CIENA CORP (CIEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIEN - US1717793095 - Common Stock
224.05 USD
-1.16 (-0.52%)
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 is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
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 has a Return On Assets of 2.10%. This is in the better half of the industry: CIEN outperforms 64.58% of its industry peers.
CIEN has a better Return On Equity (4.52%) than 62.50% of its industry peers.
CIEN has a better Return On Invested Capital (5.08%) than 68.75% of its industry peers.
CIEN had an Average Return On Invested Capital over the past 3 years of 4.76%. This is significantly below the industry average of 12.15%.
The 3 year average ROIC (4.76%) for CIEN is below the current ROIC(5.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.52% | ||
| ROIC | 5.08% |
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
The Profit Margin of CIEN (2.59%) is better than 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 6.52%, CIEN is doing good in the industry, outperforming 70.83% of the companies in the same industry.
In the last couple of years the Operating Margin of CIEN has declined.
CIEN has a Gross Margin of 42.04%. This is comparable to the rest of the industry: CIEN outperforms 52.08% of its industry peers.
CIEN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.52% | ||
| PM (TTM) | 2.59% | ||
| GM | 42.04% |
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. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CIEN is destroying value.
CIEN has less shares outstanding than it did 1 year ago.
CIEN has less shares outstanding than it did 5 years ago.
CIEN has a better debt/assets ratio than last year.
2.2 Solvency
CIEN has an Altman-Z score of 6.77. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
The Altman-Z score of CIEN (6.77) is better than 87.50% of its industry peers.
The Debt to FCF ratio of CIEN is 2.31, which is a good value as it means it would take CIEN, 2.31 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 2.31, CIEN is in the better half of the industry, outperforming 60.42% of the companies in the same industry.
A Debt/Equity ratio of 0.56 indicates that CIEN is somewhat dependend on debt financing.
CIEN has a worse Debt to Equity ratio (0.56) than 72.92% of its industry peers.
Even though the debt/equity ratio score it not favorable for CIEN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 6.77 |
ROIC/WACC0.54
WACC9.33%
2.3 Liquidity
A Current Ratio of 2.73 indicates that CIEN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.73, CIEN is in the better half of the industry, outperforming 72.92% of the companies in the same industry.
CIEN has a Quick Ratio of 2.12. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
CIEN's Quick ratio of 2.12 is fine compared to the rest of the industry. CIEN outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
CIEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.05%, which is quite impressive.
The Earnings Per Share has been decreasing by -2.13% on average over the past years.
CIEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.79%.
Measured over the past years, CIEN shows a small growth in Revenue. The Revenue has been growing by 6.19% on average per year.
EPS 1Y (TTM)45.05%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%68.52%
Revenue 1Y (TTM)18.79%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%20.27%
3.2 Future
The Earnings Per Share is expected to grow by 48.77% on average over the next years. This is a very strong growth
The Revenue is expected to grow by 11.50% on average over the next years. This is quite good.
EPS Next Y106.21%
EPS Next 2Y62.18%
EPS Next 3Y48.77%
EPS Next 5YN/A
Revenue Next Year26.29%
Revenue Next 2Y21%
Revenue Next 3Y18.49%
Revenue Next 5Y11.5%
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. Valuation
4.1 Price/Earnings Ratio
With a Price/Earnings ratio of 84.87, CIEN can be considered very expensive at the moment.
Compared to the rest of the industry, the Price/Earnings ratio of CIEN is on the same level as its industry peers.
The average S&P500 Price/Earnings ratio is at 27.00. CIEN is valued rather expensively when compared to this.
A Price/Forward Earnings ratio of 41.16 indicates a quite expensive valuation of CIEN.
CIEN's Price/Forward Earnings is on the same level as the industry average.
CIEN is valuated expensively when we compare the Price/Forward Earnings ratio to 23.70, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.87 | ||
| Fwd PE | 41.16 |
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 | 47.5 | ||
| EV/EBITDA | 70.44 |
4.3 Compensation for Growth
CIEN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CIEN's earnings are expected to grow with 48.77% in the coming years.
