1.99 USD
+0.01 (+0.51%)
2 USD
+0.01 (+0.5%)
We assign a fundamental rating of 5 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 is cheap, but on the other hand it scores bad on growth. These ratings could make CRNT a good candidate for value investing.
1. Profitability
1.1 Basic Checks
CRNT had positive earnings in the past year.
CRNT had a positive operating cash flow in the past year.
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 Return On Assets of 4.14%. This is in the better half of the industry: CRNT outperforms 70.83% of its industry peers.
The Return On Equity of CRNT (7.91%) is better than 72.92% of its industry peers.
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.
CRNT has a better Operating Margin (8.89%) than 75.00% of its industry peers.
CRNT's Operating Margin has improved in the last couple of years.
CRNT's Gross Margin of 34.87% is on the low side compared to the rest of the industry. CRNT is outperformed by 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
With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), CRNT 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 1.50, we must say that CRNT is in the distress zone and has some risk of bankruptcy.
CRNT has a Altman-Z score of 1.50. This is comparable to the rest of the industry: CRNT outperforms 54.17% of its industry peers.
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 70.83% of the companies in the same industry.
CRNT has a Debt/Equity ratio of 0.12. This is a healthy value indicating a solid balance between debt and equity.
CRNT's Debt to Equity ratio of 0.12 is in line compared 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 | 1.5 |
ROIC/WACC1.16
WACC8.96%
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 comparable to the rest of the industry.
CRNT has a Quick Ratio of 1.38. This is a normal value and indicates that CRNT is financially healthy and should not expect problems in meeting 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 negative growth in Earnings Per Share. In the last year the EPS decreased by -48.01%.
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 13.54% in the past year. This is quite good.
Measured over the past years, CRNT shows a small growth in Revenue. The Revenue has been growing by 6.66% on average per year.
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
Based on estimates for the next years, CRNT will show a decrease in Revenue. The Revenue will decrease by -3.40% on average per year.
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 11.71, which indicates a very decent valuation of CRNT.
Compared to the rest of the industry, the Price/Earnings ratio of CRNT indicates a rather cheap valuation: CRNT is cheaper than 89.58% of the companies listed in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 26.46, CRNT is valued rather cheaply.
A Price/Forward Earnings ratio of 8.81 indicates a reasonable valuation of CRNT.
Compared to the rest of the industry, the Price/Forward Earnings ratio of CRNT indicates a rather cheap valuation: CRNT is cheaper than 97.92% of the companies listed in the same industry.
When comparing the Price/Forward Earnings ratio of CRNT to the average of the S&P500 Index (36.10), we can say CRNT is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 8.81 |
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.
83.33% of the companies in the same industry are more expensive than CRNT, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 15.47 | ||
| EV/EBITDA | 3.16 |
4.3 Compensation for Growth
CRNT's earnings are expected to decrease with -14.64% in the coming years. This may justify a cheaper valuation.
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 |
1.99
+0.01 (+0.51%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners20.53%
Inst Owner Change-0.2%
Ins Owners13.85%
Ins Owner ChangeN/A
Market Cap178.88M
Revenue(TTM)394.19M
Net Income(TTM)13.58M
Analysts81.82
Price Target4.85 (143.72%)
Short Float %1.23%
Short Ratio1.39
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)0%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-45.25%
EPS NY rev (1m)0%
EPS NY rev (3m)-32.98%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-4.35%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-2.75%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 11.71 | ||
| Fwd PE | 8.81 | ||
| P/S | 0.47 | ||
| P/FCF | 15.47 | ||
| P/OCF | 6.34 | ||
| P/B | 1.04 | ||
| P/tB | 1.29 | ||
| EV/EBITDA | 3.16 |
EPS(TTM)0.17
EY8.54%
EPS(NY)0.23
Fwd EY11.35%
FCF(TTM)0.13
FCFY6.46%
OCF(TTM)0.31
OCFY15.78%
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 | 1.5 |
F-Score6
WACC8.96%
ROIC/WACC1.16
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 5 / 10 to CRNT.
What is the valuation status of CERAGON NETWORKS LTD (CRNT) stock?
ChartMill assigns a valuation rating of 7 / 10 to CERAGON NETWORKS LTD (CRNT). This can be considered as Undervalued.
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 11.71 and the Price/Book (PB) ratio is 1.04.
What is the financial health of CERAGON NETWORKS LTD (CRNT) stock?
The financial health rating of CERAGON NETWORKS LTD (CRNT) is 5 / 10.