CIENA CORP (CIEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIEN - US1717793095 - Common Stock
230.34 USD
+19.63 (+9.32%)
230.3 USD
-0.04 (-0.02%)
Taking everything into account, CIEN scores 5 out of 10 in our fundamental rating. CIEN was compared to 48 industry peers in the Communications Equipment industry. While CIEN has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, CIEN is valued expensive at the moment.
1. Profitability
1.1 Basic Checks
In the past year CIEN was profitable.
CIEN had a positive operating cash flow in the past year.
In the past 5 years CIEN has always been profitable.
CIEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
The Return On Assets of CIEN (2.10%) is better than 62.50% of its industry peers.
Looking at the Return On Equity, with a value of 4.52%, CIEN is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
The Return On Invested Capital of CIEN (5.08%) is better than 68.75% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for CIEN is significantly below the industry average of 12.35%.
The 3 year average ROIC (4.76%) for CIEN is below the current ROIC(5.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.52% | ||
| ROIC | 5.08% |
ROA(3y)2.71%
ROA(5y)4.29%
ROE(3y)5.48%
ROE(5y)7.73%
ROIC(3y)4.76%
ROIC(5y)5.64%
1.3 Margins
With a decent Profit Margin value of 2.59%, CIEN is doing good in the industry, outperforming 60.42% of the companies in the same industry.
CIEN's Profit Margin has declined in the last couple of years.
Looking at the Operating Margin, with a value of 6.52%, CIEN is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
CIEN's Operating Margin has declined in the last couple of years.
With a Gross Margin value of 42.04%, CIEN perfoms like the industry average, outperforming 52.08% of the companies in the same industry.
CIEN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.52% | ||
| PM (TTM) | 2.59% | ||
| GM | 42.04% |
OM growth 3Y-2.73%
OM growth 5Y-14.83%
PM growth 3Y-14.99%
PM growth 5Y-24.04%
GM growth 3Y-0.72%
GM growth 5Y-2.12%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CIEN is destroying value.
Compared to 1 year ago, CIEN has less shares outstanding
CIEN has less shares outstanding than it did 5 years ago.
The debt/assets ratio for CIEN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.38 indicates that CIEN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.38, CIEN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
The Debt to FCF ratio of CIEN is 2.31, which is a good value as it means it would take CIEN, 2.31 years of fcf income to pay off all of its debts.
With a Debt to FCF ratio value of 2.31, CIEN perfoms like the industry average, outperforming 58.33% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that CIEN is somewhat dependend on debt financing.
The Debt to Equity ratio of CIEN (0.56) is worse than 75.00% of its industry peers.
Even though the debt/equity ratio score it not favorable for CIEN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 6.38 |
ROIC/WACC0.55
WACC9.2%
2.3 Liquidity
A Current Ratio of 2.73 indicates that CIEN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.73, CIEN is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
CIEN has a Quick Ratio of 2.09. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CIEN (2.09) is better than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.09 |
3. Growth
3.1 Past
CIEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.05%, which is quite impressive.
CIEN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.13% yearly.
CIEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.79%.
The Revenue has been growing slightly by 6.19% on average over the past years.
EPS 1Y (TTM)45.05%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%68.52%
Revenue 1Y (TTM)18.79%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%20.27%
3.2 Future
The Earnings Per Share is expected to grow by 44.75% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.51% on average over the next years. This is quite good.
EPS Next Y68.31%
EPS Next 2Y47.05%
EPS Next 3Y44.75%
EPS Next 5YN/A
Revenue Next Year16.89%
Revenue Next 2Y14.79%
Revenue Next 3Y15.36%
Revenue Next 5Y11.51%
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 accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
CIEN is valuated quite expensively with a Price/Earnings ratio of 87.25.
Compared to the rest of the industry, the Price/Earnings ratio of CIEN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CIEN to the average of the S&P500 Index (26.38), we can say CIEN is valued expensively.
Based on the Price/Forward Earnings ratio of 51.84, the valuation of CIEN can be described as expensive.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CIEN is on the same level as its industry peers.
