CIENA CORP (CIEN) Stock Fundamental Analysis
NYSE:CIEN • US1717793095
302.33 USD
-1.59 (-0.52%)
At close: Feb 17, 2026
302 USD
-0.33 (-0.11%)
After Hours: 2/17/2026, 8:05:10 PM
We assign a fundamental rating of 5 out of 10 to CIEN. CIEN was compared to 48 industry peers in the Communications Equipment industry. CIEN has an excellent financial health rating, but there are some minor concerns on its profitability. 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.
- CIEN had positive earnings in each of the past 5 years.
- Of the past 5 years CIEN 4 years had a positive operating cash flow.
1.2 Ratios
- CIEN has a better Return On Assets (2.10%) than 62.50% of its industry peers.
- The Return On Equity of CIEN (4.52%) is better than 62.50% of its industry peers.
- The Return On Invested Capital of CIEN (5.08%) is better than 68.75% of its industry peers.
- The Average Return On Invested Capital over the past 3 years for CIEN is significantly below the industry average of 11.27%.
- The last Return On Invested Capital (5.08%) for CIEN is above the 3 year average (4.76%), which is a sign of increasing profitability.
| 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
- CIEN has a Profit Margin of 2.59%. This is in the better half of the industry: CIEN outperforms 60.42% of its industry peers.
- In the last couple of years the Profit Margin of CIEN has declined.
- CIEN has a Operating Margin of 6.52%. This is in the better half of the industry: CIEN outperforms 70.83% of its industry peers.
- CIEN's Operating Margin has declined in the last couple of years.
- CIEN has a Gross Margin (42.04%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of CIEN has declined.
| 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
- CIEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
- The number of shares outstanding for CIEN has been reduced compared to 1 year ago.
- The number of shares outstanding for CIEN has been reduced compared to 5 years ago.
- Compared to 1 year ago, CIEN has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 8.84 indicates that CIEN is not in any danger for bankruptcy at the moment.
- CIEN's Altman-Z score of 8.84 is amongst the best of the industry. CIEN outperforms 85.42% of its industry peers.
- CIEN has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as CIEN would need 2.31 years to pay back of all of its debts.
- With a decent Debt to FCF ratio value of 2.31, CIEN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- A Debt/Equity ratio of 0.56 indicates that CIEN is somewhat dependend on debt financing.
- Looking at the Debt to Equity ratio, with a value of 0.56, CIEN is doing worse than 75.00% of the companies in the same industry.
- Although CIEN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 8.84 |
ROIC/WACC0.54
WACC9.37%
2.3 Liquidity
- CIEN has a Current Ratio of 2.73. This indicates that CIEN is financially healthy and has no problem in meeting 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 75.00% of the companies in the same industry.
- A Quick Ratio of 2.12 indicates that CIEN has no problem at all paying its short term obligations.
- Looking at the Quick ratio, with a value of 2.12, CIEN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.12 |
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.
- The Earnings Per Share has been decreasing by -2.13% on average over the past years.
- The Revenue has grown by 18.79% in the past year. This is quite good.
- CIEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.19% yearly.
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 48.40% on average over the next years. This is a very strong growth
- Based on estimates for the next years, CIEN will show a quite strong growth in Revenue. The Revenue will grow by 14.43% on average per year.
EPS Next Y106.21%
EPS Next 2Y61.93%
EPS Next 3Y48.4%
EPS Next 5YN/A
Revenue Next Year26.29%
Revenue Next 2Y21.07%
Revenue Next 3Y18.51%
Revenue Next 5Y14.43%
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.
- When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
- Based on the Price/Earnings ratio of 114.52, the valuation of CIEN can be described as expensive.
- The rest of the industry has a similar Price/Earnings ratio as CIEN.
- Compared to an average S&P500 Price/Earnings ratio of 27.16, CIEN is valued quite expensively.
- The Price/Forward Earnings ratio is 55.53, which means the current valuation is very expensive for CIEN.
- CIEN's Price/Forward Earnings is on the same level as the industry average.
- CIEN is valuated expensively when we compare the Price/Forward Earnings ratio to 28.10, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.52 | ||
| Fwd PE | 55.53 |
4.2 Price Multiples
- CIEN's Enterprise Value to EBITDA is on the same level as 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 | 64.01 | ||
| EV/EBITDA | 94.42 |
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 48.40% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.08
PEG (5Y)N/A
EPS Next 2Y61.93%
EPS Next 3Y48.4%
5. Dividend
5.1 Amount
- CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
302.33
-1.59 (-0.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)12-11 2025-12-11/bmo
Earnings (Next)03-05 2026-03-05/bmo
Inst Owners102.21%
Inst Owner Change11.28%
Ins Owners0.74%
Ins Owner Change0.52%
Market Cap42.58B
Revenue(TTM)4.77B
Net Income(TTM)123.34M
Analysts78.33
Price Target251.06 (-16.96%)
Short Float %3.04%
Short Ratio1.23
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)0.25%
PT rev (3m)72.59%
EPS NQ rev (1m)0%
EPS NQ rev (3m)43.14%
EPS NY rev (1m)0%
EPS NY rev (3m)22.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 114.52 | ||
| Fwd PE | 55.53 | ||
| P/S | 8.93 | ||
| P/FCF | 64.01 | ||
| P/OCF | 52.83 | ||
| P/B | 15.6 | ||
| P/tB | 21.46 | ||
| EV/EBITDA | 94.42 |
EPS(TTM)2.64
EY0.87%
EPS(NY)5.44
Fwd EY1.8%
FCF(TTM)4.72
FCFY1.56%
OCF(TTM)5.72
OCFY1.89%
SpS33.86
BVpS19.38
TBVpS14.09
PEG (NY)1.08
PEG (5Y)N/A
Graham Number33.93
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 | 2.12 | ||
| Altman-Z | 8.84 |
F-Score7
WACC9.37%
ROIC/WACC0.54
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 Y106.21%
EPS Next 2Y61.93%
EPS Next 3Y48.4%
EPS Next 5YN/A
Revenue 1Y (TTM)18.79%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%20.27%
Revenue Next Year26.29%
Revenue Next 2Y21.07%
Revenue Next 3Y18.51%
Revenue Next 5Y14.43%
EBIT growth 1Y62.04%
EBIT growth 3Y6.51%
EBIT growth 5Y-9.56%
EBIT Next Year128.95%
EBIT Next 3Y50.34%
EBIT Next 5Y28.36%
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 for CIEN stock?
ChartMill assigns a valuation rating of 3 / 10 to CIENA CORP (CIEN). This can be considered as Overvalued.
Can you provide the profitability details for CIENA CORP?
CIENA CORP (CIEN) has a profitability rating of 5 / 10.
What is the financial health of CIENA CORP (CIEN) stock?
The financial health rating of CIENA CORP (CIEN) is 8 / 10.