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Ciena

NYSE:CIEN
Snowflake Description

Flawless balance sheet with acceptable track record.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CIEN
NYSE
$6B
Market Cap
  1. Home
  2. US
  3. Tech
Company description

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. The last earnings update was 8 days ago. More info.


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CIEN Share Price and Events
7 Day Returns
-1.6%
NYSE:CIEN
2.4%
US Communications
1.6%
US Market
1 Year Returns
47.2%
NYSE:CIEN
13.7%
US Communications
3.2%
US Market
CIEN Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Ciena (CIEN) -1.6% -2.6% 18.6% 47.2% 107.1% 66.9%
US Communications 2.4% 6% 20.1% 13.7% 78% 90%
US Market 1.6% 2.1% 12.8% 3.2% 38.6% 43.6%
1 Year Return vs Industry and Market
  • CIEN outperformed the Communications industry which returned 13.7% over the past year.
  • CIEN outperformed the Market in United States of America which returned 3.2% over the past year.
Price Volatility
CIEN
Industry
5yr Volatility vs Market

Value

 Is Ciena undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Ciena to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data    Our intrinsic value calculation method has changed recently, learn more here.

Below are the data sources, inputs and calculation used to determine the intrinsic value for Ciena.

NYSE:CIEN Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 19 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.4%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NYSE:CIEN
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.09
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.085 (1 + (1- 21%) (11.38%))
1.122
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.12
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.122 * 5.96%)
9.42%

Discounted Cash Flow Calculation for NYSE:CIEN using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Ciena is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

NYSE:CIEN DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.42%)
2019 301.53 Analyst x3 275.58
2020 374.60 Analyst x2 312.88
2021 434.22 Est @ 15.92% 331.46
2022 486.16 Est @ 11.96% 339.16
2023 530.85 Est @ 9.19% 338.46
2024 569.35 Est @ 7.25% 331.76
2025 602.92 Est @ 5.9% 321.08
2026 632.74 Est @ 4.95% 307.95
2027 659.83 Est @ 4.28% 293.49
2028 685.01 Est @ 3.82% 278.46
Present value of next 10 years cash flows $3,130.28
NYSE:CIEN DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2028 × (1 + g) ÷ (Discount Rate – g)
= $685.01 × (1 + 2.73%) ÷ (9.42% – 2.73%)
$10,520.33
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $10,520.33 ÷ (1 + 9.42%)10
$4,276.60
NYSE:CIEN Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $3,130.28 + $4,276.60
$7,406.89
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $7,406.89 / 155.95
$47.49
NYSE:CIEN Discount to Share Price
Calculation Result
Value per share (USD) From above. $47.49
Current discount Discount to share price of $39.16
= -1 x ($39.16 - $47.49) / $47.49
17.5%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Ciena is available for.
Intrinsic value
18%
Share price is $39.16 vs Future cash flow value of $47.49
Current Discount Checks
For Ciena to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Ciena's share price is below the future cash flow value, but not at a moderate discount (< 20%).
  • Ciena's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Ciena's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Ciena's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NYSE:CIEN PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-01-31) in USD $1.11
NYSE:CIEN Share Price ** NYSE (2019-03-19) in USD $39.16
United States of America Communications Industry PE Ratio Median Figure of 33 Publicly-Listed Communications Companies 30.4x
United States of America Market PE Ratio Median Figure of 3,056 Publicly-Listed Companies 17.77x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Ciena.

NYSE:CIEN PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NYSE:CIEN Share Price ÷ EPS (both in USD)

= 39.16 ÷ 1.11

35.43x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ciena is overvalued based on earnings compared to the US Communications industry average.
  • Ciena is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Ciena's expected growth come at a high price?
Raw Data
NYSE:CIEN PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 35.43x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts
15%per year
United States of America Communications Industry PEG Ratio Median Figure of 21 Publicly-Listed Communications Companies 1.38x
United States of America Market PEG Ratio Median Figure of 2,107 Publicly-Listed Companies 1.49x

*Line of best fit is calculated by linear regression .

