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
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.
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.
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 Rank | Sector 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%
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 Rank | Sector 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%
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.56 | ||
| Debt/FCF | 2.31 | ||
| Altman-Z | 8.16 |
ROIC/WACC0.52
WACC9.82%
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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.73 | ||
| Quick Ratio | 2.12 |
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.
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 Rank | Sector Rank | ||
|---|---|---|---|
| PE | 96.02 | ||
| Fwd PE | 46.56 |
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 Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 53.75 | ||
| EV/EBITDA | 86.49 |
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%
5. Dividend
5.1 Amount
- No dividends for CIEN!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 0% |
253.5
-23.02 (-8.32%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)12-11 2025-12-11/bmo
Earnings (Next)03-09 2026-03-09/bmo
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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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 Rank | Sector 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.