CIENA CORP (CIEN) Stock Fundamental Analysis
USA • New York Stock Exchange • NYSE:CIEN • US1717793095
276.52 USD
+8.03 (+2.99%)
At close: Feb 3, 2026
283.03 USD
+6.51 (+2.35%)
After Hours: 2/3/2026, 8:06:13 PM
We assign a fundamental rating of 5 out of 10 to CIEN. CIEN was compared to 48 industry peers in the Communications Equipment industry. CIEN is in great health and has no worries on liquidiy or solvency at all, but the profibility rating is only average. 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.
- CIEN had a positive operating cash flow in the past year.
- In the past 5 years CIEN has always been profitable.
- Of the past 5 years CIEN 4 years had a positive operating cash flow.
1.2 Ratios
- CIEN has a Return On Assets of 2.10%. This is in the better half of the industry: CIEN outperforms 66.67% of its industry peers.
- CIEN has a Return On Equity of 4.52%. This is in the better half of the industry: CIEN outperforms 64.58% of its industry peers.
- CIEN has a Return On Invested Capital of 5.08%. This is in the better half of the industry: CIEN outperforms 68.75% 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 11.74%.
- The 3 year average ROIC (4.76%) for CIEN is below the current ROIC(5.08%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.52% | ||
| ROIC | 5.08% |
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
- With a decent Profit Margin value of 2.59%, CIEN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
- In the last couple of years the Profit Margin of CIEN has declined.
- CIEN's Operating Margin of 6.52% is fine compared to the rest of the industry. CIEN outperforms 70.83% of its industry peers.
- CIEN's Operating Margin has declined in the last couple of years.
- CIEN's Gross Margin of 42.04% is in line compared to the rest of the industry. CIEN outperforms 52.08% of its industry peers.
- CIEN's Gross Margin has declined in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 6.52% | ||
| PM (TTM) | 2.59% | ||
| GM | 42.04% |
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. Health
2.1 Basic Checks
- With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), CIEN is destroying value.
- Compared to 1 year ago, CIEN has less shares outstanding
- Compared to 5 years ago, CIEN has less shares outstanding
- Compared to 1 year ago, CIEN has an improved debt to assets ratio.
2.2 Solvency
- An Altman-Z score of 7.94 indicates that CIEN is not in any danger for bankruptcy at the moment.
- With an excellent Altman-Z score value of 7.94, CIEN belongs to the best of the industry, outperforming 85.42% of the companies in the same industry.
- The Debt to FCF ratio of CIEN is 2.31, which is a good value as it means it would take CIEN, 2.31 years of fcf income to pay off all of its debts.
- The Debt to FCF ratio of CIEN (2.31) is better than 60.42% of its industry peers.
- CIEN has a Debt/Equity ratio of 0.56. This is a neutral value indicating CIEN is somewhat dependend on debt financing.
- CIEN has a worse Debt to Equity ratio (0.56) than 72.92% of its industry peers.
- Even though the debt/equity ratio score it not favorable for CIEN, it has very limited outstanding debt, so we won't put too much weight on the DE evaluation.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 7.94 |
ROIC/WACC0.52
WACC9.82%
2.3 Liquidity
- CIEN has a Current Ratio of 2.73. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
- CIEN has a better Current ratio (2.73) than 72.92% of its industry peers.
- A Quick Ratio of 2.12 indicates that CIEN has no problem at all paying its short term obligations.
- CIEN has a Quick ratio of 2.12. This is in the better half of the industry: CIEN outperforms 75.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.12 |
3. Growth
3.1 Past
- The Earnings Per Share has grown by an impressive 45.05% over the past year.
- The Earnings Per Share has been decreasing by -2.13% on average over the past years.
- CIEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 18.79%.
- Measured over the past years, CIEN shows a small growth in Revenue. The Revenue has been growing by 6.19% on average per year.
EPS 1Y (TTM)45.05%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%68.52%
Revenue 1Y (TTM)18.79%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%20.27%
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 48.77% on average per year.
- CIEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 14.43% yearly.
EPS Next Y106.21%
EPS Next 2Y62.18%
EPS Next 3Y48.77%
EPS Next 5YN/A
Revenue Next Year26.29%
Revenue Next 2Y21.07%
Revenue Next 3Y18.51%
Revenue Next 5Y14.43%
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
- Based on the Price/Earnings ratio of 104.74, the valuation of CIEN can be described as expensive.
- CIEN's Price/Earnings is on the same level as the industry average.
- The average S&P500 Price/Earnings ratio is at 28.18. CIEN is valued rather expensively when compared to this.
- The Price/Forward Earnings ratio is 50.79, which means the current valuation is very expensive for CIEN.
- The rest of the industry has a similar Price/Forward Earnings ratio as CIEN.
