CIENA CORP (CIEN) Fundamental Analysis & Valuation

NYSE:CIEN • US1717793095

Current stock price

478.56 USD
-15.45 (-3.13%)
Last:

This CIEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. CIEN Profitability Analysis

1.1 Basic Checks

  • In the past year CIEN was profitable.
  • CIEN had a positive operating cash flow in the past year.
  • 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.
CIEN Yearly Net Income VS EBIT VS OCF VS FCFCIEN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B

1.2 Ratios

  • Looking at the Return On Assets, with a value of 3.89%, CIEN is in the better half of the industry, outperforming 70.21% of the companies in the same industry.
  • Looking at the Return On Equity, with a value of 8.20%, CIEN is in the better half of the industry, outperforming 72.34% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 6.75%, CIEN is doing good in the industry, outperforming 74.47% of the companies in the same industry.
  • CIEN had an Average Return On Invested Capital over the past 3 years of 4.76%. This is significantly below the industry average of 10.19%.
  • The last Return On Invested Capital (6.75%) for CIEN is above the 3 year average (4.76%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.89%
ROE 8.2%
ROIC 6.75%
ROA(3y)2.71%
ROA(5y)4.29%
ROE(3y)5.48%
ROE(5y)7.73%
ROIC(3y)4.76%
ROIC(5y)5.64%
CIEN Yearly ROA, ROE, ROICCIEN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

1.3 Margins

  • Looking at the Profit Margin, with a value of 4.47%, CIEN is in the better half of the industry, outperforming 65.96% of the companies in the same industry.
  • In the last couple of years the Profit Margin of CIEN has declined.
  • With a decent Operating Margin value of 8.19%, CIEN is doing good in the industry, outperforming 76.60% of the companies in the same industry.
  • CIEN's Operating Margin has declined in the last couple of years.
  • CIEN has a Gross Margin (42.13%) which is in line with its industry peers.
  • CIEN's Gross Margin has declined in the last couple of years.
Industry RankSector Rank
OM 8.19%
PM (TTM) 4.47%
GM 42.13%
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%
CIEN Yearly Profit, Operating, Gross MarginsCIEN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30 40

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7

2. CIEN Health Analysis

2.1 Basic Checks

  • The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CIEN is destroying value.
  • Compared to 1 year ago, CIEN has less shares outstanding
  • CIEN has less shares outstanding than it did 5 years ago.
  • Compared to 1 year ago, CIEN has an improved debt to assets ratio.
CIEN Yearly Shares OutstandingCIEN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CIEN Yearly Total Debt VS Total AssetsCIEN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • CIEN has an Altman-Z score of 14.37. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
  • The Altman-Z score of CIEN (14.37) is better than 91.49% of its industry peers.
  • The Debt to FCF ratio of CIEN is 2.08, which is a good value as it means it would take CIEN, 2.08 years of fcf income to pay off all of its debts.
  • CIEN has a Debt to FCF ratio (2.08) which is comparable to the rest of the industry.
  • A Debt/Equity ratio of 0.55 indicates that CIEN is somewhat dependend on debt financing.
  • The Debt to Equity ratio of CIEN (0.55) is worse than 76.60% of its industry peers.
  • 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 RankSector Rank
Debt/Equity 0.55
Debt/FCF 2.08
Altman-Z 14.37
ROIC/WACC0.76
WACC8.86%
CIEN Yearly LT Debt VS Equity VS FCFCIEN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

2.3 Liquidity

  • CIEN has a Current Ratio of 2.81. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
  • CIEN's Current ratio of 2.81 is fine compared to the rest of the industry. CIEN outperforms 74.47% of its industry peers.
  • CIEN has a Quick Ratio of 2.18. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
  • CIEN has a better Quick ratio (2.18) than 65.96% of its industry peers.
Industry RankSector Rank
Current Ratio 2.81
Quick Ratio 2.18
CIEN Yearly Current Assets VS Current LiabilitesCIEN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

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7

3. CIEN Growth Analysis

3.1 Past

  • CIEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.11%, which is quite impressive.
  • CIEN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.13% yearly.
  • CIEN shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.54%.
  • The Revenue has been growing slightly by 6.19% on average over the past years.
EPS 1Y (TTM)86.11%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%110.94%
Revenue 1Y (TTM)26.54%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%33.08%

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 49.14% on average per year.
  • CIEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.43% yearly.
EPS Next Y106.21%
EPS Next 2Y62.32%
EPS Next 3Y49.14%
EPS Next 5YN/A
Revenue Next Year29.89%
Revenue Next 2Y24.78%
Revenue Next 3Y23%
Revenue Next 5Y14.43%

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.
CIEN Yearly Revenue VS EstimatesCIEN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
CIEN Yearly EPS VS EstimatesCIEN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8

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2

4. CIEN Valuation Analysis

4.1 Price/Earnings Ratio

  • CIEN is valuated quite expensively with a Price/Earnings ratio of 142.85.
  • CIEN's Price/Earnings ratio is in line with the industry average.
  • CIEN is valuated expensively when we compare the Price/Earnings ratio to 26.91, which is the current average of the S&P500 Index.
  • With a Price/Forward Earnings ratio of 68.80, 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 (23.69), we can say CIEN is valued expensively.
Industry RankSector Rank
PE 142.85
Fwd PE 68.8
CIEN Price Earnings VS Forward Price EarningsCIEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100

