CIENA CORP (CIEN) Stock Fundamental Analysis
USA - NYSE:CIEN - US1717793095 - Common Stock
189.92 USD
+0.96 (+0.51%)
191.13 USD
+1.21 (+0.64%)
CIEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. While CIEN has a great health rating, its profitability is only average at the moment. CIEN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CIEN had positive earnings in the past year.
In the past year CIEN had a positive cash flow from operations.
Each year in the past 5 years CIEN has been profitable.
CIEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
With a decent Return On Assets value of 2.45%, CIEN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
The Return On Equity of CIEN (5.05%) is better than 68.75% of its industry peers.
The Return On Invested Capital of CIEN (4.09%) is better than 64.58% of its industry peers.
CIEN had an Average Return On Invested Capital over the past 3 years of 4.65%. This is significantly below the industry average of 13.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 5.05% | ||
| ROIC | 4.09% |
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
The Profit Margin of CIEN (3.10%) is better than 62.50% of its industry peers.
In the last couple of years the Profit Margin of CIEN has declined.
CIEN has a Operating Margin of 5.60%. This is in the better half of the industry: CIEN outperforms 64.58% of its industry peers.
In the last couple of years the Operating Margin of CIEN has declined.
The Gross Margin of CIEN (41.57%) 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 | 5.6% | ||
| PM (TTM) | 3.1% | ||
| GM | 41.57% |
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
CIEN has a better debt/assets ratio than last year.
2.2 Solvency
CIEN has an Altman-Z score of 6.12. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
CIEN's Altman-Z score of 6.12 is fine compared to the rest of the industry. CIEN outperforms 79.17% of its industry peers.
CIEN has a debt to FCF ratio of 2.54. This is a good value and a sign of high solvency as CIEN would need 2.54 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 2.54, CIEN is doing good in the industry, outperforming 60.42% of the companies in the same industry.
CIEN has a Debt/Equity ratio of 0.55. This is a neutral value indicating CIEN is somewhat dependend on debt financing.
CIEN's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. CIEN is outperformed by 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 6.12 |
ROIC/WACC0.45
WACC9.05%
2.3 Liquidity
CIEN has a Current Ratio of 3.28. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.28, CIEN is doing good in the industry, outperforming 79.17% of the companies in the same industry.
A Quick Ratio of 2.55 indicates that CIEN has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.55, CIEN is doing good in the industry, outperforming 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.28 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
CIEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.82%, which is quite good.
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.
The Revenue has grown by 12.97% in the past year. This is quite good.
CIEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.36% yearly.
EPS 1Y (TTM)11.82%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%91.43%
Revenue 1Y (TTM)12.97%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%29.4%
3.2 Future
CIEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 37.02% yearly.
The Revenue is expected to grow by 12.75% on average over the next years. This is quite good.
EPS Next Y39.83%
EPS Next 2Y56.25%
EPS Next 3Y45.68%
EPS Next 5Y37.02%
Revenue Next Year17.84%
Revenue Next 2Y17.37%
Revenue Next 3Y15.42%
Revenue Next 5Y12.75%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 83.67, CIEN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CIEN is on the same level as its industry peers.
CIEN is valuated expensively when we compare the Price/Earnings ratio to 26.11, which is the current average of the S&P500 Index.
A Price/Forward Earnings ratio of 42.74 indicates a quite expensive valuation of CIEN.
CIEN's Price/Forward Earnings is on the same level as the industry average.
CIEN's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.55.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.67 | ||
| Fwd PE | 42.74 |
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 | 44.24 | ||
| EV/EBITDA | 68.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CIEN does not grow enough to justify the current Price/Earnings ratio.
