CERAGON NETWORKS LTD (CRNT) Stock Fundamental Analysis
USA - NASDAQ:CRNT - IL0010851660 - Common Stock
2.54 USD
-0.06 (-2.31%)
2.54 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. CRNT has only an average score on both its financial health and profitability. CRNT is valued correctly, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CRNT had positive earnings in the past year.
In the past year CRNT had a positive cash flow from operations.
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
With a decent Return On Assets value of 4.14%, CRNT is doing good in the industry, outperforming 72.92% of the companies in the same industry.
The Return On Equity of CRNT (7.91%) is better than 77.08% of its industry peers.
CRNT has a better Return On Invested Capital (10.39%) than 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
The Profit Margin of CRNT (3.57%) is better than 66.67% of its industry peers.
With a decent Operating Margin value of 8.89%, CRNT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CRNT has grown nicely.
With a Gross Margin value of 34.87%, CRNT is not doing good in the industry: 62.50% of the companies in the same industry are doing better.
In the last couple of years the Gross Margin of CRNT has remained more or less at the same level.
| 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.
The number of shares outstanding for CRNT has been increased compared to 5 years ago.
Compared to 1 year ago, CRNT has an improved debt to assets ratio.
2.2 Solvency
CRNT has an Altman-Z score of 1.71. This is a bad value and indicates that CRNT is not financially healthy and even has some risk of bankruptcy.
CRNT has a Altman-Z score (1.71) which is comparable to the rest of the industry.
The Debt to FCF ratio of CRNT is 1.77, which is an excellent value as it means it would take CRNT, only 1.77 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.77, CRNT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
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 of 0.12. This is comparable to the rest of the industry: CRNT outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 1.71 |
ROIC/WACC1.15
WACC9.05%
2.3 Liquidity
A Current Ratio of 1.86 indicates that CRNT should not have too much problems paying its short term obligations.
Looking at the Current ratio, with a value of 1.86, CRNT is in line with its industry, outperforming 45.83% of the companies in the same industry.
CRNT has a Quick Ratio of 1.38. 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 1.38. This is comparable 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.
CRNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 110.16% yearly.
CRNT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.06%.
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
CRNT is expected to show a very negative growth in Earnings Per Share. In the coming years, the EPS will decrease by -14.64% yearly.
The Revenue is expected to decrease by -3.40% on average over the next years.
EPS Next Y-68.4%
EPS Next 2Y-25.77%
EPS Next 3Y-14.64%
EPS Next 5YN/A
Revenue Next Year-12.98%
Revenue Next 2Y-3.4%
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
A Price/Earnings ratio of 8.19 indicates a reasonable valuation of CRNT.
Compared to the rest of the industry, the Price/Earnings ratio of CRNT indicates a rather cheap valuation: CRNT is cheaper than 95.83% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.11, CRNT is valued rather cheaply.
CRNT is valuated reasonably with a Price/Forward Earnings ratio of 11.24.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRNT indicates a rather cheap valuation: CRNT is cheaper than 91.67% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CRNT to the average of the S&P500 Index (22.55), we can say CRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 11.24 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRNT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CRNT is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.74 | ||
| EV/EBITDA | 4.35 |
4.3 Compensation for Growth
CRNT's earnings are expected to decrease with -14.64% in the coming years. This may justify a cheaper valuation.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y-25.77%
EPS Next 3Y-14.64%
5. Dividend
5.1 Amount
No dividends for CRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.54
-0.06 (-2.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners20.53%
Inst Owner Change-1.69%
Ins Owners13.85%
Ins Owner ChangeN/A
Market Cap228.32M
Revenue(TTM)380.52M
Net Income(TTM)13.58M
Analysts81.82
Price Target4.85 (90.94%)
Short Float %1.31%
Short Ratio1.56
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)0%
PT rev (3m)-22.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-65.23%
EPS NY rev (1m)2.01%
EPS NY rev (3m)-54.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-19.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-14.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.19 | ||
| Fwd PE | 11.24 | ||
| P/S | 0.6 | ||
| P/FCF | 19.74 | ||
| P/OCF | 8.09 | ||
| P/B | 1.33 | ||
| P/tB | 1.65 | ||
| EV/EBITDA | 4.35 |
EPS(TTM)0.31
EY12.2%
EPS(NY)0.23
Fwd EY8.89%
FCF(TTM)0.13
FCFY5.06%
OCF(TTM)0.31
OCFY12.36%
SpS4.23
BVpS1.91
TBVpS1.54
PEG (NY)N/A
PEG (5Y)0.07
Graham Number3.65
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
ROICexgc growth 3Y93.38%
ROICexgc 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 | 1.71 |
F-Score6
WACC9.05%
ROIC/WACC1.15
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-68.4%
EPS Next 2Y-25.77%
EPS Next 3Y-14.64%
EPS Next 5YN/A
Revenue 1Y (TTM)5.06%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%-14.39%
Revenue Next Year-12.98%
Revenue Next 2Y-3.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.86%
EBIT growth 3Y89.71%
EBIT growth 5Y30.47%
EBIT Next Year-26.13%
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
CERAGON NETWORKS LTD / CRNT FAQ
What is the ChartMill fundamental rating of CERAGON NETWORKS LTD (CRNT) stock?
ChartMill assigns a fundamental rating of 4 / 10 to CRNT.
What is the valuation status of CERAGON NETWORKS LTD (CRNT) stock?
ChartMill assigns a valuation rating of 6 / 10 to CERAGON NETWORKS LTD (CRNT). This can be considered as Fairly Valued.
Can you provide the profitability details for CERAGON NETWORKS LTD?
CERAGON NETWORKS LTD (CRNT) has a profitability rating of 4 / 10.
What is the valuation of CERAGON NETWORKS LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CERAGON NETWORKS LTD (CRNT) is 8.19 and the Price/Book (PB) ratio is 1.33.
What is the financial health of CERAGON NETWORKS LTD (CRNT) stock?
The financial health rating of CERAGON NETWORKS LTD (CRNT) is 5 / 10.