CIENA CORP (CIEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIEN - US1717793095 - Common Stock
241.68 USD
+1.4 (+0.58%)
241.68 USD
0 (0%)
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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. CIEN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CIEN had positive earnings in the past year.
CIEN had a positive operating cash flow in the past year.
In the past 5 years CIEN has always been profitable.
Of the past 5 years CIEN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CIEN (2.10%) is better than 64.58% of its industry peers.
CIEN has a better Return On Equity (4.52%) than 62.50% of its industry peers.
CIEN has a Return On Invested Capital of 5.08%. This is in the better half of the industry: CIEN outperforms 68.75% of its industry peers.
CIEN had an Average Return On Invested Capital over the past 3 years of 4.76%. This is significantly below the industry average of 12.15%.
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
Looking at the Profit Margin, with a value of 2.59%, CIEN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
CIEN's Profit Margin has declined in the last couple of years.
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.
In the last couple of years the Operating Margin of CIEN has declined.
CIEN's Gross Margin of 42.04% is in line compared to the rest of the industry. CIEN outperforms 52.08% of its industry peers.
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.
CIEN has less shares outstanding than it did 1 year ago.
Compared to 5 years ago, CIEN has less shares outstanding
The debt/assets ratio for CIEN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 7.22 indicates that CIEN is not in any danger for bankruptcy at the moment.
CIEN's Altman-Z score of 7.22 is amongst the best of the industry. CIEN outperforms 87.50% 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.
CIEN has a better Debt to FCF ratio (2.31) than 60.42% of its industry peers.
CIEN has a Debt/Equity ratio of 0.56. This is a neutral value indicating CIEN is somewhat dependend on debt financing.
CIEN has a Debt to Equity ratio of 0.56. This is in the lower half of the industry: CIEN underperforms 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 | 7.22 |
ROIC/WACC0.54
WACC9.33%
2.3 Liquidity
A Current Ratio of 2.73 indicates that CIEN has no problem at all paying its short term obligations.
The Current ratio of CIEN (2.73) is better than 72.92% of its industry peers.
A Quick Ratio of 2.12 indicates that CIEN has no problem at all paying its short term obligations.
The Quick ratio of CIEN (2.12) is better than 75.00% of its industry peers.
| 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.
Measured over the past years, CIEN shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.13% on average per year.
The Revenue has grown by 18.79% in the past year. This is quite good.
Measured over the past years, CIEN shows a small growth in Revenue. The Revenue has been growing by 6.19% on average per year.
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
Based on estimates for the next years, CIEN will show a very strong growth in Earnings Per Share. The EPS will grow by 48.77% on average per year.
Based on estimates for the next years, CIEN will show a quite strong growth in Revenue. The Revenue will grow by 11.50% on average per year.
EPS Next Y106.21%
EPS Next 2Y62.18%
EPS Next 3Y48.77%
EPS Next 5YN/A
Revenue Next Year26.29%
Revenue Next 2Y21%
Revenue Next 3Y18.49%
Revenue Next 5Y11.5%
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
CIEN is valuated quite expensively with a Price/Earnings ratio of 91.55.
CIEN's Price/Earnings ratio is in line with the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.92, CIEN is valued quite expensively.
With a Price/Forward Earnings ratio of 44.39, CIEN can be considered very expensive at the moment.
CIEN's Price/Forward Earnings is on the same level as the industry average.
The average S&P500 Price/Forward Earnings ratio is at 23.46. CIEN is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91.55 | ||
| Fwd PE | 44.39 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIEN is on the same level as its industry peers.
The rest of the industry has a similar Price/Free Cash Flow ratio as CIEN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 51.24 | ||
| EV/EBITDA | 75.59 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CIEN's earnings are expected to grow with 48.77% in the coming years.
PEG (NY)0.86
PEG (5Y)N/A
EPS Next 2Y62.18%
EPS Next 3Y48.77%
5. Dividend
5.1 Amount
No dividends for CIEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
241.68
+1.4 (+0.58%)
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 Change7.02%
Market Cap34.09B
Revenue(TTM)4.77B
Net Income(TTM)123.34M
Analysts81.67
Price Target250.43 (3.62%)
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)65.28%
PT rev (3m)99.09%
EPS NQ rev (1m)43.14%
EPS NQ rev (3m)43.14%
EPS NY rev (1m)22.52%
EPS NY rev (3m)23.18%
Revenue NQ rev (1m)11.69%
Revenue NQ rev (3m)12.57%
Revenue NY rev (1m)8.11%
Revenue NY rev (3m)8.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 91.55 | ||
| Fwd PE | 44.39 | ||
| P/S | 7.15 | ||
| P/FCF | 51.24 | ||
| P/OCF | 42.29 | ||
| P/B | 12.49 | ||
| P/tB | 17.18 | ||
| EV/EBITDA | 75.59 |
EPS(TTM)2.64
EY1.09%
EPS(NY)5.44
Fwd EY2.25%
FCF(TTM)4.72
FCFY1.95%
OCF(TTM)5.71
OCFY2.36%
SpS33.81
BVpS19.35
TBVpS14.06
PEG (NY)0.86
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 | 2.12 | ||
| Altman-Z | 7.22 |
F-Score7
WACC9.33%
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 2Y62.18%
EPS Next 3Y48.77%
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%
Revenue Next 3Y18.49%
Revenue Next 5Y11.5%
EBIT growth 1Y62.04%
EBIT growth 3Y6.51%
EBIT growth 5Y-9.56%
EBIT Next Year128.95%
EBIT Next 3Y50.34%
EBIT Next 5Y27.35%
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.