CERAGON NETWORKS LTD (CRNT) Stock Fundamental Analysis
USA - NASDAQ:CRNT - IL0010851660 - Common Stock
2.37 USD
+0.01 (+0.42%)
2.37 USD
0 (0%)
Overall CRNT gets a fundamental rating of 4 out of 10. We evaluated CRNT against 48 industry peers in the Communications Equipment industry. CRNT has only an average score on both its financial health and profitability. CRNT has a valuation in line with the averages, but it does not seem to be growing.
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.
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
Looking at the Return On Assets, with a value of 4.14%, CRNT is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
Looking at the Return On Equity, with a value of 7.91%, CRNT is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
The Return On Invested Capital of CRNT (10.39%) is better 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
Looking at the Profit Margin, with a value of 3.57%, CRNT is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
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.
CRNT has a Gross Margin of 34.87%. This is in the lower half of the industry: CRNT underperforms 60.42% of its industry peers.
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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CRNT is 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.
The debt/assets ratio for CRNT has been reduced compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 1.63, we must say that CRNT is in the distress zone and has some risk of bankruptcy.
CRNT's Altman-Z score of 1.63 is in line compared to the rest of the industry. CRNT outperforms 56.25% of 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.
A Debt/Equity ratio of 0.12 indicates that CRNT is not too dependend on debt financing.
CRNT's Debt to Equity ratio of 0.12 is in line compared to the rest of the industry. CRNT outperforms 58.33% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 1.63 |
ROIC/WACC1.14
WACC9.08%
2.3 Liquidity
A Current Ratio of 1.86 indicates that CRNT should not have too much problems paying its short term obligations.
The Current ratio of CRNT (1.86) is comparable to the rest of the 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.
Looking at the Quick ratio, with a value of 1.38, CRNT is in line with its industry, outperforming 43.75% of the companies in the same industry.
| 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
CRNT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.06%.
CRNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
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
The Earnings Per Share is expected to decrease by -14.64% on average over the next years. This is quite bad
Based on estimates for the next years, CRNT will show a decrease in Revenue. The Revenue will decrease by -3.40% on average per year.
EPS Next Y-69.03%
EPS Next 2Y-25.77%
EPS Next 3Y-14.64%
EPS Next 5YN/A
Revenue Next Year-13.17%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CRNT is valuated cheaply with a Price/Earnings ratio of 7.65.
Based on the Price/Earnings ratio, CRNT is valued cheaper than 95.83% of the companies in the same industry.
CRNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 27.54.
Based on the Price/Forward Earnings ratio of 10.49, the valuation of CRNT can be described as reasonable.
Based on the Price/Forward Earnings ratio, CRNT is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
When comparing the Price/Forward Earnings ratio of CRNT to the average of the S&P500 Index (23.05), we can say CRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.65 | ||
| Fwd PE | 10.49 |
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 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 18.42 | ||
| EV/EBITDA | 3.91 |
4.3 Compensation for Growth
A cheap valuation may be justified as CRNT's earnings are expected to decrease with -14.64% in the coming years.
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 |
2.37
+0.01 (+0.42%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners20.53%
Inst Owner Change8.94%
Ins Owners13.85%
Ins Owner ChangeN/A
Market Cap213.04M
Analysts81.82
Price Target4.85 (104.64%)
Short Float %2.78%
Short Ratio2.66
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)-67.12%
EPS NY rev (1m)-34.3%
EPS NY rev (3m)-55.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-20.33%
Revenue NY rev (1m)-2.97%
Revenue NY rev (3m)-14.5%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.65 | ||
| Fwd PE | 10.49 | ||
| P/S | 0.56 | ||
| P/FCF | 18.42 | ||
| P/OCF | 7.55 | ||
| P/B | 1.24 | ||
| P/tB | 1.54 | ||
| EV/EBITDA | 3.91 |
EPS(TTM)0.31
EY13.08%
EPS(NY)0.23
Fwd EY9.53%
FCF(TTM)0.13
FCFY5.43%
OCF(TTM)0.31
OCFY13.25%
SpS4.23
BVpS1.91
TBVpS1.54
PEG (NY)N/A
PEG (5Y)0.07
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 | 1.63 |
F-Score6
WACC9.08%
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-69.03%
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-13.17%
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