CIENA CORP (CIEN) Fundamental Analysis & Valuation
NYSE:CIEN • US1717793095
Current stock price
447.88 USD
+13.62 (+3.14%)
At close:
475.475 USD
+27.6 (+6.16%)
After Hours:
This CIEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.
1. CIEN Profitability Analysis
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.
- CIEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- CIEN's Return On Assets of 3.89% is fine compared to the rest of the industry. CIEN outperforms 72.34% of its industry peers.
- With a decent Return On Equity value of 8.20%, CIEN is doing good in the industry, outperforming 74.47% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 6.75%, CIEN is in the better half of the industry, outperforming 76.60% of the companies in the same industry.
- The Average Return On Invested Capital over the past 3 years for CIEN is significantly below the industry average of 10.21%.
- The last Return On Invested Capital (6.75%) for CIEN is above the 3 year average (4.76%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 8.2% | ||
| ROIC | 6.75% |
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 4.47%, CIEN is doing good in the industry, outperforming 68.09% 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 8.19%. This is in the better half of the industry: CIEN outperforms 78.72% of its industry peers.
- CIEN's Operating Margin has declined in the last couple of years.
- CIEN has a Gross Margin of 42.13%. This is comparable to the rest of the industry: CIEN outperforms 44.68% of its industry peers.
- CIEN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.19% | ||
| PM (TTM) | 4.47% | ||
| GM | 42.13% |
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. CIEN Health Analysis
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.
- The debt/assets ratio for CIEN has been reduced compared to a year ago.
2.2 Solvency
- CIEN has an Altman-Z score of 12.74. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
- CIEN has a better Altman-Z score (12.74) than 89.36% of its industry peers.
- CIEN has a debt to FCF ratio of 2.08. This is a good value and a sign of high solvency as CIEN would need 2.08 years to pay back of all of its debts.
- CIEN has a better Debt to FCF ratio (2.08) than 61.70% of its industry peers.
- CIEN has a Debt/Equity ratio of 0.55. This is a neutral value indicating CIEN is somewhat dependend on debt financing.
- CIEN's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. CIEN is outperformed by 76.60% of its industry peers.
- Although CIEN's pure debt/equity ratio does not look good, it has limited outstanding debt compared to the Free Cash Flow. 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 | 0.55 | ||
| Debt/FCF | 2.08 | ||
| Altman-Z | 12.74 |
ROIC/WACC0.76
WACC8.86%
2.3 Liquidity
- A Current Ratio of 2.81 indicates that CIEN has no problem at all paying its short term obligations.
- CIEN has a better Current ratio (2.81) than 74.47% of its industry peers.
- A Quick Ratio of 2.18 indicates that CIEN has no problem at all paying its short term obligations.
- CIEN's Quick ratio of 2.18 is fine compared to the rest of the industry. CIEN outperforms 68.09% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.18 |
3. CIEN Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 86.11% over the past year.
- CIEN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.13% yearly.
- The Revenue has grown by 26.54% in the past year. This is a very strong growth!
- The Revenue has been growing slightly by 6.19% on average over the past years.
EPS 1Y (TTM)86.11%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%110.94%
Revenue 1Y (TTM)26.54%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%33.08%
3.2 Future
- The Earnings Per Share is expected to grow by 49.14% on average over the next years. This is a very strong growth
- The Revenue is expected to grow by 14.43% on average over the next years. This is quite good.
EPS Next Y106.21%
EPS Next 2Y62.32%
EPS Next 3Y49.14%
EPS Next 5YN/A
Revenue Next Year29.89%
Revenue Next 2Y24.78%
Revenue Next 3Y23%
Revenue Next 5Y14.43%
3.3 Evolution
- The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
- 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. CIEN Valuation Analysis
4.1 Price/Earnings Ratio
- A Price/Earnings ratio of 133.70 indicates a quite expensive valuation of CIEN.
- The rest of the industry has a similar Price/Earnings ratio as CIEN.
- CIEN is valuated expensively when we compare the Price/Earnings ratio to 26.21, which is the current average of the S&P500 Index.
- A Price/Forward Earnings ratio of 64.39 indicates a quite expensive valuation of CIEN.
- The rest of the industry has a similar Price/Forward Earnings ratio as CIEN.
- The average S&P500 Price/Forward Earnings ratio is at 23.10. CIEN is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 133.7 | ||
| Fwd PE | 64.39 |
4.2 Price Multiples
- Based on the Enterprise Value to EBITDA ratio, CIEN is valued a bit more expensive than the industry average as 61.70% of the companies are valued more cheaply.
