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
CIEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.82%, which is quite good.
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 quite strong growth in Revenue. The Revenue has grown by 12.97% in the last year.
The Revenue has been growing slightly by 2.36% on average over the past years.
EPS 1Y (TTM)11.82%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%91.43%
Revenue 1Y (TTM)12.97%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%29.4%
3.2 Future
The Earnings Per Share is expected to grow by 37.02% on average over the next years. This is a very strong growth
CIEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.75% yearly.
EPS Next Y39.85%
EPS Next 2Y55.83%
EPS Next 3Y44.72%
EPS Next 5Y37.02%
Revenue Next Year17.84%
Revenue Next 2Y17.27%
Revenue Next 3Y15.02%
Revenue Next 5Y12.75%
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
The Price/Earnings ratio is 72.07, which means the current valuation is very expensive for CIEN.
CIEN's Price/Earnings is on the same level as the industry average.
CIEN is valuated expensively when we compare the Price/Earnings ratio to 27.70, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 37.02, CIEN can be considered very expensive at the moment.
CIEN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CIEN to the average of the S&P500 Index (23.15), we can say CIEN is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.07 | ||
| Fwd PE | 37.02 |
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.
Based on the Price/Free Cash Flow ratio, CIEN is valued a bit cheaper than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 38.11 | ||
| EV/EBITDA | 57.47 |
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 44.72% in the coming years.
PEG (NY)1.81
PEG (5Y)N/A
EPS Next 2Y55.83%
EPS Next 3Y44.72%
5. Dividend
5.1 Amount
CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
163.61
+3.95 (+2.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change0%
Ins Owners0.62%
Ins Owner Change-1.8%
Market Cap23.08B
Analysts80
Price Target135.27 (-17.32%)
Short Float %2.87%
Short Ratio1.68
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)2.02%
Min EPS beat(2)-20.72%
Max EPS beat(2)24.77%
EPS beat(4)2
Avg EPS beat(4)9.36%
Min EPS beat(4)-20.72%
Max EPS beat(4)52.75%
EPS beat(8)6
Avg EPS beat(8)23.81%
EPS beat(12)10
Avg EPS beat(12)81.27%
EPS beat(16)11
Avg EPS beat(16)60.35%
Revenue beat(2)2
Avg Revenue beat(2)1.43%
Min Revenue beat(2)1.16%
Max Revenue beat(2)1.7%
Revenue beat(4)2
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-0.17%
Max Revenue beat(4)1.7%
Revenue beat(8)3
Avg Revenue beat(8)0.36%
Revenue beat(12)7
Avg Revenue beat(12)2.13%
Revenue beat(16)7
Avg Revenue beat(16)0.86%
PT rev (1m)53.39%
PT rev (3m)61.89%
EPS NQ rev (1m)15.59%
EPS NQ rev (3m)15.46%
EPS NY rev (1m)10.36%
EPS NY rev (3m)10.29%
Revenue NQ rev (1m)6.4%
Revenue NQ rev (3m)6.57%
Revenue NY rev (1m)2.72%
Revenue NY rev (3m)2.78%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 72.07 | ||
| Fwd PE | 37.02 | ||
| P/S | 5.08 | ||
| P/FCF | 38.11 | ||
| P/OCF | 29.42 | ||
| P/B | 8.28 | ||
| P/tB | 10.47 | ||
| EV/EBITDA | 57.47 |
EPS(TTM)2.27
EY1.39%
EPS(NY)4.42
Fwd EY2.7%
FCF(TTM)4.29
FCFY2.62%
OCF(TTM)5.56
OCFY3.4%
SpS32.2
BVpS19.76
TBVpS15.62
PEG (NY)1.81
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 5.05% | ||
| ROCE | 5.49% | ||
| ROIC | 4.09% | ||
| ROICexc | 5.73% | ||
| ROICexgc | 6.96% | ||
| OM | 5.6% | ||
| PM (TTM) | 3.1% | ||
| GM | 41.57% | ||
| FCFM | 13.33% |
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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.54 | ||
| Debt/EBITDA | 3.91 | ||
| Cap/Depr | 130.88% | ||
| Cap/Sales | 3.94% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 200.71% | ||
| Profit Quality | 429.83% | ||
| Current Ratio | 3.28 | ||
| Quick Ratio | 2.55 | ||
| Altman-Z | 5.26 |
F-Score6
WACC9.54%
ROIC/WACC0.43
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)11.82%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%91.43%
EPS Next Y39.85%
EPS Next 2Y55.83%
EPS Next 3Y44.72%
EPS Next 5Y37.02%
Revenue 1Y (TTM)12.97%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%29.4%
Revenue Next Year17.84%
Revenue Next 2Y17.27%
Revenue Next 3Y15.02%
Revenue Next 5Y12.75%
EBIT growth 1Y11.21%
EBIT growth 3Y-26.74%
EBIT growth 5Y-12.59%
EBIT Next Year48.31%
EBIT Next 3Y38.25%
EBIT Next 5Y25.87%
FCF growth 1Y506.4%
FCF growth 3Y-6.48%
FCF growth 5Y1.52%
OCF growth 1Y1981.41%
OCF growth 3Y-1.69%
OCF growth 5Y4.49%