CIENA CORP (CIEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIEN - US1717793095 - Common Stock
251.25 USD
+12.87 (+5.4%)
We assign a fundamental rating of 5 out of 10 to CIEN. CIEN was compared to 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
- In the past year CIEN was profitable.
- 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
- Looking at the Return On Assets, with a value of 2.10%, CIEN is in the better half of the industry, outperforming 64.58% of the companies in the same industry.
- With a decent Return On Equity value of 4.52%, CIEN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- Looking at the Return On Invested Capital, with a value of 5.08%, CIEN is in the better half of the industry, outperforming 68.75% 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 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
- CIEN has a Profit Margin of 2.59%. This is in the better half of the industry: CIEN outperforms 62.50% of its industry peers.
- In the last couple of years the Profit Margin of CIEN has declined.
- CIEN's Operating Margin of 6.52% is fine compared to the rest of the industry. CIEN outperforms 70.83% of its industry peers.
- CIEN's Operating Margin has declined in the last couple of years.
- CIEN has a Gross Margin (42.04%) which is in line with its industry peers.
- In the last couple of years the Gross Margin of CIEN has declined.
| 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
- 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
- Compared to 1 year ago, CIEN has an improved debt to assets ratio.
2.2 Solvency
- CIEN has an Altman-Z score of 7.13. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.13, CIEN belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
- CIEN has a debt to FCF ratio of 2.31. This is a good value and a sign of high solvency as CIEN would need 2.31 years to pay back of all of its debts.
- CIEN has a better Debt to FCF ratio (2.31) than 60.42% of its industry peers.
- 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 | 7.13 |
ROIC/WACC0.53
WACC9.67%
2.3 Liquidity
- A Current Ratio of 2.73 indicates that CIEN has no problem at all paying its short term obligations.
- CIEN has a Current ratio of 2.73. This is in the better half of the industry: CIEN outperforms 72.92% of its industry peers.
- 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 has a better Quick ratio (2.12) than 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 45.05% over the past year.
- Measured over the past years, CIEN shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.13% on average per year.
- Looking at the last year, CIEN shows a quite strong growth in Revenue. The Revenue has grown by 18.79% in the last year.
- CIEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.19% yearly.
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
- Based on estimates for the next years, CIEN will show a very strong growth in Earnings Per Share. The EPS will grow by 48.77% on average per year.
- Based on estimates for the next years, CIEN will show a quite strong growth in Revenue. The Revenue will grow by 14.43% on average per year.
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 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.
- 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 95.17, the valuation of CIEN can be described as expensive.
- CIEN's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 27.33. CIEN is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 46.15, CIEN can be considered very expensive at the moment.
- 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 24.12, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.17 | ||
| Fwd PE | 46.15 |
4.2 Price Multiples
- Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIEN is on the same level as its industry peers.
- CIEN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.27 | ||
| EV/EBITDA | 74.56 |
4.3 Compensation for Growth
- The 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)0.9
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 (1/15/2026, 12:46:05 PM)
251.25
+12.87 (+5.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)12-11 2025-12-11/bmo
Earnings (Next)03-09 2026-03-09/bmo
Inst Owners102.21%
Inst Owner Change-0.37%
Ins Owners0.74%
Ins Owner Change5.25%
Market Cap35.44B
Revenue(TTM)4.77B
Net Income(TTM)123.34M
Analysts80
Price Target250.43 (-0.33%)
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)62%
PT rev (3m)85.13%
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)11.69%
Revenue NY rev (1m)8.11%
Revenue NY rev (3m)8.28%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 95.17 | ||
| Fwd PE | 46.15 | ||
| P/S | 7.43 | ||
| P/FCF | 53.27 | ||
| P/OCF | 43.97 | ||
| P/B | 12.99 | ||
| P/tB | 17.86 | ||
| EV/EBITDA | 74.56 |
EPS(TTM)2.64
EY1.05%
EPS(NY)5.44
Fwd EY2.17%
FCF(TTM)4.72
FCFY1.88%
OCF(TTM)5.71
OCFY2.27%
SpS33.81
BVpS19.35
TBVpS14.06
PEG (NY)0.9
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 | 7.13 |
F-Score7
WACC9.67%
ROIC/WACC0.53
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 5Y14.43%
EBIT growth 1Y62.04%
EBIT growth 3Y6.51%
EBIT growth 5Y-9.56%
EBIT Next Year128.95%
EBIT Next 3Y50.34%
EBIT Next 5Y28.36%
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 2 / 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.