DB:CIE1

Stock Analysis Report

Executive Summary

Ciena Corporation provides network hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks worldwide.

Snowflake

Fundamentals

Flawless balance sheet with moderate growth potential.


Similar Companies

Share Price & News

How has Ciena's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CIE1 has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

-2.9%

CIE1

0.7%

DE Communications

-0.3%

DE Market


1 Year Return

21.8%

CIE1

9.6%

DE Communications

10.9%

DE Market

Return vs Industry: CIE1 exceeded the German Communications industry which returned 9.6% over the past year.

Return vs Market: CIE1 exceeded the German Market which returned 10.9% over the past year.


Shareholder returns

CIE1IndustryMarket
7 Day-2.9%0.7%-0.3%
30 Day-1.9%8.7%2.6%
90 Day-8.7%18.5%11.8%
1 Year21.8%21.8%10.3%9.6%14.4%10.9%
3 Year56.9%56.9%9.3%8.4%24.1%13.2%
5 Year149.7%149.7%62.4%59.4%33.0%14.8%

Price Volatility Vs. Market

How volatile is Ciena's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Ciena undervalued compared to its fair value and its price relative to the market?

25.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIE1 (€33.17) is trading below our estimate of fair value (€44.44)

Significantly Below Fair Value: CIE1 is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CIE1 is poor value based on its PE Ratio (23.6x) compared to the Communications industry average (18.6x).

PE vs Market: CIE1 is poor value based on its PE Ratio (23.6x) compared to the German market (19.9x).


Price to Earnings Growth Ratio

PEG Ratio: CIE1 is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CIE1 is overvalued based on its PB Ratio (2.7x) compared to the DE Communications industry average (2.4x).


Next Steps

Future Growth

How is Ciena forecast to perform in the next 1 to 3 years based on estimates from 19 analysts?

17.2%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIE1's forecast earnings growth (17.2% per year) is above the savings rate (0.2%).

Earnings vs Market: CIE1's earnings (17.2% per year) are forecast to grow faster than the German market (12.8% per year).

High Growth Earnings: CIE1's earnings are forecast to grow, but not significantly.

Revenue vs Market: CIE1's revenue (5.3% per year) is forecast to grow faster than the German market (4.8% per year).

High Growth Revenue: CIE1's revenue (5.3% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIE1's Return on Equity is forecast to be low in 3 years time (16.3%).


Next Steps

Past Performance

How has Ciena performed over the past 5 years?

41.6%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIE1 has high quality earnings.

Growing Profit Margin: CIE1's current net profit margins (6.8%) are lower than last year (25.6%).


Past Earnings Growth Analysis

Earnings Trend: CIE1 has become profitable over the past 5 years, growing earnings by 41.6% per year.

Accelerating Growth: CIE1's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CIE1 had negative earnings growth (-68.4%) over the past year, making it difficult to compare to the Communications industry average (21.6%).


Return on Equity

High ROE: CIE1's Return on Equity (11.2%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ciena's financial position?


Financial Position Analysis

Short Term Liabilities: CIE1's short term assets ($2.3B) exceeds its short term liabilities ($791.0M)

Long Term Liabilities: CIE1's short term assets ($2.3B) exceeds its long term liabilities (865.3M)


Debt to Equity History and Analysis

Debt Level: CIE1's debt to equity ratio (29.3%) is considered satisfactory.

Reducing Debt: CIE1 had negative shareholder equity 5 years ago, but is now positive and has therefore improved.

Debt Coverage: CIE1's debt is well covered by operating cash flow (38.9%).

Interest Coverage: CIE1's interest payments on its debt are well covered by EBIT (14.1x coverage).


Balance Sheet

Inventory Level: CIE1 has a low level of unsold assets or inventory.

Debt Coverage by Assets: CIE1's debt is covered by short term assets (assets are 3.7x debt).


Next Steps

Dividend

What is Ciena's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.3%forecastin3Years0%

Current dividend yield vs market & industry

Notable Dividend: Unable to evaluate CIE1's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate CIE1's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.


Stability and Growth of Payments

Stable Dividend: Insufficient data to determine if CIE1's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CIE1's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of CIE1's dividend in 3 years as they are not forecast to pay a notable one for the German market.


Next Steps

Management

What is the CEO of Ciena's salary, the management and board of directors tenure and is there insider trading?

