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CRNT

Ceragon NetworksNasdaqGS:CRNT Stock Report

Market Cap

US$229.6m

7D

-2.5%

1Y

9.1%

Updated

26 Nov, 2021

Data

Company Financials +
CRNT fundamental analysis
Snowflake Score
Valuation1/6
Future Growth3/6
Past Performance0/6
Financial Health6/6
Dividends0/6

CRNT Stock Overview

Ceragon Networks Ltd. provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services.

Ceragon Networks Competitors

Aviat Networks

NasdaqGS:AVNW

US$341.2m

L3Harris Technologies

NYSE:LHX

US$42.2b

Telefonaktiebolaget LM Ericsson

OM:ERIC B

kr309.1b

Fujitsu

TSE:6702

JP¥3.8t

Price History & Performance

Summary of all time highs, changes and price drops for Ceragon Networks
Historical stock prices
Current Share PriceUS$2.75
52 Week HighUS$6.90
52 Week LowUS$2.50
Beta1.75
1 Month Change-15.64%
3 Month Change-29.85%
1 Year Change9.13%
3 Year Change-35.29%
5 Year Change23.32%
Change since IPO-87.78%

Recent News & Updates

Jul 10

Ceragon Assessing If It Will Live Up To The Hype

Management states it is in pole position in several markets to take advantage of the 5G transition. Although we witnessed nice revenue and earnings gains in Q1, cash flow and equity trends continue their tailwinds. The market needs to see more. A strong earnings print in Q2 and beyond will help in increasing that low valuation.

Shareholder Returns

CRNTUS CommunicationsUS Market
7D-2.5%0.9%-2.7%
1Y9.1%31.6%21.3%

Return vs Industry: CRNT underperformed the US Communications industry which returned 31.6% over the past year.

Return vs Market: CRNT underperformed the US Market which returned 21.3% over the past year.

Price Volatility

Is CRNT's price volatile compared to industry and market?
CRNT volatility
CRNT Average Weekly Movement5.1%
Communications Industry Average Movement6.3%
Market Average Movement5.9%
10% most volatile stocks in US Market15.1%
10% least volatile stocks in US Market2.2%

Stable Share Price: CRNT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: CRNT's weekly volatility has decreased from 12% to 5% over the past year.

About the Company

FoundedEmployeesCEOWebsite
19961,019Doron Arazihttps://www.ceragon.com

Ceragon Networks Ltd. provides wireless backhaul solutions that enable cellular operators and other wireless service providers to deliver voice and data services. Its wireless backhaul solutions use microwave and millimeter wave technology to transfer telecommunication traffic between base stations, small/distributed cells, and the core of the service provider’s network. The company also offers wireless fronthaul solutions that use microwave technology for ultra-high speed, ultra-low latency communication for wireless 5G and 4G base stations.

Ceragon Networks Fundamentals Summary

How do Ceragon Networks's earnings and revenue compare to its market cap?
CRNT fundamental statistics
Market CapUS$229.57m
Earnings (TTM)-US$8.93m
Revenue (TTM)US$287.01m

0.8x

P/S Ratio

-25.7x

P/E Ratio

Earnings & Revenue

Key profitability statistics from the latest earnings report
CRNT income statement (TTM)
RevenueUS$287.01m
Cost of RevenueUS$200.91m
Gross ProfitUS$86.10m
ExpensesUS$95.04m
Earnings-US$8.93m

Last Reported Earnings

Sep 30, 2021

Next Earnings Date

n/a

Earnings per share (EPS)-0.11
Gross Margin30.00%
Net Profit Margin-3.11%
Debt/Equity Ratio8.1%

How did CRNT perform over the long term?

See historical performance and comparison

Valuation

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

1.55x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate CRNT's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate CRNT's fair value to establish if it is undervalued.


Price To Earnings Ratio

PE vs Industry: CRNT is unprofitable, so we can't compare its PE Ratio to the US Communications industry average.

PE vs Market: CRNT is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CRNT's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CRNT is good value based on its PB Ratio (1.6x) compared to the US Communications industry average (2.2x).


Future Growth

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

163.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRNT is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (2%).

Earnings vs Market: CRNT is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: CRNT's is expected to become profitable in the next 3 years.

Revenue vs Market: CRNT's revenue (7.7% per year) is forecast to grow slower than the US market (10.1% per year).

High Growth Revenue: CRNT's revenue (7.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CRNT's Return on Equity is forecast to be high in 3 years time


Past Performance

How has Ceragon Networks performed over the past 5 years?

-47.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRNT is currently unprofitable.

Growing Profit Margin: CRNT is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: CRNT is unprofitable, and losses have increased over the past 5 years at a rate of 47.3% per year.

Accelerating Growth: Unable to compare CRNT's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: CRNT is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (22.8%).


Return on Equity

High ROE: CRNT has a negative Return on Equity (-6.05%), as it is currently unprofitable.


Financial Health

How is Ceragon Networks's financial position?


Financial Position Analysis

Short Term Liabilities: CRNT's short term assets ($208.5M) exceed its short term liabilities ($106.9M).

Long Term Liabilities: CRNT's short term assets ($208.5M) exceed its long term liabilities ($40.9M).


Debt to Equity History and Analysis

Debt Level: CRNT has more cash than its total debt.

Reducing Debt: CRNT's debt to equity ratio has reduced from 18.7% to 8.1% over the past 5 years.


Balance Sheet


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: CRNT has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: CRNT has sufficient cash runway for 1.6 years if free cash flow continues to reduce at historical rates of 34.4% each year.


Dividend

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


Dividend Yield vs Market

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

High Dividend: Unable to evaluate CRNT'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 CRNT's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if CRNT'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 CRNT's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

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

2.3yrs

Average management tenure


CEO

Doron Arazi (57 yo)

0.33

Tenure

US$597,478

Compensation

Mr. Doron Arazi serves as Chief Executive Officer at Ceragon Networks Ltd. since July 2021. He served as the Chief Financial Officer at NSO Group Technologies LTD since 2021 until 2021.He served as Deputy...


CEO Compensation Analysis

Compensation vs Market: Insufficient data to establish whether Doron's total compensation is reasonable compared to companies of similar size in the US market.

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


Leadership Team

Experienced Management: CRNT's management team is considered experienced (2.3 years average tenure).


Board Members

Experienced Board: CRNT's board of directors are not considered experienced ( 0.3 years average tenure), which suggests a new board.


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 been diluted in the past year, with total shares outstanding growing by 2.9%.


Top Shareholders

Company Information

Ceragon Networks Ltd.'s employee growth, exchange listings and data sources


Key Information

  • Name: Ceragon Networks Ltd.
  • Ticker: CRNT
  • Exchange: NasdaqGS
  • Founded: 1996
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$229.572m
  • Shares outstanding: 83.48m
  • Website: https://www.ceragon.com

Number of Employees


Location

  • Ceragon Networks Ltd.
  • 24 Raoul Wallenberg Street
  • Tel Aviv
  • 6971920
  • Israel

Listings


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/11/26 23:05
End of Day Share Price2021/11/26 00:00
Earnings2021/09/30
Annual Earnings2020/12/31


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.