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 only an average score on both its financial health and profitability. CRNT has a decent growth rate and is not valued too expensively.
1. Profitability
1.1 Basic Checks
CRNT had positive earnings in the past year.
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 has a Return On Assets of 6.97%. This is amongst the best in the industry. CRNT outperforms 85.71% of its industry peers.
CRNT's Return On Equity of 14.47% is amongst the best of the industry. CRNT outperforms 85.71% of its industry peers.
CRNT's Return On Invested Capital of 15.02% is amongst the best of the industry. CRNT outperforms 89.80% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.47% | ||
| ROIC | 15.02% |
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
CRNT's Profit Margin of 6.10% is fine compared to the rest of the industry. CRNT outperforms 79.59% of its industry peers.
CRNT has a better Operating Margin (12.16%) than 85.71% of its industry peers.
CRNT's Operating Margin has improved in the last couple of years.
CRNT's Gross Margin of 36.27% is on the low side compared to the rest of the industry. CRNT is outperformed by 63.27% of its industry peers.
CRNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.16% | ||
| PM (TTM) | 6.1% | ||
| GM | 36.27% |
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.
The number of shares outstanding for CRNT has been increased compared to 5 years ago.
Compared to 1 year ago, CRNT has an improved debt to assets ratio.
2.2 Solvency
CRNT has an Altman-Z score of 1.67. This is a bad value and indicates that CRNT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.67, CRNT perfoms like the industry average, outperforming 59.18% of the companies in the same industry.
The Debt to FCF ratio of CRNT is 2.59, which is a good value as it means it would take CRNT, 2.59 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.59, CRNT is in line with its industry, outperforming 57.14% of the companies in the same industry.
CRNT has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
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 | 2.59 | ||
| Altman-Z | 1.67 |
ROIC/WACC1.62
WACC9.28%
2.3 Liquidity
A Current Ratio of 1.72 indicates that CRNT should not have too much problems paying its short term obligations.
CRNT has a Current ratio (1.72) which is comparable to the rest of the industry.
A Quick Ratio of 1.33 indicates that CRNT should not have too much problems paying its short term obligations.
CRNT has a Quick ratio of 1.33. This is comparable to the rest of the industry: CRNT outperforms 44.90% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 371.26% 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 13.53% in the last year.
CRNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
EPS 1Y (TTM)371.26%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%1185.71%
Revenue 1Y (TTM)13.53%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%18.34%
3.2 Future
The Earnings Per Share is expected to grow by 1.47% on average over the next years.
CRNT is expected to show a small growth in Revenue. In the coming years, the Revenue will grow by 4.59% yearly.
EPS Next Y-29.72%
EPS Next 2Y-1.22%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue Next Year1.7%
Revenue Next 2Y4.59%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 5.71, the valuation of CRNT can be described as very cheap.
Based on the Price/Earnings ratio, CRNT is valued cheaper than 100.00% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 28.18. CRNT is valued rather cheaply when compared to this.
Based on the Price/Forward Earnings ratio of 8.12, the valuation of CRNT can be described as reasonable.
Based on the Price/Forward Earnings ratio, CRNT is valued cheaper than 93.88% of the companies in the same industry.
CRNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.81, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 8.12 |
4.2 Price Multiples
100.00% of the companies in the same industry are more expensive than CRNT, based on the Enterprise Value to EBITDA ratio.
The rest of the industry has a similar Price/Free Cash Flow ratio as CRNT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 21.38 | ||
| EV/EBITDA | 2.91 |
4.3 Compensation for Growth
The decent profitability rating of CRNT may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y-1.22%
EPS Next 3Y1.47%
5. Dividend
5.1 Amount
CRNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NASDAQ:CRNT (5/5/2025, 1:13:53 PM)
2.34
-0.02 (-0.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners21.14%
Inst Owner Change-0.1%
Ins Owners16.1%
Ins Owner ChangeN/A
Market Cap208.10M
Analysts82
Price Target6.89 (194.44%)
Short Float %0.55%
Short Ratio0.31
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)33.92%
Min EPS beat(2)-6.46%
Max EPS beat(2)74.29%
EPS beat(4)3
Avg EPS beat(4)39.13%
Min EPS beat(4)-6.46%
Max EPS beat(4)79.74%
EPS beat(8)5
Avg EPS beat(8)48.92%
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)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)-0.32%
Revenue beat(4)0
Avg Revenue beat(4)-1.88%
Min Revenue beat(4)-4.39%
Max Revenue beat(4)-0.32%
Revenue beat(8)4
Avg Revenue beat(8)1.26%
Revenue beat(12)4
Avg Revenue beat(12)-0.76%
Revenue beat(16)7
Avg Revenue beat(16)-0.1%
PT rev (1m)0%
PT rev (3m)-7.95%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-68.49%
EPS NY rev (1m)0%
EPS NY rev (3m)-27.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-10.54%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-3.86%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 5.71 | ||
| Fwd PE | 8.12 | ||
| P/S | 0.53 | ||
| P/FCF | 21.38 | ||
| P/OCF | 7.94 | ||
| P/B | 1.25 | ||
| P/tB | 1.47 | ||
| EV/EBITDA | 2.91 |
EPS(TTM)0.41
EY17.52%
EPS(NY)0.29
Fwd EY12.31%
FCF(TTM)0.11
FCFY4.68%
OCF(TTM)0.29
OCFY12.59%
SpS4.43
BVpS1.87
TBVpS1.59
PEG (NY)N/A
PEG (5Y)0.05
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.47% | ||
| ROCE | 24.76% | ||
| ROIC | 15.02% | ||
| ROICexc | 17.91% | ||
| ROICexgc | 20.68% | ||
| OM | 12.16% | ||
| PM (TTM) | 6.1% | ||
| GM | 36.27% | ||
| FCFM | 2.47% |
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-Score7
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 0.42 | ||
| Cap/Depr | 135.93% | ||
| Cap/Sales | 4.18% | ||
| Interest Coverage | 10.24 | ||
| Cash Conversion | 43.63% | ||
| Profit Quality | 40.45% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 1.67 |
F-Score7
WACC9.28%
ROIC/WACC1.62
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)371.26%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%1185.71%
EPS Next Y-29.72%
EPS Next 2Y-1.22%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue 1Y (TTM)13.53%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%18.34%
Revenue Next Year1.7%
Revenue Next 2Y4.59%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y106.07%
EBIT growth 3Y89.71%
EBIT growth 5Y30.47%
EBIT Next Year31.98%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-45.89%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-15.18%
OCF growth 3YN/A
OCF growth 5YN/A