NYSE:CIEN PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 35.43x ÷ 15%

2.36x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ciena is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Ciena's assets?
Raw Data
NYSE:CIEN PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-01-31) in USD $13.14
NYSE:CIEN Share Price * NYSE (2019-03-19) in USD $39.16
United States of America Communications Industry PB Ratio Median Figure of 67 Publicly-Listed Communications Companies 1.84x
United States of America Market PB Ratio Median Figure of 5,154 Publicly-Listed Companies 1.89x
NYSE:CIEN PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NYSE:CIEN Share Price ÷ Book Value per Share (both in USD)

= 39.16 ÷ 13.14

2.98x

* Primary Listing of Ciena.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Ciena is overvalued based on assets compared to the US Communications industry average.
X
Value checks
We assess Ciena's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Ciena has a total score of 0/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Ciena expected to perform in the next 1 to 3 years based on estimates from 19 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
15%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Ciena expected to grow at an attractive rate?
  • Ciena's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Ciena's earnings growth is expected to exceed the United States of America market average.
  • Ciena's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NYSE:CIEN Future Growth Rates Data Sources
Data Point Source Value (per year)
NYSE:CIEN Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 19 Analysts 15%
NYSE:CIEN Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 19 Analysts 5.4%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 15.2%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 4.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.3%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.1%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NYSE:CIEN Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NYSE:CIEN Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2023-10-31 4,139 1
2022-10-31 3,942 1
2021-10-31 3,743 248 7
2020-10-31 3,577 428 257 17
2019-10-31 3,352 378 204 19
NYSE:CIEN Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-01-31 3,227 179 162
2018-10-31 3,094 229 -345
2018-07-31 2,939 300 751
2018-04-30 2,849 262 761
2018-01-31 2,826 297 785
2017-10-31 2,802 235 1,262
2017-07-31 2,773 233 138
2017-04-30 2,715 260 112
2017-01-31 2,649 248 88
2016-10-31 2,601 290 73
2016-07-31 2,576 237 22
2016-04-30 2,509 278 12

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Ciena's earnings are expected to grow by 15% yearly, however this is not considered high growth (20% yearly).
  • Ciena's revenue is expected to grow by 5.4% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NYSE:CIEN Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (1 month ago) See Below
Future Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below

All data from Ciena Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CIEN Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2023-10-31
2022-10-31
2021-10-31 1.77 2.39 1.14 2.00
2020-10-31 1.76 2.23 1.01 6.00
2019-10-31 1.30 1.76 0.88 6.00
NYSE:CIEN Past Financials Data
Date (Data in USD Millions) EPS *
2019-01-31 1.11
2018-10-31 -2.40
2018-07-31 5.23
2018-04-30 5.31
2018-01-31 5.50
2017-10-31 8.89
2017-07-31 0.98
2017-04-30 0.80
2017-01-31 0.63
2016-10-31 0.52
2016-07-31 0.16
2016-04-30 0.09

