CIENA CORP (CIEN) Fundamental Analysis & Valuation
NYSE:CIEN • US1717793095
Current stock price
527.58 USD
+52.19 (+10.98%)
At close:
524.75 USD
-2.83 (-0.54%)
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
- In the past year CIEN was profitable.
- In the past year CIEN had a positive cash flow from operations.
- 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 3.89%, CIEN is in the better half of the industry, outperforming 69.57% of the companies in the same industry.
- With a decent Return On Equity value of 8.20%, CIEN is doing good in the industry, outperforming 71.74% of the companies in the same industry.
- CIEN has a better Return On Invested Capital (6.75%) than 73.91% 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 10.45%.
- 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
- The Profit Margin of CIEN (4.47%) is better than 65.22% of its industry peers.
- In the last couple of years the Profit Margin of CIEN has declined.
- The Operating Margin of CIEN (8.19%) is better than 76.09% of its industry peers.
- In the last couple of years the Operating Margin of CIEN has declined.
- Looking at the Gross Margin, with a value of 42.13%, CIEN is in line with its industry, outperforming 43.48% of the companies in the same industry.
- In the last couple of years the Gross Margin of CIEN has declined.
| 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
- The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CIEN is destroying value.
- The number of shares outstanding for CIEN has been reduced compared to 1 year ago.
- 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 13.86. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
- CIEN's Altman-Z score of 13.86 is amongst the best of the industry. CIEN outperforms 89.13% of its industry peers.
- 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.
- Looking at the Debt to FCF ratio, with a value of 2.08, CIEN is in line with its industry, outperforming 58.70% of the companies in the same industry.
- CIEN has a Debt/Equity ratio of 0.55. This is a neutral value indicating CIEN is somewhat dependend on debt financing.
- The Debt to Equity ratio of CIEN (0.55) is worse than 73.91% of its industry peers.
- 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 | 13.86 |
ROIC/WACC0.69
WACC9.83%
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 73.91% 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.
- The Quick ratio of CIEN (2.18) is better than 67.39% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.81 | ||
| Quick Ratio | 2.18 |
3. CIEN Growth Analysis
3.1 Past
- The Earnings Per Share has grown by an impressive 86.11% 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 very strong growth in Revenue. The Revenue has grown by 26.54%.
- 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
- Based on estimates for the next years, CIEN will show a very strong growth in Earnings Per Share. The EPS will grow by 62.82% on average per year.
- The Revenue is expected to grow by 14.90% 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 5Y14.9%
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.
- 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. CIEN Valuation Analysis
4.1 Price/Earnings Ratio
- With a Price/Earnings ratio of 157.49, 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 26.77. CIEN is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 62.77, which means the current valuation is very expensive for CIEN.
- Compared to the rest of the industry, the Price/Forward Earnings ratio of CIEN is on the same level as its industry peers.
- When comparing the Price/Forward Earnings ratio of CIEN to the average of the S&P500 Index (21.75), we can say CIEN is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 157.49 | ||
| Fwd PE | 62.77 |
4.2 Price Multiples
- 65.22% of the companies in the same industry are cheaper than CIEN, based on the Enterprise Value to EBITDA ratio.
- Based on the Price/Free Cash Flow ratio, CIEN is valued a bit more expensive than the industry average as 60.87% of the companies are valued more cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 100.51 | ||
| EV/EBITDA | 117.94 |
4.3 Compensation for Growth
- CIEN's 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)1.15
PEG (5Y)N/A
EPS Next 2Y78.43%
EPS Next 3Y62.82%
5. CIEN Dividend Analysis
5.1 Amount
- CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CIEN Fundamentals: All Metrics, Ratios and Statistics
527.58
+52.19 (+10.98%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Industry Strength92.55
Industry Growth94.41
Earnings (Last)03-05 2026-03-05/bmo
Earnings (Next)06-03 2026-06-03/bmo
Inst Owners99.24%
Inst Owner Change-0.39%
Ins Owners0.55%
Ins Owner Change0.47%
Market Cap74.60B
Revenue(TTM)5.12B
Net Income(TTM)229.05M
Analysts80
Price Target354.01 (-32.9%)
Short Float %3.34%
Short Ratio1.59
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)-0.09%
EPS NQ rev (3m)20.71%
EPS NY rev (1m)14.89%
EPS NY rev (3m)14.89%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)4.57%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.85%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 157.49 | ||
| Fwd PE | 62.77 | ||
| P/S | 14.56 | ||
| P/FCF | 100.51 | ||
| P/OCF | 80.21 | ||
| P/B | 26.72 | ||
| P/tB | 36.25 | ||
| EV/EBITDA | 117.94 |
EPS(TTM)3.35
EY0.63%
EPS(NY)8.4
Fwd EY1.59%
FCF(TTM)5.25
FCFY0.99%
OCF(TTM)6.58
OCFY1.25%
SpS36.24
BVpS19.75
TBVpS14.55
PEG (NY)1.15
PEG (5Y)N/A
Graham Number38.5811 (-92.69%)
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 | 13.86 |
F-Score7
WACC9.83%
ROIC/WACC0.69
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 5Y14.9%
EBIT growth 1Y127.64%
EBIT growth 3Y6.51%
EBIT growth 5Y-9.56%
EBIT Next Year159.66%
EBIT Next 3Y62.86%
EBIT Next 5Y30.36%
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.