CIENA CORP (CIEN) Fundamental Analysis & Valuation

NYSE:CIEN • US1717793095

Current stock price

399.71 USD
-37.99 (-8.68%)
Last:

This CIEN fundamental analysis includes valuation metrics, fair value assessment, financial health analysis, profitability trends, growth metrics and dividend sustainability analysis.

5

1. CIEN Profitability Analysis

1.1 Basic Checks

  • In the past year CIEN was profitable.
  • 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 (3.89%) than 72.92% of its industry peers.
  • Looking at the Return On Equity, with a value of 8.20%, CIEN is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
  • With a decent Return On Invested Capital value of 6.75%, CIEN is doing good in the industry, outperforming 77.08% of the companies in the same industry.
  • CIEN had an Average Return On Invested Capital over the past 3 years of 4.76%. This is significantly below the industry average of 10.22%.
  • The last Return On Invested Capital (6.75%) for CIEN is above the 3 year average (4.76%), which is a sign of increasing profitability.
Industry RankSector Rank
ROA 3.89%
ROE 8.2%
ROIC 6.75%
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

  • With a decent Profit Margin value of 4.47%, CIEN is doing good in the industry, outperforming 68.75% of the companies in the same industry.
  • CIEN's Profit Margin has declined in the last couple of years.
  • CIEN's Operating Margin of 8.19% is fine compared to the rest of the industry. CIEN outperforms 79.17% of its industry peers.
  • In the last couple of years the Operating Margin of CIEN has declined.
  • With a Gross Margin value of 42.13%, CIEN perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
  • In the last couple of years the Gross Margin of CIEN has declined.
Industry RankSector Rank
OM 8.19%
PM (TTM) 4.47%
GM 42.13%
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

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8

2. CIEN Health Analysis

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
  • CIEN has less shares outstanding than it did 5 years ago.
  • 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 12.83. This indicates that CIEN is financially healthy and has little risk of bankruptcy at the moment.
  • CIEN has a better Altman-Z score (12.83) than 89.58% of its industry peers.
  • CIEN has a debt to FCF ratio of 2.08. This is a good value and a sign of high solvency as CIEN would need 2.08 years to pay back of all of its debts.
  • With a decent Debt to FCF ratio value of 2.08, CIEN is doing good in the industry, outperforming 62.50% of the companies in the same industry.
  • A Debt/Equity ratio of 0.55 indicates that CIEN is somewhat dependend on debt financing.
  • CIEN has a Debt to Equity ratio of 0.55. This is in the lower half of the industry: CIEN underperforms 75.00% 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 RankSector Rank
Debt/Equity 0.55
Debt/FCF 2.08
Altman-Z 12.83
ROIC/WACC0.76
WACC8.85%
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

  • A Current Ratio of 2.81 indicates that CIEN has no problem at all paying its short term obligations.
  • The Current ratio of CIEN (2.81) is better than 75.00% of its industry peers.
  • A Quick Ratio of 2.18 indicates that CIEN has no problem at all paying its short term obligations.
  • Looking at the Quick ratio, with a value of 2.18, CIEN is in the better half of the industry, outperforming 68.75% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 2.81
Quick Ratio 2.18
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

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7

3. CIEN Growth Analysis

3.1 Past

  • The Earnings Per Share has grown by an impressive 86.11% over the past year.
  • CIEN shows a decrease in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -2.13% yearly.
  • CIEN shows a strong growth in Revenue. In the last year, the Revenue has grown by 26.54%.
  • 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)86.11%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%110.94%
Revenue 1Y (TTM)26.54%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%33.08%

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 49.14% 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 14.43% on average per year.
EPS Next Y106.21%
EPS Next 2Y62.32%
EPS Next 3Y49.14%
EPS Next 5YN/A
Revenue Next Year29.89%
Revenue Next 2Y24.74%
Revenue Next 3Y22.72%
Revenue Next 5Y14.43%

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.
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

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2

4. CIEN Valuation Analysis

4.1 Price/Earnings Ratio

  • Based on the Price/Earnings ratio of 119.32, the valuation of CIEN can be described as expensive.
  • Compared to the rest of the industry, the Price/Earnings ratio of CIEN is on the same level as its industry peers.
  • CIEN's Price/Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 25.61.
  • A Price/Forward Earnings ratio of 57.47 indicates a quite expensive valuation of 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 22.79.
Industry RankSector Rank
PE 119.32
Fwd PE 57.47
CIEN Price Earnings VS Forward Price EarningsCIEN Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 20 40 60 80 100

4.2 Price Multiples

  • Based on the Enterprise Value to EBITDA ratio, CIEN is valued a bit more expensive than the industry average as 60.42% of the companies are valued more cheaply.
  • CIEN's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 76.15
EV/EBITDA 108.6
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 PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a correct valuation of the company.
  • A more expensive valuation may be justified as CIEN's earnings are expected to grow with 49.14% in the coming years.
PEG (NY)1.12
PEG (5Y)N/A
EPS Next 2Y62.32%
EPS Next 3Y49.14%

