CERAGON NETWORKS LTD (CRNT) Stock Fundamental Analysis
NASDAQ:CRNT - Nasdaq - IL0010851660 - Common Stock - Currency: USD
Taking everything into account, CRNT scores 5 out of 10 in our fundamental rating. CRNT was compared to 50 industry peers in the Communications Equipment industry. CRNT has only an average score on both its financial health and profitability. CRNT is not valued too expensively and it also shows a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year CRNT was profitable.
CRNT had a positive operating cash flow in the past year.
In multiple years CRNT reported negative net income over the last 5 years.
In multiple years CRNT reported negative operating cash flow during the last 5 years.
1.2 Ratios
The Return On Assets of CRNT (6.55%) is better than 80.00% of its industry peers.
With an excellent Return On Equity value of 13.58%, CRNT belongs to the best of the industry, outperforming 86.00% of the companies in the same industry.
CRNT has a better Return On Invested Capital (13.91%) than 88.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.55% | ||
| ROE | 13.58% | ||
| ROIC | 13.91% |
ROA(3y)0.75%
ROA(5y)-1.82%
ROE(3y)0.89%
ROE(5y)-3.97%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CRNT's Profit Margin of 5.75% is fine compared to the rest of the industry. CRNT outperforms 74.00% of its industry peers.
CRNT's Operating Margin of 11.37% is fine compared to the rest of the industry. CRNT outperforms 80.00% of its industry peers.
In the last couple of years the Operating Margin of CRNT has grown nicely.
The Gross Margin of CRNT (35.47%) is worse than 60.00% of its industry peers.
In the last couple of years the Gross Margin of CRNT has remained more or less at the same level.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.37% | ||
| PM (TTM) | 5.75% | ||
| GM | 35.47% |
OM growth 3Y71.41%
OM growth 5Y22.33%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.77%
GM growth 5Y0.06%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so CRNT is still creating some value.
CRNT has more shares outstanding than it did 1 year ago.
CRNT has more shares outstanding than it did 5 years ago.
CRNT has a better debt/assets ratio than last year.
2.2 Solvency
CRNT has an Altman-Z score of 1.68. This is a bad value and indicates that CRNT is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of 1.68, CRNT perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
CRNT has a debt to FCF ratio of 4.57. This is a neutral value as CRNT would need 4.57 years to pay back of all of its debts.
CRNT's Debt to FCF ratio of 4.57 is in line compared to the rest of the industry. CRNT outperforms 54.00% of its industry peers.
A Debt/Equity ratio of 0.15 indicates that CRNT is not too dependend on debt financing.
CRNT has a Debt to Equity ratio of 0.15. This is comparable to the rest of the industry: CRNT outperforms 56.00% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 4.57 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.49
WACC9.31%
2.3 Liquidity
CRNT has a Current Ratio of 1.69. This is a normal value and indicates that CRNT is financially healthy and should not expect problems in meeting its short term obligations.
The Current ratio of CRNT (1.69) is comparable to the rest of the industry.
A Quick Ratio of 1.27 indicates that CRNT should not have too much problems paying its short term obligations.
The Quick ratio of CRNT (1.27) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.27 |
3. Growth
3.1 Past
CRNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 233.33%, which is quite impressive.
The Earnings Per Share has been growing by 110.16% on average over the past years. This is a very strong growth
CRNT shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.93%.
The Revenue has been growing slightly by 6.66% on average over the past years.
EPS 1Y (TTM)233.33%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%-40%
Revenue 1Y (TTM)11.93%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%0.17%
3.2 Future
Based on estimates for the next years, CRNT will show a small growth in Earnings Per Share. The EPS will grow by 1.47% on average per year.
The Revenue is expected to grow by 4.67% on average over the next years.
EPS Next Y-30.09%
EPS Next 2Y0.28%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue Next Year1.55%
Revenue Next 2Y4.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is decreasing: in the next years the growth will be less than in the last years.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 6.67, which indicates a rather cheap valuation of CRNT.
CRNT's Price/Earnings ratio is rather cheap when compared to the industry. CRNT is cheaper than 100.00% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.45, CRNT is valued rather cheaply.
With a Price/Forward Earnings ratio of 6.31, the valuation of CRNT can be described as very cheap.
