CIENA CORP (CIEN)
US1717793095 - Common Stock
Overall CIEN gets a fundamental rating of 5 out of 10. We evaluated CIEN against 51 industry peers in the Communications Equipment industry. CIEN has an average financial health and profitability rating. CIEN is quite expensive at the moment. It does show a decent growth rate.
1. Profitability
1.1 Basic Checks
CIEN had positive earnings in the past year.
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
CIEN's Return On Assets of 1.49% is fine compared to the rest of the industry. CIEN outperforms 70.59% of its industry peers.
CIEN has a Return On Equity of 2.98%. This is in the better half of the industry: CIEN outperforms 70.59% of its industry peers.
CIEN has a better Return On Invested Capital (3.06%) than 66.67% 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 11.02%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 2.98% | ||
| ROIC | 3.06% |
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
CIEN has a better Profit Margin (2.09%) than 68.63% of its industry peers.
CIEN's Profit Margin has declined in the last couple of years.
CIEN has a Operating Margin of 4.76%. This is in the better half of the industry: CIEN outperforms 64.71% of its industry peers.
CIEN's Operating Margin has declined in the last couple of years.
The Gross Margin of CIEN (42.83%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of CIEN has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.76% | ||
| PM (TTM) | 2.09% | ||
| GM | 42.83% |
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
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CIEN is destroying value.
CIEN has less shares outstanding than it did 1 year ago.
CIEN has less shares outstanding than it did 5 years ago.
Compared to 1 year ago, CIEN has an improved debt to assets ratio.
2.2 Solvency
An Altman-Z score of 3.22 indicates that CIEN is not in any danger for bankruptcy at the moment.
The Altman-Z score of CIEN (3.22) is better than 72.55% of its industry peers.
The Debt to FCF ratio of CIEN is 4.09, which is a neutral value as it means it would take CIEN, 4.09 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of CIEN (4.09) is comparable to the rest of the industry.
A Debt/Equity ratio of 0.54 indicates that CIEN is somewhat dependend on debt financing.
The Debt to Equity ratio of CIEN (0.54) is worse than 72.55% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.09 | ||
| Altman-Z | 3.22 |
ROIC/WACC0.32
WACC9.48%
2.3 Liquidity
A Current Ratio of 3.54 indicates that CIEN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.54, CIEN is in the better half of the industry, outperforming 76.47% of the companies in the same industry.
A Quick Ratio of 2.72 indicates that CIEN has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.72, CIEN is doing good in the industry, outperforming 78.43% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
CIEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -33.09%.
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.
Looking at the last year, CIEN shows a decrease in Revenue. The Revenue has decreased by -8.47% in the last year.
Measured over the past years, CIEN shows a small growth in Revenue. The Revenue has been growing by 2.36% on average per year.
EPS 1Y (TTM)-33.09%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%-28%
Revenue 1Y (TTM)-8.47%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%-0.48%
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 31.38% on average per year.
CIEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 8.47% yearly.
EPS Next Y36.32%
EPS Next 2Y38.16%
EPS Next 3Y31.38%
EPS Next 5YN/A
Revenue Next Year10.01%
Revenue Next 2Y9.46%
Revenue Next 3Y8.47%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 46.11, CIEN can be considered very expensive at the moment.
CIEN's Price/Earnings is on the same level as the industry average.
CIEN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 28.77.
CIEN is valuated quite expensively with a Price/Forward Earnings ratio of 33.82.
The rest of the industry has a similar Price/Forward Earnings ratio as CIEN.
CIEN is valuated rather expensively when we compare the Price/Forward Earnings ratio to 23.38, which is the current average of the S&P500 Index.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.11 | ||
| Fwd PE | 33.82 |
4.2 Price Multiples
CIEN's Enterprise Value to EBITDA is on the same level as the industry average.
Based on the Price/Free Cash Flow ratio, CIEN is valued a bit cheaper than 62.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 31.68 | ||
| EV/EBITDA | 38.66 |
4.3 Compensation for Growth
CIEN's 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 31.38% in the coming years.
PEG (NY)1.27
PEG (5Y)N/A
EPS Next 2Y38.16%
EPS Next 3Y31.38%
5. Dividend
5.1 Amount
No dividends for CIEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CIENA CORP
NYSE:CIEN (12/18/2024, 5:03:34 PM)
After market: 83.8 -0.12 (-0.14%)83.92
-4.22 (-4.79%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap11.97B
Analysts
Price Target
Short Float %
Short Ratio
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
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Revenue NQ rev (1m)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 46.11 | ||
| Fwd PE | 33.82 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)1.27
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 2.98% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 4.76% | ||
| PM (TTM) | 2.09% | ||
| GM | 42.83% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.72 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-33.09%
EPS 3Y-14.48%
EPS 5Y
EPS Q2Q%
EPS Next Y36.32%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-8.47%
Revenue growth 3Y3.51%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y