CIENA CORP (CIEN) Stock Fundamental Analysis
NYSE:CIEN - New York Stock Exchange, Inc. - US1717793095 - Common Stock - Currency: USD
Taking everything into account, CIEN scores 5 out of 10 in our fundamental rating. CIEN was compared to 50 industry peers in the Communications Equipment industry. Both the profitability and the financial health of CIEN get a neutral evaluation. Nothing too spectacular is happening here. 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.
CIEN had a positive operating cash flow in the past year.
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
Looking at the Return On Assets, with a value of 1.85%, CIEN is in the better half of the industry, outperforming 66.00% of the companies in the same industry.
With a decent Return On Equity value of 3.77%, CIEN is doing good in the industry, outperforming 68.00% of the companies in the same industry.
CIEN has a better Return On Invested Capital (3.34%) than 62.00% of its industry peers.
CIEN had an Average Return On Invested Capital over the past 3 years of 4.65%. This is significantly below the industry average of 13.82%.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 3.77% | ||
| ROIC | 3.34% |
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 Profit Margin of 2.46%. This is in the better half of the industry: CIEN outperforms 66.00% of its industry peers.
In the last couple of years the Profit Margin of CIEN has declined.
Looking at the Operating Margin, with a value of 4.85%, CIEN is in the better half of the industry, outperforming 62.00% of the companies in the same industry.
CIEN's Operating Margin has declined in the last couple of years.
CIEN has a Gross Margin (41.94%) which is in line with its industry peers.
CIEN's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 4.85% | ||
| PM (TTM) | 2.46% | ||
| GM | 41.94% |
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.
The debt/assets ratio for CIEN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 2.96 indicates that CIEN is not a great score, but indicates only limited risk for bankruptcy at the moment.
CIEN has a Altman-Z score of 2.96. This is in the better half of the industry: CIEN outperforms 68.00% of its industry peers.
The Debt to FCF ratio of CIEN is 5.28, which is a neutral value as it means it would take CIEN, 5.28 years of fcf income to pay off all of its debts.
CIEN's Debt to FCF ratio of 5.28 is in line compared to the rest of the industry. CIEN outperforms 52.00% of its industry peers.
A Debt/Equity ratio of 0.55 indicates that CIEN is somewhat dependend on debt financing.
CIEN has a worse Debt to Equity ratio (0.55) than 66.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.28 | ||
| Altman-Z | 2.96 |
ROIC/WACC0.34
WACC9.93%
2.3 Liquidity
A Current Ratio of 3.40 indicates that CIEN has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 3.40, CIEN is in the better half of the industry, outperforming 80.00% of the companies in the same industry.
CIEN has a Quick Ratio of 2.60. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
With a decent Quick ratio value of 2.60, CIEN is doing good in the industry, outperforming 80.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.4 | ||
| Quick Ratio | 2.6 |
3. Growth
3.1 Past
CIEN shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -14.10%.
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 small growth in Revenue. The Revenue has grown by 2.86% in the last year.
CIEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 2.36% yearly.
EPS 1Y (TTM)-14.1%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%55.56%
Revenue 1Y (TTM)2.86%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%23.61%
3.2 Future
The Earnings Per Share is expected to grow by 35.07% 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 Y26.81%
EPS Next 2Y36.78%
EPS Next 3Y35.07%
EPS Next 5YN/A
Revenue Next Year14.65%
Revenue Next 2Y12.17%
Revenue Next 3Y11.33%
Revenue Next 5Y10.17%
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. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 41.73, the valuation of CIEN can be described as expensive.
The rest of the industry has a similar Price/Earnings ratio as CIEN.
The average S&P500 Price/Earnings ratio is at 27.45. CIEN is valued rather expensively when compared to this.
CIEN is valuated rather expensively with a Price/Forward Earnings ratio of 23.90.
CIEN's Price/Forward Earnings is on the same level as the industry average.
CIEN's Price/Forward Earnings ratio indicates a similar valuation than the S&P500 average which is at 21.90.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.73 | ||
| Fwd PE | 23.9 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CIEN is on the same level as its industry peers.
CIEN's Price/Free Cash Flow is on the same level as the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 39.63 | ||
| EV/EBITDA | 33.1 |
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 35.07% in the coming years.
