NYSE:CIEN

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 acceptable track record.


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


Market Performance


7 Day Return

1.4%

CIEN

2.6%

US Communications

0.07%

US Market


1 Year Return

27.3%

CIEN

3.2%

US Communications

8.9%

US Market

Return vs Industry: CIEN exceeded the US Communications industry which returned 3.2% over the past year.

Return vs Market: CIEN exceeded the US Market which returned 8.9% over the past year.


Shareholder returns

CIENIndustryMarket
7 Day1.4%2.6%0.07%
30 Day-4.9%-2.8%-0.3%
90 Day-17.3%-14.1%-1.6%
1 Year27.3%27.3%5.6%3.2%11.3%8.9%
3 Year85.0%85.0%53.8%44.0%46.3%36.8%
5 Year130.5%130.5%94.0%72.9%62.1%44.3%

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

Valuation

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

19.4%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIEN ($37.73) is trading below our estimate of fair value ($46.8)

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


Price To Earnings Ratio

PE vs Industry: CIEN is good value based on its PE Ratio (24.3x) compared to the Communications industry average (29.6x).

PE vs Market: CIEN is poor value based on its PE Ratio (24.3x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: CIEN is overvalued based on its PB Ratio (2.8x) compared to the US Communications industry average (1.8x).


Next Steps

  • Explore potentially undervalued companies in the Tech industry.

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: CIEN's forecast earnings growth (17.2% per year) is above the savings rate (2.7%).

Earnings vs Market: CIEN's earnings (17.2% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: CIEN's revenue (5.5% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CIEN's revenue (5.5% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: CIEN'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


Past Earnings Growth Analysis

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

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

Earnings vs Industry: CIEN had negative earnings growth (-68.4%) over the past year, making it difficult to compare to the Communications industry average (23.8%).


Return on Equity

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


Return on Assets

ROA vs Industry: CIEN has a higher Return on Assets than the Communications industry average last year.


Return on Capital Employed

ROCE Improving: CIEN has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Ciena's financial position?


Financial Position Analysis

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

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


Debt to Equity History and Analysis

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

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

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

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


Balance Sheet

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

Debt Coverage by Assets: CIEN'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%industryaverage2.9%forecastin3Years0%

Current dividend yield vs market & industry


Stability and Growth of Payments

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

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

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

Growing Dividend: Insufficient data to determine if CIEN'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 CIEN'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 Ciena's salary, the management and board of directors tenure and is there insider trading?

9.1yrs

Average management tenure


CEO

Gary Smith (59yo)

18.4yrs

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 ($USD9.13M) is about average for companies of similar size in the US market ($USD6.88M).

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


Management Age and Tenure

9.1yrs

Average Tenure

57yo

Average Age

Experienced Management: CIEN's management team is seasoned and experienced (9.1 years average tenure).


Board Age and Tenure

14.8yrs

Average Tenure

68yo

Average Age

Experienced Board: CIEN's board of directors are seasoned and experienced ( 14.8 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$186,88111 Jun 19
Judith O'Brien
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares4,230
Max PriceUS$44.18
SellUS$149,48326 Dec 18
Rick Hamilton
EntityIndividual
Role
Senior Key Executive
Senior Vice President of Blue Planet Software
Shares4,602
Max PriceUS$32.48

Ownership Breakdown


Management Team

  • Patrick Nettles (76yo)

    Executive Chairman

    • Tenure: 18.4yrs
    • Compensation: US$354.33k
  • Gary Smith (59yo)

    CEO, President & Director

    • Tenure: 18.4yrs
    • Compensation: US$9.13m
  • Steve Alexander (60yo)

    CTO, Senior VP & Member of Technology Advisory Council

    • Tenure: 14.5yrs
    • Compensation: US$1.81m
  • Jim Moylan (68yo)

    CFO & Senior VP of Finance

    • Tenure: 11.8yrs
    • Compensation: US$2.67m
  • Rick Hamilton (47yo)

    Senior Vice President of Blue Planet Software

    • Tenure: 2.7yrs
    • Compensation: US$2.42m
  • Gregg Lampf

    Vice President of Investor Relations

    • Tenure: 9.1yrs
  • Jane Hobbs

    Chief HR Officer & Senior VP

    • Tenure: 2.6yrs
  • Russ Rothenstein (51yo)

    Senior VP

    • Tenure: 10.9yrs
    • Compensation: US$2.14m
  • Scott McFeely (55yo)

    Senior Vice President of Global Products & Services

    • Tenure: 3.9yrs
    • Compensation: US$2.12m
  • Jason Phipps (47yo)

    Senior Vice President of Global Sales & Marketing

    • Tenure: 2.7yrs

Board Members

  • Bruce Claflin (68yo)

    Independent Director

    • Tenure: 13.2yrs
    • Compensation: US$275.88k
  • Patrick Nettles (76yo)

    Executive Chairman

    • Tenure: 18.4yrs
    • Compensation: US$354.33k
  • Gary Smith (59yo)

    CEO, President & Director

    • Tenure: 18.4yrs
    • Compensation: US$9.13m
  • Steve Alexander (60yo)

    CTO, Senior VP & Member of Technology Advisory Council

    • Tenure: 14.5yrs
    • Compensation: US$1.81m
  • Judy O'Brien (69yo)

    Independent Director

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

    Director

    • Tenure: 18.9yrs
    • Compensation: US$285.88k
  • Michael Rowny (68yo)

    Independent Director

    • Tenure: 15.2yrs
    • Compensation: US$265.88k
  • Ken Minihan (75yo)

    Member of Government Advisory Board

    • Tenure: 14.3yrs
  • Pat Gallagher (64yo)

    Lead Independent Director

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

    Member of Government Advisory Board

    • Tenure: 3.6yrs

Company Information

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


Key Information

  • Name: Ciena Corporation
  • Ticker: CIEN
  • Exchange: NYSE
  • Founded: 1992
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$5.837b
  • 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 Analysis2019/10/23 23:35
End of Day Share Price2019/10/23 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.