CERAGON NETWORKS LTD (CRNT) Stock Fundamental Analysis
NASDAQ:CRNT - Nasdaq - IL0010851660 - Common Stock - Currency: USD
CRNT gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 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
In the past year CRNT was profitable.
In the past year CRNT had a positive cash flow from operations.
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
With a decent Return On Assets value of 6.55%, CRNT is doing good in the industry, outperforming 79.17% of the companies in the same industry.
With an excellent Return On Equity value of 13.58%, CRNT belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
CRNT has a Return On Invested Capital of 13.91%. This is amongst the best in the industry. CRNT outperforms 87.50% of its industry peers.
| 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
Looking at the Profit Margin, with a value of 5.75%, CRNT is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
The Operating Margin of CRNT (11.37%) is better than 77.08% of its industry peers.
CRNT's Operating Margin has improved in the last couple of years.
With a Gross Margin value of 35.47%, CRNT perfoms like the industry average, outperforming 41.67% of the companies in the same industry.
CRNT's Gross Margin has been stable in the last couple of years.
| 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
CRNT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
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.
Looking at the Altman-Z score, with a value of 1.60, CRNT is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
The Debt to FCF ratio of CRNT is 4.57, which is a neutral value as it means it would take CRNT, 4.57 years of fcf income to pay off all of its debts.
CRNT has a Debt to FCF ratio (4.57) which is comparable to the rest of the industry.
CRNT has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.15, CRNT perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 1.6 |
ROIC/WACC1.49
WACC9.32%
2.3 Liquidity
A Current Ratio of 1.69 indicates that CRNT should not have too much problems paying its short term obligations.
CRNT's Current ratio of 1.69 is in line compared to the rest of the industry. CRNT outperforms 45.83% of 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.
With a Quick ratio value of 1.27, CRNT perfoms like the industry average, outperforming 43.75% of the companies in the same 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.
CRNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 110.16% yearly.
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.
Based on estimates for the next years, CRNT will show a small growth in Revenue. The Revenue will grow by 4.67% on average per year.
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.
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
Based on the Price/Earnings ratio of 6.03, 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.
CRNT is valuated cheaply when we compare the Price/Earnings ratio to 27.93, which is the current average of the S&P500 Index.
CRNT is valuated cheaply with a Price/Forward Earnings ratio of 5.70.
Based on the Price/Forward Earnings ratio, CRNT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Compared to an average S&P500 Price/Forward Earnings ratio of 37.78, CRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.03 | ||
| Fwd PE | 5.7 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRNT is valued cheaper than 100.00% of the companies in the same industry.
CRNT's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 37.89 | ||
| EV/EBITDA | 3.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y0.28%
EPS Next 3Y1.47%
5. Dividend
5.1 Amount
No dividends for CRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.35
+0.06 (+2.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners18.75%
Inst Owner Change0.43%
Ins Owners14%
Ins Owner ChangeN/A
Market Cap208.99M
Analysts82
Price Target6.25 (165.96%)
Short Float %1.44%
Short Ratio1.58
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)0%
PT rev (3m)-9.26%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-16.48%
EPS NY rev (1m)0%
EPS NY rev (3m)-0.53%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-2.97%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-0.15%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.03 | ||
| Fwd PE | 5.7 | ||
| P/S | 0.53 | ||
| P/FCF | 37.89 | ||
| P/OCF | 9.38 | ||
| P/B | 1.25 | ||
| P/tB | 1.56 | ||
| EV/EBITDA | 3.16 |
EPS(TTM)0.39
EY16.6%
EPS(NY)0.41
Fwd EY17.55%
FCF(TTM)0.06
FCFY2.64%
OCF(TTM)0.25
OCFY10.66%
SpS4.43
BVpS1.88
TBVpS1.5
PEG (NY)N/A
PEG (5Y)0.05
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 | 1.6 |
F-Score5
WACC9.32%
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