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 49 industry peers in the Communications Equipment industry. CIEN has only an average score on both its financial health and profitability. CIEN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
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.
Of the past 5 years CIEN 4 years had a positive operating cash flow.
1.2 Ratios
With a decent Return On Assets value of 1.42%, CIEN is doing good in the industry, outperforming 67.35% of the companies in the same industry.
CIEN's Return On Equity of 2.83% is fine compared to the rest of the industry. CIEN outperforms 69.39% of its industry peers.
Looking at the Return On Invested Capital, with a value of 2.96%, CIEN is in the better half of the industry, outperforming 63.27% 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 11.12%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 2.83% | ||
| ROIC | 2.96% |
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 1.95%, CIEN is in the better half of the industry, outperforming 69.39% of the companies in the same industry.
In the last couple of years the Profit Margin of CIEN has declined.
CIEN has a Operating Margin of 4.54%. This is in the better half of the industry: CIEN outperforms 63.27% of its industry peers.
CIEN's Operating Margin has declined in the last couple of years.
The Gross Margin of CIEN (42.58%) is comparable to the rest of the industry.
CIEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.54% | ||
| PM (TTM) | 1.95% | ||
| GM | 42.58% |
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.
The number of shares outstanding for CIEN has been reduced compared to 1 year ago.
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 2.80 indicates that CIEN is not a great score, but indicates only limited risk for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 2.80, CIEN is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
The Debt to FCF ratio of CIEN is 7.52, which is on the high side as it means it would take CIEN, 7.52 years of fcf income to pay off all of its debts.
CIEN has a Debt to FCF ratio of 7.52. This is comparable to the rest of the industry: CIEN outperforms 46.94% of its industry peers.
CIEN has a Debt/Equity ratio of 0.55. This is a neutral value indicating CIEN is somewhat dependend on debt financing.
CIEN has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: CIEN underperforms 63.27% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 7.52 | ||
| Altman-Z | 2.8 |
ROIC/WACC0.32
WACC9.33%
2.3 Liquidity
A Current Ratio of 3.65 indicates that CIEN has no problem at all paying its short term obligations.
CIEN has a Current ratio of 3.65. This is amongst the best in the industry. CIEN outperforms 81.63% of its industry peers.
CIEN has a Quick Ratio of 2.77. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.77, CIEN is doing good in the industry, outperforming 79.59% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.65 | ||
| Quick Ratio | 2.77 |
3. Growth
3.1 Past
The earnings per share for CIEN have decreased strongly by -34.31% in the last year.
The Earnings Per Share has been decreasing by -2.82% on average over the past years.
Looking at the last year, CIEN shows a decrease in Revenue. The Revenue has decreased by -7.29% in the last year.
Measured over the past years, CIEN shows a small growth in Revenue. The Revenue has been growing by 2.36% on average per year.
EPS 1Y (TTM)-34.31%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%-3.03%
Revenue 1Y (TTM)-7.29%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%3.33%
3.2 Future
The Earnings Per Share is expected to grow by 34.10% 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 9.75% on average per year.
EPS Next Y42.15%
EPS Next 2Y37.73%
EPS Next 3Y34.1%
EPS Next 5YN/A
Revenue Next Year11.02%
Revenue Next 2Y9.95%
Revenue Next 3Y9.75%
Revenue Next 5YN/A
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 40.47 indicates a quite expensive valuation of CIEN.
The rest of the industry has a similar Price/Earnings ratio as CIEN.
When comparing the Price/Earnings ratio of CIEN to the average of the S&P500 Index (28.22), we can say CIEN is valued slightly more expensively.
A Price/Forward Earnings ratio of 21.10 indicates a rather expensive valuation of CIEN.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CIEN is on the same level as its industry peers.
CIEN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 20.86.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.47 | ||
| Fwd PE | 21.1 |
4.2 Price Multiples
CIEN's Enterprise Value to EBITDA ratio is in line with the industry average.
