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 51 industry peers in the Communications Equipment industry. CRNT has only an average score on both its financial health and profitability. CRNT is valued quite cheap, while showing a decent growth score. This is a good combination!
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's Return On Assets of 6.97% is amongst the best of the industry. CRNT outperforms 86.00% of its industry peers.
Looking at the Return On Equity, with a value of 14.47%, CRNT belongs to the top of the industry, outperforming 86.00% of the companies in the same industry.
Looking at the Return On Invested Capital, with a value of 13.83%, CRNT belongs to the top of the industry, outperforming 90.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.47% | ||
| ROIC | 13.83% |
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 6.10%, CRNT is doing good in the industry, outperforming 80.00% of the companies in the same industry.
With an excellent Operating Margin value of 11.19%, CRNT belongs to the best of the industry, outperforming 82.00% of the companies in the same industry.
In the last couple of years the Operating Margin of CRNT has grown nicely.
CRNT has a worse Gross Margin (35.30%) than 60.00% of its industry peers.
CRNT's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 11.19% | ||
| PM (TTM) | 6.1% | ||
| GM | 35.3% |
OM growth 3Y66.34%
OM growth 5Y20.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.79%
GM growth 5Y-0.51%
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.
The number of shares outstanding for CRNT has been increased compared to 1 year ago.
Compared to 5 years ago, CRNT has more shares outstanding
The debt/assets ratio for CRNT has been reduced compared to a year ago.
2.2 Solvency
CRNT has an Altman-Z score of 1.78. This is a bad value and indicates that CRNT is not financially healthy and even has some risk of bankruptcy.
CRNT has a better Altman-Z score (1.78) than 62.00% of its industry peers.
CRNT has a debt to FCF ratio of 2.59. This is a good value and a sign of high solvency as CRNT would need 2.59 years to pay back of all of its debts.
CRNT has a Debt to FCF ratio of 2.59. This is comparable to the rest of the industry: CRNT outperforms 56.00% of its industry peers.
CRNT has a Debt/Equity ratio of 0.15. This is a healthy value indicating a solid balance between debt and equity.
With a Debt to Equity ratio value of 0.15, CRNT perfoms like the industry average, outperforming 56.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 2.59 | ||
| Altman-Z | 1.78 |
ROIC/WACC1.62
WACC8.53%
2.3 Liquidity
CRNT has a Current Ratio of 1.72. This is a normal value and indicates that CRNT is financially healthy and should not expect problems in meeting its short term obligations.
CRNT's Current ratio of 1.72 is in line compared to the rest of the industry. CRNT outperforms 48.00% of its industry peers.
CRNT has a Quick Ratio of 1.33. This is a normal value and indicates that CRNT is financially healthy and should not expect problems in meeting its short term obligations.
With a Quick ratio value of 1.33, CRNT perfoms like the industry average, outperforming 44.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.33 |
3. Growth
3.1 Past
CRNT shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 371.26%, 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.
The Revenue has grown by 13.53% 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)371.26%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%1185.71%
Revenue 1Y (TTM)13.53%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%18.34%
3.2 Future
CRNT is expected to show a small growth in Earnings Per Share. In the coming years, the EPS will grow by 1.47% yearly.
Based on estimates for the next years, CRNT will show a small growth in Revenue. The Revenue will grow by 4.55% on average per year.
EPS Next Y-22.88%
EPS Next 2Y0.93%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue Next Year3.4%
Revenue Next 2Y4.55%
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
The Price/Earnings ratio is 7.27, which indicates a rather cheap valuation of CRNT.
100.00% of the companies in the same industry are more expensive than CRNT, based on the Price/Earnings ratio.
When comparing the Price/Earnings ratio of CRNT to the average of the S&P500 Index (29.36), we can say CRNT is valued rather cheaply.
With a Price/Forward Earnings ratio of 9.42, the valuation of CRNT can be described as very reasonable.
96.00% 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 (22.65), we can say CRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.27 | ||
| Fwd PE | 9.42 |
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 64.00% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 26.29 | ||
| EV/EBITDA | 3.88 |
4.3 Compensation for Growth
CRNT has a very decent profitability rating, which may justify a higher PE ratio.
