CIENA CORP (CIEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIEN - US1717793095 - Common Stock
243.79 USD
+5.41 (+2.27%)
245.75 USD
+1.96 (+0.8%)
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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. CIEN is valied quite expensively at the moment, while it does show a decent growth rate.
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.
- In the past 5 years CIEN has always been profitable.
- CIEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- The Return On Assets of CIEN (2.10%) is better than 64.58% of its industry peers.
- The Return On Equity of CIEN (4.52%) is better than 62.50% of its industry peers.
- 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 last Return On Invested Capital (5.08%) for CIEN is above the 3 year average (4.76%), which is a sign of increasing profitability.
| 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.
- In the last couple of years the Profit Margin of CIEN has declined.
- Looking at the Operating Margin, with a value of 6.52%, CIEN is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
- In the last couple of years the Operating Margin of CIEN has declined.
- CIEN's Gross Margin of 42.04% is in line compared to the rest of the industry. CIEN outperforms 52.08% of its industry peers.
- CIEN's Gross Margin has declined in the last couple of years.
| 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
- CIEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- CIEN has less shares outstanding than it did 1 year ago.
- The number of shares outstanding for CIEN has been reduced compared to 5 years ago.
- The debt/assets ratio for CIEN has been reduced compared to a year ago.
2.2 Solvency
- An Altman-Z score of 7.13 indicates that CIEN is not in any danger for bankruptcy at the moment.
- CIEN has a better Altman-Z score (7.13) than 87.50% of its industry peers.
- The Debt to FCF ratio of CIEN is 2.31, which is a good value as it means it would take CIEN, 2.31 years of fcf income to pay off all of its debts.
- Looking at the Debt to FCF ratio, with a value of 2.31, CIEN is in the better half of 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.
- CIEN has a Debt to Equity ratio of 0.56. This is in the lower half of the industry: CIEN underperforms 72.92% of its industry peers.
- Although CIEN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 7.13 |
ROIC/WACC0.53
WACC9.64%
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.
- Looking at the Current ratio, with a value of 2.73, CIEN is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
- A Quick Ratio of 2.12 indicates that CIEN has no problem at all paying its short term obligations.
- CIEN's Quick ratio of 2.12 is fine compared to the rest 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
- The Earnings Per Share has grown by an impressive 45.05% over the past year.
- The Earnings Per Share has been decreasing by -2.13% on average over the past years.
- 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
- Based on estimates for the next years, CIEN will show a very strong growth in Earnings Per Share. The EPS will grow by 48.77% on average per year.
- The Revenue is expected to grow by 14.43% on average over the next years. This is quite good.
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
- A Price/Earnings ratio of 92.34 indicates a quite expensive valuation of CIEN.
- CIEN's Price/Earnings ratio is in line with the industry average.
- Compared to an average S&P500 Price/Earnings ratio of 27.54, CIEN is valued quite expensively.
- A Price/Forward Earnings ratio of 44.78 indicates a quite expensive valuation of CIEN.
- CIEN's Price/Forward Earnings ratio is in line with the industry average.
- CIEN is valuated expensively when we compare the Price/Forward Earnings ratio to 24.31, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.34 | ||
| Fwd PE | 44.78 |
4.2 Price Multiples
- CIEN's Enterprise Value to EBITDA ratio is in line with the industry average.
- The rest of the industry has a similar Price/Free Cash Flow ratio as CIEN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.69 | ||
| EV/EBITDA | 74.56 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- A more expensive valuation may be justified as CIEN's earnings are expected to grow with 48.77% in the coming years.
PEG (NY)0.87
PEG (5Y)N/A
EPS Next 2Y62.18%
EPS Next 3Y48.77%
5. Dividend
5.1 Amount
- CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
243.79
+5.41 (+2.27%)
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-0.37%
Ins Owners0.74%
Ins Owner Change5.25%
Market Cap34.39B
Revenue(TTM)4.77B
Net Income(TTM)123.34M
Analysts80
Price Target250.43 (2.72%)
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)43.14%
EPS NQ rev (3m)43.14%
EPS NY rev (1m)22.52%
EPS NY rev (3m)23.18%
Revenue NQ rev (1m)11.86%
Revenue NQ rev (3m)11.69%
Revenue NY rev (1m)8.11%
Revenue NY rev (3m)8.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 92.34 | ||
| Fwd PE | 44.78 | ||
| P/S | 7.21 | ||
| P/FCF | 51.69 | ||
| P/OCF | 42.66 | ||
| P/B | 12.6 | ||
| P/tB | 17.33 | ||
| EV/EBITDA | 74.56 |
EPS(TTM)2.64
EY1.08%
EPS(NY)5.44
Fwd EY2.23%
FCF(TTM)4.72
FCFY1.93%
OCF(TTM)5.71
OCFY2.34%
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 | 7.13 |
F-Score7
WACC9.64%
ROIC/WACC0.53
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.