CIEN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 50.45 | ||
| EV/EBITDA | 32.55 |
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.
CIEN's earnings are expected to grow with 34.10% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.96
PEG (5Y)N/A
EPS Next 2Y37.73%
EPS Next 3Y34.1%
5. Dividend
5.1 Amount
No dividends for CIEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
72.85
+1.42 (+1.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.05%
Inst Owner Change-1.13%
Ins Owners0.84%
Ins Owner Change1.64%
Market Cap10.36B
Analysts80.87
Price Target80.15 (10.02%)
Short Float %3.19%
Short Ratio1.78
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)16.69%
Min EPS beat(2)-19.38%
Max EPS beat(2)52.75%
EPS beat(4)3
Avg EPS beat(4)36.59%
Min EPS beat(4)-19.38%
Max EPS beat(4)80.07%
EPS beat(8)7
Avg EPS beat(8)27.44%
EPS beat(12)9
Avg EPS beat(12)80.16%
EPS beat(16)12
Avg EPS beat(16)62.61%
Revenue beat(2)0
Avg Revenue beat(2)-0.12%
Min Revenue beat(2)-0.17%
Max Revenue beat(2)-0.07%
Revenue beat(4)0
Avg Revenue beat(4)-0.23%
Min Revenue beat(4)-0.46%
Max Revenue beat(4)-0.07%
Revenue beat(8)3
Avg Revenue beat(8)0.33%
Revenue beat(12)5
Avg Revenue beat(12)1.22%
Revenue beat(16)5
Avg Revenue beat(16)0.59%
PT rev (1m)-5.06%
PT rev (3m)-12.5%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.79%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)5.41%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)1.28%
Revenue NY rev (1m)-0.02%
Revenue NY rev (3m)0.6%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 40.47 | ||
| Fwd PE | 21.1 | ||
| P/S | 2.56 | ||
| P/FCF | 50.45 | ||
| P/OCF | 29.4 | ||
| P/B | 3.71 | ||
| P/tB | 4.72 | ||
| EV/EBITDA | 32.55 |
EPS(TTM)1.8
EY2.47%
EPS(NY)3.45
Fwd EY4.74%
FCF(TTM)1.44
FCFY1.98%
OCF(TTM)2.48
OCFY3.4%
SpS28.49
BVpS19.65
TBVpS15.43
PEG (NY)0.96
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.42% | ||
| ROE | 2.83% | ||
| ROCE | 3.98% | ||
| ROIC | 2.96% | ||
| ROICexc | 4.02% | ||
| ROICexgc | 4.88% | ||
| OM | 4.54% | ||
| PM (TTM) | 1.95% | ||
| GM | 42.58% | ||
| FCFM | 5.07% |
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-Score5
Asset Turnover0.73
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 7.52 | ||
| Debt/EBITDA | 4.82 | ||
| Cap/Depr | 109.56% | ||
| Cap/Sales | 3.63% | ||
| Interest Coverage | 1.85 | ||
| Cash Conversion | 110.78% | ||
| Profit Quality | 259.88% | ||
| Current Ratio | 3.65 | ||
| Quick Ratio | 2.77 | ||
| Altman-Z | 2.8 |
F-Score5
WACC9.33%
ROIC/WACC0.32
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)-34.31%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%-3.03%
EPS Next Y42.15%
EPS Next 2Y37.73%
EPS Next 3Y34.1%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.29%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%3.33%
Revenue Next Year11.02%
Revenue Next 2Y9.95%
Revenue Next 3Y9.75%
Revenue Next 5YN/A
EBIT growth 1Y-51.92%
EBIT growth 3Y-26.74%
EBIT growth 5Y-12.59%
EBIT Next Year48.48%
EBIT Next 3Y31.05%
EBIT Next 5YN/A
FCF growth 1Y143.3%
FCF growth 3Y-6.48%
FCF growth 5Y1.52%
OCF growth 1Y192.92%
OCF growth 3Y-1.69%
OCF growth 5Y4.49%