- 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 | 85.33 | ||
| EV/EBITDA | 107.74 |
4.3 Compensation for Growth
- CIEN's 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 49.14% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.26
PEG (5Y)N/A
EPS Next 2Y62.32%
EPS Next 3Y49.14%
5. CIEN Dividend Analysis
5.1 Amount
- No dividends for CIEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CIEN Fundamentals: All Metrics, Ratios and Statistics
447.88
+13.62 (+3.14%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)03-05 2026-03-05/bmo
Earnings (Next)06-03 2026-06-03/bmo
Inst Owners99.41%
Inst Owner Change0.01%
Ins Owners0.57%
Ins Owner Change0.66%
Market Cap63.33B
Revenue(TTM)5.12B
Net Income(TTM)229.05M
Analysts80
Price Target354.01 (-20.96%)
Short Float %3.6%
Short Ratio1.39
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)14.38%
Min EPS beat(2)13.12%
Max EPS beat(2)15.65%
EPS beat(4)3
Avg EPS beat(4)8.2%
Min EPS beat(4)-20.72%
Max EPS beat(4)24.77%
EPS beat(8)6
Avg EPS beat(8)22.4%
EPS beat(12)10
Avg EPS beat(12)21.03%
EPS beat(16)12
Avg EPS beat(16)62.17%
Revenue beat(2)1
Avg Revenue beat(2)1.37%
Min Revenue beat(2)0%
Max Revenue beat(2)2.73%
Revenue beat(4)3
Avg Revenue beat(4)1.4%
Min Revenue beat(4)0%
Max Revenue beat(4)2.73%
Revenue beat(8)3
Avg Revenue beat(8)0.58%
Revenue beat(12)6
Avg Revenue beat(12)0.69%
Revenue beat(16)8
Avg Revenue beat(16)1.27%
PT rev (1m)35.6%
PT rev (3m)41.36%
EPS NQ rev (1m)20.81%
EPS NQ rev (3m)20.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)4.57%
Revenue NQ rev (3m)4.57%
Revenue NY rev (1m)2.85%
Revenue NY rev (3m)2.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 133.7 | ||
| Fwd PE | 64.39 | ||
| P/S | 12.36 | ||
| P/FCF | 85.33 | ||
| P/OCF | 68.1 | ||
| P/B | 22.68 | ||
| P/tB | 30.77 | ||
| EV/EBITDA | 107.74 |
EPS(TTM)3.35
EY0.75%
EPS(NY)6.96
Fwd EY1.55%
FCF(TTM)5.25
FCFY1.17%
OCF(TTM)6.58
OCFY1.47%
SpS36.24
BVpS19.75
TBVpS14.55
PEG (NY)1.26
PEG (5Y)N/A
Graham Number38.58
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 3.89% | ||
| ROE | 8.2% | ||
| ROCE | 9.06% | ||
| ROIC | 6.75% | ||
| ROICexc | 9.38% | ||
| ROICexgc | 12.03% | ||
| OM | 8.19% | ||
| PM (TTM) | 4.47% | ||
| GM | 42.13% | ||
| FCFM | 14.48% |
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 Turnover0.87
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.08 | ||
| Debt/EBITDA | 2.67 | ||
| Cap/Depr | 124.61% | ||
| Cap/Sales | 3.66% | ||
| Interest Coverage | 5.48 | ||
| Cash Conversion | 163.01% | ||
| Profit Quality | 324.04% | ||
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.18 | ||
| Altman-Z | 12.74 |
F-Score7
WACC8.86%
ROIC/WACC0.76
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)86.11%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%110.94%
EPS Next Y106.21%
EPS Next 2Y62.32%
EPS Next 3Y49.14%
EPS Next 5YN/A
Revenue 1Y (TTM)26.54%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%33.08%
Revenue Next Year29.89%
Revenue Next 2Y24.78%
Revenue Next 3Y23%
Revenue Next 5Y14.43%
EBIT growth 1Y127.64%
EBIT growth 3Y6.51%
EBIT growth 5Y-9.56%
EBIT Next Year130.14%
EBIT Next 3Y53.26%
EBIT Next 5Y28.36%
FCF growth 1Y22.23%
FCF growth 3YN/A
FCF growth 5Y10.11%
OCF growth 1Y32.86%
OCF growth 3YN/A
OCF growth 5Y10.3%
CIENA CORP / CIEN Fundamental Analysis FAQ
Can you provide the ChartMill fundamental rating for CIENA CORP?
ChartMill assigns a fundamental rating of 6 / 10 to CIEN.
Can you provide the valuation status for CIENA CORP?
ChartMill assigns a valuation rating of 2 / 10 to CIENA CORP (CIEN). This can be considered as Overvalued.
How profitable is CIENA CORP (CIEN) stock?
CIENA CORP (CIEN) has a profitability rating of 5 / 10.
Can you provide the financial health for CIEN stock?
The financial health rating of CIENA CORP (CIEN) is 8 / 10.
What is the expected EPS growth for CIENA CORP (CIEN) stock?
The Earnings per Share (EPS) of CIENA CORP (CIEN) is expected to grow by 106.21% in the next year.