CIENA CORP (CIEN) Fundamental Analysis & Valuation
NYSE:CIEN • US1717793095
Current stock price
535.29 USD
+7.71 (+1.46%)
At close:
537 USD
+1.71 (+0.32%)
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.
- Each year in the past 5 years CIEN has been profitable.
- CIEN had a positive operating cash flow in 4 of the past 5 years.
1.2 Ratios
- CIEN has a better Return On Assets (3.89%) than 69.57% of its industry peers.
- 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's Return On Invested Capital of 6.75% is fine compared to the rest of the industry. CIEN outperforms 73.91% 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 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
- CIEN has a better Profit Margin (4.47%) 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.
- The Gross Margin of CIEN (42.13%) is comparable to the rest of the 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
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CIEN is destroying value.
- The number of shares outstanding for CIEN has been reduced compared to 1 year ago.
- Compared to 5 years ago, CIEN has less shares outstanding
- CIEN has a better debt/assets ratio than last year.
2.2 Solvency
- CIEN has an Altman-Z score of 15.50. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
- CIEN has a Altman-Z score of 15.50. This is amongst the best in the industry. CIEN outperforms 91.30% 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.
- The Debt to FCF ratio of CIEN (2.08) is comparable to the rest of the industry.
- A Debt/Equity ratio of 0.55 indicates that CIEN is somewhat dependend on debt financing.
- CIEN has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: CIEN underperforms 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 | 15.5 |
ROIC/WACC0.69
WACC9.85%
2.3 Liquidity
- A Current Ratio of 2.81 indicates that CIEN has no problem at all paying its short term obligations.
- CIEN has a Current ratio of 2.81. This is in the better half of the industry: CIEN outperforms 73.91% of its industry peers.
- A Quick Ratio of 2.18 indicates that CIEN has no problem at all paying its short term obligations.
- CIEN's Quick ratio of 2.18 is fine compared to the rest of the industry. CIEN outperforms 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.
- The Revenue has grown by 26.54% in the past year. This is a very strong growth!
- 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
- CIEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 62.82% yearly.
- Based on estimates for the next years, CIEN will show a quite strong growth in Revenue. The Revenue will grow by 14.90% on average per year.
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
- 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. CIEN Valuation Analysis
4.1 Price/Earnings Ratio
- CIEN is valuated quite expensively with a Price/Earnings ratio of 159.79.
- The rest of the industry has a similar Price/Earnings ratio as CIEN.
- The average S&P500 Price/Earnings ratio is at 26.64. CIEN is valued rather expensively when compared to this.
- With a Price/Forward Earnings ratio of 63.69, CIEN can be considered very expensive at the moment.
- The rest of the industry has a similar Price/Forward Earnings ratio as CIEN.
- When comparing the Price/Forward Earnings ratio of CIEN to the average of the S&P500 Index (21.36), we can say CIEN is valued expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 159.79 | ||
| Fwd PE | 63.69 |
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.
- CIEN's Price/Free Cash Flow ratio is a bit more expensive when compared to the industry. CIEN is more expensive than 60.87% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 101.98 | ||
| EV/EBITDA | 132.78 |
4.3 Compensation for Growth
- The PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
- A more expensive valuation may be justified as CIEN's earnings are expected to grow with 62.82% in the coming years.
PEG (NY)1.17
PEG (5Y)N/A
EPS Next 2Y78.43%
EPS Next 3Y62.82%
5. CIEN Dividend Analysis
5.1 Amount
- No dividends for CIEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
CIEN Fundamentals: All Metrics, Ratios and Statistics
535.29
+7.71 (+1.46%)
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 Cap75.69B
Revenue(TTM)5.12B
Net Income(TTM)229.05M
Analysts80
Price Target387.94 (-27.53%)
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)9.59%
PT rev (3m)54.91%
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 | 159.79 | ||
| Fwd PE | 63.69 | ||
| P/S | 14.77 | ||
| P/FCF | 101.98 | ||
| P/OCF | 81.39 | ||
| P/B | 27.11 | ||
| P/tB | 36.78 | ||
| EV/EBITDA | 132.78 |
EPS(TTM)3.35
EY0.63%
EPS(NY)8.4
Fwd EY1.57%
FCF(TTM)5.25
FCFY0.98%
OCF(TTM)6.58
OCFY1.23%
SpS36.24
BVpS19.75
TBVpS14.55
PEG (NY)1.17
PEG (5Y)N/A
Graham Number38.5811 (-92.79%)
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 | 15.5 |
F-Score7
WACC9.85%
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.