CIENA CORP (CIEN) Stock Fundamental Analysis
USA - NYSE:CIEN - US1717793095 - Common Stock
189.33 USD
-0.59 (-0.31%)
CIEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. CIEN has an excellent financial health rating, but there are some minor concerns on its profitability. CIEN is valied quite expensively at the moment, while 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.
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
The Return On Assets of CIEN (2.45%) is better than 62.50% of its industry peers.
CIEN has a Return On Equity of 5.05%. This is in the better half of the industry: CIEN outperforms 68.75% of its industry peers.
CIEN has a better Return On Invested Capital (4.09%) than 64.58% 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 13.03%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 5.05% | ||
| ROIC | 4.09% |
ROA(3y)3.02%
ROA(5y)5.6%
ROE(3y)5.85%
ROE(5y)9.7%
ROIC(3y)4.65%
ROIC(5y)6.85%
1.3 Margins
CIEN's Profit Margin of 3.10% is fine compared to the rest of the industry. CIEN outperforms 62.50% of its industry peers.
CIEN's Profit Margin has declined in the last couple of years.
The Operating Margin of CIEN (5.60%) is better than 64.58% of its industry peers.
In the last couple of years the Operating Margin of CIEN has declined.
CIEN has a Gross Margin (41.57%) which is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CIEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 5.6% | ||
| PM (TTM) | 3.1% | ||
| GM | 41.57% |
OM growth 3Y-29.22%
OM growth 5Y-14.61%
PM growth 3Y-46.71%
PM growth 5Y-21.68%
GM growth 3Y-3.3%
GM growth 5Y-0.16%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CIEN is destroying value.
The number of shares outstanding for CIEN has been reduced compared to 1 year ago.
Compared to 5 years ago, CIEN has less shares outstanding
CIEN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.12 indicates that CIEN is not in any danger for bankruptcy at the moment.
The Altman-Z score of CIEN (6.12) is better than 79.17% of its industry peers.
The Debt to FCF ratio of CIEN is 2.54, which is a good value as it means it would take CIEN, 2.54 years of fcf income to pay off all of its debts.
CIEN's Debt to FCF ratio of 2.54 is fine compared to the rest of the industry. CIEN outperforms 60.42% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that CIEN is somewhat dependend on debt financing.
CIEN has a worse Debt to Equity ratio (0.55) than 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 6.12 |
ROIC/WACC0.45
WACC9.05%
2.3 Liquidity
A Current Ratio of 3.28 indicates that CIEN has no problem at all paying its short term obligations.
CIEN's Current ratio of 3.28 is fine compared to the rest of the industry. CIEN outperforms 79.17% of its industry peers.
A Quick Ratio of 2.55 indicates that CIEN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.55, CIEN is in the better half of the industry, outperforming 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.28 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
CIEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.82%, which is quite good.
CIEN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.82% yearly.
Looking at the last year, CIEN shows a quite strong growth in Revenue. The Revenue has grown by 12.97% in the last year.
CIEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.36% yearly.
EPS 1Y (TTM)11.82%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%91.43%
Revenue 1Y (TTM)12.97%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%29.4%
3.2 Future
The Earnings Per Share is expected to grow by 37.02% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 12.75% on average over the next years. This is quite good.
EPS Next Y39.83%
EPS Next 2Y56.25%
EPS Next 3Y45.68%
EPS Next 5Y37.02%
Revenue Next Year17.84%
Revenue Next 2Y17.37%
Revenue Next 3Y15.42%
Revenue Next 5Y12.75%
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
The Price/Earnings ratio is 83.41, which means the current valuation is very expensive for CIEN.
The rest of the industry has a similar Price/Earnings ratio as CIEN.
When comparing the Price/Earnings ratio of CIEN to the average of the S&P500 Index (26.11), we can say CIEN is valued expensively.
The Price/Forward Earnings ratio is 42.61, which means the current valuation is very expensive for CIEN.
CIEN's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.55, CIEN is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.41 | ||
| Fwd PE | 42.61 |
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 | 44.1 | ||
| EV/EBITDA | 68.39 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates CIEN does not grow enough to justify the current Price/Earnings ratio.
