NasdaqGS:CRNT

Stock Analysis Report

Executive Summary

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

Rewards

PE ratio (11.5x) is below the US market (18.5x)

Risk Analysis

Earnings are forecast to decline by an average of -144.5% per year for the next 3 years

High level of non-cash earnings

Highly volatile share price over past 3 months

Shareholders have been diluted in the past year



Snowflake Analysis

Excellent balance sheet and fair value.


Similar Companies

DragonWave-X

OTCPK:DRWI.Q

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


Market Performance


7 Day Return

-2.0%

CRNT

-3.1%

US Communications

0.3%

US Market


1 Year Return

-53.4%

CRNT

-5.3%

US Communications

18.5%

US Market

Return vs Industry: CRNT underperformed the US Communications industry which returned -5.3% over the past year.

Return vs Market: CRNT underperformed the US Market which returned 18.5% over the past year.


Shareholder returns

CRNTIndustryMarket
7 Day-2.0%-3.1%0.3%
30 Day5.5%-8.1%1.5%
90 Day-20.0%-8.3%5.7%
1 Year-53.4%-53.4%-3.1%-5.3%21.1%18.5%
3 Year-24.4%-24.4%37.6%28.9%45.9%36.4%
5 Year74.5%74.5%63.6%45.3%71.4%52.5%

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?

11.51x

Price to Earnings (PE) 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 good value based on its PE Ratio (11.5x) compared to the Communications industry average (20.9x).

PE vs Market: CRNT is good value based on its PE Ratio (11.5x) compared to the US market (18.5x).


Price to Earnings Growth Ratio

PEG Ratio: CRNT's earnings are forecast to decline next year, so we can't calculate its PEG ratio.


Price to Book Ratio

PB vs Industry: CRNT is good value based on its PB Ratio (0.9x) 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?

-144.5%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CRNT's earnings are forecast to decline over the next 3 years (-144.5% per year).

Earnings vs Market: CRNT's earnings are forecast to decline over the next 3 years (-144.5% per year).

High Growth Earnings: CRNT's earnings are forecast to decline over the next 3 years.

Revenue vs Market: CRNT's revenue (1.6% per year) is forecast to grow slower than the US market (7.4% per year).

High Growth Revenue: CRNT's revenue (1.6% 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?

68.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CRNT has a high level of non-cash earnings.

Growing Profit Margin: CRNT's current net profit margins (4.5%) are lower than last year (5.4%).


Past Earnings Growth Analysis

Earnings Trend: CRNT has become profitable over the past 5 years, growing earnings by 68.3% per year.

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

Earnings vs Industry: CRNT had negative earnings growth (-28.4%) over the past year, making it difficult to compare to the Communications industry average (17.3%).


Return on Equity

High ROE: CRNT's Return on Equity (8.1%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is Ceragon Networks's financial position?


Financial Position Analysis

Short Term Liabilities: CRNT's short term assets ($228.7M) exceed its short term liabilities ($109.8M).

Long Term Liabilities: CRNT's short term assets ($228.7M) exceed its long term liabilities ($28.4M).


Debt to Equity History and Analysis

Debt Level: CRNT's debt to equity ratio (4.5%) is considered satisfactory.

Reducing Debt: CRNT's debt to equity ratio has reduced from 32.2% to 4.5% over the past 5 years.

Debt Coverage: CRNT's operating cash flow is negative, therefore debt is not well covered.

Interest Coverage: CRNT earns more interest than it pays, so coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CRNT has a high level of physical assets or inventory.

Debt Coverage by Assets: CRNT's debt is covered by short term assets (assets are 30.8x debt).


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.2%forecastin3Yearsn/a

Current dividend yield vs market & industry

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

High Dividend: Unable to evaluate CRNT'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 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

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

4.9yrs

Average management tenure


CEO

Ira Palti (61yo)

14.3yrs

Tenure

US$1,108,093

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 ($USD1.11M) is above average for companies of similar size in the US market ($USD508.62K).

Compensation vs Earnings: Ira's compensation has increased by more than 20% whilst company earnings have fallen more than 20% in the past year.


Management Age and Tenure

4.9yrs

Average Tenure

53.5yo

Average Age

Experienced Management: CRNT's management team is considered experienced (4.9 years average tenure).


Board Age and Tenure

1.5yrs

Average Tenure

62yo

Average Age

Experienced Board: CRNT's board of directors are not considered experienced ( 1.5 years average tenure), which suggests a new board.


Insider Trading

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 been diluted in the past year, with total shares outstanding growing by 2.4%.


Management Team

  • Ira Palti (61yo)

    President

    • Tenure: 14.3yrs
    • Compensation: US$1.11m
  • Amit Ancikovsky (48yo)

    Regional President of Latin America & Africa

    • Tenure: 6.9yrs
    • Compensation: US$704.03k
  • Doron Arazi (55yo)

    Deputy Chief Executive Officer

    • Tenure: 0.8yrs
    • Compensation: US$602.44k
  • Oz Zimerman (55yo)

    Executive Vice President of Global Corporate Development

    • Tenure: 5.9yrs
  • Chuck Meyo (55yo)

    Regional President of North America

    • Tenure: 7.9yrs
    • Compensation: US$663.00k
  • Yuval Reina (52yo)

    Chief Operating Officer

    • Tenure: 1.3yrs
  • Flavio Perrucchetti (51yo)

    Regional President of Europe

    • Tenure: 4.9yrs
    • Compensation: US$531.96k
  • Michal Machlav

    VP & General Counsel

    • Tenure: 4.9yrs
  • Ran Vered (40yo)

    Chief Financial Officer

    • Tenure: 0.8yrs
  • Guy Toibin

    Chief Information Officer

    • Tenure: 2.8yrs

Board Members

  • Ira Palti (61yo)

    President

    • Tenure: 14.3yrs
    • Compensation: US$1.11m
  • Zohar Zisapel (70yo)

    Chairman of the Board

    • Tenure: 23.4yrs
  • Avi Eizenman (62yo)

    Independent Director

    • Tenure: 1.5yrs
  • Yael Langer (54yo)

    Director

    • Tenure: 19yrs
  • Meir Sperling (70yo)

    External Director

    • Tenure: 1.5yrs
  • Shlomo Liran (68yo)

    External Director

    • Tenure: 4.3yrs
  • Avi Berger (56yo)

    External Director

    • Tenure: 1.5yrs

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$147.623m
  • Shares outstanding: 80.23m
  • 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 worldwide. Its wireless backhaul solutions  ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/12/08 23:44
End of Day Share Price2019/12/06 00:00
Earnings2019/09/30
Annual Earnings2018/12/31


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.