CIENA CORP (CIEN) Stock Fundamental Analysis

USA • New York Stock Exchange • NYSE:CIEN • US1717793095

253.5 USD
-23.02 (-8.32%)
At close: Feb 4, 2026
253.5 USD
0 (0%)
After Hours: 2/4/2026, 4:20:03 PM
Fundamental Rating

5

We assign a fundamental rating of 5 out of 10 to CIEN. 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.


Dividend Valuation Growth Profitability Health

5

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.
CIEN Yearly Net Income VS EBIT VS OCF VS FCFCIEN Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 500M 1B

1.2 Ratios

  • CIEN has a better Return On Assets (2.10%) than 66.67% of its industry peers.
  • The Return On Equity of CIEN (4.52%) is better than 64.58% of its industry peers.
  • CIEN's Return On Invested Capital of 5.08% is fine compared to the rest 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 last Return On Invested Capital (5.08%) for CIEN is above the 3 year average (4.76%), which is a sign of increasing profitability.
Industry RankSector 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%
CIEN Yearly ROA, ROE, ROICCIEN Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 20 40

1.3 Margins

  • CIEN has a Profit Margin of 2.59%. This is in the better half of the industry: CIEN outperforms 62.50% of its industry peers.
  • CIEN's Profit Margin has declined in the last couple of years.
  • CIEN has a Operating Margin of 6.52%. This is in the better half of the industry: CIEN outperforms 70.83% of its industry peers.
  • In the last couple of years the Operating Margin of CIEN has declined.
  • CIEN has a Gross Margin (42.04%) which is in line with its industry peers.
  • CIEN's Gross Margin has declined in the last couple of years.
Industry RankSector 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%
CIEN Yearly Profit, Operating, Gross MarginsCIEN Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 10 -10 20 30 40

8

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
  • CIEN has a better debt/assets ratio than last year.
CIEN Yearly Shares OutstandingCIEN Yearly Shares OutstandingYearly Shares Outstanding 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 50M 100M 150M
CIEN Yearly Total Debt VS Total AssetsCIEN Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B 4B 5B

2.2 Solvency

  • CIEN has an Altman-Z score of 8.16. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
  • CIEN's Altman-Z score of 8.16 is amongst the best of the industry. CIEN outperforms 85.42% of its industry peers.
  • 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.
  • CIEN has a better Debt to FCF ratio (2.31) 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.
  • Looking at the Debt to Equity ratio, with a value of 0.56, CIEN is doing worse than 72.92% of the companies in the same industry.
  • Although CIEN does not score too well on debt/equity it has very limited outstanding debt, which is well covered by the FCF. We will not put too much weight on the debt/equity number as it may be because of low equity, which could be a consequence of a share buyback program for instance. This needs to be investigated.
Industry RankSector Rank
Debt/Equity 0.56
Debt/FCF 2.31
Altman-Z 8.16
ROIC/WACC0.52
WACC9.82%
CIEN Yearly LT Debt VS Equity VS FCFCIEN Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 0 1B 2B 3B

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.
  • The Current ratio of CIEN (2.73) is better than 72.92% of its industry peers.
  • CIEN has a Quick Ratio of 2.12. This indicates that CIEN is financially healthy and has no problem in meeting 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 RankSector Rank
Current Ratio 2.73
Quick Ratio 2.12
CIEN Yearly Current Assets VS Current LiabilitesCIEN Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 1B 2B 3B

6

3. Growth

3.1 Past

  • CIEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 45.05%, which is quite impressive.
  • The Earnings Per Share has been decreasing by -2.13% on average over the past years.
  • The Revenue has grown by 18.79% in the past year. This is quite good.
  • CIEN shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.19% yearly.
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.
CIEN Yearly Revenue VS EstimatesCIEN Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 2030 2B 4B 6B 8B
CIEN Yearly EPS VS EstimatesCIEN Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2027 2028 2 4 6 8

2

4. Valuation

4.1 Price/Earnings Ratio

  • CIEN is valuated quite expensively with a Price/Earnings ratio of 96.02.
  • 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 46.56, which means the current valuation is very expensive for CIEN.
  • CIEN's Price/Forward Earnings is on the same level as the industry average.
  • CIEN's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.51.
Industry RankSector Rank
PE 96.02
Fwd PE 46.56
CIEN Price Earnings VS Forward Price EarningsCIEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80

4.2 Price Multiples

  • CIEN's Enterprise Value to EBITDA is on the same level as the industry average.
  • Compared to the rest of the industry, the Price/Free Cash Flow ratio of CIEN indicates a slightly more expensive valuation: CIEN is more expensive than 60.42% of the companies listed in the same industry.
Industry RankSector Rank
P/FCF 53.75
EV/EBITDA 86.49
CIEN Per share dataCIEN EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 10 20 30

4.3 Compensation for Growth

  • CIEN's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
  • A more expensive valuation may be justified as CIEN's earnings are expected to grow with 48.77% in the coming years.
PEG (NY)0.9
PEG (5Y)N/A
EPS Next 2Y62.18%
EPS Next 3Y48.77%

0

5. Dividend

5.1 Amount

  • No dividends for CIEN!.
Industry RankSector Rank
Dividend Yield 0%

CIENA CORP

NYSE:CIEN (2/4/2026, 4:20:03 PM)

After market: 253.5 0 (0%)

253.5

-23.02 (-8.32%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)12-11
Earnings (Next)03-09
Inst Owners102.21%
Inst Owner Change-1.61%
Ins Owners0.74%
Ins Owner Change0.3%
Market Cap35.76B
Revenue(TTM)4.77B
Net Income(TTM)123.34M
Analysts80
Price Target250.43 (-1.21%)
Short Float %4.26%
Short Ratio2.05
Dividend
Industry RankSector 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 RankSector Rank
PE 96.02
Fwd PE 46.56
P/S 7.5
P/FCF 53.75
P/OCF 44.36
P/B 13.1
P/tB 18.02
EV/EBITDA 86.49
EPS(TTM)2.64
EY1.04%
EPS(NY)5.44
Fwd EY2.15%
FCF(TTM)4.72
FCFY1.86%
OCF(TTM)5.71
OCFY2.25%
SpS33.81
BVpS19.35
TBVpS14.06
PEG (NY)0.9
PEG (5Y)N/A
Graham Number33.9
Profitability
Industry RankSector 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 RankSector 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 8.16
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.