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Ciena is not expected to efficiently use shareholders’ funds in the future (Return on Equity less than 20%).
X
Future performance checks
We assess Ciena's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Ciena has a total score of 2/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Ciena performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Ciena's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Ciena has delivered over 20% year on year earnings growth in the past 5 years.
  • Ciena's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Ciena's 1-year earnings growth is negative, it can't be compared to the US Communications industry average.
Earnings and Revenue History
Ciena's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Ciena Company Filings, last reported 1 month ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NYSE:CIEN Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-01-31 3,226.68 162.29 559.63 501.67
2018-10-31 3,094.29 -344.69 549.19 491.56
2018-07-31 2,939.38 751.39 539.79 475.69
2018-04-30 2,849.28 760.56 531.29 472.29
2018-01-31 2,826.33 784.73 518.53 476.98
2017-10-31 2,801.69 1,261.95 512.47 475.33
2017-07-31 2,773.43 138.48 495.72 468.67
2017-04-30 2,715.26 112.02 491.48 467.64
2017-01-31 2,648.96 87.99 489.81 460.62
2016-10-31 2,600.57 72.58 482.56 451.79
2016-07-31 2,576.36 22.17 480.37 447.21
2016-04-30 2,508.74 12.24 473.69 430.89
2016-01-31 2,489.62 18.90 464.59 421.49
2015-10-31 2,445.67 11.67 457.24 414.20
2015-07-31 2,344.66 -5.20 443.39 404.85
2015-04-30 2,345.29 -12.67 450.20 402.15
2015-01-31 2,283.75 -43.48 452.97 400.44
2014-10-31 2,288.29 -40.64 455.15 401.18
2014-07-31 2,280.71 -19.73 460.96 403.10
2014-04-30 2,215.51 -37.12 450.44 398.49
2014-01-31 2,163.16 -54.04 440.25 395.78
2013-10-31 2,082.55 -85.43 426.60 383.41
2013-07-31 1,964.69 -114.41 411.64 378.78
2013-04-30 1,900.43 -142.99 397.23 374.03
2013-01-31 1,870.33 -143.69 381.06 363.64
2012-10-31 1,833.92 -144.02 380.34 364.18
2012-07-31 1,823.85 -127.58 375.05 359.61
2012-04-30 1,785.07 -129.21 371.84 364.51

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Ciena has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Ciena used its assets more efficiently than the US Communications industry average last year based on Return on Assets.
  • Ciena has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Ciena's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Ciena has a total score of 3/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Ciena's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Ciena's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Ciena is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Ciena's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Ciena's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 3x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Ciena Company Filings, last reported 1 month ago.

NYSE:CIEN Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-01-31 2,054.31 695.25 787.95
2018-10-31 1,929.33 765.24 894.40
2018-07-31 1,778.95 943.95 955.15
2018-04-30 1,744.12 942.57 920.68
2018-01-31 1,756.14 941.29 927.61
2017-10-31 2,136.34 1,013.16 919.65
2017-07-31 944.31 1,017.03 794.28
2017-04-30 846.55 1,164.39 903.40
2017-01-31 798.89 1,237.77 943.91
2016-10-31 766.34 1,286.27 1,052.86
2016-07-31 721.56 1,516.69 1,150.24
2016-04-30 669.01 1,544.02 1,117.21
2016-01-31 627.03 1,284.09 870.33
2015-10-31 620.88 1,298.38 926.08
2015-07-31 177.85 1,304.53 857.16
2015-04-30 138.66 1,300.54 731.43
2015-01-31 -88.58 1,479.49 743.88
2014-10-31 -69.62 1,479.31 726.93
2014-07-31 -45.15 1,467.08 653.13
2014-04-30 -80.84 1,217.95 415.13
2014-01-31 -86.86 1,217.60 425.08
2013-10-31 -82.68 1,217.08 471.47
2013-07-31 -83.17 1,217.38 478.16
2013-04-30 -97.94 1,216.31 456.47
2013-01-31 -78.64 1,431.22 637.19
2012-10-31 -88.97 1,442.02 692.50
2012-07-31 -60.26 1,448.53 667.35
2012-04-30 -41.07 1,447.42 635.71
  • Ciena's level of debt (33.8%) compared to net worth is satisfactory (less than 40%).
  • Ciena had negative shareholder equity 5 years ago, it is now positive therefore their debt level has improved.
  • Debt is well covered by operating cash flow (25.8%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 8x coverage).
X
Financial health checks
We assess Ciena's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Ciena has a total score of 6/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

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

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
0%
Current annual income from Ciena dividends. Estimated to be 0% next year.
If you bought $2,000 of Ciena shares you are expected to receive $0 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Unable to evaluate Ciena's dividend yield against the bottom 25% of dividend payers as the company has not reported any payouts.
  • Unable to evaluate Ciena's dividend against the top 25% market benchmark as the company has not reported any payouts.
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NYSE:CIEN Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 19 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 13 Stocks 2.4%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 2004 Stocks 2.5%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.6%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NYSE:CIEN Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2023-10-31
2022-10-31
2021-10-31 0.00 4.00
2020-10-31 0.00 5.00
2019-10-31 0.00 5.00