CIEN's earnings are expected to grow with 45.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.1
PEG (5Y)N/A
EPS Next 2Y56.25%
EPS Next 3Y45.68%
5. Dividend
5.1 Amount
No dividends for CIEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
189.92
+0.96 (+0.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change-0.58%
Ins Owners0.62%
Ins Owner Change-1.36%
Market Cap26.79B
Revenue(TTM)4.54B
Net Income(TTM)140.88M
Analysts80
Price Target145.47 (-23.4%)
Short Float %3.17%
Short Ratio1.65
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)2.02%
Min EPS beat(2)-20.72%
Max EPS beat(2)24.77%
EPS beat(4)2
Avg EPS beat(4)9.36%
Min EPS beat(4)-20.72%
Max EPS beat(4)52.75%
EPS beat(8)6
Avg EPS beat(8)23.81%
EPS beat(12)10
Avg EPS beat(12)81.27%
EPS beat(16)11
Avg EPS beat(16)60.35%
Revenue beat(2)2
Avg Revenue beat(2)1.43%
Min Revenue beat(2)1.16%
Max Revenue beat(2)1.7%
Revenue beat(4)2
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-0.17%
Max Revenue beat(4)1.7%
Revenue beat(8)3
Avg Revenue beat(8)0.36%
Revenue beat(12)7
Avg Revenue beat(12)2.13%
Revenue beat(16)7
Avg Revenue beat(16)0.86%
PT rev (1m)15.65%
PT rev (3m)67.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.46%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)10.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.67 | ||
| Fwd PE | 42.74 | ||
| P/S | 5.9 | ||
| P/FCF | 44.24 | ||
| P/OCF | 34.15 | ||
| P/B | 9.61 | ||
| P/tB | 12.16 | ||
| EV/EBITDA | 68.39 |
EPS(TTM)2.27
EY1.2%
EPS(NY)4.44
Fwd EY2.34%
FCF(TTM)4.29
FCFY2.26%
OCF(TTM)5.56
OCFY2.93%
SpS32.2
BVpS19.76
TBVpS15.62
PEG (NY)2.1
PEG (5Y)N/A
Graham Number31.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 5.05% | ||
| ROCE | 5.49% | ||
| ROIC | 4.09% | ||
| ROICexc | 5.73% | ||
| ROICexgc | 6.96% | ||
| OM | 5.6% | ||
| PM (TTM) | 3.1% | ||
| GM | 41.57% | ||
| FCFM | 13.33% |
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%
ROICexgc growth 3Y-34.63%
ROICexgc 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 Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.54 | ||
| Debt/EBITDA | 3.91 | ||
| Cap/Depr | 130.88% | ||
| Cap/Sales | 3.94% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 200.71% | ||
| Profit Quality | 429.83% | ||
| Current Ratio | 3.28 | ||
| Quick Ratio | 2.55 | ||
| Altman-Z | 6.12 |
F-Score6
WACC9.05%
ROIC/WACC0.45
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)11.82%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%91.43%
EPS Next Y39.83%
EPS Next 2Y56.25%
EPS Next 3Y45.68%
EPS Next 5Y37.02%
Revenue 1Y (TTM)12.97%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%29.4%
Revenue Next Year17.84%
Revenue Next 2Y17.37%
Revenue Next 3Y15.42%
Revenue Next 5Y12.75%
EBIT growth 1Y11.21%
EBIT growth 3Y-26.74%
EBIT growth 5Y-12.59%
EBIT Next Year48.31%
EBIT Next 3Y38.25%
EBIT Next 5Y25.87%
FCF growth 1Y506.4%
FCF growth 3Y-6.48%
FCF growth 5Y1.52%
OCF growth 1Y1981.41%
OCF growth 3Y-1.69%
OCF growth 5Y4.49%
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 of CIENA CORP (CIEN) stock?
ChartMill assigns a valuation rating of 2 / 10 to CIENA CORP (CIEN). This can be considered as Overvalued.
What is the profitability of CIEN stock?
CIENA CORP (CIEN) has a profitability rating of 5 / 10.
How financially healthy is CIENA CORP?
The financial health rating of CIENA CORP (CIEN) is 7 / 10.