PEG (NY)N/A
PEG (5Y)0.07
EPS Next 2Y0.93%
EPS Next 3Y1.47%
5. Dividend
5.1 Amount
CRNT does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
2.98
+0.03 (+1.02%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners21.14%
Inst Owner Change-76.74%
Ins Owners16.1%
Ins Owner ChangeN/A
Market Cap255.89M
Analysts82.22
Price Target7.48 (151.01%)
Short Float %0.36%
Short Ratio0.1
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)33.92%
Min EPS beat(2)-6.46%
Max EPS beat(2)74.29%
EPS beat(4)3
Avg EPS beat(4)39.13%
Min EPS beat(4)-6.46%
Max EPS beat(4)79.74%
EPS beat(8)5
Avg EPS beat(8)48.92%
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)0
Avg Revenue beat(2)-0.58%
Min Revenue beat(2)-0.84%
Max Revenue beat(2)-0.32%
Revenue beat(4)0
Avg Revenue beat(4)-1.88%
Min Revenue beat(4)-4.39%
Max Revenue beat(4)-0.32%
Revenue beat(8)4
Avg Revenue beat(8)1.26%
Revenue beat(12)4
Avg Revenue beat(12)-0.76%
Revenue beat(16)7
Avg Revenue beat(16)-0.1%
PT rev (1m)7.32%
PT rev (3m)46.67%
EPS NQ rev (1m)-19.04%
EPS NQ rev (3m)-10.05%
EPS NY rev (1m)-20.65%
EPS NY rev (3m)-24.3%
Revenue NQ rev (1m)-2.47%
Revenue NQ rev (3m)-1.02%
Revenue NY rev (1m)-2.25%
Revenue NY rev (3m)-2.84%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.27 | ||
| Fwd PE | 9.42 | ||
| P/S | 0.65 | ||
| P/FCF | 26.29 | ||
| P/OCF | 9.77 | ||
| P/B | 1.54 | ||
| P/tB | 1.8 | ||
| EV/EBITDA | 3.88 |
EPS(TTM)0.41
EY13.76%
EPS(NY)0.32
Fwd EY10.61%
FCF(TTM)0.11
FCFY3.8%
OCF(TTM)0.31
OCFY10.24%
SpS4.59
BVpS1.94
TBVpS1.65
PEG (NY)N/A
PEG (5Y)0.07
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 6.97% | ||
| ROE | 14.47% | ||
| ROCE | 22.79% | ||
| ROIC | 13.83% | ||
| ROICexc | 16.49% | ||
| ROICexgc | 19.03% | ||
| OM | 11.19% | ||
| PM (TTM) | 6.1% | ||
| GM | 35.3% | ||
| FCFM | 2.47% |
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 3Y87.66%
ROICexcg growth 5Y29.62%
ROICexc growth 3Y81.09%
ROICexc growth 5Y27.11%
OM growth 3Y66.34%
OM growth 5Y20.14%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y3.79%
GM growth 5Y-0.51%
F-Score7
Asset Turnover1.14
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0.15 | ||
| Debt/FCF | 2.59 | ||
| Debt/EBITDA | 0.45 | ||
| Cap/Depr | 135.93% | ||
| Cap/Sales | 4.18% | ||
| Interest Coverage | 250 | ||
| Cash Conversion | 46.59% | ||
| Profit Quality | 40.45% | ||
| Current Ratio | 1.72 | ||
| Quick Ratio | 1.33 | ||
| Altman-Z | 1.78 |
F-Score7
WACC8.53%
ROIC/WACC1.62
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)371.26%
EPS 3YN/A
EPS 5Y110.16%
EPS Q2Q%1185.71%
EPS Next Y-22.88%
EPS Next 2Y0.93%
EPS Next 3Y1.47%
EPS Next 5YN/A
Revenue 1Y (TTM)13.53%
Revenue growth 3Y10.67%
Revenue growth 5Y6.66%
Sales Q2Q%18.34%
Revenue Next Year3.4%
Revenue Next 2Y4.55%
Revenue Next 3YN/A
Revenue Next 5YN/A
EBIT growth 1Y89.66%
EBIT growth 3Y84.1%
EBIT growth 5Y28.14%
EBIT Next Year40.1%
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1Y-45.89%
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1Y-15.18%
OCF growth 3YN/A
OCF growth 5YN/A