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%)
CIEN gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. CIEN has an excellent financial health rating, but there are some minor concerns on its profitability. CIEN is quite expensive at the moment. It does show 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's Return On Assets of 2.45% is fine compared to the rest of the industry. CIEN outperforms 62.50% of its industry peers.
The Return On Equity of CIEN (5.05%) is better than 62.50% of its industry peers.
With a decent Return On Invested Capital value of 4.09%, CIEN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
Measured over the past 3 years, the Average Return On Invested Capital for CIEN 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
With a decent Profit Margin value of 3.10%, 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.
Looking at the Operating Margin, with a value of 5.60%, CIEN is in the better half of the industry, outperforming 62.50% of the companies in the same industry.
CIEN's Operating Margin has declined in the last couple of years.
CIEN has a Gross Margin (41.57%) which is comparable to the rest of the industry.
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
The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CIEN 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.
The debt/assets ratio for CIEN has been reduced compared to a year ago.
2.2 Solvency
An Altman-Z score of 6.29 indicates that CIEN is not in any danger for bankruptcy at the moment.
Looking at the Altman-Z score, with a value of 6.29, CIEN belongs to the top of the industry, outperforming 83.33% of the companies in the same industry.
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.
CIEN has a better Debt to FCF ratio (2.54) 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's Debt to Equity ratio of 0.55 is on the low side compared to the rest of the industry. CIEN is outperformed by 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
CIEN has a Current Ratio of 3.28. This indicates that CIEN is financially healthy and has no problem in meeting its short term obligations.
CIEN has a better Current ratio (3.28) than 83.33% of its industry peers.
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
CIEN shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 11.82%, which is quite good.
The Earnings Per Share has been decreasing by -2.82% on average over the past years.
Looking at the last year, CIEN shows a quite strong growth in Revenue. The Revenue has grown by 12.97% 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)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
CIEN is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 44.83% yearly.
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
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
CIEN is valuated quite expensively with a Price/Earnings ratio of 88.86.
The rest of the industry has a similar Price/Earnings ratio as CIEN.
The average S&P500 Price/Earnings ratio is at 26.46. CIEN is valued rather expensively when compared to this.
Based on the Price/Forward Earnings ratio of 45.40, the valuation of CIEN can be described as expensive.
CIEN's Price/Forward Earnings is on the same level as 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
CIEN's Enterprise Value to EBITDA is on the same level as the industry average.
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 CIEN does not grow enough to justify the current Price/Earnings ratio.
CIEN's earnings are expected to grow with 45.68% in the coming years. This may justify a more expensive valuation.
PEG (NY)2.23
PEG (5Y)N/A
EPS Next 2Y56.25%
EPS Next 3Y45.68%
5. Dividend
5.1 Amount
No dividends for CIEN!.
| 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 Owners103.49%
Inst Owner Change-1.56%
Ins Owners0.62%
Ins Owner Change-1.67%
Market Cap28.45B
Revenue(TTM)4.54B
Net Income(TTM)140.88M
Analysts81.67
Price Target151.52 (-24.88%)
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.