CIENA CORP (CIEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIEN - US1717793095 - Common Stock
204.21 USD
+3.92 (+1.96%)
205.56 USD
+1.35 (+0.66%)
Overall CIEN gets a fundamental rating of 5 out of 10. We evaluated CIEN against 48 industry peers in the Communications Equipment industry. While CIEN has a great health rating, its profitability is only average at the moment. 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.
Each year in the past 5 years CIEN has 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 (2.45%) 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 62.50% of its industry peers.
CIEN has a Return On Invested Capital of 4.09%. This is in the better half of the industry: CIEN outperforms 62.50% of its industry peers.
CIEN had an Average Return On Invested Capital over the past 3 years of 4.65%. This is significantly below the industry average of 12.82%.
| 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 has a Profit Margin of 3.10%. This is in the better half of the industry: CIEN outperforms 62.50% of its industry peers.
CIEN's Profit Margin has declined in the last couple of years.
With a decent Operating Margin value of 5.60%, CIEN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
CIEN's Operating Margin has declined in the last couple of years.
CIEN's Gross Margin of 41.57% is in line compared to the rest of the industry. CIEN outperforms 52.08% of its industry peers.
CIEN's Gross Margin has been stable in the last couple of years.
| 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
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.
CIEN has a better debt/assets ratio than last year.
2.2 Solvency
An Altman-Z score of 6.42 indicates that CIEN is not in any danger for bankruptcy at the moment.
The Altman-Z score of CIEN (6.42) is better than 85.42% 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.
Looking at the Debt to FCF ratio, with a value of 2.54, CIEN is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
CIEN has a Debt/Equity ratio of 0.55. This is a neutral value indicating CIEN is somewhat dependend on debt financing.
The Debt to Equity ratio of CIEN (0.55) is worse than 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 6.42 |
ROIC/WACC0.44
WACC9.23%
2.3 Liquidity
A Current Ratio of 3.28 indicates that CIEN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.28, CIEN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
CIEN has a Quick Ratio of 2.55. This indicates that CIEN is financially healthy and has no problem in meeting 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 79.17% 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.
The Earnings Per Share has been decreasing by -2.82% on average over the past years.
Looking at the last year, CIEN shows a quite strong growth in Revenue. The Revenue has grown by 12.97% in the last year.
The Revenue has been growing slightly by 2.36% on average over the past years.
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
Based on estimates for the next years, CIEN will show a very strong growth in Earnings Per Share. The EPS will grow by 44.83% on average per year.
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 5Y44.83%
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.
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
The Price/Earnings ratio is 89.96, which means the current valuation is very expensive for CIEN.
CIEN's Price/Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Earnings ratio of 26.31, CIEN is valued quite expensively.
The Price/Forward Earnings ratio is 45.96, which means the current valuation is very expensive for CIEN.
CIEN's Price/Forward Earnings ratio is in line with the industry average.
When comparing the Price/Forward Earnings ratio of CIEN to the average of the S&P500 Index (36.59), we can say CIEN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 89.96 | ||
| Fwd PE | 45.96 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CIEN.
The rest of the industry has a similar Price/Free Cash Flow ratio as CIEN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 47.57 | ||
| EV/EBITDA | 72.13 |
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.
A more expensive valuation may be justified as CIEN's earnings are expected to grow with 45.68% in the coming years.
PEG (NY)2.26
PEG (5Y)N/A
EPS Next 2Y56.25%
EPS Next 3Y45.68%
5. Dividend
5.1 Amount
No dividends for CIEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
204.21
+3.92 (+1.96%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change-1.56%
Ins Owners0.62%
Ins Owner Change-1.67%
Market Cap28.81B
Revenue(TTM)4.54B
Net Income(TTM)140.88M
Analysts81.67
Price Target151.52 (-25.8%)
Short Float %2.93%
Short Ratio1.52
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)12.01%
PT rev (3m)74.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.46%
EPS NY rev (1m)0%
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 | 89.96 | ||
| Fwd PE | 45.96 | ||
| P/S | 6.34 | ||
| P/FCF | 47.57 | ||
| P/OCF | 36.72 | ||
| P/B | 10.33 | ||
| P/tB | 13.07 | ||
| EV/EBITDA | 72.13 |
EPS(TTM)2.27
EY1.11%
EPS(NY)4.44
Fwd EY2.18%
FCF(TTM)4.29
FCFY2.1%
OCF(TTM)5.56
OCFY2.72%
SpS32.2
BVpS19.76
TBVpS15.62
PEG (NY)2.26
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 | 6.42 |
F-Score6
WACC9.23%
ROIC/WACC0.44
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 5Y44.83%
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.