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CERAGON NETWORKS LTD (CRNT) Stock Fundamental Analysis

NASDAQ:CRNT - Nasdaq - IL0010851660 - Common Stock - Currency: USD

2.35  +0.06 (+2.62%)

Premarket: 2.31 -0.04 (-1.7%)

Fundamental Rating

5

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.


Dividend Valuation Growth Profitability Health

5

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.
CRNT Yearly Net Income VS EBIT VS OCF VS FCFCRNT Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 20M -20M 40M

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 RankSector 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
CRNT Yearly ROA, ROE, ROICCRNT Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 -10

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 RankSector 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%
CRNT Yearly Profit, Operating, Gross MarginsCRNT Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 10 20 30

4

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.
CRNT Yearly Shares OutstandingCRNT Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 20M 40M 60M 80M
CRNT Yearly Total Debt VS Total AssetsCRNT Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 100M 200M 300M

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 RankSector Rank
Debt/Equity 0.15
Debt/FCF 4.57
Altman-Z 1.6
ROIC/WACC1.49
WACC9.32%
CRNT Yearly LT Debt VS Equity VS FCFCRNT Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 0 50M 100M 150M

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 RankSector Rank
Current Ratio 1.69
Quick Ratio 1.27
CRNT Yearly Current Assets VS Current LiabilitesCRNT Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 50M 100M 150M 200M 250M

5

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.
CRNT Yearly Revenue VS EstimatesCRNT Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 100M 200M 300M 400M
CRNT Yearly EPS VS EstimatesCRNT Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 0 0.2 -0.2 0.4 -0.4

6

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 RankSector Rank
PE 6.03
Fwd PE 5.7
CRNT Price Earnings VS Forward Price EarningsCRNT Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

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 RankSector Rank
P/FCF 37.89
EV/EBITDA 3.16
CRNT Per share dataCRNT EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 1 2 3 4

4.3 Compensation for Growth

PEG (NY)N/A
PEG (5Y)0.05
EPS Next 2Y0.28%
EPS Next 3Y1.47%

0

5. Dividend

5.1 Amount

No dividends for CRNT!.
Industry RankSector Rank
Dividend Yield N/A

CERAGON NETWORKS LTD

NASDAQ:CRNT (7/28/2025, 8:19:11 PM)

Premarket: 2.31 -0.04 (-1.7%)

2.35

+0.06 (+2.62%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)05-07 2025-05-07/bmo
Earnings (Next)08-04 2025-08-04/bmo
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 RankSector 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 RankSector 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 RankSector 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 RankSector 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