DB:CIE1

Stock Analysis Report

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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. More Details


Snowflake Analysis

Flawless balance sheet and undervalued.


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's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-4.6%

CIE1

-4.0%

DE Communications

-1.8%

DE Market


1 Year Return

0.3%

CIE1

-1.0%

DE Communications

1.7%

DE Market

Return vs Industry: CIE1 exceeded the German Communications industry which returned -4% over the past year.

Return vs Market: CIE1 underperformed the German Market which returned 2.6% over the past year.


Shareholder returns

CIE1IndustryMarket
7 Day-4.6%-4.0%-1.8%
30 Day0.9%-7.3%-1.6%
90 Day-25.8%-8.3%-1.8%
1 Year0.3%0.3%-0.7%-1.0%4.9%1.7%
3 Year85.1%85.1%16.0%15.1%2.0%-6.9%
5 Year59.9%59.9%-13.0%-13.1%24.2%6.5%

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?

39.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIE1 (€34.89) is trading below our estimate of fair value (€57.73)

Significantly Below Fair Value: CIE1 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CIE1 is good value based on its PE Ratio (16.9x) compared to the XE Communications industry average (22.4x).

PE vs Market: CIE1 is good value based on its PE Ratio (16.9x) compared to the German market (22.6x).


Price to Earnings Growth Ratio

PEG Ratio: CIE1 is poor value based on its PEG Ratio (7.4x)


Price to Book Ratio

PB vs Industry: CIE1 is good value based on its PB Ratio (2.6x) compared to the DE Communications industry average (3x).


Next Steps

Future Growth

How is Ciena forecast to perform in the next 1 to 3 years based on estimates from 17 analysts?

2.3%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIE1's forecast earnings growth (2.3% per year) is above the savings rate (0.2%).

Earnings vs Market: CIE1's earnings (2.3% per year) are forecast to grow slower than the German market (26.9% per year).

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

Revenue vs Market: CIE1's revenue (4.4% per year) is forecast to grow slower than the German market (6.1% per year).

High Growth Revenue: CIE1's revenue (4.4% 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 (15%).


Next Steps

Past Performance

How has Ciena performed over the past 5 years?

21.0%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIE1 has high quality earnings.

Growing Profit Margin: CIE1's current net profit margins (10.3%) are higher than last year (6.8%).


Past Earnings Growth Analysis

Earnings Trend: CIE1 has become profitable over the past 5 years, growing earnings by 21% per year.

Accelerating Growth: CIE1's earnings growth over the past year (59.1%) exceeds its 5-year average (21% per year).

Earnings vs Industry: CIE1 earnings growth over the past year (59.1%) exceeded the Communications industry 2.4%.


Return on Equity

High ROE: CIE1's Return on Equity (15.5%) is considered low.


Next Steps

Financial Health

How is Ciena's financial position?


Financial Position Analysis

Short Term Liabilities: CIE1's short term assets ($2.6B) exceed its short term liabilities ($720.5M).

Long Term Liabilities: CIE1's short term assets ($2.6B) exceed its long term liabilities ($905.8M).


Debt to Equity History and Analysis

Debt Level: CIE1's debt to equity ratio (29.5%) is considered satisfactory.

Reducing Debt: CIE1's debt to equity ratio has reduced from 667.7% to 29.5% over the past 5 years.

Debt Coverage: CIE1's debt is well covered by operating cash flow (76.2%).

Interest Coverage: CIE1's interest payments on its debt are well covered by EBIT (23.3x coverage).


Balance Sheet


Next Steps

Dividend

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


Dividend Yield vs Market

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

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

How experienced are the management team and are they aligned to shareholders interests?

7.5yrs

Average management tenure


CEO

Gary Smith (60 yo)

19.42yrs

Tenure

US$11,016,365

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 ($USD11.02M) is above average for companies of similar size in the German market ($USD3.53M).

Compensation vs Earnings: Gary's compensation has increased by more than 20% in the past year.


Leadership Team

NamePositionTenureCompensationOwnership
Patrick Nettles
Executive Chairman of the Board19.42yrsUS$373.79k0.16%
$ 8.5m
Gary Smith
CEO, President & Director19.42yrsUS$11.02m0.072%
$ 3.9m
James Moylan
Senior VP of Finance & CFO12.83yrsUS$3.32m0.17%
$ 9.3m
David Rothenstein
Senior VP11.92yrsUS$2.72m0.17%
$ 8.9m
Jason Phipps
Senior Vice President of Global Sales & Marketing3.67yrsUS$2.79m0.011%
$ 582.6k
Scott McFeely
Senior Vice President of Global Products & Services4.92yrsUS$2.74m0.019%
$ 1.0m
Stephen Alexander
Senior VP15.5yrsUS$1.81m0.048%
$ 2.6m
Gregg Lampf
Vice President of Investor Relations10.08yrsno datano data
Jane Hobbs
Chief HR Officer & Senior VP3.58yrsno datano data
Matt Vesperman
Managing Director of Australia & New Zealand4.5yrsno datano data
Rodney Wilson
Chief Technologist of Research Networksno datano datano data
Lorraine Twigg
Head of Partners of EMEA4yrsno datano data

7.5yrs

Average Tenure

60yo

Average Age

Experienced Management: CIE1's management team is seasoned and experienced (7.5 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Patrick Nettles
Executive Chairman of the Board19.42yrsUS$373.79k0.16%
$ 8.5m
Gary Smith
CEO, President & Director19.42yrsUS$11.02m0.072%
$ 3.9m
Stephen Alexander
Senior VP15.5yrsUS$1.81m0.048%
$ 2.6m
Bruce Claflin
Independent Director14.17yrsUS$280.88k0.026%
$ 1.4m
Judith O'Brien
Independent Director20.25yrsUS$286.88k0%
$ 0
Lawton Fitt
Independent Director19.92yrsUS$290.88k0.0026%
$ 137.3k
Kenneth Minihan
Member of Government Advisory Board15.33yrsno datano data
Patrick Gallagher
Lead Independent Director2.75yrsUS$310.88k0.023%
$ 1.2m
David Peed
Member of Government Advisory Board4.58yrsno datano data
John Breen
Member of Partner Advisory Council11.42yrsno datano data
Carlos Busso
Member of Partner Advisory Council11.42yrsno datano data
Kevin Delane
Member of Partner Advisory Council11.42yrsno datano data

14.8yrs

Average Tenure

68yo

Average Age

Experienced Board: CIE1's board of directors are seasoned and experienced ( 14.8 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

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


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Top Shareholders

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$6.369b
  • Listing Market Cap: US$5.384b
  • Shares outstanding: 154.32m
  • 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
CIE1XTRA (XETRA Trading Platform)YesCommon StockDEEURFeb 1997
CIE-UETLX (Eurotlx)YesCommon StockITEURFeb 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 Analysis2020/10/20 20:45
End of Day Share Price2020/10/20 00:00
Earnings2020/08/01
Annual Earnings2019/10/31


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.