Compared to an average S&P500 Price/Forward Earnings ratio of 23.83, CIEN is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.25 | ||
| Fwd PE | 51.84 |
4.2 Price Multiples
CIEN's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CIEN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 48.84 | ||
| EV/EBITDA | 65.91 |
4.3 Compensation for Growth
The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CIEN's earnings are expected to grow with 44.75% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.28
PEG (5Y)N/A
EPS Next 2Y47.05%
EPS Next 3Y44.75%
5. Dividend
5.1 Amount
CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
230.34
+19.63 (+9.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.06%
Inst Owner Change-1.56%
Ins Owners0.57%
Ins Owner Change-1.67%
Market Cap32.49B
Revenue(TTM)4.77B
Net Income(TTM)123.34M
Analysts81.67
Price Target154.58 (-32.89%)
Short Float %4.58%
Short Ratio2.06
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
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)2
Avg EPS beat(2)20.21%
Min EPS beat(2)15.65%
Max EPS beat(2)24.77%
EPS beat(4)3
Avg EPS beat(4)18.11%
Min EPS beat(4)-20.72%
Max EPS beat(4)52.75%
EPS beat(8)6
Avg EPS beat(8)24.95%
EPS beat(12)10
Avg EPS beat(12)26.08%
EPS beat(16)12
Avg EPS beat(16)61.49%
Revenue beat(2)2
Avg Revenue beat(2)2.22%
Min Revenue beat(2)1.7%
Max Revenue beat(2)2.73%
Revenue beat(4)3
Avg Revenue beat(4)1.38%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)2.73%
Revenue beat(8)3
Avg Revenue beat(8)0.56%
Revenue beat(12)7
Avg Revenue beat(12)1.35%
Revenue beat(16)8
Avg Revenue beat(16)1.05%
PT rev (1m)6.26%
PT rev (3m)22.9%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-0.26%
EPS NY rev (1m)0%
EPS NY rev (3m)10.34%
Revenue NQ rev (1m)-0.08%
Revenue NQ rev (3m)-0.08%
Revenue NY rev (1m)0%
Revenue NY rev (3m)0%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 87.25 | ||
| Fwd PE | 51.84 | ||
| P/S | 6.81 | ||
| P/FCF | 48.84 | ||
| P/OCF | 40.31 | ||
| P/B | 11.9 | ||
| P/tB | 16.38 | ||
| EV/EBITDA | 65.91 |
EPS(TTM)2.64
EY1.15%
EPS(NY)4.44
Fwd EY1.93%
FCF(TTM)4.72
FCFY2.05%
OCF(TTM)5.71
OCFY2.48%
SpS33.81
BVpS19.35
TBVpS14.06
PEG (NY)1.28
PEG (5Y)N/A
Graham Number33.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.52% | ||
| ROCE | 6.82% | ||
| ROIC | 5.08% | ||
| ROICexc | 7.13% | ||
| ROICexgc | 9.25% | ||
| OM | 6.52% | ||
| PM (TTM) | 2.59% | ||
| GM | 42.04% | ||
| FCFM | 13.95% |
ROA(3y)2.71%
ROA(5y)4.29%
ROE(3y)5.48%
ROE(5y)7.73%
ROIC(3y)4.76%
ROIC(5y)5.64%
ROICexc(3y)6.46%
ROICexc(5y)8.29%
ROICexgc(3y)8.08%
ROICexgc(5y)10.06%
ROCE(3y)6.39%
ROCE(5y)7.57%
ROICexgc growth 3Y6.23%
ROICexgc growth 5Y-15.58%
ROICexc growth 3Y2.33%
ROICexc growth 5Y-16.48%
OM growth 3Y-2.73%
OM growth 5Y-14.83%
PM growth 3Y-14.99%
PM growth 5Y-24.04%
GM growth 3Y-0.72%
GM growth 5Y-2.12%
F-Score7
Asset Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 100.33% | ||
| Cap/Sales | 2.95% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 178.68% | ||
| Profit Quality | 539.41% | ||
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.09 | ||
| Altman-Z | 6.38 |
F-Score7
WACC9.2%
ROIC/WACC0.55
Cap/Depr(3y)92.47%
Cap/Depr(5y)80.47%
Cap/Sales(3y)2.93%
Cap/Sales(5y)2.69%
Profit Quality(3y)337.97%
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)45.05%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%68.52%
EPS Next Y68.31%
EPS Next 2Y47.05%
EPS Next 3Y44.75%
EPS Next 5YN/A
Revenue 1Y (TTM)18.79%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%20.27%
Revenue Next Year16.89%
Revenue Next 2Y14.79%
Revenue Next 3Y15.36%
Revenue Next 5Y11.51%
EBIT growth 1Y62.04%
EBIT growth 3Y6.51%
EBIT growth 5Y-9.56%
EBIT Next Year89.03%
EBIT Next 3Y32.9%
EBIT Next 5Y27.43%
FCF growth 1Y76.05%
FCF growth 3YN/A
FCF growth 5Y10.11%
OCF growth 1Y56.67%
OCF growth 3YN/A
OCF growth 5Y10.3%
CIENA CORP / CIEN FAQ
Can you provide the ChartMill fundamental rating for CIENA CORP?
ChartMill assigns a fundamental rating of 5 / 10 to CIEN.
What is the valuation status of CIENA CORP (CIEN) stock?
ChartMill assigns a valuation rating of 3 / 10 to CIENA CORP (CIEN). This can be considered as Overvalued.
What is the profitability of CIEN stock?
CIENA CORP (CIEN) has a profitability rating of 5 / 10.
How financially healthy is CIENA CORP?
The financial health rating of CIENA CORP (CIEN) is 7 / 10.