CIENA CORP (CIEN) Fundamental Analysis & Valuation
NYSE:CIEN • US1717793095
Current stock price
507.43 USD
+12.26 (+2.48%)
At close:
506.16 USD
-1.27 (-0.25%)
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.
- 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
- With a decent Return On Assets value of 3.89%, CIEN is doing good in the industry, outperforming 70.21% of the companies in the same industry.
- CIEN's Return On Equity of 8.20% is fine compared to the rest of the industry. CIEN outperforms 72.34% of its industry peers.
- CIEN has a Return On Invested Capital of 6.75%. This is in the better half of the industry: CIEN outperforms 74.47% 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 10.41%.
- 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
- CIEN's Profit Margin of 4.47% is fine compared to the rest of the industry. CIEN outperforms 65.96% of its industry peers.
- 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 76.60% of its industry peers.
- CIEN's Operating Margin has declined in the last couple of years.
- The Gross Margin of CIEN (42.13%) is comparable to the rest of the industry.
- 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.
- Compared to 1 year ago, CIEN has less shares outstanding
- 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
- CIEN has an Altman-Z score of 14.40. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 14.40, CIEN belongs to the best of the industry, outperforming 87.23% of the companies in the same industry.
- The Debt to FCF ratio of CIEN is 2.08, which is a good value as it means it would take CIEN, 2.08 years of fcf income to pay off all of its debts.
- CIEN's Debt to FCF ratio of 2.08 is in line compared to the rest of the industry. CIEN outperforms 59.57% 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.
- With a Debt to Equity ratio value of 0.55, CIEN is not doing good in the industry: 76.60% of the companies in the same industry are doing better.
- 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 | 14.4 |
ROIC/WACC0.7
WACC9.67%
2.3 Liquidity
- A Current Ratio of 2.81 indicates that CIEN has no problem at all paying its short term obligations.
- The Current ratio of CIEN (2.81) is better than 74.47% of its industry peers.
- CIEN has a Quick Ratio of 2.18. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
- With a decent Quick ratio value of 2.18, CIEN is doing good in the industry, outperforming 65.96% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.18 |
3. CIEN Growth Analysis
3.1 Past
- CIEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 86.11%, which is quite impressive.
- The Earnings Per Share has been decreasing by -2.13% on average over the past years.
- The Revenue has grown by 26.54% in the past year. This is a very strong growth!
- CIEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.19% yearly.
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
- CIEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 62.82% yearly.
- The Revenue is expected to grow by 14.43% on average over the next years. This is quite good.
EPS Next Y136.91%
EPS Next 2Y78.43%
EPS Next 3Y62.82%
EPS Next 5YN/A
Revenue Next Year29.89%
Revenue Next 2Y24.78%
Revenue Next 3Y23%
Revenue Next 5Y14.43%
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. CIEN Valuation Analysis
4.1 Price/Earnings Ratio
- CIEN is valuated quite expensively with a Price/Earnings ratio of 151.47.
- Compared to the rest of the industry, the Price/Earnings ratio of CIEN is on the same level as its industry peers.
- CIEN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 27.87.
- A Price/Forward Earnings ratio of 60.37 indicates a quite expensive valuation of CIEN.
- CIEN's Price/Forward Earnings ratio is in line with the industry average.
- CIEN is valuated expensively when we compare the Price/Forward Earnings ratio to 38.51, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 151.47 | ||
| Fwd PE | 60.37 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIEN indicates a slightly more expensive valuation: CIEN is more expensive than 63.83% of the companies listed in the same industry.
- CIEN's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 96.67 | ||
| EV/EBITDA | 122.84 |
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 62.82% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.11
PEG (5Y)N/A
EPS Next 2Y78.43%
EPS Next 3Y62.82%
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
507.43
+12.26 (+2.48%)
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 Owners99.24%
Inst Owner Change-0.25%
Ins Owners0.55%
Ins Owner Change0.66%
Market Cap71.75B
Revenue(TTM)5.12B
Net Income(TTM)229.05M
Analysts80
Price Target354.01 (-30.23%)
Short Float %4.26%
Short Ratio1.58
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)0.26%
EPS NQ rev (3m)20.81%
EPS NY rev (1m)14.89%
EPS NY rev (3m)14.89%
Revenue NQ rev (1m)0.07%
Revenue NQ rev (3m)4.57%
Revenue NY rev (1m)2.85%
Revenue NY rev (3m)2.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 151.47 | ||
| Fwd PE | 60.37 | ||
| P/S | 14 | ||
| P/FCF | 96.67 | ||
| P/OCF | 77.15 | ||
| P/B | 25.7 | ||
| P/tB | 34.86 | ||
| EV/EBITDA | 122.84 |
EPS(TTM)3.35
EY0.66%
EPS(NY)8.4
Fwd EY1.66%
FCF(TTM)5.25
FCFY1.03%
OCF(TTM)6.58
OCFY1.3%
SpS36.24
BVpS19.75
TBVpS14.55
PEG (NY)1.11
PEG (5Y)N/A
Graham Number38.5811 (-92.4%)
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 | 14.4 |
F-Score7
WACC9.67%
ROIC/WACC0.7
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 Y136.91%
EPS Next 2Y78.43%
EPS Next 3Y62.82%
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 Year159.66%
EBIT Next 3Y62.86%
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 5 / 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 7 / 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 136.91% in the next year.