Taking everything into account, CRNT scores 3 out of 10 in our fundamental rating. CRNT was compared to 48 industry peers in the Communications Equipment industry. CRNT has a medium profitability rating, but doesn't score so well on its financial health evaluation. CRNT has a valuation in line with the averages, but it does not seem to be growing.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

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.
The reported net income has been mixed in the past 5 years: CRNT reported negative net income in multiple 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

The Return On Assets of CRNT (0.43%) is comparable to the rest of the industry.
CRNT has a Return On Equity of 0.81%. This is comparable to the rest of the industry: CRNT outperforms 58.33% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.90%, CRNT is in the better half of the industry, outperforming 72.92% of the companies in the same industry.

		Industry Rank	Sector Rank
ROA	0.43%
ROE	0.81%
ROIC	6.9%

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 Profit Margin value of 0.38%, CRNT perfoms like the industry average, outperforming 56.25% of the companies in the same industry.
CRNT's Operating Margin of 6.32% is fine compared to the rest of the industry. CRNT outperforms 66.67% of its industry peers.
In the last couple of years the Operating Margin of CRNT has grown nicely.
Looking at the Gross Margin, with a value of 34.98%, CRNT is doing worse than 60.42% of the companies in the same industry.
CRNT's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	6.32%
PM (TTM)	0.38%
GM	34.98%

OM growth 3Y71.41%

OM growth 5Y22.33%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y4.77%

GM growth 5Y0.06%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

The Return on Invested Capital (ROIC) is below the Cost of Capital (WACC), so CRNT is destroying value.
Compared to 1 year ago, CRNT has more shares outstanding
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 1.44, we must say that CRNT is in the distress zone and has some risk of bankruptcy.
CRNT has a Altman-Z score of 1.44. This is comparable to the rest of the industry: CRNT outperforms 52.08% of its industry peers.
The Debt to FCF ratio of CRNT is 7.68, which is on the high side as it means it would take CRNT, 7.68 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 7.68, CRNT is in line with its industry, outperforming 52.08% of the companies in the same industry.
CRNT has a Debt/Equity ratio of 0.18. This is a healthy value indicating a solid balance between debt and equity.
CRNT has a Debt to Equity ratio of 0.18. This is comparable to the rest of the industry: CRNT outperforms 45.83% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	0.18
Debt/FCF	7.68
Altman-Z	1.44

ROIC/WACC0.71

WACC9.74%

2.3 Liquidity

A Current Ratio of 1.81 indicates that CRNT should not have too much problems paying its short term obligations.
CRNT has a Current ratio of 1.81. This is in the lower half of the industry: CRNT underperforms 62.50% of its industry peers.
A Quick Ratio of 1.36 indicates that CRNT should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.36, CRNT is doing worse than 62.50% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	1.81
Quick Ratio	1.36

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for CRNT have decreased strongly by -48.01% in the last year.
CRNT shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 110.16% yearly.
The Revenue has decreased by -3.78% in the past year.
The Revenue has been growing slightly by 6.66% on average over the past years.

EPS 1Y (TTM)-48.01%

EPS 3YN/A

EPS 5Y110.16%

EPS Q2Q%-87.5%

Revenue 1Y (TTM)-3.78%

Revenue growth 3Y10.67%

Revenue growth 5Y6.66%

Sales Q2Q%-16.74%

3.2 Future

The Earnings Per Share is expected to decrease by -16.19% on average over the next years. This is quite bad
Based on estimates for the next years, CRNT will show a decrease in Revenue. The Revenue will decrease by -0.65% on average per year.

EPS Next Y-76.24%

EPS Next 2Y-35.45%

EPS Next 3Y-16.19%

EPS Next 5YN/A

Revenue Next Year-13.75%

Revenue Next 2Y-4%

Revenue Next 3Y-0.65%

Revenue Next 5YN/A

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 decreasing.
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.

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4. Valuation

4.1 Price/Earnings Ratio

The Price/Earnings ratio is 13.47, which indicates a correct valuation of CRNT.
Based on the Price/Earnings ratio, CRNT is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.
When comparing the Price/Earnings ratio of CRNT to the average of the S&P500 Index (27.21), we can say CRNT is valued rather cheaply.
With a Price/Forward Earnings ratio of 13.40, CRNT is valued correctly.
Based on the Price/Forward Earnings ratio, CRNT is valued cheaper than 85.42% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of CRNT to the average of the S&P500 Index (25.98), we can say CRNT is valued slightly cheaper.

		Industry Rank	Sector Rank
PE	13.47
Fwd PE	13.4

4.2 Price Multiples

100.00% of the companies in the same industry are more expensive than CRNT, based on the Enterprise Value to EBITDA ratio.
CRNT's Price/Free Cash Flow ratio is in line with the industry average.