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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

0

5. CIEN Dividend Analysis

5.1 Amount

  • CIEN does not give a dividend.
Industry RankSector Rank
Dividend Yield 0%

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CIEN Fundamentals: All Metrics, Ratios and Statistics

CIENA CORP

NYSE:CIEN (3/26/2026, 10:55:05 AM)

399.71

-37.99 (-8.68%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)03-05
Earnings (Next)06-03
Inst Owners99.41%
Inst Owner Change11.21%
Ins Owners0.57%
Ins Owner Change1.32%
Market Cap56.52B
Revenue(TTM)5.12B
Net Income(TTM)229.05M
Analysts78.33
Price Target261.07 (-34.69%)
Short Float %4.47%
Short Ratio1.84
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)14.38%
Min EPS beat(2)13.12%
Max EPS beat(2)15.65%
EPS beat(4)3
Avg EPS beat(4)8.2%
Min EPS beat(4)-20.72%
Max EPS beat(4)24.77%
EPS beat(8)6
Avg EPS beat(8)22.4%
EPS beat(12)10
Avg EPS beat(12)21.03%
EPS beat(16)12
Avg EPS beat(16)62.17%
Revenue beat(2)1
Avg Revenue beat(2)1.37%
Min Revenue beat(2)0%
Max Revenue beat(2)2.73%
Revenue beat(4)3
Avg Revenue beat(4)1.4%
Min Revenue beat(4)0%
Max Revenue beat(4)2.73%
Revenue beat(8)3
Avg Revenue beat(8)0.58%
Revenue beat(12)6
Avg Revenue beat(12)0.69%
Revenue beat(16)8
Avg Revenue beat(16)1.27%
PT rev (1m)3.99%
PT rev (3m)4.25%
EPS NQ rev (1m)20.81%
EPS NQ rev (3m)20.81%
EPS NY rev (1m)0%
EPS NY rev (3m)0%
Revenue NQ rev (1m)4.57%
Revenue NQ rev (3m)4.57%
Revenue NY rev (1m)2.85%
Revenue NY rev (3m)2.85%
Valuation
Industry RankSector Rank
PE 119.32
Fwd PE 57.47
P/S 11.03
P/FCF 76.15
P/OCF 60.77
P/B 20.24
P/tB 27.46
EV/EBITDA 108.6
EPS(TTM)3.35
EY0.84%
EPS(NY)6.96
Fwd EY1.74%
FCF(TTM)5.25
FCFY1.31%
OCF(TTM)6.58
OCFY1.65%
SpS36.24
BVpS19.75
TBVpS14.55
PEG (NY)1.12
PEG (5Y)N/A
Graham Number38.58
Profitability
Industry RankSector Rank
ROA 3.89%
ROE 8.2%
ROCE 9.06%
ROIC 6.75%
ROICexc 9.38%
ROICexgc 12.03%
OM 8.19%
PM (TTM) 4.47%
GM 42.13%
FCFM 14.48%
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 Turnover0.87
Health
Industry RankSector Rank
Debt/Equity 0.55
Debt/FCF 2.08
Debt/EBITDA 2.67
Cap/Depr 124.61%
Cap/Sales 3.66%
Interest Coverage 5.48
Cash Conversion 163.01%
Profit Quality 324.04%
Current Ratio 2.81
Quick Ratio 2.18
Altman-Z 12.83
F-Score7
WACC8.85%
ROIC/WACC0.76
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)86.11%
EPS 3Y11.01%
EPS 5Y-2.13%
EPS Q2Q%110.94%
EPS Next Y106.21%
EPS Next 2Y62.32%
EPS Next 3Y49.14%
EPS Next 5YN/A
Revenue 1Y (TTM)26.54%
Revenue growth 3Y9.5%
Revenue growth 5Y6.19%
Sales Q2Q%33.08%
Revenue Next Year29.89%
Revenue Next 2Y24.74%
Revenue Next 3Y22.72%
Revenue Next 5Y14.43%
EBIT growth 1Y127.64%
EBIT growth 3Y6.51%
EBIT growth 5Y-9.56%
EBIT Next Year130.14%
EBIT Next 3Y53.26%
EBIT Next 5Y28.36%
FCF growth 1Y22.23%
FCF growth 3YN/A
FCF growth 5Y10.11%
OCF growth 1Y32.86%
OCF growth 3YN/A
OCF growth 5Y10.3%

CIENA CORP / CIEN Fundamental Analysis FAQ

Can you provide the ChartMill fundamental rating for CIENA CORP?

ChartMill assigns a fundamental rating of 6 / 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.