4.2 Price Multiples

  • Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIEN indicates a slightly more expensive valuation: CIEN is more expensive than 63.83% of the companies listed in the same industry.
  • 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 RankSector Rank
P/FCF 91.17
EV/EBITDA 122.55
CIEN Per share dataCIEN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • CIEN's earnings are expected to grow with 49.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.34
PEG (5Y)N/A
EPS Next 2Y62.32%
EPS Next 3Y49.14%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CIEN Dividend Analysis

5.1 Amount

  • CIEN does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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CIEN Fundamentals: All Metrics, Ratios and Statistics

CIENA CORP

NYSE:CIEN (4/9/2026, 12:53:10 PM)

478.56

-15.45 (-3.13%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)03-05
Earnings (Next)06-03
Inst Owners99.41%
Inst Owner Change0.01%
Ins Owners0.57%
Ins Owner Change0.66%
Market Cap67.67B
Revenue(TTM)5.12B
Net Income(TTM)229.05M
Analysts80
Price Target354.01 (-26.03%)
Short Float %3.6%
Short Ratio1.39
Dividend
Industry RankSector 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)14.38%
Min EPS beat(2)13.12%
Max EPS beat(2)15.65%
EPS beat(4)3
Avg EPS beat(4)8.2%
Min EPS beat(4)-20.72%
Max EPS beat(4)24.77%
EPS beat(8)6
Avg EPS beat(8)22.4%
EPS beat(12)10
Avg EPS beat(12)21.03%
EPS beat(16)12
Avg EPS beat(16)62.17%
Revenue beat(2)1
Avg Revenue beat(2)1.37%
Min Revenue beat(2)0%
Max Revenue beat(2)2.73%
Revenue beat(4)3
Avg Revenue beat(4)1.4%
Min Revenue beat(4)0%
Max Revenue beat(4)2.73%
Revenue beat(8)3
Avg Revenue beat(8)0.58%
Revenue beat(12)6
Avg Revenue beat(12)0.69%
Revenue beat(16)8
Avg Revenue beat(16)1.27%
PT rev (1m)35.6%
PT rev (3m)41.36%
EPS NQ rev (1m)20.81%
EPS NQ rev (3m)20.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)4.57%
Revenue NQ rev (3m)4.57%
Revenue NY rev (1m)2.85%
Revenue NY rev (3m)2.85%
Valuation
Industry RankSector Rank
PE 142.85
Fwd PE 68.8
P/S 13.21
P/FCF 91.17
P/OCF 72.76
P/B 24.23
P/tB 32.88
EV/EBITDA 122.55
EPS(TTM)3.35
EY0.7%
EPS(NY)6.96
Fwd EY1.45%
FCF(TTM)5.25
FCFY1.1%
OCF(TTM)6.58
OCFY1.37%
SpS36.24
BVpS19.75
TBVpS14.55
PEG (NY)1.34
PEG (5Y)N/A
Graham Number38.58
Profitability
Industry RankSector Rank
ROA 3.89%
ROE 8.2%
ROCE 9.06%
ROIC 6.75%
ROICexc 9.38%
ROICexgc 12.03%
OM 8.19%
PM (TTM) 4.47%
GM 42.13%
FCFM 14.48%
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 Turnover0.87
Health
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 2.08
Debt/EBITDA 2.67
Cap/Depr 124.61%
Cap/Sales 3.66%
Interest Coverage 5.48
Cash Conversion 163.01%
Profit Quality 324.04%
Current Ratio 2.81
Quick Ratio 2.18
Altman-Z 14.37
F-Score7
WACC8.86%
ROIC/WACC0.76
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)86.11%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%110.94%
EPS Next Y106.21%
EPS Next 2Y62.32%
EPS Next 3Y49.14%
EPS Next 5YN/A
Revenue 1Y (TTM)26.54%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%33.08%
Revenue Next Year29.89%
Revenue Next 2Y24.78%
Revenue Next 3Y23%
Revenue Next 5Y14.43%
EBIT growth 1Y127.64%
EBIT growth 3Y6.51%
EBIT growth 5Y-9.56%
EBIT Next Year130.14%
EBIT Next 3Y53.26%
EBIT Next 5Y28.36%
FCF growth 1Y22.23%
FCF growth 3YN/A
FCF growth 5Y10.11%
OCF growth 1Y32.86%
OCF growth 3YN/A
OCF growth 5Y10.3%

CIENA CORP / CIEN Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for CIENA CORP?

ChartMill assigns a fundamental rating of 5 / 10 to CIEN.


Can you provide the valuation status for CIENA CORP?

ChartMill assigns a valuation rating of 2 / 10 to CIENA CORP (CIEN). This can be considered as Overvalued.


How profitable is CIENA CORP (CIEN) stock?

CIENA CORP (CIEN) has a profitability rating of 5 / 10.


Can you provide the financial health for CIEN stock?

The financial health rating of CIENA CORP (CIEN) is 7 / 10.


What is the expected EPS growth for CIENA CORP (CIEN) stock?

The Earnings per Share (EPS) of CIENA CORP (CIEN) is expected to grow by 106.21% in the next year.