CERAGON NETWORKS LTD (CRNT) Stock Fundamental Analysis
NASDAQ:CRNT - Nasdaq - IL0010851660 - Common Stock - Currency: USD
Overall CRNT gets a fundamental rating of 5 out of 10. We evaluated CRNT against 50 industry peers in the Communications Equipment industry. Both the profitability and the financial health of CRNT get a neutral evaluation. Nothing too spectacular is happening here. 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.
The reported operating cash flow has been mixed in the past 5 years: CRNT reported negative operating cash flow in multiple years.
1.2 Ratios
The Return On Assets of CRNT (6.55%) is better than 80.00% of its industry peers.
CRNT has a better Return On Equity (13.58%) than 86.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 13.91%, CRNT belongs to the top of the industry, outperforming 88.00% of the companies in the same industry.
| 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
CRNT has a better Profit Margin (5.75%) than 74.00% of its industry peers.
The Operating Margin of CRNT (11.37%) is better than 80.00% of its industry peers.
CRNT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 35.47%, CRNT is doing worse than 60.00% of the companies in the same industry.
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.
Compared to 1 year ago, CRNT has more shares outstanding
CRNT has more shares outstanding than it did 5 years ago.
The debt/assets ratio for CRNT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.68, we must say that CRNT is in the distress zone and has some risk of bankruptcy.
CRNT's Altman-Z score of 1.68 is in line compared to the rest of the industry. CRNT outperforms 56.00% of its industry peers.
CRNT has a debt to FCF ratio of 4.57. This is a neutral value as CRNT would need 4.57 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 4.57, CRNT is in line with its industry, outperforming 54.00% of the companies in the same industry.
A Debt/Equity ratio of 0.15 indicates that CRNT is not too dependend on debt financing.
The Debt to Equity ratio of CRNT (0.15) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.49
WACC9.31%
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.
The Quick ratio of CRNT (1.27) is comparable to the rest of the industry.
| 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.
The Earnings Per Share has been growing by 110.16% on average over the past years. This is a very strong growth
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
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 4.67% yearly.
EPS Next Y-30.09%
EPS Next 2Y0.28%
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 6.67.
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 27.45. CRNT is valued rather cheaply when compared to this.
A Price/Forward Earnings ratio of 6.31 indicates a rather cheap valuation of CRNT.
Based on the Price/Forward Earnings ratio, CRNT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
CRNT's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 6.31 |
4.2 Price Multiples
CRNT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRNT is cheaper than 100.00% of the companies in the same industry.
The rest of the industry has a similar Price/Free Cash Flow ratio as CRNT.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.92 | ||
| EV/EBITDA | 3.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.06
EPS Next 2Y0.28%
EPS Next 3Y1.47%
5. Dividend
5.1 Amount
CRNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.6
+0.07 (+2.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners18.75%
Inst Owner Change-4.9%
Ins Owners14%
Ins Owner ChangeN/A
Market Cap231.22M
Analysts82
Price Target6.25 (140.38%)
Short Float %1.33%
Short Ratio1.36
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)0%
EPS NQ rev (3m)-20.66%
EPS NY rev (1m)-6.75%
EPS NY rev (3m)-9.35%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 6.31 | ||
| P/S | 0.59 | ||
| P/FCF | 41.92 | ||
| P/OCF | 10.38 | ||
| P/B | 1.38 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 3.55 |
EPS(TTM)0.39
EY15%
EPS(NY)0.41
Fwd EY15.86%
FCF(TTM)0.06
FCFY2.39%
OCF(TTM)0.25
OCFY9.64%
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 | 1.68 |
F-Score5
WACC9.31%
ROIC/WACC1.49
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-30.09%
EPS Next 2Y0.28%
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