CERAGON NETWORKS LTD (CRNT) Stock Fundamental Analysis
NASDAQ:CRNT - Nasdaq - IL0010851660 - Common Stock - Currency: USD
We assign a fundamental rating of 5 out of 10 to CRNT. CRNT was compared to 49 industry peers in the Communications Equipment industry. CRNT has an average financial health and profitability rating. CRNT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
In the past year CRNT was profitable.
CRNT had a positive operating cash flow in the past year.
In multiple years CRNT reported negative net income over the last 5 years.
In multiple years CRNT reported negative operating cash flow during the last 5 years.
1.2 Ratios
CRNT's Return On Assets of 6.55% is fine compared to the rest of the industry. CRNT outperforms 79.59% of its industry peers.
The Return On Equity of CRNT (13.58%) is better than 85.71% of its industry peers.
CRNT has a Return On Invested Capital of 13.91%. This is amongst the best in the industry. CRNT outperforms 87.76% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.55% | ||
| ROE | 13.58% | ||
| ROIC | 13.91% |
ROA(3y)0.75%
ROA(5y)-1.82%
ROE(3y)0.89%
ROE(5y)-3.97%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
Looking at the Profit Margin, with a value of 5.75%, CRNT is in the better half of the industry, outperforming 73.47% of the companies in the same industry.
CRNT's Operating Margin of 11.37% is fine compared to the rest of the industry. CRNT outperforms 79.59% of its industry peers.
CRNT's Operating Margin has improved in the last couple of years.
CRNT's Gross Margin of 35.47% is on the low side compared to the rest of the industry. CRNT is outperformed by 61.22% of its industry peers.
In the last couple of years the Gross Margin of CRNT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.37% | ||
| PM (TTM) | 5.75% | ||
| GM | 35.47% |
OM growth 3Y71.41%
OM growth 5Y22.33%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.77%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CRNT is still creating some value.
The number of shares outstanding for CRNT has been increased compared to 1 year ago.
Compared to 5 years ago, CRNT has more shares outstanding
Compared to 1 year ago, CRNT has an improved debt to assets ratio.
2.2 Solvency
CRNT has an Altman-Z score of 1.63. This is a bad value and indicates that CRNT is not financially healthy and even has some risk of bankruptcy.
CRNT's Altman-Z score of 1.63 is fine compared to the rest of the industry. CRNT outperforms 61.22% of its industry peers.
The Debt to FCF ratio of CRNT is 4.57, which is a neutral value as it means it would take CRNT, 4.57 years of fcf income to pay off all of its debts.
CRNT has a Debt to FCF ratio (4.57) which is comparable to the rest of the industry.
A Debt/Equity ratio of 0.15 indicates that CRNT is not too dependend on debt financing.
CRNT has a Debt to Equity ratio (0.15) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 1.63 |
ROIC/WACC1.5
WACC9.27%
2.3 Liquidity
A Current Ratio of 1.69 indicates that CRNT should not have too much problems paying its short term obligations.
CRNT has a Current ratio (1.69) which is in line with its industry peers.
CRNT has a Quick Ratio of 1.27. This is a normal value and indicates that CRNT is financially healthy and should not expect problems in meeting its short term obligations.
CRNT has a Quick ratio of 1.27. This is comparable to the rest of the industry: CRNT outperforms 44.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 233.33% over the past year.
Measured over the past years, CRNT shows a very strong growth in Earnings Per Share. The EPS has been growing by 110.16% on average per year.
Looking at the last year, CRNT shows a quite strong growth in Revenue. The Revenue has grown by 11.93% in the last year.
Measured over the past years, CRNT shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
EPS 1Y (TTM)233.33%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%-40%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%0.17%
3.2 Future
Based on estimates for the next years, CRNT will show a small growth in Earnings Per Share. The EPS will grow by 1.47% on average per year.
CRNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.67% yearly.
EPS Next Y-25.03%
EPS Next 2Y1.28%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue Next Year1.55%
Revenue Next 2Y4.67%
Revenue Next 3YN/A
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 decreasing.
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
CRNT is valuated cheaply with a Price/Earnings ratio of 6.26.