- The average S&P500 Price/Forward Earnings ratio is at 25.51. CIEN is valued rather expensively when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 104.74 | ||
| Fwd PE | 50.79 |
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 more expensive than 60.42% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 58.63 | ||
| EV/EBITDA | 83.98 |
4.3 Compensation for Growth
- The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
- CIEN's earnings are expected to grow with 48.77% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.99
PEG (5Y)N/A
EPS Next 2Y62.18%
EPS Next 3Y48.77%
5. Dividend
5.1 Amount
- CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
276.52
+8.03 (+2.99%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)12-11 2025-12-11/bmo
Earnings (Next)03-09 2026-03-09/bmo
Inst Owners102.21%
Inst Owner Change-1.61%
Ins Owners0.74%
Ins Owner Change0.3%
Market Cap39.01B
Revenue(TTM)4.77B
Net Income(TTM)123.34M
Analysts80
Price Target250.43 (-9.44%)
Short Float %N/A
Short RatioN/A
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)20.21%
Min EPS beat(2)15.65%
Max EPS beat(2)24.77%
EPS beat(4)3
Avg EPS beat(4)18.11%
Min EPS beat(4)-20.72%
Max EPS beat(4)52.75%
EPS beat(8)6
Avg EPS beat(8)24.95%
EPS beat(12)10
Avg EPS beat(12)26.08%
EPS beat(16)12
Avg EPS beat(16)61.49%
Revenue beat(2)2
Avg Revenue beat(2)2.22%
Min Revenue beat(2)1.7%
Max Revenue beat(2)2.73%
Revenue beat(4)3
Avg Revenue beat(4)1.38%
Min Revenue beat(4)-0.07%
Max Revenue beat(4)2.73%
Revenue beat(8)3
Avg Revenue beat(8)0.56%
Revenue beat(12)7
Avg Revenue beat(12)1.35%
Revenue beat(16)8
Avg Revenue beat(16)1.05%
PT rev (1m)0%
PT rev (3m)85.13%
EPS NQ rev (1m)0%
EPS NQ rev (3m)43.14%
EPS NY rev (1m)0%
EPS NY rev (3m)22.52%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)11.69%
Revenue NY rev (1m)0%
Revenue NY rev (3m)8.11%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 104.74 | ||
| Fwd PE | 50.79 | ||
| P/S | 8.18 | ||
| P/FCF | 58.63 | ||
| P/OCF | 48.39 | ||
| P/B | 14.29 | ||
| P/tB | 19.66 | ||
| EV/EBITDA | 83.98 |
EPS(TTM)2.64
EY0.95%
EPS(NY)5.44
Fwd EY1.97%
FCF(TTM)4.72
FCFY1.71%
OCF(TTM)5.71
OCFY2.07%
SpS33.81
BVpS19.35
TBVpS14.06
PEG (NY)0.99
PEG (5Y)N/A
Graham Number33.9
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 2.1% | ||
| ROE | 4.52% | ||
| ROCE | 6.82% | ||
| ROIC | 5.08% | ||
| ROICexc | 7.13% | ||
| ROICexgc | 9.25% | ||
| OM | 6.52% | ||
| PM (TTM) | 2.59% | ||
| GM | 42.04% | ||
| FCFM | 13.95% |
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 Turnover0.81
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.31 | ||
| Debt/EBITDA | 3.38 | ||
| Cap/Depr | 100.33% | ||
| Cap/Sales | 2.95% | ||
| Interest Coverage | 3.65 | ||
| Cash Conversion | 178.68% | ||
| Profit Quality | 539.41% | ||
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.12 | ||
| Altman-Z | 7.94 |
F-Score7
WACC9.82%
ROIC/WACC0.52
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)45.05%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%68.52%
EPS Next Y106.21%
EPS Next 2Y62.18%
EPS Next 3Y48.77%
EPS Next 5YN/A
Revenue 1Y (TTM)18.79%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%20.27%
Revenue Next Year26.29%
Revenue Next 2Y21.07%
Revenue Next 3Y18.51%
Revenue Next 5Y14.43%
EBIT growth 1Y62.04%
EBIT growth 3Y6.51%
EBIT growth 5Y-9.56%
EBIT Next Year128.95%
EBIT Next 3Y50.34%
EBIT Next 5Y28.36%
FCF growth 1Y76.05%
FCF growth 3YN/A
FCF growth 5Y10.11%
OCF growth 1Y56.67%
OCF growth 3YN/A
OCF growth 5Y10.3%
CIENA CORP / CIEN FAQ
Can you provide the ChartMill fundamental rating for CIENA CORP?
ChartMill assigns a fundamental rating of 5 / 10 to CIEN.
What is the valuation status for CIEN stock?
ChartMill assigns a valuation rating of 2 / 10 to CIENA CORP (CIEN). This can be considered as Overvalued.
Can you provide the profitability details for CIENA CORP?
CIENA CORP (CIEN) has a profitability rating of 5 / 10.
What is the financial health of CIENA CORP (CIEN) stock?
The financial health rating of CIENA CORP (CIEN) is 8 / 10.