Taking everything into account, CRNT scores 3 out of 10 in our fundamental rating. CRNT was compared to 48 industry peers in the Communications Equipment industry. There are concerns on the financial health of CRNT while its profitability can be described as average. CRNT has a valuation in line with the averages, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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 (0.43%) which is in line with its industry peers.
CRNT's Return On Equity of 0.81% is in line compared to the rest of the industry. CRNT outperforms 59.18% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.90%, CRNT is in the better half of the industry, outperforming 71.43% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	0.43%
ROE	0.81%
ROIC	6.9%

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 Profit Margin (0.38%) which is in line with its industry peers.
The Operating Margin of CRNT (6.32%) is better than 65.31% of its industry peers.
In the last couple of years the Operating Margin of CRNT has grown nicely.
The Gross Margin of CRNT (34.98%) is worse than 61.22% of its industry peers.
CRNT's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	6.32%
PM (TTM)	0.38%
GM	34.98%

OM growth 3Y71.41%

OM growth 5Y22.33%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y4.77%

GM growth 5Y0.06%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

CRNT 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 CRNT has been increased compared to 1 year ago.
Compared to 5 years ago, CRNT has more shares outstanding
CRNT has a better debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 1.44, we must say that CRNT is in the distress zone and has some risk of bankruptcy.
CRNT's Altman-Z score of 1.44 is in line compared to the rest of the industry. CRNT outperforms 53.06% of its industry peers.
The Debt to FCF ratio of CRNT is 7.68, which is on the high side as it means it would take CRNT, 7.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.68, CRNT is in line with its industry, outperforming 53.06% of the companies in the same industry.
CRNT has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
CRNT has a Debt to Equity ratio (0.18) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Debt/Equity	0.18
Debt/FCF	7.68
Altman-Z	1.44

ROIC/WACC0.71

WACC9.69%

2.3 Liquidity

A Current Ratio of 1.81 indicates that CRNT should not have too much problems paying its short term obligations.
CRNT has a Current ratio of 1.81. This is in the lower half of the industry: CRNT underperforms 63.27% of its industry peers.
CRNT has a Quick Ratio of 1.36. 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 1.36. This is in the lower half of the industry: CRNT underperforms 63.27% of its industry peers.

		Industry Rank	Sector Rank
Current Ratio	1.81
Quick Ratio	1.36

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CRNT have decreased strongly by -48.01% in the last 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 decrease in Revenue. The Revenue has decreased by -3.78% in the last year.
The Revenue has been growing slightly by 6.66% on average over the past years.

EPS 1Y (TTM)-48.01%

EPS 3YN/A

EPS 5Y110.16%

EPS Q2Q%-87.5%

Revenue 1Y (TTM)-3.78%

Revenue growth 3Y10.67%

Revenue growth 5Y6.66%

Sales Q2Q%-16.74%

3.2 Future

CRNT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -16.19% yearly.
The Revenue is expected to decrease by -0.65% on average over the next years.

EPS Next Y-76.24%

EPS Next 2Y-35.45%

EPS Next 3Y-16.19%

EPS Next 5YN/A

Revenue Next Year-13.75%

Revenue Next 2Y-4%

Revenue Next 3Y-0.65%

Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.

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4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 13.47 indicates a correct valuation of CRNT.
83.67% of the companies in the same industry are more expensive than CRNT, based on the Price/Earnings ratio.
CRNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.21.
The Price/Forward Earnings ratio is 13.40, which indicates a correct valuation of CRNT.
CRNT's Price/Forward Earnings ratio is rather cheap when compared to the industry. CRNT is cheaper than 83.67% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 25.98. CRNT is valued slightly cheaper when compared to this.

		Industry Rank	Sector Rank
PE	13.47
Fwd PE	13.4

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.
CRNT's Price/Free Cash Flow ratio is in line with the industry average.