CERAGON NETWORKS LTD (CRNT) Stock Fundamental Analysis
USA - NASDAQ:CRNT - IL0010851660 - Common Stock
2.28 USD
-0.05 (-2.15%)
2.38 USD
+0.1 (+4.39%)
Taking everything into account, CRNT scores 4 out of 10 in our fundamental rating. CRNT was compared to 48 industry peers in the Communications Equipment industry. CRNT has only an average score on both its financial health and profitability. CRNT has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
In the past year CRNT was profitable.
CRNT had a positive operating cash flow in the past year.
The reported net income has been mixed in the past 5 years: CRNT reported negative net income in multiple years.
In multiple years CRNT reported negative operating cash flow during the last 5 years.
1.2 Ratios
CRNT has a better Return On Assets (4.14%) than 72.92% of its industry peers.
The Return On Equity of CRNT (7.91%) is better than 75.00% of its industry peers.
CRNT has a better Return On Invested Capital (10.39%) than 81.25% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.91% | ||
| ROIC | 10.39% |
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 3.57% is fine compared to the rest of the industry. CRNT outperforms 64.58% of its industry peers.
With a decent Operating Margin value of 8.89%, CRNT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
CRNT's Operating Margin has improved in the last couple of years.
CRNT's Gross Margin of 34.87% is on the low side compared to the rest of the industry. CRNT is outperformed by 62.50% 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 | 8.89% | ||
| PM (TTM) | 3.57% | ||
| GM | 34.87% |
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CRNT is 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.
CRNT has a better debt/assets ratio than last year.
2.2 Solvency
CRNT has an Altman-Z score of 1.60. This is a bad value and indicates that CRNT is not financially healthy and even has some risk of bankruptcy.
The Altman-Z score of CRNT (1.60) is comparable to the rest of the industry.
CRNT has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
With a decent Debt to FCF ratio value of 1.77, CRNT is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CRNT has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
CRNT has a Debt to Equity ratio (0.12) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.14
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.86 indicates that CRNT should not have too much problems paying its short term obligations.
The Current ratio of CRNT (1.86) is comparable to the rest of the industry.
CRNT has a Quick Ratio of 1.38. 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 (1.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
CRNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.76%, which is quite impressive.
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.
CRNT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.06%.
The Revenue has been growing slightly by 6.66% on average over the past years.
EPS 1Y (TTM)49.76%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%-72.73%
Revenue 1Y (TTM)5.06%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%-14.39%
3.2 Future
Based on estimates for the next years, CRNT will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.64% on average per year.
Based on estimates for the next years, CRNT will show a decrease in Revenue. The Revenue will decrease by -3.40% on average per year.
EPS Next Y-68.4%
EPS Next 2Y-25.77%
EPS Next 3Y-14.64%
EPS Next 5YN/A
Revenue Next Year-12.98%
Revenue Next 2Y-3.4%
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
With a Price/Earnings ratio of 7.35, the valuation of CRNT can be described as very cheap.
Compared to the rest of the industry, the Price/Earnings ratio of CRNT indicates a rather cheap valuation: CRNT is cheaper than 95.83% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of CRNT to the average of the S&P500 Index (26.28), we can say CRNT is valued rather cheaply.
The Price/Forward Earnings ratio is 10.09, which indicates a very decent valuation of CRNT.
Based on the Price/Forward Earnings ratio, CRNT is valued cheaply inside the industry as 97.92% 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 33.61.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 10.09 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRNT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CRNT is valued a bit cheaper than 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 17.72 | ||
| EV/EBITDA | 3.74 |
4.3 Compensation for Growth
CRNT's earnings are expected to decrease with -14.64% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y-25.77%
EPS Next 3Y-14.64%
5. Dividend
5.1 Amount
CRNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.28
-0.05 (-2.15%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners20.53%
Inst Owner Change1.07%
Ins Owners13.85%
Ins Owner ChangeN/A
Market Cap204.95M
Revenue(TTM)380.52M
Net Income(TTM)13.58M
Analysts81.82
Price Target4.85 (112.72%)
Short Float %1.31%
Short Ratio1.56
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)-4.11%
Min EPS beat(2)-25.86%
Max EPS beat(2)17.65%
EPS beat(4)2
Avg EPS beat(4)14.9%
Min EPS beat(4)-25.86%
Max EPS beat(4)74.29%
EPS beat(8)5
Avg EPS beat(8)12.74%
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)-5.67%
Min Revenue beat(2)-11.53%
Max Revenue beat(2)0.18%
Revenue beat(4)1
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-11.53%
Max Revenue beat(4)0.18%
Revenue beat(8)3
Avg Revenue beat(8)-1.65%
Revenue beat(12)5
Avg Revenue beat(12)-1.08%
Revenue beat(16)6
Avg Revenue beat(16)-1.24%
PT rev (1m)0%
PT rev (3m)-19.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-65.23%
EPS NY rev (1m)2.01%
EPS NY rev (3m)-54.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-19.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.35 | ||
| Fwd PE | 10.09 | ||
| P/S | 0.54 | ||
| P/FCF | 17.72 | ||
| P/OCF | 7.26 | ||
| P/B | 1.19 | ||
| P/tB | 1.48 | ||
| EV/EBITDA | 3.74 |
EPS(TTM)0.31
EY13.6%
EPS(NY)0.23
Fwd EY9.91%
FCF(TTM)0.13
FCFY5.64%
OCF(TTM)0.31
OCFY13.77%
SpS4.23
BVpS1.91
TBVpS1.54
PEG (NY)N/A
PEG (5Y)0.07
Graham Number3.65
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.91% | ||
| ROCE | 16.7% | ||
| ROIC | 10.39% | ||
| ROICexc | 11.96% | ||
| ROICexgc | 14.46% | ||
| OM | 8.89% | ||
| PM (TTM) | 3.57% | ||
| GM | 34.87% | ||
| FCFM | 3.04% |
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
ROICexgc growth 3Y93.38%
ROICexgc 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-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 126.23% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.04% | ||
| Profit Quality | 85.15% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 1.6 |
F-Score6
WACC9.08%
ROIC/WACC1.14
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)49.76%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%-72.73%
EPS Next Y-68.4%
EPS Next 2Y-25.77%
EPS Next 3Y-14.64%
EPS Next 5YN/A
Revenue 1Y (TTM)5.06%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%-14.39%
Revenue Next Year-12.98%
Revenue Next 2Y-3.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.86%
EBIT growth 3Y89.71%
EBIT growth 5Y30.47%
EBIT Next Year-26.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y261.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y316.24%
OCF growth 3YN/A
OCF growth 5YN/A
CERAGON NETWORKS LTD / CRNT FAQ
What is the ChartMill fundamental rating of CERAGON NETWORKS LTD (CRNT) stock?
ChartMill assigns a fundamental rating of 4 / 10 to CRNT.
What is the valuation status of CERAGON NETWORKS LTD (CRNT) stock?
ChartMill assigns a valuation rating of 6 / 10 to CERAGON NETWORKS LTD (CRNT). This can be considered as Fairly Valued.
Can you provide the profitability details for CERAGON NETWORKS LTD?
CERAGON NETWORKS LTD (CRNT) has a profitability rating of 4 / 10.
What is the valuation of CERAGON NETWORKS LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CERAGON NETWORKS LTD (CRNT) is 7.35 and the Price/Book (PB) ratio is 1.19.
What is the financial health of CERAGON NETWORKS LTD (CRNT) stock?
The financial health rating of CERAGON NETWORKS LTD (CRNT) is 5 / 10.