NasdaqGS:CRNT

Stock Analysis Report

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Executive Summary

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


Snowflake Analysis

Flawless balance sheet and overvalued.


Similar Companies

Share Price & News

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


Latest Share Price and Events

Stable Share Price: CRNT is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CRNT's weekly volatility (6%) has been stable over the past year.


Market Performance


7 Day Return

11.3%

CRNT

1.7%

US Communications

0.6%

US Market


1 Year Return

50.0%

CRNT

-0.6%

US Communications

22.7%

US Market

Return vs Industry: CRNT exceeded the US Communications industry which returned -2.5% over the past year.

Return vs Market: CRNT exceeded the US Market which returned 21% over the past year.


Shareholder returns

CRNTIndustryMarket
7 Day11.3%1.7%0.6%
30 Day24.9%19.2%13.1%
90 Day16.0%1.8%4.5%
1 Year50.0%50.0%2.2%-0.6%25.5%22.7%
3 Year23.2%23.2%18.7%10.4%49.0%39.1%
5 Year112.3%112.3%61.9%43.4%98.3%76.5%

Long-Term Price Volatility Vs. Market

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


Simply Wall St News

Valuation

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

1.5x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: CRNT ($2.76) is trading above our estimate of fair value ($0.29)

Significantly Below Fair Value: CRNT is trading above our estimate of fair value.


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 (1.5x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

How is Ceragon Networks forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

112.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRNT is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: CRNT is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: CRNT is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: CRNT's revenue (9% per year) is forecast to grow slower than the US market (10.3% per year).

High Growth Revenue: CRNT's revenue (9% 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


Next Steps

Past Performance

How has Ceragon Networks performed over the past 5 years?

6.4%

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, but has reduced losses over the past 5 years at a rate of 6.4% 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 (-4.9%).


Return on Equity

High ROE: CRNT has a negative Return on Equity (-9.94%), as it is currently unprofitable.


Next Steps

Financial Health

How is Ceragon Networks's financial position?


Financial Position Analysis

Short Term Liabilities: CRNT's short term assets ($201.2M) exceed its short term liabilities ($99.1M).

Long Term Liabilities: CRNT's short term assets ($201.2M) exceed its long term liabilities ($25.0M).


Debt to Equity History and Analysis

Debt Level: CRNT's debt to equity ratio (6.8%) is considered satisfactory.

Reducing Debt: CRNT's debt to equity ratio has reduced from 45.4% to 6.8% 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: Whilst unprofitable CRNT has sufficient cash runway for more than 3 years if it maintains its current positive free cash flow level.

Forecast Cash Runway: CRNT is unprofitable but has sufficient cash runway for more than 3 years, due to free cash flow being positive and growing by 6.6% per year.


Next Steps

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?

2.9yrs

Average management tenure


CEO

Ira Palti (62 yo)

15.25yrs

Tenure

US$715,871

Compensation

Mr. Ira Palti has been the President and Chief Executive Officer of Ceragon Networks Ltd., since August 31, 2005 and its Director since June 2018. From January 2003 to August 2005, Mr. Palti was Chief Exec...


CEO Compensation Analysis

Compensation vs Market: Ira's total compensation ($USD715.87K) is below average for companies of similar size in the US market ($USD1.12M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Ira Palti
President15.25yrsUS$715.87k1.3%
$ 2.9m
Amit Ancikovsky
Regional President of North America & Latin America7.83yrsUS$544.34kno data
Ran Vered
Chief Financial Officer1.58yrsno datano data
Guy Toibin
Executive VP of IT & Chief Information Officer3.67yrsno datano data
Zvi Maayan
Executive VP1yrno datano data
Oz Zimerman
Executive Vice President of Global Corporate Development6.83yrsno datano data
Shai Yaniv
Executive Vice President Marketing & 5G Business Development2.17yrsno datano data
Michal Goldstein
Executive Vice President of Global Human Resources0.67yrno datano data
Ram Tripathi
Regional President of India18.83yrsno datano data
Mario Querner
Regional President of Asia-Pacific & Arica4yrsno datano data
Erez Schwartz
Executive Vice President R&D0.83yrno datano data
Muki Burla
Executive Vice President of Global Services0.83yrno datano data

2.9yrs

Average Tenure

51yo

Average Age

Experienced Management: CRNT's management team is considered experienced (2.9 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Ira Palti
President15.25yrsUS$715.87k1.3%
$ 2.9m
Zohar Zisapel
Chairman of the Board24.33yrsno data12.6%
$ 28.2m
Avi Eizenman
Independent Director2.42yrsno datano data
Yael Langer
Director19.92yrsno datano data
Meir Sperling
Independent Director2.42yrsno datano data
Shlomo Liran
Independent Director5.25yrsno datano data
Avraham Berger
Independent Director2.42yrsno datano data

2.4yrs

Average Tenure

63yo

Average Age

Experienced Board: CRNT's board of directors are not considered experienced ( 2.4 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.


Ownership Breakdown

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


Top Shareholders

Company Information

Ceragon Networks Ltd.'s company bio, 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$223.945m
  • Shares outstanding: 81.14m
  • Website: https://www.ceragon.com

Number of Employees


Location

  • Ceragon Networks Ltd.
  • 24 Raoul Wallenberg Street
  • Tel Aviv
  • 69719
  • Israel

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CRNTNasdaqGS (Nasdaq Global Select)YesOrdinary SharesUSUSDAug 2000
GGNDB (Deutsche Boerse AG)YesOrdinary SharesDEEURAug 2000

Biography

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 microw...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/12/01 23:21
End of Day Share Price2020/12/01 00:00
Earnings2020/09/30
Annual Earnings2019/12/31


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.