9.2yrs

Average management tenure


CEO

Gary Smith (59yo)

18.5yrs

Tenure

US$9,129,584

Compensation

Mr. Gary B. Smith has been Principal Executive Officer of Cyan, Inc. since August 3, 2015. Mr. Smith serves as the Chief Executive Officer and President of Ciena Corporation since May 2001. He served as th ...


CEO Compensation Analysis

Compensation vs Market: Gary's total compensation ($USD9.13M) is above average for companies of similar size in the German market ($USD3.62M).

Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.


Management Age and Tenure

9.2yrs

Average Tenure

57yo

Average Age

Experienced Management: CIE1's management team is seasoned and experienced (9.2 years average tenure).


Board Age and Tenure

14.9yrs

Average Tenure

68yo

Average Age

Experienced Board: CIE1's board of directors are seasoned and experienced ( 14.9 years average tenure).


Insider Trading

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

SellUS$165,20311 Jun 19
Judith O'Brien
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,230
Max PriceUS$39.06
SellUS$130,97726 Dec 18
Rick Hamilton
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Blue Planet Software
Shares4,602
Max PriceUS$28.46

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 6.5%.


Management Team

  • Patrick Nettles (76yo)

    Executive Chairman

    • Tenure: 18.5yrs
    • Compensation: US$354.33k
  • Gary Smith (59yo)

    CEO, President & Director

    • Tenure: 18.5yrs
    • Compensation: US$9.13m
  • Steve Alexander (60yo)

    CTO, Senior VP & Member of Technology Advisory Council

    • Tenure: 14.6yrs
    • Compensation: US$1.81m
  • Jim Moylan (68yo)

    CFO & Senior VP of Finance

    • Tenure: 11.9yrs
    • Compensation: US$2.67m
  • Rick Hamilton (47yo)

    Senior Vice President of Blue Planet Software

    • Tenure: 2.8yrs
    • Compensation: US$2.42m
  • Gregg Lampf

    Vice President of Investor Relations

    • Tenure: 9.2yrs
  • Jane Hobbs

    Chief HR Officer & Senior VP

    • Tenure: 2.7yrs
  • Russ Rothenstein (51yo)

    Senior VP

    • Tenure: 11yrs
    • Compensation: US$2.14m
  • Scott McFeely (55yo)

    Senior Vice President of Global Products & Services

    • Tenure: 4yrs
    • Compensation: US$2.12m
  • Jason Phipps (47yo)

    Senior Vice President of Global Sales & Marketing

    • Tenure: 2.8yrs

Board Members

  • Bruce Claflin (68yo)

    Independent Director

    • Tenure: 13.3yrs
    • Compensation: US$275.88k
  • Patrick Nettles (76yo)

    Executive Chairman

    • Tenure: 18.5yrs
    • Compensation: US$354.33k
  • Gary Smith (59yo)

    CEO, President & Director

    • Tenure: 18.5yrs
    • Compensation: US$9.13m
  • Steve Alexander (60yo)

    CTO, Senior VP & Member of Technology Advisory Council

    • Tenure: 14.6yrs
    • Compensation: US$1.81m
  • Judy O'Brien (69yo)

    Independent Director

    • Tenure: 19.3yrs
    • Compensation: US$281.88k
  • Lawton Fitt (66yo)

    Director

    • Tenure: 19yrs
    • Compensation: US$285.88k
  • Michael Rowny (68yo)

    Independent Director

    • Tenure: 15.3yrs
    • Compensation: US$265.88k
  • Ken Minihan (75yo)

    Member of Government Advisory Board

    • Tenure: 14.4yrs
  • Pat Gallagher (64yo)

    Lead Independent Director

    • Tenure: 1.8yrs
    • Compensation: US$296.38k
  • David Peed

    Member of Government Advisory Board

    • Tenure: 3.7yrs

Company Information

Ciena Corporation's company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Ciena Corporation
  • Ticker: CIE1
  • Exchange: DB
  • Founded: 1992
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$5.653b
  • Listing Market Cap: US$5.126b
  • Shares outstanding: 154.70m
  • Website: https://www.ciena.com

Number of Employees


Location

  • Ciena Corporation
  • 7035 Ridge Road
  • Hanover
  • Maryland
  • 21076
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CIENNYSE (New York Stock Exchange)YesCommon StockUSUSDFeb 1997
CIE1DB (Deutsche Boerse AG)YesCommon StockDEEURFeb 1997

Biography

Ciena Corporation provides network hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/11/22 20:33
End of Day Share Price2019/11/22 00:00
Earnings2019/07/31
Annual Earnings2018/10/31


Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.