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Unable to perform a dividend volatility check as Ciena has not reported any payouts.
  • Unable to verify if Ciena's dividend has been increasing as the company has not reported any payouts.
Current Payout to shareholders
What portion of Ciena's earnings are paid to the shareholders as a dividend.
  • Unable to calculate sustainability of dividends as Ciena has not reported any payouts.
Future Payout to shareholders
  • No need to calculate the sustainability of Ciena's dividends in 3 years as they are not expected to pay a notable one for United States of America.
X
Income/ dividend checks
We assess Ciena's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Ciena afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Ciena has a total score of 0/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

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

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Gary Smith
COMPENSATION $9,129,584
AGE 58
TENURE AS CEO 17.8 years
CEO Bio

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 the Chief Operating Officer of Ciena Corporation from October 2000 to November 4, 2005. He served as Senior Vice President and Chief Operating Officer of Ciena Corporation from August 1999 to October 2000. He resumed primary responsibilities for Ciena Corporation.’s worldwide sales efforts in November 2002. He served as Senior Vice President Worldwide Sales of Ciena Corporation from September 1998 to August 1999 and served as its Vice President of International Sales since joining in November 1997. From June 1995 to October 1997, He served as Vice President of Sales and Marketing for NTELSAT Investments S.A and Cray Communications Inc. He was a Director of Avaya Inc. since December 6, 2011. He serves as a Director of Valaran Corporation. He served as a Lead Director of Commvault Systems, Inc. since May 2006 and has been its Director since May 2004. He is a Director of Ciena Corporation since October 2000. he has leadership skills and industry experience, as well as perspectives on the operations, challenges and complex issues facing growing technology-based companies. He also has global sales and marketing experience. He served as a Director at Avaya Holdings Corp. He serves as a Director for the American Electronics Association. Mr. Smith is a Member of the President’s Global Information Infrastructure Commission and the Center for Corporate Innovation (CCI). Mr. Smith received his master’s in business administration from Ashridge Management College, United Kingdom. He is Chairman of the Advisory Council to the Wake Forest Center for Entrepreneurship and participates in initiatives with the Center for Corporate Innovation.

CEO Compensation
  • Gary's compensation has been consistent with company performance over the past year.
  • Gary's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Ciena management team in years:

8.5
Average Tenure
56
Average Age
  • The average tenure for the Ciena management team is over 5 years, this suggests they are a seasoned and experienced team.
Management Team

Patrick Nettles

TITLE
Executive Chairman
COMPENSATION
$354K
AGE
75

Gary Smith

TITLE
CEO, President & Director
COMPENSATION
$9M
AGE
58
TENURE
17.8 yrs

Jim Moylan

TITLE
CFO & Senior VP of Finance
COMPENSATION
$3M
AGE
67
TENURE
11.3 yrs

Russ Rothenstein

TITLE
Senior VP
COMPENSATION
$2M
AGE
50
TENURE
10.3 yrs

Rick Hamilton

TITLE
Senior Vice President of Blue Planet Software
COMPENSATION
$2M
AGE
46
TENURE
2.1 yrs

Scott McFeely

TITLE
Senior Vice President of Global Products & Services
COMPENSATION
$2M
AGE
54
TENURE
3.3 yrs

Steve Alexander

TITLE
CTO, Senior VP & Member of Technology Advisory Council
COMPENSATION
$2M
AGE
59
TENURE
20.5 yrs

Gregg Lampf

TITLE
Vice President of Investor Relations
TENURE
8.5 yrs

Jason Phipps

TITLE
Senior Vice President of Global Sales & Marketing
AGE
46
TENURE
2.1 yrs

Jane Hobbs

TITLE
Chief Human Resources Officer & Senior VP
TENURE
2 yrs
Board of Directors Tenure

Average tenure and age of the Ciena board of directors in years:

14.3
Average Tenure
67
Average Age
  • The average tenure for the Ciena board of directors is over 10 years, this suggests they are a seasoned and experienced board.
Board of Directors

Patrick Nettles

TITLE
Executive Chairman
COMPENSATION
$354K
AGE
75
TENURE
17.8 yrs

Gary Smith

TITLE
CEO, President & Director
COMPENSATION
$9M
AGE
58
TENURE
18.4 yrs

Steve Alexander

TITLE
CTO, Senior VP & Member of Technology Advisory Council
COMPENSATION
$2M
AGE
59
TENURE
13.9 yrs

Judy O'Brien

TITLE
Director
COMPENSATION
$282K
AGE
68
TENURE
18.7 yrs

Lawton Fitt

TITLE
Director
COMPENSATION
$286K
AGE
65
TENURE
18.3 yrs

Pat Gallagher

TITLE
Lead Independent Director
COMPENSATION
$296K
AGE
63
TENURE
1.2 yrs

Michael Rowny

TITLE
Director
COMPENSATION
$266K
AGE
67
TENURE
14.6 yrs

Ken Minihan

TITLE
Member of Government Advisory Board
AGE
74
TENURE
13.8 yrs

Bruce Claflin

TITLE
Director
COMPENSATION
$276K
AGE
67
TENURE
12.6 yrs

David Peed

TITLE
Member of Government Advisory Board
TENURE
3 yrs
Who owns this company?
Recent Insider Trading
  • Ciena insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
22. Oct 18 Sell Gary Smith Individual 18. Oct 18 19. Oct 18 -9,600 $31.11 $-297,618
10. Sep 18 Sell Gary Smith Individual 06. Sep 18 07. Sep 18 -9,600 $31.17 $-298,914
11. May 18 Sell Gary Smith Individual 08. May 18 09. May 18 -8,000 $26.78 $-214,068
26. Dec 18 Sell Rick Hamilton Individual 21. Dec 18 21. Dec 18 -4,602 $32.48 $-149,483
09. Aug 18 Sell James Moylan Individual 08. Aug 18 08. Aug 18 -2,000 $25.79 $-51,587
X
Management checks
We assess Ciena's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Ciena has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

What Ciena Corporation's (NYSE:CIEN) ROE Can Tell Us

While some investors are already well versed in financial metrics (hat tip), this article is for those who would like to learn about Return On Equity (ROE) and why it is important. … That means that for every $1 worth of shareholders' equity, it generated $0.079 in profit. … Return on Equity = Net Profit ÷ Shareholders' Equity

Simply Wall St -

Is Ciena Corporation's (NYSE:CIEN) CEO Paid At A Competitive Rate?

How Does Gary Smith's Compensation Compare With Similar Sized Companies. … Our data indicates that Ciena Corporation is worth US$6.7b, and total annual CEO compensation is US$9.1m. … We think total compensation is more important but we note that the CEO salary is lower, at US$917k

Simply Wall St -

Ciena Corporation (NYSE:CIEN) Insiders Have Been Selling

So before you buy or sell Ciena Corporation (NYSE:CIEN), you may well want to know whether insiders have been buying or selling. … But logic dictates you should pay some attention to whether insiders are buying or selling shares. … That means that an insider was selling shares at slightly below the current price (US$37.28)

Simply Wall St -

Why We’re Not Impressed By Ciena Corporation’s (NYSE:CIEN) 9.2% ROCE

To be precise, we'll consider its Return On Capital Employed (ROCE), as that will inform our view of the quality of the business. … What is Return On Capital Employed (ROCE)? … ROCE is a metric for evaluating how much pre-tax income (in percentage terms) a company earns on the capital invested in its business.

Simply Wall St -

Is Ciena Corporation (NYSE:CIEN) As Strong As Its Balance Sheet Indicates?

