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Market Cap

US$8.4b

Last Updated

2021/05/08 23:32 UTC

Data Sources

Company Financials +

Executive Summary

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. More Details


Snowflake Analysis

Flawless balance sheet with proven 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

Stable Share Price: CIEN is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 4% a week.

Volatility Over Time: CIEN's weekly volatility (4%) has been stable over the past year.


Market Performance


7 Day Return

6.7%

CIEN

3.6%

US Communications

-0.3%

US Market


1 Year Return

12.3%

CIEN

25.5%

US Communications

50.2%

US Market

Return vs Industry: CIEN underperformed the US Communications industry which returned 27.9% over the past year.

Return vs Market: CIEN underperformed the US Market which returned 51.8% over the past year.


Shareholder returns

CIENIndustryMarket
7 Day6.7%3.6%-0.3%
30 Day-4.9%1.8%2.2%
90 Day-2.6%7.7%3.8%
1 Year12.3%12.3%28.9%25.5%52.7%50.2%
3 Year110.0%110.0%21.7%13.1%63.4%53.1%
5 Year242.5%242.5%105.8%82.5%129.6%104.0%

Long-Term 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?

25.8%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CIEN ($53.87) is trading below our estimate of fair value ($71.22)

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 (23.5x) compared to the US Communications industry average (36.2x).

PE vs Market: CIEN is poor value based on its PE Ratio (23.5x) compared to the US market (20.2x).


Price to Earnings Growth Ratio

PEG Ratio: CIEN is poor value based on its PEG Ratio (4.9x)


Price to Book Ratio

PB vs Industry: CIEN is overvalued based on its PB Ratio (3.2x) compared to the US Communications industry average (2.4x).


Future Growth

How is Ciena forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

4.8%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIEN's forecast earnings growth (4.8% per year) is above the savings rate (2%).

Earnings vs Market: CIEN's earnings (4.8% per year) are forecast to grow slower than the US market (15.4% per year).

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

Revenue vs Market: CIEN's revenue (7.3% per year) is forecast to grow slower than the US market (9.2% per year).

High Growth Revenue: CIEN's revenue (7.3% 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 (14.9%).


Past Performance

How has Ciena performed over the past 5 years?

12.2%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CIEN has high quality earnings.

Growing Profit Margin: CIEN's current net profit margins (10.3%) are higher than last year (7.8%).


Past Earnings Growth Analysis

Earnings Trend: CIEN's earnings have grown by 12.2% per year over the past 5 years.

Accelerating Growth: CIEN's earnings growth over the past year (25.7%) exceeds its 5-year average (12.2% per year).

Earnings vs Industry: CIEN earnings growth over the past year (25.7%) underperformed the Communications industry 43.8%.


Return on Equity

High ROE: CIEN's Return on Equity (13.7%) is considered low.


Financial Health

How is Ciena's financial position?


Financial Position Analysis

Short Term Liabilities: CIEN's short term assets ($2.6B) exceed its short term liabilities ($684.8M).

Long Term Liabilities: CIEN's short term assets ($2.6B) exceed its long term liabilities ($915.6M).


Debt to Equity History and Analysis

Debt Level: CIEN's debt to equity ratio (27.4%) is considered satisfactory.

Reducing Debt: CIEN's debt to equity ratio has reduced from 202.3% to 27.4% over the past 5 years.

Debt Coverage: CIEN's debt is well covered by operating cash flow (63.1%).

Interest Coverage: CIEN's interest payments on its debt are well covered by EBIT (16.9x coverage).


Balance Sheet


Dividend

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.


Next Steps

Management

How experienced are the management team and are they aligned to shareholders interests?

8.1yrs

Average management tenure


CEO

Gary Smith (60 yo)

20yrs

Tenure

US$11,202,255

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 ($USD11.20M) is above average for companies of similar size in the US market ($USD6.50M).

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


Leadership Team

Experienced Management: CIEN's management team is seasoned and experienced (8.1 years average tenure).


Board Members

Experienced Board: CIEN's board of directors are seasoned and experienced ( 15.3 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: CIEN insiders have only sold shares in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

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


Top Shareholders

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$8.350b
  • Shares outstanding: 155.00m
  • Website: https://www.ciena.com

Number of Employees


Location

  • Ciena Corporation
  • 7035 Ridge Road
  • Hanover
  • Maryland
  • 21076
  • United States

Listings


Biography

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 commun...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/05/08 23:32
End of Day Share Price2021/05/07 00:00
Earnings2021/01/30
Annual Earnings2020/10/31


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.