PEG (NY)0.8
PEG (5Y)N/A
EPS Next 2Y62.18%
EPS Next 3Y48.77%
5. Dividend
5.1 Amount
No dividends for CIEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
NYSE:CIEN (1/9/2026, 10:34:07 AM)
224.05
-1.16 (-0.52%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.21%
Inst Owner Change0%
Ins Owners0.74%
Ins Owner Change7.73%
Market Cap31.60B
Revenue(TTM)4.77B
Net Income(TTM)123.34M
Analysts81.67
Price Target250.43 (11.77%)
Short Float %5.23%
Short Ratio2.38
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)20.21%
Min EPS beat(2)15.65%
Max EPS beat(2)24.77%
EPS beat(4)3
Avg EPS beat(4)18.11%
Min EPS beat(4)-20.72%
Max EPS beat(4)52.75%
EPS beat(8)6
Avg EPS beat(8)24.95%
EPS beat(12)10
Avg EPS beat(12)26.08%
EPS beat(16)12
Avg EPS beat(16)61.49%
Revenue beat(2)2
Avg Revenue beat(2)2.22%
Min Revenue beat(2)1.7%
Max Revenue beat(2)2.73%
Revenue beat(4)3
Avg Revenue beat(4)1.38%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)2.73%
Revenue beat(8)3
Avg Revenue beat(8)0.56%
Revenue beat(12)7
Avg Revenue beat(12)1.35%
Revenue beat(16)8
Avg Revenue beat(16)1.05%
PT rev (1m)65.28%
PT rev (3m)99.09%
EPS NQ rev (1m)43.14%
EPS NQ rev (3m)43.14%
EPS NY rev (1m)22.52%
EPS NY rev (3m)23.18%
Revenue NQ rev (1m)11.86%
Revenue NQ rev (3m)12.57%
Revenue NY rev (1m)8.11%
Revenue NY rev (3m)8.73%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.87 | ||
| Fwd PE | 41.16 | ||
| P/S | 6.63 | ||
| P/FCF | 47.5 | ||
| P/OCF | 39.21 | ||
| P/B | 11.58 | ||
| P/tB | 15.93 | ||
| EV/EBITDA | 70.44 |
EPS(TTM)2.64
EY1.18%
EPS(NY)5.44
Fwd EY2.43%
FCF(TTM)4.72
FCFY2.11%
OCF(TTM)5.71
OCFY2.55%
SpS33.81
BVpS19.35
TBVpS14.06
PEG (NY)0.8
PEG (5Y)N/A
Graham Number33.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.52% | ||
| ROCE | 6.82% | ||
| ROIC | 5.08% | ||
| ROICexc | 7.13% | ||
| ROICexgc | 9.25% | ||
| OM | 6.52% | ||
| PM (TTM) | 2.59% | ||
| GM | 42.04% | ||
| FCFM | 13.95% |
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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 100.33% | ||
| Cap/Sales | 2.95% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 178.68% | ||
| Profit Quality | 539.41% | ||
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 6.77 |
F-Score7
WACC9.33%
ROIC/WACC0.54
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)45.05%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%68.52%
EPS Next Y106.21%
EPS Next 2Y62.18%
EPS Next 3Y48.77%
EPS Next 5YN/A
Revenue 1Y (TTM)18.79%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%20.27%
Revenue Next Year26.29%
Revenue Next 2Y21%
Revenue Next 3Y18.49%
Revenue Next 5Y11.5%
EBIT growth 1Y62.04%
EBIT growth 3Y6.51%
EBIT growth 5Y-9.56%
EBIT Next Year128.95%
EBIT Next 3Y50.34%
EBIT Next 5Y27.35%
FCF growth 1Y76.05%
FCF growth 3YN/A
FCF growth 5Y10.11%
OCF growth 1Y56.67%
OCF growth 3YN/A
OCF growth 5Y10.3%
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 for CIEN stock?
ChartMill assigns a valuation rating of 3 / 10 to CIENA CORP (CIEN). This can be considered as Overvalued.
Can you provide the profitability details for CIENA CORP?
CIENA CORP (CIEN) has a profitability rating of 5 / 10.
What is the financial health of CIENA CORP (CIEN) stock?
The financial health rating of CIENA CORP (CIEN) is 8 / 10.