Small-cap and large-cap companies receive a lot of attention from investors, but mid-cap stocks like Ciena Corporation (NYSE:CIEN), with a market cap of US$5.0b, are often out of the spotlight. … This article will examine CIEN’s financial liquidity and debt levels to get an idea of whether the company can deal with cyclical downturns and maintain funds to accommodate strategic spending for future growth. … Note that this commentary is very high-level and solely focused on financial health, so I suggest you dig deeper yourself.

Simply Wall St -

Intrinsic Calculation For Ciena Corporation (NYSE:CIEN) Shows Investors Are Overpaying

Does the December share price for Ciena Corporation (NYSE:CIEN) reflect it's really worth? … Today, I will calculate the stock's intrinsic value. … by taking the expected future cash flows and discounting them to their present value.

Simply Wall St -

Can Ciena Corporation (NYSE:CIEN) Save Your Portfolio?

High quality companies, such as Ciena Corporation, are impacted by general market panic and sell-off, but the fundamentals of these companies stay the same. … Check out our latest analysis for Ciena. … Ciena Corporation provides hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of voice, video, and data traffic on communications networks worldwide

Simply Wall St -

Does Ciena Corporation's (NYSE:CIEN) CEO Pay Reflect Performance?

In 2001 Gary Smith was appointed CEO of Ciena Corporation (NYSE:CIEN). … This analysis aims first to contrast CEO compensation with other companies that have similar market capitalization. … How Does Gary Smith's Compensation Compare With Similar Sized Companies.

Simply Wall St -

Why Ciena Corporation (NYSE:CIEN) Is An Attractive Investment To Consider

I've been keeping an eye on Ciena Corporation (NYSE:CIEN) because I'm attracted to its fundamentals. … Looking at the company as a whole, as a potential stock investment, I believe CIEN has a lot to offer. … is a company with great financial health as well as a.

Simply Wall St -

Did Ciena Corporation (NYSE:CIEN) Insiders Sell Their Own Shares?

Ciena's insiders have divested from. … A well-known argument is that insiders divesting from their own companies’ shares sends a pessimistic signal … A two-decade research published in The MIT Press (1998) showed that stocks following insider selling declined 2.7% relative to the market

Simply Wall St -

Company Info

Description

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. The company’s Networking Platforms segment offers hardware networking solutions optimized for the convergence of coherent optical transport, optical transport network switching, and packet switching. Its products include 6500 Packet-Optical Platform, 5430 Reconfigurable Switching System, Waveserver stackable interconnect system, CoreDirector Multiservice Optical Switches, and OTN configuration for the 5410 Reconfigurable Switching System, as well as Z-Series Packet-Optical Platform; 3000 family of service delivery switches and service aggregation switches, and the 5000 family of service aggregation switches, as well as 8700 Packetwave Platform and the Ethernet packet configuration for the 5410 Service Aggregation Switch; and 6500 Packet Transport System. This segment also sells operating system software and enhanced software features embedded in each of its products. The company’s Software and Software-Related Services segment offers multi-domain service orchestration, inventory, route optimization and assurance, network function virtualization orchestration, analytics, and related services; and OneControl unified management system and platform software services, as well as manage, control, and plan software. Its Global Services segment provides consulting and network design, installation and deployment, maintenance support, and training services. The company sells its products through direct and indirect sales channels to network operators. Ciena Corporation was founded in 1992 and is headquartered in Hanover, Maryland.

Details
Name: Ciena Corporation
CIEN
Exchange: NYSE
Founded: 1992
$6,107,127,468
155,953,204
Website: http://www.ciena.com
Address: Ciena Corporation
7035 Ridge Road,
Hanover,
Maryland, 21076,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NYSE CIEN Common Stock New York Stock Exchange US USD 07. Feb 1997
DB CIE1 Common Stock Deutsche Boerse AG DE EUR 07. Feb 1997
Number of employees
Current staff
Staff numbers
6,013
Ciena employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/03/19 23:34
End of day share price update: 2019/03/19 00:00
Last estimates confirmation: 2019/03/15
Last earnings filing: 2019/03/11
Last earnings reported: 2019/01/31
Last annual earnings reported: 2018/10/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

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.