CRNT's Price/Forward Earnings ratio is rather cheap when compared to the industry. CRNT is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CRNT to the average of the S&P500 Index (21.90), we can say CRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 6.31 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CRNT indicates a rather cheap valuation: CRNT is cheaper than 100.00% of the companies listed in the same industry.
CRNT's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 41.92 | ||
| EV/EBITDA | 3.55 |
4.3 Compensation for Growth
PEG (NY)N/A
PEG (5Y)0.06
EPS Next 2Y0.28%
EPS Next 3Y1.47%
5. Dividend
5.1 Amount
CRNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.6
+0.07 (+2.77%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners18.75%
Inst Owner Change-4.9%
Ins Owners14%
Ins Owner ChangeN/A
Market Cap231.22M
Analysts82
Price Target6.25 (140.38%)
Short Float %1.33%
Short Ratio1.36
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)5.59%
Min EPS beat(2)-6.46%
Max EPS beat(2)17.65%
EPS beat(4)3
Avg EPS beat(4)41.3%
Min EPS beat(4)-6.46%
Max EPS beat(4)79.74%
EPS beat(8)5
Avg EPS beat(8)14.61%
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)1
Avg Revenue beat(2)-0.07%
Min Revenue beat(2)-0.32%
Max Revenue beat(2)0.18%
Revenue beat(4)1
Avg Revenue beat(4)-0.74%
Min Revenue beat(4)-1.99%
Max Revenue beat(4)0.18%
Revenue beat(8)4
Avg Revenue beat(8)0.75%
Revenue beat(12)5
Avg Revenue beat(12)-0.47%
Revenue beat(16)7
Avg Revenue beat(16)-0.32%
PT rev (1m)-9.26%
PT rev (3m)-16.48%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-20.66%
EPS NY rev (1m)-6.75%
EPS NY rev (3m)-9.35%
Revenue NQ rev (1m)-1.02%
Revenue NQ rev (3m)-3.1%
Revenue NY rev (1m)-0.71%
Revenue NY rev (3m)-0.23%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 6.67 | ||
| Fwd PE | 6.31 | ||
| P/S | 0.59 | ||
| P/FCF | 41.92 | ||
| P/OCF | 10.38 | ||
| P/B | 1.38 | ||
| P/tB | 1.73 | ||
| EV/EBITDA | 3.55 |
EPS(TTM)0.39
EY15%
EPS(NY)0.41
Fwd EY15.86%
FCF(TTM)0.06
FCFY2.39%
OCF(TTM)0.25
OCFY9.64%
SpS4.43
BVpS1.88
TBVpS1.5
PEG (NY)N/A
PEG (5Y)0.06
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.55% | ||
| ROE | 13.58% | ||
| ROCE | 22.91% | ||
| ROIC | 13.91% | ||
| ROICexc | 15.91% | ||
| ROICexgc | 19.22% | ||
| OM | 11.37% | ||
| PM (TTM) | 5.75% | ||
| GM | 35.47% | ||
| FCFM | 1.4% |
ROA(3y)0.75%
ROA(5y)-1.82%
ROE(3y)0.89%
ROE(5y)-3.97%
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexcg growth 3Y93.38%
ROICexcg growth 5Y31.98%
ROICexc growth 3Y86.61%
ROICexc growth 5Y29.42%
OM growth 3Y71.41%
OM growth 5Y22.33%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.77%
GM growth 5Y0.06%
F-Score5
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 4.57 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 134.07% | ||
| Cap/Sales | 4.25% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 38.86% | ||
| Profit Quality | 24.32% | ||
| Current Ratio | 1.69 | ||
| Quick Ratio | 1.27 | ||
| Altman-Z | 1.68 |
F-Score5
WACC9.31%
ROIC/WACC1.49
Cap/Depr(3y)125.95%
Cap/Depr(5y)101.34%
Cap/Sales(3y)4.03%
Cap/Sales(5y)3.57%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)233.33%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%-40%
EPS Next Y-30.09%
EPS Next 2Y0.28%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue 1Y (TTM)11.93%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%0.17%
Revenue Next Year1.55%
Revenue Next 2Y4.67%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y80.89%
EBIT growth 3Y89.71%
EBIT growth 5Y30.47%
EBIT Next Year9.57%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y140.29%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y5081.63%
OCF growth 3YN/A
OCF growth 5YN/A