Ciena Corporation provides network hardware, software, and services that support the transport, routing, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks worldwide.
Price History & Performance
|Historical stock prices|
|Current Share Price||US$51.75|
|52 Week High||US$38.03|
|52 Week Low||US$61.09|
|1 Month Change||-0.52%|
|3 Month Change||-8.33%|
|1 Year Change||27.56%|
|3 Year Change||74.13%|
|5 Year Change||167.03%|
|Change since IPO||-60.04%|
Recent News & Updates
Is There Now An Opportunity In Ciena Corporation (NYSE:CIEN)?
Ciena Corporation ( NYSE:CIEN ), is not the largest company out there, but it received a lot of attention from a...
Ciena (NYSE:CIEN) Is Experiencing Growth In Returns On Capital
What are the early trends we should look for to identify a stock that could multiply in value over the long term...
Ciena Struggling A Bit With Capped Near-Term Upside And Competitive Worries
Ciena saw sequential acceleration in service provider and hyperscale enterprise demand, as well as better margins, but component/supply chain challenges are capping near-term revenue potential. Management sounds more bullish on the Huawei substitution opportunity and the 800G upgrade cycle, but component supply has to improve and there will be competition from coherent pluggables in hyperscale. Mid-single-digit revenue growth driven by ongoing service provider and enterprise network expansion and further margin leverage can drive a double-digit long-term return and a near-term target in the low-$60s.
|CIEN||US Communications||US Market|
Return vs Industry: CIEN underperformed the US Communications industry which returned 42.5% over the past year.
Return vs Market: CIEN underperformed the US Market which returned 30.3% over the past year.
Stable Share Price: CIEN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 3% a week.
Volatility Over Time: CIEN's weekly volatility (3%) has been stable over the past year.
About the Company
Ciena Corporation provides network hardware, software, and services that support the transport, routing, 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 products and solutions that 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, and the 6500 Reconfigurable line system, and the 5400 family of Packet-Optical platforms, 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.
Ciena Fundamentals Summary
|CIEN fundamental statistics|
Is CIEN overvalued?See Fair Value and valuation analysis
Earnings & Revenue
|CIEN income statement (TTM)|
|Cost of Revenue||US$1.77b|
Last Reported Earnings
Jul 31, 2021
Next Earnings Date
|Earnings per share (EPS)||2.98|
|Net Profit Margin||13.55%|
How did CIEN perform over the long term?See historical performance and comparison
Is Ciena undervalued compared to its fair value and its price relative to the market?
Undervalued compared to fair value
Share Price vs. Fair Value
Below Fair Value: CIEN ($51.75) is trading below our estimate of fair value ($84.33)
Significantly Below Fair Value: CIEN is trading below fair value by more than 20%.
Price To Earnings Ratio
PE vs Industry: CIEN is good value based on its PE Ratio (17.4x) compared to the US Communications industry average (23.5x).
PE vs Market: CIEN is good value based on its PE Ratio (17.4x) compared to the US market (18.2x).
Price to Earnings Growth Ratio
PEG Ratio: CIEN's earnings are forecast to decline next year, so we can't calculate its PEG ratio.
Price to Book Ratio
PB vs Industry: CIEN is overvalued based on its PB Ratio (2.7x) compared to the US Communications industry average (2.1x).
How is Ciena forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?
Forecasted annual earnings growth
Earnings and Revenue Growth Forecasts
Analyst Future Growth Forecasts
Earnings vs Savings Rate: CIEN's earnings are forecast to decline over the next 3 years (-17.4% per year).
Earnings vs Market: CIEN's earnings are forecast to decline over the next 3 years (-17.4% per year).
High Growth Earnings: CIEN's earnings are forecast to decline over the next 3 years.
Revenue vs Market: CIEN's revenue (7% per year) is forecast to grow slower than the US market (9.9% per year).
High Growth Revenue: CIEN's revenue (7% 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 (15%).
How has Ciena performed over the past 5 years?
Historical annual earnings growth
Earnings and Revenue History
Quality Earnings: CIEN has high quality earnings.
Growing Profit Margin: CIEN's current net profit margins (13.5%) are higher than last year (10.2%).
Past Earnings Growth Analysis
Earnings Trend: CIEN's earnings have grown by 5.1% per year over the past 5 years.
Accelerating Growth: CIEN's earnings growth over the past year (22.8%) exceeds its 5-year average (5.1% per year).
Earnings vs Industry: CIEN earnings growth over the past year (22.8%) underperformed the Communications industry 63%.
Return on Equity
High ROE: CIEN's Return on Equity (15.8%) is considered low.
How is Ciena's financial position?
Financial Position Analysis
Short Term Liabilities: CIEN's short term assets ($3.0B) exceed its short term liabilities ($827.1M).
Long Term Liabilities: CIEN's short term assets ($3.0B) exceed its long term liabilities ($904.5M).
Debt to Equity History and Analysis
Debt Level: CIEN's debt to equity ratio (23.9%) is considered satisfactory.
Reducing Debt: CIEN's debt to equity ratio has reduced from 205.9% to 23.9% over the past 5 years.
Debt Coverage: CIEN's debt is well covered by operating cash flow (67.8%).
Interest Coverage: CIEN's interest payments on its debt are well covered by EBIT (13.7x coverage).
What is Ciena current dividend yield, its reliability and sustainability?
Dividend Yield vs Market
Notable Dividend: Unable to evaluate CIEN's dividend yield against the bottom 25% of dividend payers, as the company has not reported any recent payouts.
High Dividend: Unable to evaluate CIEN's dividend yield against the top 25% of dividend payers, as the company has not reported any recent payouts.
Stability and Growth of Payments
Stable Dividend: Insufficient data to determine if CIEN's dividends per share have been stable in the past.
Growing Dividend: Insufficient data to determine if CIEN's dividend payments have been increasing.
Current Payout to Shareholders
Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.
Future Payout to Shareholders
Future Dividend Coverage: No need to calculate the sustainability of CIEN's dividend in 3 years as they are not forecast to pay a notable one for the US market.
How experienced are the management team and are they aligned to shareholders interests?
Average management tenure
Gary Smith (61 yo)
Mr. Gary B. Smith has been Principal Executive Officer of Cyan, Inc. since August 3, 2015. Mr. Smith serves as the Chief Executive Officer and President of Ciena Corporation since May 2001. He served as th...
CEO Compensation Analysis
Compensation vs Market: Gary's total compensation ($USD11.20M) is above average for companies of similar size in the US market ($USD6.33M).
Compensation vs Earnings: Gary's compensation has been consistent with company performance over the past year.
Experienced Management: CIEN's management team is seasoned and experienced (8.5 years average tenure).
Experienced Board: CIEN's board of directors are seasoned and experienced ( 15.8 years average tenure).
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
Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.
Ciena Corporation's employee growth, exchange listings and data sources
- Name: Ciena Corporation
- Ticker: CIEN
- Exchange: NYSE
- Founded: 1992
- Industry: Communications Equipment
- Sector: Tech
- Market Cap: US$8.018b
- Shares outstanding: 154.93m
- Website: https://www.ciena.com
Number of Employees
- Ciena Corporation
- 7035 Ridge Road
- United States
Company Analysis and Financial Data Status
|Data||Last Updated (UTC time)|
|Company Analysis||2021/10/25 23:08|
|End of Day Share Price||2021/10/25 00:00|
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.