CIENA CORP (CIEN) Stock Fundamental Analysis
USA - New York Stock Exchange - NYSE:CIEN - US1717793095 - Common Stock
201.71 USD
+5.98 (+3.06%)
201.16 USD
-0.55 (-0.27%)
Taking everything into account, CIEN scores 5 out of 10 in our fundamental rating. CIEN was compared to 48 industry peers in the Communications Equipment industry. While CIEN has a great health rating, its profitability is only average at the moment. 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
CIEN has a Return On Assets of 2.45%. This is in the better half of the industry: CIEN outperforms 62.50% of its industry peers.
Looking at the Return On Equity, with a value of 5.05%, CIEN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
The Return On Invested Capital of CIEN (4.09%) is better than 62.50% 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 12.32%.
| 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
Looking at the Profit Margin, with a value of 3.10%, CIEN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
CIEN's Profit Margin has declined in the last couple of years.
The Operating Margin of CIEN (5.60%) is better than 62.50% of its industry peers.
CIEN's Operating Margin has declined in the last couple of years.
CIEN's Gross Margin of 41.57% is in line compared to the rest of the industry. CIEN outperforms 52.08% of its industry peers.
CIEN's Gross Margin has been stable in the last couple of years.
| 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
CIEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
CIEN has less shares outstanding than it did 1 year ago.
The number of shares outstanding for CIEN has been reduced compared to 5 years ago.
CIEN has a better debt/assets ratio than last year.
2.2 Solvency
CIEN has an Altman-Z score of 6.29. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
CIEN's Altman-Z score of 6.29 is amongst the best of the industry. CIEN outperforms 83.33% of its industry peers.
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.
The Debt to FCF ratio of CIEN (2.54) is better than 62.50% of its industry peers.
CIEN has a Debt/Equity ratio of 0.55. This is a neutral value indicating CIEN is somewhat dependend on debt financing.
CIEN has a worse Debt to Equity ratio (0.55) than 72.92% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.55 | ||
| Debt/FCF | 2.54 | ||
| Altman-Z | 6.29 |
ROIC/WACC0.44
WACC9.19%
2.3 Liquidity
A Current Ratio of 3.28 indicates that CIEN has no problem at all paying its short term obligations.
With an excellent Current ratio value of 3.28, CIEN belongs to the best of the industry, outperforming 83.33% of the companies in the same industry.
A Quick Ratio of 2.55 indicates that CIEN has no problem at all paying its short term obligations.
With a decent Quick ratio value of 2.55, CIEN is doing good in the industry, outperforming 79.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.28 | ||
| Quick Ratio | 2.55 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an nice 11.82% over the past year.
The Earnings Per Share has been decreasing by -2.82% on average over the past years.
CIEN shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 12.97%.
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
Based on estimates for the next years, CIEN will show a very strong growth in Earnings Per Share. The EPS will grow by 44.83% on average per year.
CIEN is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.75% yearly.
EPS Next Y39.83%
EPS Next 2Y56.25%
EPS Next 3Y45.68%
EPS Next 5Y44.83%
Revenue Next Year17.84%
Revenue Next 2Y17.37%
Revenue Next 3Y15.42%
Revenue Next 5Y12.75%
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.
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
CIEN is valuated quite expensively with a Price/Earnings ratio of 88.86.
Compared to the rest of the industry, the Price/Earnings ratio of CIEN is on the same level as its industry peers.
CIEN is valuated expensively when we compare the Price/Earnings ratio to 26.46, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 45.40, CIEN can be considered very expensive at the moment.
CIEN's Price/Forward Earnings ratio is in line with the industry average.
CIEN's Price/Forward Earnings ratio indicates a valuation a bit more expensive than the S&P500 average which is at 36.10.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.86 | ||
| Fwd PE | 45.4 |
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.
The rest of the industry has a similar Price/Free Cash Flow ratio as CIEN.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 46.99 | ||
| EV/EBITDA | 70.48 |
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 45.68% in the coming years.
PEG (NY)2.23
PEG (5Y)N/A
EPS Next 2Y56.25%
EPS Next 3Y45.68%
5. Dividend
5.1 Amount
CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
201.71
+5.98 (+3.06%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners102.06%
Inst Owner Change-1.56%
Ins Owners0.57%
Ins Owner Change-1.67%
Market Cap28.45B
Revenue(TTM)4.54B
Net Income(TTM)140.88M
Analysts81.67
Price Target154.58 (-23.37%)
Short Float %4.18%
Short Ratio2.03
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)12.01%
PT rev (3m)74.79%
EPS NQ rev (1m)0%
EPS NQ rev (3m)15.46%
EPS NY rev (1m)0%
EPS NY rev (3m)10.34%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)6.4%
Revenue NY rev (1m)0%
Revenue NY rev (3m)2.72%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 88.86 | ||
| Fwd PE | 45.4 | ||
| P/S | 6.26 | ||
| P/FCF | 46.99 | ||
| P/OCF | 36.27 | ||
| P/B | 10.21 | ||
| P/tB | 12.91 | ||
| EV/EBITDA | 70.48 |
EPS(TTM)2.27
EY1.13%
EPS(NY)4.44
Fwd EY2.2%
FCF(TTM)4.29
FCFY2.13%
OCF(TTM)5.56
OCFY2.76%
SpS32.2
BVpS19.76
TBVpS15.62
PEG (NY)2.23
PEG (5Y)N/A
Graham Number31.77
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%
ROICexgc growth 3Y-34.63%
ROICexgc 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 | 6.29 |
F-Score6
WACC9.19%
ROIC/WACC0.44
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 Y39.83%
EPS Next 2Y56.25%
EPS Next 3Y45.68%
EPS Next 5Y44.83%
Revenue 1Y (TTM)12.97%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%29.4%
Revenue Next Year17.84%
Revenue Next 2Y17.37%
Revenue Next 3Y15.42%
Revenue Next 5Y12.75%
EBIT growth 1Y11.21%
EBIT growth 3Y-26.74%
EBIT growth 5Y-12.59%
EBIT Next Year48.31%
EBIT Next 3Y38.25%
EBIT Next 5Y25.87%
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%
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 of CIENA CORP (CIEN) stock?
ChartMill assigns a valuation rating of 2 / 10 to CIENA CORP (CIEN). This can be considered as Overvalued.
What is the profitability of CIEN stock?
CIENA CORP (CIEN) has a profitability rating of 5 / 10.
How financially healthy is CIENA CORP?
The financial health rating of CIENA CORP (CIEN) is 7 / 10.