CIENA CORP (CIEN) Stock Fundamental Analysis
NYSE:CIEN - New York Stock Exchange, Inc. - US1717793095 - Common Stock - Currency: USD
Taking everything into account, CIEN scores 5 out of 10 in our fundamental rating. CIEN was compared to 48 industry peers in the Communications Equipment industry. Both the profitability and the financial health of CIEN get a neutral evaluation. Nothing too spectacular is happening here. 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.
In the past 5 years CIEN has always been profitable.
Of the past 5 years CIEN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CIEN (1.85%) is better than 64.58% of its industry peers.
With a decent Return On Equity value of 3.77%, CIEN is doing good in the industry, outperforming 66.67% 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.
The Average Return On Invested Capital over the past 3 years for CIEN is significantly below the industry average of 14.31%.
| 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
Looking at the Profit Margin, with a value of 2.46%, CIEN is in the better half of the industry, outperforming 64.58% 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 4.85%, CIEN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Operating Margin of CIEN has declined.
Looking at the Gross Margin, with a value of 41.94%, CIEN is in line with its industry, outperforming 54.17% of the companies in the same industry.
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 | 4.85% | ||
| PM (TTM) | 2.46% | ||
| 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
Compared to 1 year ago, CIEN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.21 indicates that CIEN is not in any danger for bankruptcy at the moment.
CIEN's Altman-Z score of 3.21 is fine compared to the rest of the industry. CIEN outperforms 72.92% 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 has a Debt to FCF ratio (5.28) which is in line with its industry peers.
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 66.67% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 3.21 |
ROIC/WACC0.37
WACC8.96%
2.3 Liquidity
CIEN has a Current Ratio of 3.40. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
CIEN has a better Current ratio (3.40) than 79.17% 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 better Quick ratio (2.60) than 79.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.4 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
CIEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.10%.
Measured over the past years, CIEN shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.82% on average per year.
CIEN shows a small growth in Revenue. In the last year, the Revenue has grown by 2.86%.
CIEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.36% yearly.
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
The Earnings Per Share is expected to grow by 34.61% on average over the next years. This is a very strong growth
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 Year14.68%
Revenue Next 2Y12.39%
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.
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
The Price/Earnings ratio is 47.52, which means the current valuation is very expensive for CIEN.
CIEN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CIEN to the average of the S&P500 Index (27.24), we can say CIEN is valued expensively.
A Price/Forward Earnings ratio of 27.33 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 36.42. CIEN is valued slightly cheaper when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.52 | ||
| Fwd PE | 27.33 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CIEN.
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.88 | ||
| EV/EBITDA | 36.69 |
4.3 Compensation for Growth
CIEN's 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 34.61% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.78
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 |
92.67
+4.04 (+4.56%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.7%
Inst Owner Change1.37%
Ins Owners0.8%
Ins Owner Change-4.13%
Market Cap13.10B
Analysts80.87
Price Target86.69 (-6.45%)
Short Float %3.88%
Short Ratio2.43
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)3.75%
PT rev (3m)8.16%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-11.85%
EPS NY rev (1m)-0.07%
EPS NY rev (3m)-10.85%
Revenue NQ rev (1m)0.08%
Revenue NQ rev (3m)5.93%
Revenue NY rev (1m)0.02%
Revenue NY rev (3m)3.29%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 47.52 | ||
| Fwd PE | 27.33 | ||
| P/S | 3.07 | ||
| P/FCF | 44.88 | ||
| P/OCF | 29.07 | ||
| P/B | 4.72 | ||
| P/tB | 6 | ||
| EV/EBITDA | 36.69 |
EPS(TTM)1.95
EY2.1%
EPS(NY)3.39
Fwd EY3.66%
FCF(TTM)2.06
FCFY2.23%
OCF(TTM)3.19
OCFY3.44%
SpS30.17
BVpS19.64
TBVpS15.45
PEG (NY)1.78
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 3.77% | ||
| ROCE | 4.49% | ||
| ROIC | 3.34% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 5.56% | ||
| OM | 4.85% | ||
| PM (TTM) | 2.46% | ||
| GM | 41.94% | ||
| FCFM | 6.84% |
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 | 118.43% | ||
| Cap/Sales | 3.72% | ||
| Interest Coverage | 2.3 | ||
| Cash Conversion | 132.17% | ||
| Profit Quality | 278.52% | ||
| Current Ratio | 3.4 | ||
| Quick Ratio | 2.6 | ||
| Altman-Z | 3.21 |
F-Score6
WACC8.96%
ROIC/WACC0.37
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 Year14.68%
Revenue Next 2Y12.39%
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 Year48.32%
EBIT Next 3Y30.77%
EBIT Next 5Y23.31%
FCF growth 1Y181.24%
FCF growth 3Y-6.48%
FCF growth 5Y1.52%
OCF growth 1Y276.24%
OCF growth 3Y-1.69%
OCF growth 5Y4.49%