CIENA CORP (CIEN)
US1717793095 - Common Stock
CIEN gets a fundamental rating of 6 out of 10. The analysis compared the fundamentals against 54 industry peers in the Communications Equipment industry. While CIEN has a great health rating, its profitability is only average at the moment. CIEN has a correct valuation and a medium growth rate.
1. Profitability
1.1 Basic Checks
In the past year CIEN was profitable.
In the past year CIEN had a positive cash flow from operations.
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.
1.2 Ratios
With an excellent Return On Assets value of 4.08%, CIEN belongs to the best of the industry, outperforming 81.48% of the companies in the same industry.
The Return On Equity of CIEN (7.80%) is better than 83.33% of its industry peers.
With a decent Return On Invested Capital value of 6.54%, CIEN is doing good in the industry, outperforming 77.78% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for CIEN is below the industry average of 10.47%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 7.8% | ||
| ROIC | 6.54% |
ROA(3y)5.95%
ROA(5y)6.6%
ROE(3y)10.38%
ROE(5y)11.44%
ROIC(3y)7.29%
ROIC(5y)8.81%
1.3 Margins
With a decent Profit Margin value of 5.22%, CIEN is doing good in the industry, outperforming 77.78% of the companies in the same industry.
CIEN's Profit Margin has declined in the last couple of years.
The Operating Margin of CIEN (8.75%) is better than 81.48% of its industry peers.
CIEN's Operating Margin has been stable in the last couple of years.
CIEN's Gross Margin of 43.27% is fine compared to the rest of the industry. CIEN outperforms 62.96% of its industry peers.
CIEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.75% | ||
| PM (TTM) | 5.22% | ||
| GM | 43.27% |
OM growth 3Y-15.5%
OM growth 5Y1.4%
PM growth 3Y-17.19%
PM growth 5YN/A
GM growth 3Y-2.91%
GM growth 5Y0.16%
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
CIEN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CIEN is higher compared to a year ago.
2.2 Solvency
CIEN has an Altman-Z score of 2.19. This is not the best score and indicates that CIEN is in the grey zone with still only limited risk for bankruptcy at the moment.
CIEN has a better Altman-Z score (2.19) than 72.22% of its industry peers.
CIEN has a debt to FCF ratio of 2.57. This is a good value and a sign of high solvency as CIEN would need 2.57 years to pay back of all of its debts.
The Debt to FCF ratio of CIEN (2.57) is better than 66.67% of its industry peers.
CIEN has a Debt/Equity ratio of 0.53. This is a neutral value indicating CIEN is somewhat dependend on debt financing.
CIEN's Debt to Equity ratio of 0.53 is on the low side compared to the rest of the industry. CIEN is outperformed by 70.37% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | 2.57 | ||
| Altman-Z | 2.19 |
ROIC/WACC0.7
WACC9.4%
2.3 Liquidity
CIEN has a Current Ratio of 4.29. 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 4.29, CIEN belongs to the top of the industry, outperforming 85.19% of the companies in the same industry.
CIEN has a Quick Ratio of 3.12. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
With an excellent Quick ratio value of 3.12, CIEN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 4.29 | ||
| Quick Ratio | 3.12 |
3. Growth
3.1 Past
CIEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 30.48%, which is quite impressive.
The Earnings Per Share has been growing by 14.37% on average over the past years. This is quite good.
CIEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 13.61%.
Measured over the past years, CIEN shows a small growth in Revenue. The Revenue has been growing by 7.23% on average per year.
EPS 1Y (TTM)30.48%
EPS 3Y-2.56%
EPS 5Y14.37%
EPS growth Q2Q3.13%
Revenue 1Y (TTM)13.61%
Revenue growth 3Y7.49%
Revenue growth 5Y7.23%
Revenue growth Q2Q-1.78%
3.2 Future
CIEN is expected to show quite a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 13.00% yearly.
CIEN is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 3.43% yearly.
EPS Next Y-13.99%
EPS Next 2Y9.19%
EPS Next 3Y13%
EPS Next 5YN/A
Revenue Next Year-5.33%
Revenue Next 2Y1%
Revenue Next 3Y3.43%
Revenue Next 5YN/A
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 stable.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 15.90 indicates a correct valuation of CIEN.
CIEN's Price/Earnings ratio is a bit cheaper when compared to the industry. CIEN is cheaper than 64.81% of the companies in the same industry.
When comparing the Price/Earnings ratio of CIEN to the average of the S&P500 Index (24.76), we can say CIEN is valued slightly cheaper.
With a Price/Forward Earnings ratio of 13.43, CIEN is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CIEN indicates a somewhat cheap valuation: CIEN is cheaper than 64.81% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CIEN to the average of the S&P500 Index (21.26), we can say CIEN is valued slightly cheaper.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 13.43 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CIEN is valued a bit cheaper than 72.22% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, CIEN is valued cheaply inside the industry as 85.19% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 10.37 | ||
| EV/EBITDA | 12.21 |
4.3 Compensation for Growth
The decent profitability rating of CIEN may justify a higher PE ratio.
A more expensive valuation may be justified as CIEN's earnings are expected to grow with 13.00% in the coming years.
PEG (NY)N/A
PEG (5Y)1.11
EPS Next 2Y9.19%
EPS Next 3Y13%
5. Dividend
5.1 Amount
CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CIENA CORP
NYSE:CIEN (4/19/2024, 5:30:00 PM)
After market: 43.56 0 (0%)43.56
-0.21 (-0.48%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap6.30B
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
Max EPS beat(2)
EPS beat(4)
Avg EPS beat(4)
Min EPS beat(4)
Max EPS beat(4)
EPS beat(8)
Avg EPS beat(8)
EPS beat(12)
Avg EPS beat(12)
EPS beat(16)
Avg EPS beat(16)
Revenue beat(2)
Avg Revenue beat(2)
Min Revenue beat(2)
Max Revenue beat(2)
Revenue beat(4)
Avg Revenue beat(4)
Min Revenue beat(4)
Max Revenue beat(4)
Revenue beat(8)
Avg Revenue beat(8)
Revenue beat(12)
Avg Revenue beat(12)
Revenue beat(16)
Avg Revenue beat(16)
PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 15.9 | ||
| Fwd PE | 13.43 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)N/A
PEG (5Y)1.11
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.08% | ||
| ROE | 7.8% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 8.75% | ||
| PM (TTM) | 5.22% | ||
| GM | 43.27% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.78
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.53 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 4.29 | ||
| Quick Ratio | 3.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)30.48%
EPS 3Y-2.56%
EPS 5Y
EPS growth Q2Q
EPS Next Y-13.99%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)13.61%
Revenue growth 3Y7.49%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y