CIENA CORP (CIEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIEN - US1717793095 - Common Stock
234.26 USD
+3.7 (+1.6%)
234 USD
-0.26 (-0.11%)
Overall CIEN gets a fundamental rating of 5 out of 10. We evaluated CIEN against 48 industry peers in the Communications Equipment industry. While CIEN has a great health rating, its profitability is only average at the moment. While showing a medium growth rate, CIEN is valued expensive at the moment.
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.
CIEN had positive earnings in each of the past 5 years.
Of the past 5 years CIEN 4 years had a positive operating cash flow.
1.2 Ratios
The Return On Assets of CIEN (2.10%) is better than 64.58% of its industry peers.
The Return On Equity of CIEN (4.52%) is better than 62.50% of its industry peers.
The Return On Invested Capital of CIEN (5.08%) is better than 68.75% 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 12.15%.
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.
Looking at the Operating Margin, with a value of 6.52%, CIEN is in the better half of the industry, outperforming 70.83% of the companies in the same industry.
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CIEN 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.
The debt/assets ratio for CIEN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.92 indicates that CIEN is not in any danger for bankruptcy at the moment.
The Altman-Z score of CIEN (6.92) is better than 87.50% of its industry peers.
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.
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.
The Debt to Equity ratio of CIEN (0.56) is worse 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 | 6.92 |
ROIC/WACC0.53
WACC9.66%
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.
A Quick Ratio of 2.12 indicates that CIEN has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.12, CIEN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
| 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.
The Earnings Per Share has been decreasing by -2.13% on average over the past years.
Looking at the last year, CIEN shows a quite strong growth in Revenue. The Revenue has grown by 18.79% in the last year.
The Revenue has been growing slightly by 6.19% on average over the past years.
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
CIEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.43% yearly.
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.
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
A Price/Earnings ratio of 88.73 indicates a quite expensive valuation of CIEN.
The rest of the industry has a similar Price/Earnings ratio as CIEN.
Compared to an average S&P500 Price/Earnings ratio of 27.25, CIEN is valued quite expensively.
CIEN is valuated quite expensively with a Price/Forward Earnings ratio of 43.03.
CIEN's Price/Forward Earnings is on the same level as the industry average.
When comparing the Price/Forward Earnings ratio of CIEN to the average of the S&P500 Index (23.98), we can say CIEN is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.73 | ||
| Fwd PE | 43.03 |
4.2 Price Multiples
CIEN's Enterprise Value to EBITDA ratio is in line with the industry average.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CIEN is on the same level as its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 49.67 | ||
| EV/EBITDA | 72.12 |
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)0.84
PEG (5Y)N/A
EPS Next 2Y62.18%
EPS Next 3Y48.77%
5. Dividend
5.1 Amount
CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
234.26
+3.7 (+1.6%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.21%
Inst Owner Change-0.37%
Ins Owners0.74%
Ins Owner Change5.25%
Market Cap33.04B
Revenue(TTM)4.77B
Net Income(TTM)123.34M
Analysts80
Price Target250.43 (6.9%)
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 | 88.73 | ||
| Fwd PE | 43.03 | ||
| P/S | 6.93 | ||
| P/FCF | 49.67 | ||
| P/OCF | 40.99 | ||
| P/B | 12.11 | ||
| P/tB | 16.66 | ||
| EV/EBITDA | 72.12 |
EPS(TTM)2.64
EY1.13%
EPS(NY)5.44
Fwd EY2.32%
FCF(TTM)4.72
FCFY2.01%
OCF(TTM)5.71
OCFY2.44%
SpS33.81
BVpS19.35
TBVpS14.06
PEG (NY)0.84
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 | 6.92 |
F-Score7
WACC9.66%
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 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.