CIENA CORP (CIEN) Stock Fundamental Analysis
NYSE:CIEN - New York Stock Exchange, Inc. - US1717793095 - Common Stock - Currency: USD
Taking everything into account, CIEN scores 5 out of 10 in our fundamental rating. CIEN was compared to 51 industry peers in the Communications Equipment industry. CIEN has only an average score on both its financial health and profitability. CIEN is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CIEN was profitable.
In the past year CIEN had a positive cash flow from operations.
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
CIEN has a better Return On Assets (1.49%) than 70.00% of its industry peers.
CIEN has a better Return On Equity (2.98%) than 70.00% of its industry peers.
Looking at the Return On Invested Capital, with a value of 3.06%, CIEN is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CIEN is significantly below the industry average of 11.66%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 2.98% | ||
| ROIC | 3.06% |
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 2.09%. This is in the better half of the industry: CIEN outperforms 70.00% of its industry peers.
In the last couple of years the Profit Margin of CIEN has declined.
CIEN's Operating Margin of 4.76% is fine compared to the rest of the industry. CIEN outperforms 64.00% of its industry peers.
In the last couple of years the Operating Margin of CIEN has declined.
CIEN has a Gross Margin (42.83%) which is comparable to the rest of the industry.
CIEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.76% | ||
| PM (TTM) | 2.09% | ||
| GM | 42.83% |
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 3.16 indicates that CIEN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 3.16, CIEN is in the better half of the industry, outperforming 76.00% of the companies in the same industry.
The Debt to FCF ratio of CIEN is 4.10, which is a neutral value as it means it would take CIEN, 4.10 years of fcf income to pay off all of its debts.
CIEN has a Debt to FCF ratio of 4.10. This is comparable to the rest of the industry: CIEN outperforms 52.00% of its industry peers.
CIEN has a Debt/Equity ratio of 0.54. This is a neutral value indicating CIEN is somewhat dependend on debt financing.
With a Debt to Equity ratio value of 0.54, CIEN is not doing good in the industry: 72.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 3.16 |
ROIC/WACC0.33
WACC9.17%
2.3 Liquidity
A Current Ratio of 3.54 indicates that CIEN has no problem at all paying its short term obligations.
CIEN has a Current ratio of 3.54. This is in the better half of the industry: CIEN outperforms 80.00% of its industry peers.
CIEN has a Quick Ratio of 2.72. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
CIEN has a Quick ratio of 2.72. This is in the better half of the industry: CIEN outperforms 78.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
CIEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.09%.
The Earnings Per Share has been decreasing by -2.82% on average over the past years.
CIEN shows a decrease in Revenue. In the last year, the revenue decreased by -8.47%.
CIEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.36% yearly.
EPS 1Y (TTM)-33.09%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%-28%
Revenue 1Y (TTM)-8.47%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%-0.48%
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 33.17% on average per year.
CIEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 9.37% yearly.
EPS Next Y35.2%
EPS Next 2Y38.72%
EPS Next 3Y33.17%
EPS Next 5YN/A
Revenue Next Year10.43%
Revenue Next 2Y9.82%
Revenue Next 3Y9.37%
Revenue Next 5YN/A
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
Based on the Price/Earnings ratio of 46.20, the valuation of CIEN can be described as expensive.
Compared to the rest of the industry, the Price/Earnings ratio of CIEN is on the same level as its industry peers.
When comparing the Price/Earnings ratio of CIEN to the average of the S&P500 Index (29.63), we can say CIEN is valued expensively.
CIEN is valuated quite expensively with a Price/Forward Earnings ratio of 34.17.
The rest of the industry has a similar Price/Forward Earnings ratio as CIEN.
CIEN's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 22.68.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.2 | ||
| Fwd PE | 34.17 |
4.2 Price Multiples
The rest of the industry has a similar Enterprise Value to EBITDA ratio as CIEN.
CIEN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.62 | ||
| EV/EBITDA | 37.78 |
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 33.17% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.31
PEG (5Y)N/A
EPS Next 2Y38.72%
EPS Next 3Y33.17%
5. Dividend
5.1 Amount
CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
84.08
-2.37 (-2.74%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.87%
Inst Owner Change-0.69%
Ins Owners0.88%
Ins Owner Change1.93%
Market Cap11.95B
Analysts80
Price Target91.6 (8.94%)
Short Float %3.48%
Short Ratio1.91
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)6.78%
Min EPS beat(2)-19.38%
Max EPS beat(2)32.93%
EPS beat(4)3
Avg EPS beat(4)31.79%
Min EPS beat(4)-19.38%
Max EPS beat(4)80.07%
EPS beat(8)7
Avg EPS beat(8)30.07%
EPS beat(12)9
Avg EPS beat(12)75.95%
EPS beat(16)12
Avg EPS beat(16)60.19%
Revenue beat(2)0
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-0.46%
Max Revenue beat(2)-0.17%
Revenue beat(4)0
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-0.46%
Max Revenue beat(4)-0.17%
Revenue beat(8)4
Avg Revenue beat(8)1.34%
Revenue beat(12)5
Avg Revenue beat(12)0.95%
Revenue beat(16)5
Avg Revenue beat(16)0.53%
PT rev (1m)2.12%
PT rev (3m)38.15%
EPS NQ rev (1m)-15.64%
EPS NQ rev (3m)-35.3%
EPS NY rev (1m)-0.82%
EPS NY rev (3m)-11.45%
Revenue NQ rev (1m)4.7%
Revenue NQ rev (3m)-0.83%
Revenue NY rev (1m)0.09%
Revenue NY rev (3m)2.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.2 | ||
| Fwd PE | 34.17 | ||
| P/S | 2.98 | ||
| P/FCF | 31.62 | ||
| P/OCF | 23.22 | ||
| P/B | 4.24 | ||
| P/tB | 5.42 | ||
| EV/EBITDA | 37.78 |
EPS(TTM)1.82
EY2.16%
EPS(NY)2.46
Fwd EY2.93%
FCF(TTM)2.66
FCFY3.16%
OCF(TTM)3.62
OCFY4.31%
SpS28.25
BVpS19.82
TBVpS15.53
PEG (NY)1.31
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 2.98% | ||
| ROCE | 4.12% | ||
| ROIC | 3.06% | ||
| ROICexc | 4.2% | ||
| ROICexgc | 5.12% | ||
| OM | 4.76% | ||
| PM (TTM) | 2.09% | ||
| GM | 42.83% | ||
| FCFM | 9.41% |
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%
ROICexcg growth 3Y-34.63%
ROICexcg 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-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.1 | ||
| Debt/EBITDA | 4.72 | ||
| Cap/Depr | 102.38% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 2.07 | ||
| Cash Conversion | 158.47% | ||
| Profit Quality | 450.11% | ||
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.72 | ||
| Altman-Z | 3.16 |
F-Score5
WACC9.17%
ROIC/WACC0.33
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)-33.09%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%-28%
EPS Next Y35.2%
EPS Next 2Y38.72%
EPS Next 3Y33.17%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.47%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%-0.48%
Revenue Next Year10.43%
Revenue Next 2Y9.82%
Revenue Next 3Y9.37%
Revenue Next 5YN/A
EBIT growth 1Y-50.31%
EBIT growth 3Y-26.74%
EBIT growth 5Y-12.59%
EBIT Next Year44.58%
EBIT Next 3Y30.2%
EBIT Next 5YN/A
FCF growth 1Y508.18%
FCF growth 3Y-6.48%
FCF growth 5Y1.52%
OCF growth 1Y205.67%
OCF growth 3Y-1.69%
OCF growth 5Y4.49%