CERAGON NETWORKS LTD (CRNT) Stock Fundamental Analysis
USA - NASDAQ:CRNT - IL0010851660 - Common Stock
2.08 USD
-0.04 (-1.89%)
2.05 USD
-0.03 (-1.44%)
Overall CRNT gets a fundamental rating of 4 out of 10. We evaluated CRNT against 48 industry peers in the Communications Equipment industry. CRNT has only an average score on both its financial health and profitability. CRNT has a valuation in line with the averages, but it does not seem to be growing.
1. Profitability
1.1 Basic Checks
CRNT had positive earnings in the past year.
In the past year CRNT had a positive cash flow from operations.
In multiple years CRNT reported negative net income over the last 5 years.
The reported operating cash flow has been mixed in the past 5 years: CRNT reported negative operating cash flow in multiple years.
1.2 Ratios
With a decent Return On Assets value of 4.14%, CRNT is doing good in the industry, outperforming 72.92% of the companies in the same industry.
With a decent Return On Equity value of 7.91%, CRNT is doing good in the industry, outperforming 75.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 10.39%, CRNT belongs to the top of the industry, outperforming 81.25% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.91% | ||
| ROIC | 10.39% |
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
With a decent Profit Margin value of 3.57%, CRNT is doing good in the industry, outperforming 64.58% of the companies in the same industry.
The Operating Margin of CRNT (8.89%) is better than 75.00% of its industry peers.
In the last couple of years the Operating Margin of CRNT has grown nicely.
CRNT has a worse Gross Margin (34.87%) than 62.50% of its industry peers.
CRNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 8.89% | ||
| PM (TTM) | 3.57% | ||
| GM | 34.87% |
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
CRNT has a Return on Invested Capital (ROIC), which is just above the Cost of Capital (WACC), which means it is 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
Based on the Altman-Z score of 1.53, we must say that CRNT is in the distress zone and has some risk of bankruptcy.
The Altman-Z score of CRNT (1.53) is comparable to the rest of the industry.
CRNT has a debt to FCF ratio of 1.77. This is a very positive value and a sign of high solvency as it would only need 1.77 years to pay back of all of its debts.
CRNT has a better Debt to FCF ratio (1.77) than 66.67% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that CRNT is not too dependend on debt financing.
CRNT has a Debt to Equity ratio of 0.12. This is comparable to the rest of the industry: CRNT outperforms 52.08% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 1.53 |
ROIC/WACC1.14
WACC9.1%
2.3 Liquidity
CRNT has a Current Ratio of 1.86. This is a normal value and indicates that CRNT is financially healthy and should not expect problems in meeting its short term obligations.
CRNT has a Current ratio of 1.86. This is comparable to the rest of the industry: CRNT outperforms 43.75% of its industry peers.
A Quick Ratio of 1.38 indicates that CRNT should not have too much problems paying its short term obligations.
With a Quick ratio value of 1.38, CRNT perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
The earnings per share for CRNT have decreased strongly by -48.01% in the last year.
Measured over the past years, CRNT shows a very strong growth in Earnings Per Share. The EPS has been growing by 110.16% on average per year.
Looking at the last year, CRNT shows a quite strong growth in Revenue. The Revenue has grown by 13.54% in the last year.
CRNT shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 6.66% yearly.
EPS 1Y (TTM)-48.01%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%-87.5%
Revenue 1Y (TTM)13.54%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%-16.74%
3.2 Future
Based on estimates for the next years, CRNT will show a very negative growth in Earnings Per Share. The EPS will decrease by -14.64% on average per year.
The Revenue is expected to decrease by -3.40% on average over the next years.
EPS Next Y-68.4%
EPS Next 2Y-25.77%
EPS Next 3Y-14.64%
EPS Next 5YN/A
Revenue Next Year-12.98%
Revenue Next 2Y-3.4%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.
4. Valuation
4.1 Price/Earnings Ratio
CRNT is valuated correctly with a Price/Earnings ratio of 12.24.
Based on the Price/Earnings ratio, CRNT is valued cheaply inside the industry as 85.42% of the companies are valued more expensively.
CRNT's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 25.89.
A Price/Forward Earnings ratio of 9.21 indicates a reasonable valuation of CRNT.
Based on the Price/Forward Earnings ratio, CRNT is valued cheaply inside the industry as 97.92% of the companies are valued more expensively.
The average S&P500 Price/Forward Earnings ratio is at 34.59. CRNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 9.21 |
4.2 Price Multiples
CRNT's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. CRNT is cheaper than 100.00% of the companies in the same industry.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of CRNT indicates a somewhat cheap valuation: CRNT is cheaper than 77.08% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 16.17 | ||
| EV/EBITDA | 3.36 |
4.3 Compensation for Growth
A cheap valuation may be justified as CRNT's earnings are expected to decrease with -14.64% in the coming years.