CIEN's earnings are expected to grow with 45.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.09
PEG (5Y)N/A
EPS Next 2Y56.25%
EPS Next 3Y45.68%
5. Dividend
5.1 Amount
CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
NYSE:CIEN (11/3/2025, 10:41:02 AM)
189.33
-0.59 (-0.31%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change-0.58%
Ins Owners0.62%
Ins Owner Change-1.36%
Market Cap26.71B
Revenue(TTM)4.54B
Net Income(TTM)140.88M
Analysts80
Price Target145.47 (-23.17%)
Short Float %3.17%
Short Ratio1.65
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)2.02%
Min EPS beat(2)-20.72%
Max EPS beat(2)24.77%
EPS beat(4)2
Avg EPS beat(4)9.36%
Min EPS beat(4)-20.72%
Max EPS beat(4)52.75%
EPS beat(8)6
Avg EPS beat(8)23.81%
EPS beat(12)10
Avg EPS beat(12)81.27%
EPS beat(16)11
Avg EPS beat(16)60.35%
Revenue beat(2)2
Avg Revenue beat(2)1.43%
Min Revenue beat(2)1.16%
Max Revenue beat(2)1.7%
Revenue beat(4)2
Avg Revenue beat(4)0.66%
Min Revenue beat(4)-0.17%
Max Revenue beat(4)1.7%
Revenue beat(8)3
Avg Revenue beat(8)0.36%
Revenue beat(12)7
Avg Revenue beat(12)2.13%
Revenue beat(16)7
Avg Revenue beat(16)0.86%
PT rev (1m)15.65%
PT rev (3m)67.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.46%
EPS NY rev (1m)-0.01%
EPS NY rev (3m)10.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.76%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 83.41 | ||
| Fwd PE | 42.61 | ||
| P/S | 5.88 | ||
| P/FCF | 44.1 | ||
| P/OCF | 34.04 | ||
| P/B | 9.58 | ||
| P/tB | 12.12 | ||
| EV/EBITDA | 68.39 |
EPS(TTM)2.27
EY1.2%
EPS(NY)4.44
Fwd EY2.35%
FCF(TTM)4.29
FCFY2.27%
OCF(TTM)5.56
OCFY2.94%
SpS32.2
BVpS19.76
TBVpS15.62
PEG (NY)2.09
PEG (5Y)N/A
Graham Number31.77
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.45% | ||
| ROE | 5.05% | ||
| ROCE | 5.49% | ||
| ROIC | 4.09% | ||
| ROICexc | 5.73% | ||
| ROICexgc | 6.96% | ||
| OM | 5.6% | ||
| PM (TTM) | 3.1% | ||
| GM | 41.57% | ||
| FCFM | 13.33% |
ROA(3y)3.02%
ROA(5y)5.6%
ROE(3y)5.85%
ROE(5y)9.7%
ROIC(3y)4.65%
ROIC(5y)6.85%
ROICexc(3y)6.3%
ROICexc(5y)10.36%
ROICexgc(3y)7.56%
ROICexgc(5y)12.51%
ROCE(3y)6.25%
ROCE(5y)9.21%
ROICexgc growth 3Y-34.63%
ROICexgc growth 5Y-21.51%
ROICexc growth 3Y-35.14%
ROICexc growth 5Y-21.08%
OM growth 3Y-29.22%
OM growth 5Y-14.61%
PM growth 3Y-46.71%
PM growth 5Y-21.68%
GM growth 3Y-3.3%
GM growth 5Y-0.16%
F-Score6
Asset Turnover0.79
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.54 | ||
| Debt/EBITDA | 3.91 | ||
| Cap/Depr | 130.88% | ||
| Cap/Sales | 3.94% | ||
| Interest Coverage | 2.65 | ||
| Cash Conversion | 200.71% | ||
| Profit Quality | 429.83% | ||
| Current Ratio | 3.28 | ||
| Quick Ratio | 2.55 | ||
| Altman-Z | 6.12 |
F-Score6
WACC9.05%
ROIC/WACC0.45
Cap/Depr(3y)80.61%
Cap/Depr(5y)72.89%
Cap/Sales(3y)2.77%
Cap/Sales(5y)2.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)11.82%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%91.43%
EPS Next Y39.83%
EPS Next 2Y56.25%
EPS Next 3Y45.68%
EPS Next 5Y37.02%
Revenue 1Y (TTM)12.97%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%29.4%
Revenue Next Year17.84%
Revenue Next 2Y17.37%
Revenue Next 3Y15.42%
Revenue Next 5Y12.75%
EBIT growth 1Y11.21%
EBIT growth 3Y-26.74%
EBIT growth 5Y-12.59%
EBIT Next Year48.31%
EBIT Next 3Y38.25%
EBIT Next 5Y25.87%
FCF growth 1Y506.4%
FCF growth 3Y-6.48%
FCF growth 5Y1.52%
OCF growth 1Y1981.41%
OCF growth 3Y-1.69%
OCF growth 5Y4.49%
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 2 / 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.