CERAGON NETWORKS LTD (CRNT)
IL0010851660 - Common Stock
CRNT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 54 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
CRNT had positive earnings in the past year.
CRNT had a positive operating cash flow in the past year.
In the past 5 years CRNT reported 4 times negative net income.
In multiple years CRNT reported negative operating cash flow during the last 5 years.
1.2 Ratios
CRNT's Return On Assets of 2.10% is fine compared to the rest of the industry. CRNT outperforms 72.22% of its industry peers.
The Return On Equity of CRNT (4.67%) is better than 79.63% of its industry peers.
CRNT has a Return On Invested Capital of 9.27%. This is amongst the best in the industry. CRNT outperforms 88.89% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.67% | ||
| ROIC | 9.27% |
ROA(3y)-3.26%
ROA(5y)-3.37%
ROE(3y)-7.53%
ROE(5y)-7.15%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CRNT's Profit Margin of 1.80% is fine compared to the rest of the industry. CRNT outperforms 66.67% of its industry peers.
In the last couple of years the Profit Margin of CRNT has declined.
CRNT's Operating Margin of 6.70% is fine compared to the rest of the industry. CRNT outperforms 74.07% of its industry peers.
In the last couple of years the Operating Margin of CRNT has grown nicely.
CRNT has a Gross Margin (34.54%) which is in line with its industry peers.
CRNT's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.7% | ||
| PM (TTM) | 1.8% | ||
| GM | 34.54% |
OM growth 3YN/A
OM growth 5Y3.28%
PM growth 3YN/A
PM growth 5Y-23.16%
GM growth 3Y7.12%
GM growth 5Y1.7%
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.
CRNT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CRNT has an improved debt to assets ratio.
2.2 Solvency
Based on the Altman-Z score of 1.42, we must say that CRNT is in the distress zone and has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of 1.42, CRNT is in the better half of the industry, outperforming 61.11% of the companies in the same industry.
The Debt to FCF ratio of CRNT is 1.81, which is an excellent value as it means it would take CRNT, only 1.81 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.81, CRNT is in the better half of the industry, outperforming 72.22% of the companies in the same industry.
CRNT has a Debt/Equity ratio of 0.24. This is a healthy value indicating a solid balance between debt and equity.
CRNT has a Debt to Equity ratio of 0.24. This is comparable to the rest of the industry: CRNT outperforms 44.44% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | 1.81 | ||
| Altman-Z | 1.42 |
ROIC/WACC0.97
WACC9.54%
2.3 Liquidity
A Current Ratio of 1.64 indicates that CRNT should not have too much problems paying its short term obligations.
CRNT's Current ratio of 1.64 is on the low side compared to the rest of the industry. CRNT is outperformed by 66.67% of its industry peers.
A Quick Ratio of 1.12 indicates that CRNT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.12, CRNT is doing worse than 66.67% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.12 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 317.50% over the past year.
The earnings per share for CRNT have been decreasing by -16.93% on average. This is quite bad
Looking at the last year, CRNT shows a quite strong growth in Revenue. The Revenue has grown by 17.66% in the last year.
The Revenue has been growing slightly by 0.19% on average over the past years.
EPS 1Y (TTM)317.5%
EPS 3YN/A
EPS 5Y-16.93%
EPS growth Q2Q123.33%
Revenue 1Y (TTM)17.66%
Revenue growth 3Y9.71%
Revenue growth 5Y0.19%
Revenue growth Q2Q19.68%
3.2 Future
Based on estimates for the next years, CRNT will show a very strong growth in Earnings Per Share. The EPS will grow by 75.87% on average per year.
CRNT is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.21% yearly.
EPS Next Y264.62%
EPS Next 2Y119.25%
EPS Next 3Y75.87%
EPS Next 5YN/A
Revenue Next Year15.37%
Revenue Next 2Y10.72%
Revenue Next 3Y9.21%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 35.00, CRNT can be considered very expensive at the moment.
CRNT's Price/Earnings is on the same level as the industry average.
CRNT's Price/Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 28.02.
The Price/Forward Earnings ratio is 9.93, which indicates a very decent valuation of CRNT.
CRNT's Price/Forward Earnings ratio is rather cheap when compared to the industry. CRNT is cheaper than 83.33% of the companies in the same industry.
CRNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 20.58, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35 | ||
| Fwd PE | 9.93 |
4.2 Price Multiples
85.19% of the companies in the same industry are more expensive than CRNT, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, CRNT is valued a bit cheaper than 74.07% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15 | ||
| EV/EBITDA | 6.99 |
4.3 Compensation for Growth
CRNT's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CRNT's earnings are expected to grow with 75.87% in the coming years.
PEG (NY)0.13
PEG (5Y)N/A
EPS Next 2Y119.25%
EPS Next 3Y75.87%
5. Dividend
5.1 Amount
No dividends for CRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CERAGON NETWORKS LTD
NASDAQ:CRNT (5/6/2024, 6:13:01 PM)
After market: 3.18 +0.03 (+0.95%)3.15
+0.11 (+3.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap269.77M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
Avg EPS beat(2)
Min EPS beat(2)
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EPS beat(8)
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EPS beat(12)
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EPS beat(16)
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Revenue beat(2)
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Revenue beat(12)
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Revenue beat(16)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
Revenue NQ rev (3m)
Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 35 | ||
| Fwd PE | 9.93 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.13
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.67% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 6.7% | ||
| PM (TTM) | 1.8% | ||
| GM | 34.54% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.24 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.64 | ||
| Quick Ratio | 1.12 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)317.5%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y264.62%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)17.66%
Revenue growth 3Y9.71%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y