PEG (NY)N/A
PEG (5Y)0.11
EPS Next 2Y-25.77%
EPS Next 3Y-14.64%
5. Dividend
5.1 Amount
No dividends for CRNT!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.08
-0.04 (-1.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners20.53%
Inst Owner Change1.07%
Ins Owners13.85%
Ins Owner ChangeN/A
Market Cap186.97M
Revenue(TTM)394.19M
Net Income(TTM)13.58M
Analysts81.82
Price Target4.85 (133.17%)
Short Float %1.31%
Short Ratio1.56
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)-4.11%
Min EPS beat(2)-25.86%
Max EPS beat(2)17.65%
EPS beat(4)2
Avg EPS beat(4)14.9%
Min EPS beat(4)-25.86%
Max EPS beat(4)74.29%
EPS beat(8)5
Avg EPS beat(8)12.74%
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)-5.67%
Min Revenue beat(2)-11.53%
Max Revenue beat(2)0.18%
Revenue beat(4)1
Avg Revenue beat(4)-3.13%
Min Revenue beat(4)-11.53%
Max Revenue beat(4)0.18%
Revenue beat(8)3
Avg Revenue beat(8)-1.65%
Revenue beat(12)5
Avg Revenue beat(12)-1.08%
Revenue beat(16)6
Avg Revenue beat(16)-1.24%
PT rev (1m)0%
PT rev (3m)-19.15%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-65.23%
EPS NY rev (1m)2.01%
EPS NY rev (3m)-54.8%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-19.37%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-13.63%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.24 | ||
| Fwd PE | 9.21 | ||
| P/S | 0.49 | ||
| P/FCF | 16.17 | ||
| P/OCF | 6.63 | ||
| P/B | 1.09 | ||
| P/tB | 1.35 | ||
| EV/EBITDA | 3.36 |
EPS(TTM)0.17
EY8.17%
EPS(NY)0.23
Fwd EY10.86%
FCF(TTM)0.13
FCFY6.18%
OCF(TTM)0.31
OCFY15.09%
SpS4.23
BVpS1.91
TBVpS1.54
PEG (NY)N/A
PEG (5Y)0.11
Graham Number2.7
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 4.14% | ||
| ROE | 7.91% | ||
| ROCE | 16.7% | ||
| ROIC | 10.39% | ||
| ROICexc | 11.96% | ||
| ROICexgc | 14.46% | ||
| OM | 8.89% | ||
| PM (TTM) | 3.57% | ||
| GM | 34.87% | ||
| FCFM | 3.04% |
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
ROICexgc growth 3Y93.38%
ROICexgc 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-Score6
Asset Turnover1.16
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.77 | ||
| Debt/EBITDA | 0.44 | ||
| Cap/Depr | 126.23% | ||
| Cap/Sales | 4.38% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 60.04% | ||
| Profit Quality | 85.15% | ||
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.38 | ||
| Altman-Z | 1.53 |
F-Score6
WACC9.1%
ROIC/WACC1.14
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)-48.01%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%-87.5%
EPS Next Y-68.4%
EPS Next 2Y-25.77%
EPS Next 3Y-14.64%
EPS Next 5YN/A
Revenue 1Y (TTM)13.54%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%-16.74%
Revenue Next Year-12.98%
Revenue Next 2Y-3.4%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y6.86%
EBIT growth 3Y89.71%
EBIT growth 5Y30.47%
EBIT Next Year-26.13%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y261.96%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y316.24%
OCF growth 3YN/A
OCF growth 5YN/A
CERAGON NETWORKS LTD / CRNT FAQ
What is the ChartMill fundamental rating of CERAGON NETWORKS LTD (CRNT) stock?
ChartMill assigns a fundamental rating of 4 / 10 to CRNT.
What is the valuation status of CERAGON NETWORKS LTD (CRNT) stock?
ChartMill assigns a valuation rating of 6 / 10 to CERAGON NETWORKS LTD (CRNT). This can be considered as Fairly Valued.
Can you provide the profitability details for CERAGON NETWORKS LTD?
CERAGON NETWORKS LTD (CRNT) has a profitability rating of 5 / 10.
What is the valuation of CERAGON NETWORKS LTD based on its PE and PB ratios?
The Price/Earnings (PE) ratio for CERAGON NETWORKS LTD (CRNT) is 12.24 and the Price/Book (PB) ratio is 1.09.
What is the financial health of CERAGON NETWORKS LTD (CRNT) stock?
The financial health rating of CERAGON NETWORKS LTD (CRNT) is 5 / 10.