CERAGON NETWORKS LTD (CRNT) Stock Fundamental Analysis
USA - NASDAQ:CRNT - IL0010851660 - Common Stock
2 USD
-0.08 (-3.85%)
2 USD
0 (0%)
Taking everything into account, CRNT scores 4 out of 10 in our fundamental rating. CRNT was compared to 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 on the other hand it scores bad on growth.
1. Profitability
1.1 Basic Checks
In the past year CRNT was profitable.
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
CRNT has a better Return On Assets (4.14%) than 72.92% of its industry peers.
Looking at the Return On Equity, with a value of 7.91%, CRNT is in the better half of the industry, outperforming 75.00% of the companies in the same industry.
CRNT has a Return On Invested Capital of 10.39%. This is amongst the best in the industry. CRNT outperforms 81.25% of its industry peers.
| 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
CRNT has a better Profit Margin (3.57%) than 64.58% of its industry peers.
CRNT's Operating Margin of 8.89% is fine compared to the rest of the industry. CRNT outperforms 75.00% of its industry peers.
CRNT's Operating Margin has improved in the last couple of years.
CRNT has a Gross Margin of 34.87%. This is in the lower half of the industry: CRNT underperforms 62.50% 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 | 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.
Compared to 1 year ago, CRNT has more shares outstanding
CRNT has more shares outstanding than it did 5 years ago.
Compared to 1 year ago, CRNT has an improved debt to assets ratio.
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.
CRNT has a Altman-Z score (1.53) which is comparable to the rest of the industry.
The Debt to FCF ratio of CRNT is 1.77, which is an excellent value as it means it would take CRNT, only 1.77 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 1.77, CRNT is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Debt/Equity ratio of 0.12 indicates that CRNT is not too dependend on debt financing.
The Debt to Equity ratio of CRNT (0.12) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 1.53 |
ROIC/WACC1.14
WACC9.11%
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 (1.86) which is in line with its industry peers.
A Quick Ratio of 1.38 indicates that CRNT should not have too much problems paying its short term obligations.
CRNT has a Quick ratio (1.38) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
CRNT shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -48.01%.
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 grown by 13.54% in the past year. This is quite good.
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
The Earnings Per Share is expected to decrease by -14.64% on average over the next years. This is quite bad
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
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.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 11.76, the valuation of CRNT can be described as reasonable.
85.42% of the companies in the same industry are more expensive than CRNT, based on the Price/Earnings ratio.
CRNT is valuated cheaply when we compare the Price/Earnings ratio to 25.56, which is the current average of the S&P500 Index.
Based on the Price/Forward Earnings ratio of 8.85, the valuation of CRNT can be described as reasonable.
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 34.62. CRNT is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.76 | ||
| Fwd PE | 8.85 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRNT is valued cheaper than 100.00% of the companies in the same industry.
CRNT's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. CRNT is cheaper than 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.55 | ||
| 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
-0.08 (-3.85%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners20.53%
Inst Owner Change2.98%
Ins Owners13.85%
Ins Owner ChangeN/A
Market Cap179.78M
Revenue(TTM)394.19M
Net Income(TTM)13.58M
Analysts81.82
Price Target4.85 (142.5%)
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 | 11.76 | ||
| Fwd PE | 8.85 | ||
| P/S | 0.47 | ||
| P/FCF | 15.55 | ||
| P/OCF | 6.37 | ||
| P/B | 1.05 | ||
| P/tB | 1.3 | ||
| EV/EBITDA | 3.36 |
EPS(TTM)0.17
EY8.5%
EPS(NY)0.23
Fwd EY11.3%
FCF(TTM)0.13
FCFY6.43%
OCF(TTM)0.31
OCFY15.7%
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
WACC9.11%
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 11.76 and the Price/Book (PB) ratio is 1.05.
What is the financial health of CERAGON NETWORKS LTD (CRNT) stock?
The financial health rating of CERAGON NETWORKS LTD (CRNT) is 5 / 10.