CIENA CORP (CIEN) Stock Fundamental Analysis
USA - NYSE:CIEN - US1717793095 - Common Stock
191.71 USD
-2.5 (-1.29%)
194.8 USD
+3.09 (+1.61%)
Overall CIEN gets a fundamental rating of 5 out of 10. We evaluated CIEN 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 valied quite expensively at the moment, while 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
CIEN has a better Return On Assets (2.45%) than 62.50% of its industry peers.
With a decent Return On Equity value of 5.05%, CIEN is doing good in the industry, outperforming 64.58% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for CIEN is significantly below the industry average of 12.74%.
| 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
With a decent Profit Margin value of 3.10%, CIEN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
In the last couple of years the Profit Margin of CIEN has declined.
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.
In the last couple of years the Operating Margin of CIEN has declined.
With a Gross Margin value of 41.57%, CIEN perfoms like the industry average, outperforming 52.08% of the companies in the same industry.
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.
Compared to 1 year ago, CIEN has less shares outstanding
The number of shares outstanding for CIEN has been reduced compared to 5 years ago.
Compared to 1 year ago, CIEN has an improved debt to assets ratio.
2.2 Solvency
CIEN has an Altman-Z score of 6.17. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.17, CIEN belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
CIEN has a debt to FCF ratio of 2.54. This is a good value and a sign of high solvency as CIEN would need 2.54 years to pay back of all of its debts.
CIEN has a Debt to FCF ratio of 2.54. This is in the better half of the industry: CIEN outperforms 60.42% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that 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: 75.00% of the companies in the same industry are doing better.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 6.17 |
ROIC/WACC0.45
WACC9.17%
2.3 Liquidity
CIEN has a Current Ratio of 3.28. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
CIEN has a better Current ratio (3.28) than 83.33% of its industry peers.
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.
CIEN's Quick ratio of 2.55 is fine compared to the rest of the industry. CIEN outperforms 79.17% of its industry peers.
| 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.
Measured over the past years, CIEN shows a decrease in Earnings Per Share. The EPS has been decreasing by -2.82% on average per year.
CIEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.97%.
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
CIEN is valuated quite expensively with a Price/Earnings ratio of 84.45.
The rest of the industry has a similar Price/Earnings ratio as CIEN.
When comparing the Price/Earnings ratio of CIEN to the average of the S&P500 Index (25.89), we can say CIEN is valued expensively.
With a Price/Forward Earnings ratio of 43.15, CIEN can be considered very expensive at the moment.
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 (34.59), we can say CIEN is valued slightly more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 84.45 | ||
| Fwd PE | 43.15 |
4.2 Price Multiples
CIEN's Enterprise Value to EBITDA is on the same level as the industry average.
CIEN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 44.66 | ||
| EV/EBITDA | 69.03 |
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.
CIEN's earnings are expected to grow with 45.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.12
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 |
191.71
-2.5 (-1.29%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners103.49%
Inst Owner Change-1.35%
Ins Owners0.62%
Ins Owner Change-2.26%
Market Cap27.04B
Revenue(TTM)4.54B
Net Income(TTM)140.88M
Analysts81.67
Price Target145.47 (-24.12%)
Short Float %3.17%
Short Ratio1.65
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)7.54%
PT rev (3m)67.81%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.46%
EPS NY rev (1m)-0.01%
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 | 84.45 | ||
| Fwd PE | 43.15 | ||
| P/S | 5.95 | ||
| P/FCF | 44.66 | ||
| P/OCF | 34.47 | ||
| P/B | 9.7 | ||
| P/tB | 12.27 | ||
| EV/EBITDA | 69.03 |
EPS(TTM)2.27
EY1.18%
EPS(NY)4.44
Fwd EY2.32%
FCF(TTM)4.29
FCFY2.24%
OCF(TTM)5.56
OCFY2.9%
SpS32.2
BVpS19.76
TBVpS15.62
PEG (NY)2.12
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 | 6.17 |
F-Score6
WACC9.17%
ROIC/WACC0.45
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.