Ciena Corporation Fundamental Analysis
Ciena Corporation (CIEN) shows weak financial fundamentals with a PE ratio of 140.77, profit margin of 7.87%, and ROE of 15.65%. The company generates $5.6B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 68.6/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze CIEN's fundamental strength across five key dimensions:
Efficiency Score
WeakCIEN struggles to generate sufficient returns from assets.
Valuation Score
ModerateCIEN shows balanced valuation metrics.
Growth Score
ModerateCIEN shows steady but slowing expansion.
Financial Health Score
ExcellentCIEN maintains a strong and stable balance sheet.
Profitability Score
ModerateCIEN maintains healthy but balanced margins.
Key Financial Metrics
Is CIEN Expensive or Cheap?
P/E Ratio
CIEN trades at 140.77 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CIEN's PEG of 0.44 indicates potential undervaluation.
Price to Book
The market values Ciena Corporation at 21.33 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 91.90 times EBITDA. This signals the market has high growth expectations.
How Well Does CIEN Make Money?
Net Profit Margin
For every $100 in sales, Ciena Corporation keeps $7.87 as profit after all expenses.
Operating Margin
Core operations generate 11.18 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $15.65 in profit for every $100 of shareholder equity.
ROA
Ciena Corporation generates $7.26 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ciena Corporation produces operating cash flow of $1.03B, showing steady but balanced cash generation.
Free Cash Flow
Ciena Corporation generates strong free cash flow of $830.34M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.87 in free cash annually.
FCF Yield
CIEN converts 1.35% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
140.77
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.44
vs 25 benchmark
P/B Ratio
Price to book value ratio
21.33
vs 25 benchmark
P/S Ratio
Price to sales ratio
11.05
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.54
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.73
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.16
vs 25 benchmark
ROA
Return on assets percentage
0.07
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How CIEN Stacks Against Its Sector Peers
| Metric | CIEN Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 140.77 | 42.32 | Worse (Expensive) |
| ROE | 15.65% | 764.00% | Weak |
| Net Margin | 7.87% | 10929058400.00% | Weak |
| Debt/Equity | 0.54 | 0.55 | Neutral |
| Current Ratio | 2.73 | 5.24 | Strong Liquidity |
| ROA | 7.26% | 103.00% | Weak |
CIEN outperforms its industry in 1 out of 6 key metrics, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ciena Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta