CIENA CORP (CIEN) Stock Fundamental Analysis
USA - NYSE:CIEN - US1717793095 - Common Stock
138.04 USD
+1.66 (+1.22%)
138.04 USD
0 (0%)
CIEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. CIEN has an excellent financial health rating, but there are some minor concerns on its profitability. 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 (2.45%) is better than 60.42% of its industry peers.
With a decent Return On Equity value of 5.05%, CIEN is doing good in the industry, outperforming 66.67% of the companies in the same industry.
CIEN has a better Return On Invested Capital (4.09%) 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 13.71%.
| 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 60.42% of the companies in the same industry.
CIEN's Profit Margin has declined in the last couple of years.
CIEN has a Operating Margin of 5.60%. This is in the better half of the industry: CIEN outperforms 64.58% of its industry peers.
In the last couple of years the Operating Margin of CIEN has declined.
CIEN has a Gross Margin (41.57%) which is in line with its industry peers.
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 | 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
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.
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
An Altman-Z score of 4.64 indicates that CIEN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 4.64, CIEN is in the better half of the industry, outperforming 77.08% 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 comparable to the rest of the industry: CIEN outperforms 58.33% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that CIEN is somewhat dependend on debt financing.
Looking at the Debt to Equity ratio, with a value of 0.55, CIEN is doing worse than 72.92% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 4.64 |
ROIC/WACC0.42
WACC9.81%
2.3 Liquidity
A Current Ratio of 3.28 indicates that CIEN has no problem at all paying its short term obligations.
CIEN's Current ratio of 3.28 is fine compared to the rest of the industry. CIEN outperforms 79.17% 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.
With a decent Quick ratio value of 2.55, CIEN is doing good in the industry, outperforming 77.08% of the companies in the same industry.
| 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.
CIEN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.82% yearly.
Looking at the last year, CIEN shows a quite strong growth in Revenue. The Revenue has grown by 12.97% in the last year.
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
The Earnings Per Share is expected to grow by 34.61% on average over the next years. This is a very strong growth
Based on estimates for the next years, CIEN will show a quite strong growth in Revenue. The Revenue will grow by 10.17% on average per year.
EPS Next Y26.73%
EPS Next 2Y36.5%
EPS Next 3Y34.61%
EPS Next 5YN/A
Revenue Next Year17.84%
Revenue Next 2Y17.03%
Revenue Next 3Y15.02%
Revenue Next 5Y10.17%
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
The Price/Earnings ratio is 60.81, which means the current valuation is very expensive for CIEN.
CIEN's Price/Earnings ratio is in line with the industry average.
When comparing the Price/Earnings ratio of CIEN to the average of the S&P500 Index (27.41), we can say CIEN is valued expensively.
Based on the Price/Forward Earnings ratio of 40.70, the valuation of CIEN can be described as expensive.
CIEN's Price/Forward Earnings is on the same level as the industry average.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.88, CIEN is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.81 | ||
| Fwd PE | 40.7 |
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 | 32.16 | ||
| EV/EBITDA | 49.66 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates an expensive valuation of the company.
A more expensive valuation may be justified as CIEN's earnings are expected to grow with 34.61% in the coming years.
PEG (NY)2.28
PEG (5Y)N/A
EPS Next 2Y36.5%
EPS Next 3Y34.61%
5. Dividend
5.1 Amount
No dividends for CIEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
138.04
+1.66 (+1.22%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.45%
Inst Owner Change1.22%
Ins Owners0.56%
Ins Owner Change-0.49%
Market Cap19.47B
Analysts80.83
Price Target125.78 (-8.88%)
Short Float %3.41%
Short Ratio2.08
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)45.1%
PT rev (3m)57.65%
EPS NQ rev (1m)15.76%
EPS NQ rev (3m)-4.28%
EPS NY rev (1m)0%
EPS NY rev (3m)-10.85%
Revenue NQ rev (1m)6.4%
Revenue NQ rev (3m)9.5%
Revenue NY rev (1m)2.76%
Revenue NY rev (3m)6.05%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 60.81 | ||
| Fwd PE | 40.7 | ||
| P/S | 4.29 | ||
| P/FCF | 32.16 | ||
| P/OCF | 24.82 | ||
| P/B | 6.99 | ||
| P/tB | 8.84 | ||
| EV/EBITDA | 49.66 |
EPS(TTM)2.27
EY1.64%
EPS(NY)3.39
Fwd EY2.46%
FCF(TTM)4.29
FCFY3.11%
OCF(TTM)5.56
OCFY4.03%
SpS32.2
BVpS19.76
TBVpS15.62
PEG (NY)2.28
PEG (5Y)N/A
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%
ROICexcg growth 3Y-34.63%
ROICexcg 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 | 4.64 |
F-Score6
WACC9.81%
ROIC/WACC0.42
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 Y26.73%
EPS Next 2Y36.5%
EPS Next 3Y34.61%
EPS Next 5YN/A
Revenue 1Y (TTM)12.97%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%29.4%
Revenue Next Year17.84%
Revenue Next 2Y17.03%
Revenue Next 3Y15.02%
Revenue Next 5Y10.17%
EBIT growth 1Y11.21%
EBIT growth 3Y-26.74%
EBIT growth 5Y-12.59%
EBIT Next Year39.59%
EBIT Next 3Y31.71%
EBIT Next 5Y23.31%
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%