100.00% of the companies in the same industry are more expensive than CRNT, based on the Price/Earnings ratio.
The average S&P500 Price/Earnings ratio is at 26.55. CRNT is valued rather cheaply when compared to this.
With a Price/Forward Earnings ratio of 5.80, the valuation of CRNT can be described as very cheap.
Based on the Price/Forward Earnings ratio, CRNT is valued cheaper than 97.96% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CRNT to the average of the S&P500 Index (22.30), we can say CRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.26 | ||
| Fwd PE | 5.8 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRNT is valued cheaper than 100.00% of the companies in the same industry.
CRNT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.34 | ||
| EV/EBITDA | 3.3 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.06
EPS Next 2Y1.28%
EPS Next 3Y1.47%
5. Dividend
5.1 Amount
No dividends for CRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.44
+0.07 (+2.95%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners21.14%
Inst Owner Change-4.9%
Ins Owners16.1%
Ins Owner ChangeN/A
Market Cap216.99M
Analysts82
Price Target6.25 (156.15%)
Short Float %0.91%
Short Ratio0.79
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)5.59%
Min EPS beat(2)-6.46%
Max EPS beat(2)17.65%
EPS beat(4)3
Avg EPS beat(4)41.3%
Min EPS beat(4)-6.46%
Max EPS beat(4)79.74%
EPS beat(8)5
Avg EPS beat(8)14.61%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-0.32%
Max Revenue beat(2)0.18%
Revenue beat(4)1
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.18%
Revenue beat(8)4
Avg Revenue beat(8)0.75%
Revenue beat(12)5
Avg Revenue beat(12)-0.47%
Revenue beat(16)7
Avg Revenue beat(16)-0.32%
PT rev (1m)-9.26%
PT rev (3m)-16.48%
EPS NQ rev (1m)-16.48%
EPS NQ rev (3m)-20.66%
EPS NY rev (1m)6.67%
EPS NY rev (3m)-2.8%
Revenue NQ rev (1m)-2.97%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)-0.06%
Revenue NY rev (3m)-1.79%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.26 | ||
| Fwd PE | 5.8 | ||
| P/S | 0.55 | ||
| P/FCF | 39.34 | ||
| P/OCF | 9.74 | ||
| P/B | 1.3 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 3.3 |
EPS(TTM)0.39
EY15.98%
EPS(NY)0.42
Fwd EY17.24%
FCF(TTM)0.06
FCFY2.54%
OCF(TTM)0.25
OCFY10.27%
SpS4.43
BVpS1.88
TBVpS1.5
PEG (NY)N/A
PEG (5Y)0.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.55% | ||
| ROE | 13.58% | ||
| ROCE | 22.91% | ||
| ROIC | 13.91% | ||
| ROICexc | 15.91% | ||
| ROICexgc | 19.22% | ||
| OM | 11.37% | ||
| PM (TTM) | 5.75% | ||
| GM | 35.47% | ||
| FCFM | 1.4% |
ROA(3y)0.75%
ROA(5y)-1.82%
ROE(3y)0.89%
ROE(5y)-3.97%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y93.38%
ROICexcg growth 5Y31.98%
ROICexc growth 3Y86.61%
ROICexc growth 5Y29.42%
OM growth 3Y71.41%
OM growth 5Y22.33%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.77%
GM growth 5Y0.06%
F-Score5
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 4.57 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 134.07% | ||
| Cap/Sales | 4.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.86% | ||
| Profit Quality | 24.32% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 1.63 |
F-Score5
WACC9.27%
ROIC/WACC1.5
Cap/Depr(3y)125.95%
Cap/Depr(5y)101.34%
Cap/Sales(3y)4.03%
Cap/Sales(5y)3.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)233.33%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%-40%
EPS Next Y-25.03%
EPS Next 2Y1.28%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue 1Y (TTM)11.93%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%0.17%
Revenue Next Year1.55%
Revenue Next 2Y4.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y80.89%
EBIT growth 3Y89.71%
EBIT growth 5Y30.47%
EBIT Next Year9.57%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y140.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5081.63%
OCF growth 3YN/A
OCF growth 5YN/A