CERAGON NETWORKS LTD (CRNT) Stock Fundamental Analysis
USA - NASDAQ:CRNT - IL0010851660 - Common Stock
2.49 USD
-0.01 (-0.4%)
2.54 USD
+0.05 (+2.01%)
We assign a fundamental rating of 4 out of 10 to CRNT. 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 it does not seem to be growing.
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.
The reported net income has been mixed in the past 5 years: CRNT reported negative net income in multiple years.
In multiple years CRNT reported negative operating cash flow during the last 5 years.
1.2 Ratios
CRNT has a better Return On Assets (4.14%) than 70.83% of its industry peers.
With a decent Return On Equity value of 7.91%, CRNT is doing good in the industry, outperforming 77.08% of the companies in the same industry.
The Return On Invested Capital of CRNT (10.39%) is better than 79.17% 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's Profit Margin of 3.57% is fine compared to the rest of the industry. CRNT outperforms 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.
Looking at the Gross Margin, with a value of 34.87%, CRNT is doing worse than 60.42% of the companies in the same industry.
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.
The number of shares outstanding for CRNT has been increased compared to 1 year ago.
The number of shares outstanding for CRNT has been increased compared to 5 years ago.
The debt/assets ratio for CRNT has been reduced compared to a year ago.
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.
CRNT has a Altman-Z score (1.68) 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.
CRNT has a Debt to FCF ratio of 1.77. This is in the better half of the industry: CRNT outperforms 62.50% of its industry peers.
A Debt/Equity ratio of 0.12 indicates that CRNT is not too dependend on debt financing.
With a Debt to Equity ratio value of 0.12, CRNT perfoms like the industry average, outperforming 54.17% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.12 | ||
| Debt/FCF | 1.77 | ||
| Altman-Z | 1.68 |
ROIC/WACC1.15
WACC9.07%
2.3 Liquidity
A Current Ratio of 1.86 indicates that CRNT should not have too much problems paying its short term obligations.
With a Current ratio value of 1.86, CRNT perfoms like the industry average, outperforming 45.83% of the companies in the same industry.
A Quick Ratio of 1.38 indicates that CRNT should not have too much problems paying its short term obligations.
The Quick ratio of CRNT (1.38) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.86 | ||
| Quick Ratio | 1.38 |
3. Growth
3.1 Past
CRNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 49.76%, which is quite impressive.
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.
CRNT shows a small growth in Revenue. In the last year, the Revenue has grown by 5.06%.
The Revenue has been growing slightly by 6.66% on average over the past years.
EPS 1Y (TTM)49.76%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%-72.73%
Revenue 1Y (TTM)5.06%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%-14.39%
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-69.03%
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
The Price/Earnings ratio is 8.03, which indicates a very decent valuation of CRNT.
CRNT's Price/Earnings ratio is rather cheap when compared to the industry. CRNT is cheaper than 93.75% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 27.31, CRNT is valued rather cheaply.
With a Price/Forward Earnings ratio of 11.02, the valuation of CRNT can be described as very reasonable.
93.75% of the companies in the same industry are more expensive than CRNT, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of CRNT to the average of the S&P500 Index (22.85), we can say CRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 11.02 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, CRNT is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, CRNT is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 19.36 | ||
| EV/EBITDA | 4.16 |
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)0.07
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 |
2.49
-0.01 (-0.4%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners20.53%
Inst Owner Change0%
Ins Owners13.85%
Ins Owner ChangeN/A
Market Cap223.83M
Analysts81.82
Price Target4.85 (94.78%)
Short Float %2.11%
Short Ratio1.92
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)-22.45%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-67.12%
EPS NY rev (1m)-34.3%
EPS NY rev (3m)-55.69%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-20.33%
Revenue NY rev (1m)0.22%
Revenue NY rev (3m)-14.31%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 8.03 | ||
| Fwd PE | 11.02 | ||
| P/S | 0.59 | ||
| P/FCF | 19.36 | ||
| P/OCF | 7.93 | ||
| P/B | 1.3 | ||
| P/tB | 1.62 | ||
| EV/EBITDA | 4.16 |
EPS(TTM)0.31
EY12.45%
EPS(NY)0.23
Fwd EY9.07%
FCF(TTM)0.13
FCFY5.17%
OCF(TTM)0.31
OCFY12.61%
SpS4.23
BVpS1.91
TBVpS1.54
PEG (NY)N/A
PEG (5Y)0.07
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
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-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 | 1.68 |
F-Score6
WACC9.07%
ROIC/WACC1.15
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)49.76%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%-72.73%
EPS Next Y-69.03%
EPS Next 2Y-25.77%
EPS Next 3Y-14.64%
EPS Next 5YN/A
Revenue 1Y (TTM)5.06%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%-14.39%
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