CIENA CORP (CIEN) Stock Fundamental Analysis
NYSE:CIEN - New York Stock Exchange, Inc. - US1717793095 - Common Stock
CIEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 51 industry peers in the Communications Equipment industry. CIEN has only an average score on both its financial health and profitability. CIEN is not valued too expensively and it also shows a decent growth rate.
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 better Return On Assets (1.49%) than 70.59% of its industry peers.
CIEN has a better Return On Equity (2.98%) than 70.59% of its industry peers.
The Return On Invested Capital of CIEN (3.06%) is better 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.
In the last couple of years the Profit Margin of CIEN has declined.
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.
In the last couple of years the Operating Margin of CIEN has declined.
CIEN's Gross Margin of 42.83% is in line compared to the rest of the industry. CIEN outperforms 54.90% of 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 | 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
CIEN has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, CIEN has less shares outstanding
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 3.11 indicates that CIEN is not in any danger for bankruptcy at the moment.
CIEN has a better Altman-Z score (3.11) than 70.59% of its industry peers.
The Debt to FCF ratio of CIEN is 4.10, which is a neutral value as it means it would take CIEN, 4.10 years of fcf income to pay off all of its debts.
CIEN's Debt to FCF ratio of 4.10 is in line compared to the rest of the industry. CIEN outperforms 56.86% of its industry peers.
CIEN has a Debt/Equity ratio of 0.54. This is a neutral value indicating CIEN is somewhat dependend on debt financing.
The Debt to Equity ratio of CIEN (0.54) is worse than 70.59% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.1 | ||
| Altman-Z | 3.11 |
ROIC/WACC0.32
WACC9.57%
2.3 Liquidity
CIEN has a Current Ratio of 3.54. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
With a decent Current ratio value of 3.54, CIEN is doing good in the industry, outperforming 78.43% of the companies in the same industry.
CIEN has a Quick Ratio of 2.72. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
The Quick ratio of CIEN (2.72) is better than 78.43% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.72 |
3. Growth
3.1 Past
The earnings per share for CIEN have decreased strongly by -33.09% in the last year.
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.
CIEN shows a decrease in Revenue. In the last year, the revenue decreased by -8.47%.
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.
Based on estimates for the next years, CIEN will show a quite strong growth in Revenue. The Revenue will grow by 9.21% on average per year.
EPS Next Y36.32%
EPS Next 2Y38.16%
EPS Next 3Y31.38%
EPS Next 5YN/A
Revenue Next Year10.33%
Revenue Next 2Y9.71%
Revenue Next 3Y9.21%
Revenue Next 5YN/A
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
With a Price/Earnings ratio of 48.73, CIEN can be considered very expensive at the moment.
Based on the Price/Earnings ratio, CIEN is valued a bit cheaper than 60.78% of the companies in the same industry.
CIEN is valuated expensively when we compare the Price/Earnings ratio to 28.29, which is the current average of the S&P500 Index.
The Price/Forward Earnings ratio is 35.74, which means the current valuation is very expensive for CIEN.
CIEN's Price/Forward Earnings ratio is in line with the industry average.
The average S&P500 Price/Forward Earnings ratio is at 24.44. CIEN is valued slightly more expensive when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.73 | ||
| Fwd PE | 35.74 |
4.2 Price Multiples
CIEN's Enterprise Value to EBITDA ratio is in line with the industry average.
Based on the Price/Free Cash Flow ratio, CIEN is valued a bit cheaper than the industry average as 68.63% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.35 | ||
| EV/EBITDA | 37.04 |
4.3 Compensation for Growth
CIEN's PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
CIEN's earnings are expected to grow with 31.38% in the coming years. This may justify a more expensive valuation.