PEG (NY)1.56
PEG (5Y)N/A
EPS Next 2Y36.78%
EPS Next 3Y35.07%
5. Dividend
5.1 Amount
CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
81.38
+1.86 (+2.34%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.7%
Inst Owner Change2.38%
Ins Owners0.8%
Ins Owner Change-4.41%
Market Cap11.57B
Analysts80.87
Price Target83.55 (2.67%)
Short Float %3.46%
Short Ratio2.32
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)16.01%
Min EPS beat(2)-20.72%
Max EPS beat(2)52.75%
EPS beat(4)2
Avg EPS beat(4)11.39%
Min EPS beat(4)-20.72%
Max EPS beat(4)52.75%
EPS beat(8)6
Avg EPS beat(8)22.44%
EPS beat(12)9
Avg EPS beat(12)78.89%
EPS beat(16)11
Avg EPS beat(16)59.69%
Revenue beat(2)1
Avg Revenue beat(2)0.54%
Min Revenue beat(2)-0.07%
Max Revenue beat(2)1.16%
Revenue beat(4)1
Avg Revenue beat(4)0.12%
Min Revenue beat(4)-0.46%
Max Revenue beat(4)1.16%
Revenue beat(8)3
Avg Revenue beat(8)0.22%
Revenue beat(12)6
Avg Revenue beat(12)1.5%
Revenue beat(16)6
Avg Revenue beat(16)0.75%
PT rev (1m)4.72%
PT rev (3m)-1.03%
EPS NQ rev (1m)-11.85%
EPS NQ rev (3m)-11.85%
EPS NY rev (1m)-10.79%
EPS NY rev (3m)-6.2%
Revenue NQ rev (1m)5.84%
Revenue NQ rev (3m)5.84%
Revenue NY rev (1m)3.27%
Revenue NY rev (3m)3.87%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 41.73 | ||
| Fwd PE | 23.9 | ||
| P/S | 2.71 | ||
| P/FCF | 39.63 | ||
| P/OCF | 25.67 | ||
| P/B | 4.17 | ||
| P/tB | 5.3 | ||
| EV/EBITDA | 33.1 |
EPS(TTM)1.95
EY2.4%
EPS(NY)3.4
Fwd EY4.18%
FCF(TTM)2.05
FCFY2.52%
OCF(TTM)3.17
OCFY3.9%
SpS30
BVpS19.53
TBVpS15.36
PEG (NY)1.56
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.85% | ||
| ROE | 3.77% | ||
| ROCE | 4.49% | ||
| ROIC | 3.34% | ||
| ROICexc | 4.58% | ||
| ROICexgc | 5.56% | ||
| OM | 4.85% | ||
| PM (TTM) | 2.46% | ||
| GM | 41.94% | ||
| FCFM | 6.84% |
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 Turnover0.75
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 5.28 | ||
| Debt/EBITDA | 4.48 | ||
| Cap/Depr | 118.43% | ||
| Cap/Sales | 3.72% | ||
| Interest Coverage | 2.3 | ||
| Cash Conversion | 132.17% | ||
| Profit Quality | 278.52% | ||
| Current Ratio | 3.4 | ||
| Quick Ratio | 2.6 | ||
| Altman-Z | 2.96 |
F-Score6
WACC9.93%
ROIC/WACC0.34
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)-14.1%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%55.56%
EPS Next Y26.81%
EPS Next 2Y36.78%
EPS Next 3Y35.07%
EPS Next 5YN/A
Revenue 1Y (TTM)2.86%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%23.61%
Revenue Next Year14.65%
Revenue Next 2Y12.17%
Revenue Next 3Y11.33%
Revenue Next 5Y10.17%
EBIT growth 1Y-26.68%
EBIT growth 3Y-26.74%
EBIT growth 5Y-12.59%
EBIT Next Year48.32%
EBIT Next 3Y30.77%
EBIT Next 5Y23.31%
FCF growth 1Y181.24%
FCF growth 3Y-6.48%
FCF growth 5Y1.52%
OCF growth 1Y276.24%
OCF growth 3Y-1.69%
OCF growth 5Y4.49%