CERAGON NETWORKS LTD (CRNT) Stock Fundamental Analysis
NASDAQ:CRNT - IL0010851660 - Common Stock
2.01 USD
+0.03 (+1.52%)
2.01 USD
0 (0%)
CRNT gets a fundamental rating of 4 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. A decent growth rate in combination with a cheap valuation! Better keep an eye on CRNT.
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
CRNT's Return On Assets of 4.14% is fine compared to the rest of the industry. CRNT outperforms 70.83% of its industry peers.
The Return On Equity of CRNT (7.91%) is better than 77.08% of its industry peers.
CRNT has a Return On Invested Capital of 10.39%. This is in the better half of the industry: CRNT outperforms 79.17% 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.
Looking at the Operating Margin, with a value of 8.89%, CRNT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
CRNT's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 34.87%, CRNT is doing worse than 60.42% 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 | 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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CRNT is still creating some 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.
The debt/assets ratio for CRNT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.50, we must say that CRNT is in the distress zone and has some risk of bankruptcy.
CRNT has a Altman-Z score (1.50) which is in line with its industry peers.
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.
The Debt to FCF ratio of CRNT (1.77) is better than 62.50% of its industry peers.
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 | 1.5 |
ROIC/WACC1.14
WACC9.14%
2.3 Liquidity
CRNT has a Current Ratio of 1.86. 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 Current ratio (1.86) which is comparable to the rest of the industry.
A Quick Ratio of 1.38 indicates that CRNT should not have too much problems paying its short term obligations.
CRNT's Quick ratio of 1.38 is in line compared to the rest of the industry. CRNT outperforms 43.75% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 49.76% over the past year.
The Earnings Per Share has been growing by 110.16% on average over the past years. This is a very strong growth
The Revenue has been growing slightly by 5.06% in the past 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)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 small growth in Earnings Per Share. The EPS will grow by 1.47% on average per year.
Based on estimates for the next years, CRNT will show a decrease in Revenue. The Revenue will decrease by -2.06% on average per year.
EPS Next Y-52.86%
EPS Next 2Y-10.92%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue Next Year-10.52%
Revenue Next 2Y-2.06%
Revenue Next 3YN/A
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.
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
With a Price/Earnings ratio of 6.48, the valuation of CRNT can be described as very cheap.
97.92% of the companies in the same industry are more expensive than CRNT, based on the Price/Earnings ratio.
CRNT is valuated cheaply when we compare the Price/Earnings ratio to 27.03, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 6.18, which indicates a rather cheap valuation of CRNT.
Based on the Price/Forward Earnings ratio, CRNT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
CRNT is valuated cheaply when we compare the Price/Forward Earnings ratio to 22.63, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.48 | ||
| Fwd PE | 6.18 |
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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRNT indicates a somewhat cheap valuation: CRNT is cheaper than 75.00% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.62 | ||
| EV/EBITDA | 3.16 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.06
EPS Next 2Y-10.92%
EPS Next 3Y1.47%
5. Dividend
5.1 Amount
No dividends for CRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.01
+0.03 (+1.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners18.87%
Inst Owner Change8.94%
Ins Owners14%
Ins Owner ChangeN/A
Market Cap180.68M
Analysts82
Price Target4.85 (141.29%)
Short Float %2.16%
Short Ratio1.93
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)-22.45%
PT rev (3m)-29.63%
EPS NQ rev (1m)-65.23%
EPS NQ rev (3m)-67.59%
EPS NY rev (1m)-32.56%
EPS NY rev (3m)-37.11%
Revenue NQ rev (1m)-19.37%
Revenue NQ rev (3m)-20.68%
Revenue NY rev (1m)-11.19%
Revenue NY rev (3m)-12.51%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.48 | ||
| Fwd PE | 6.18 | ||
| P/S | 0.47 | ||
| P/FCF | 15.62 | ||
| P/OCF | 6.4 | ||
| P/B | 1.05 | ||
| P/tB | 1.31 | ||
| EV/EBITDA | 3.16 |
EPS(TTM)0.31
EY15.42%
EPS(NY)0.33
Fwd EY16.19%
FCF(TTM)0.13
FCFY6.4%
OCF(TTM)0.31
OCFY15.62%
SpS4.23
BVpS1.91
TBVpS1.54
PEG (NY)N/A
PEG (5Y)0.06
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
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-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 | 1.5 |
F-Score6
WACC9.14%
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-52.86%
EPS Next 2Y-10.92%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue 1Y (TTM)5.06%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%-14.39%
Revenue Next Year-10.52%
Revenue Next 2Y-2.06%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.86%
EBIT growth 3Y89.71%
EBIT growth 5Y30.47%
EBIT Next Year-0.28%
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