PEG (NY)1.34
PEG (5Y)N/A
EPS Next 2Y38.16%
EPS Next 3Y31.38%
5. Dividend
5.1 Amount
CIEN does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
CIENA CORP
NYSE:CIEN (1/21/2025, 8:04:00 PM)
After market: 89.47 +0.79 (+0.89%)88.68
+3.92 (+4.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners100.87%
Inst Owner Change-0.16%
Ins Owners0.88%
Ins Owner Change1.99%
Market Cap12.60B
Analysts79.13
Price Target89.69 (1.14%)
Short Float %3.28%
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)6.78%
Min EPS beat(2)-19.38%
Max EPS beat(2)32.93%
EPS beat(4)3
Avg EPS beat(4)31.79%
Min EPS beat(4)-19.38%
Max EPS beat(4)80.07%
EPS beat(8)7
Avg EPS beat(8)30.07%
EPS beat(12)9
Avg EPS beat(12)75.95%
EPS beat(16)12
Avg EPS beat(16)60.19%
Revenue beat(2)0
Avg Revenue beat(2)-0.31%
Min Revenue beat(2)-0.46%
Max Revenue beat(2)-0.17%
Revenue beat(4)0
Avg Revenue beat(4)-0.27%
Min Revenue beat(4)-0.46%
Max Revenue beat(4)-0.17%
Revenue beat(8)4
Avg Revenue beat(8)1.34%
Revenue beat(12)5
Avg Revenue beat(12)0.95%
Revenue beat(16)5
Avg Revenue beat(16)0.53%
PT rev (1m)33.67%
PT rev (3m)41.99%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-23.31%
EPS NY rev (1m)0%
EPS NY rev (3m)-13.73%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-5.28%
Revenue NY rev (1m)0.29%
Revenue NY rev (3m)2.49%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 48.73 | ||
| Fwd PE | 35.74 | ||
| P/S | 3.14 | ||
| P/FCF | 33.35 | ||
| P/OCF | 24.49 | ||
| P/B | 4.48 | ||
| P/tB | 5.71 | ||
| EV/EBITDA | 37.04 |
EPS(TTM)1.82
EY2.05%
EPS(NY)2.48
Fwd EY2.8%
FCF(TTM)2.66
FCFY3%
OCF(TTM)3.62
OCFY4.08%
SpS28.25
BVpS19.82
TBVpS15.53
PEG (NY)1.34
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 1.49% | ||
| ROE | 2.98% | ||
| ROCE | 4.12% | ||
| ROIC | 3.06% | ||
| ROICexc | 4.2% | ||
| ROICexgc | 5.12% | ||
| OM | 4.76% | ||
| PM (TTM) | 2.09% | ||
| GM | 42.83% | ||
| FCFM | 9.41% |
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-Score5
Asset Turnover0.71
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.54 | ||
| Debt/FCF | 4.1 | ||
| Debt/EBITDA | 4.72 | ||
| Cap/Depr | 102.38% | ||
| Cap/Sales | 3.4% | ||
| Interest Coverage | 2.07 | ||
| Cash Conversion | 158.47% | ||
| Profit Quality | 450.11% | ||
| Current Ratio | 3.54 | ||
| Quick Ratio | 2.72 | ||
| Altman-Z | 3.11 |
F-Score5
WACC9.57%
ROIC/WACC0.32
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)-33.09%
EPS 3Y-14.48%
EPS 5Y-2.82%
EPS Q2Q%-28%
EPS Next Y36.32%
EPS Next 2Y38.16%
EPS Next 3Y31.38%
EPS Next 5YN/A
Revenue 1Y (TTM)-8.47%
Revenue growth 3Y3.51%
Revenue growth 5Y2.36%
Sales Q2Q%-0.48%
Revenue Next Year10.33%
Revenue Next 2Y9.71%
Revenue Next 3Y9.21%
Revenue Next 5YN/A
EBIT growth 1Y-50.31%
EBIT growth 3Y-26.74%
EBIT growth 5Y-12.59%
EBIT Next Year43.79%
EBIT Next 3Y30.2%
EBIT Next 5YN/A
FCF growth 1Y508.18%
FCF growth 3Y-6.48%
FCF growth 5Y1.52%
OCF growth 1Y205.67%
OCF growth 3Y-1.69%
OCF growth 5Y4.49%