Ciena (NYSE:CIEN) - Share price, News & Analysis

CIEN fundamental analysis
Snowflake Score
Valuation	3/6
Future Growth	2/6
Past Performance	4/6
Financial Health	6/6
Dividends	0/6

CIEN Stock Overview

Rewards

Trading at 50.8% below our estimate of its fair value

Earnings are forecast to grow 10.48% per year

Earnings grew by 38.5% over the past year

Risk Analysis

No risks detected for CIEN from our risk checks.

Ciena Competitors

Cisco Systems

NasdaqGS:CSCO

US$178.4b

Arista Networks

NYSE:ANET

US$31.6b

NasdaqGS:FFIV

US$9.5b

Juniper Networks

NYSE:JNPR

US$9.3b

Price History & Performance

Summary of all time highs, changes and price drops for Ciena
Historical stock prices
Current Share Price	US$49.84
52 Week High	US$78.28
52 Week Low	US$48.57
Beta	0.86
1 Month Change	-13.02%
3 Month Change	-27.45%
1 Year Change	-5.78%
3 Year Change	41.63%
5 Year Change	109.41%
Change since IPO	-61.51%

Recent News & Updates

May 14

Returns Are Gaining Momentum At Ciena (NYSE:CIEN)

To find a multi-bagger stock, what are the underlying trends we should look for in a business? Firstly, we'd want to...

May 01

Is There Now An Opportunity In Ciena Corporation (NYSE:CIEN)?

While Ciena Corporation ( NYSE:CIEN ) might not be the most widely known stock at the moment, it received a lot of...

Shareholder Returns

	CIEN	US Communications	US Market
7D	-4.8%	-10.4%	-2.7%
1Y	-5.8%	-13.5%	-12.9%

Return vs Industry: CIEN exceeded the US Communications industry which returned -13.5% over the past year.

Return vs Market: CIEN exceeded the US Market which returned -12.9% over the past year.

Price Volatility

Is CIEN's price volatile compared to industry and market?
CIEN volatility
CIEN Average Weekly Movement	6.3%
Communications Industry Average Movement	7.2%
Market Average Movement	7.8%
10% most volatile stocks in US Market	16.8%
10% least volatile stocks in US Market	2.9%

Stable Share Price: CIEN is not significantly more volatile than the rest of US stocks over the past 3 months, typically moving +/- 6% a week.

Volatility Over Time: CIEN's weekly volatility (6%) has been stable over the past year.

About the Company

Founded	Employees	CEO	Website
1992	7,205	Gary Smith	https://www.ciena.com

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

How do Ciena's earnings and revenue compare to its market cap?
CIEN fundamental statistics
Market Cap	US$7.58b
Earnings (TTM)	US$490.67m
Revenue (TTM)	US$3.71b

15.5x

P/E Ratio

2.0x

P/S Ratio

Is CIEN overvalued?

See Fair Value and valuation analysis

Earnings & Revenue

Key profitability statistics from the latest earnings report
CIEN income statement (TTM)
Revenue	US$3.71b
Cost of Revenue	US$1.97b
Gross Profit	US$1.74b
Other Expenses	US$1.25b
Earnings	US$490.67m

Last Reported Earnings

Jan 29, 2022

Next Earnings Date

Jun 02, 2022

Earnings per share (EPS)	3.23
Gross Margin	46.96%
Net Profit Margin	13.23%
Debt/Equity Ratio	38.5%

How did CIEN perform over the long term?

See historical performance and comparison

Valuation

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

Valuation Score

3/6

Valuation Score 3/6

Below Fair Value
Significantly Below Fair Value
PE vs Industry
PE vs Market
PEG Ratio
PB vs Industry

>50%

Undervalued compared to fair value

Share Price vs. Fair Value

Below Fair Value: CIEN ($49.84) is trading below our estimate of fair value ($101.36)

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 (15.5x) compared to the US Communications industry average (21.4x).

PE vs Market: CIEN is poor value based on its PE Ratio (15.5x) compared to the US market (15.3x).

Price to Earnings Growth Ratio

PEG Ratio: CIEN is poor value based on its PEG Ratio (1.5x)

Price to Book Ratio

PB vs Industry: CIEN is overvalued based on its PB Ratio (2.7x) compared to the US Communications industry average (1.7x).

Future Growth

How is Ciena forecast to perform in the next 1 to 3 years based on estimates from 15 analysts?

Future Growth Score

2/6

Future Growth Score 2/6

Earnings vs Savings Rate
Earnings vs Market
High Growth Earnings
Revenue vs Market
High Growth Revenue
Future ROE

10.5%

Forecasted annual earnings growth

Earnings and Revenue Growth Forecasts

Analyst Future Growth Forecasts

Earnings vs Savings Rate: CIEN's forecast earnings growth (10.5% per year) is above the savings rate (1.9%).

Earnings vs Market: CIEN's earnings (10.5% per year) are forecast to grow slower than the US market (12.5% per year).

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

Revenue vs Market: CIEN's revenue (8.1% per year) is forecast to grow faster than the US market (7.8% per year).

High Growth Revenue: CIEN's revenue (8.1% 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 (18.4%).

Past Performance

How has Ciena performed over the past 5 years?

Past Performance Score

4/6

Past Performance Score 4/6

Quality Earnings
Growing Profit Margin
Earnings Trend
Accelerating Growth
Earnings vs Industry
High ROE

-0.03%

Historical annual earnings growth

Earnings and Revenue History

Quality Earnings: CIEN has high quality earnings.

Growing Profit Margin: CIEN's current net profit margins (13.2%) are higher than last year (10.3%).

Past Earnings Growth Analysis

Earnings Trend: CIEN's earnings have declined by 0.03% per year over the past 5 years.

Accelerating Growth: CIEN's earnings growth over the past year (38.5%) exceeds its 5-year average (-0.03% per year).

Earnings vs Industry: CIEN earnings growth over the past year (38.5%) exceeded the Communications industry 38.2%.

Return on Equity

High ROE: CIEN's Return on Equity (17.4%) is considered low.

Financial Health

How is Ciena's financial position?

Financial Health Score

6/6

Financial Health Score 6/6

Short Term Liabilities
Long Term Liabilities
Debt Level
Reducing Debt
Debt Coverage
Interest Coverage

Financial Position Analysis

Short Term Liabilities: CIEN's short term assets ($3.2B) exceed its short term liabilities ($760.3M).

Long Term Liabilities: CIEN's short term assets ($3.2B) exceed its long term liabilities ($1.3B).

Debt to Equity History and Analysis

Debt Level: CIEN has more cash than its total debt.

Reducing Debt: CIEN's debt to equity ratio has reduced from 151.8% to 38.5% over the past 5 years.

Debt Coverage: CIEN's debt is well covered by operating cash flow (45.7%).

Interest Coverage: CIEN's interest payments on its debt are well covered by EBIT (15.7x coverage).

Balance Sheet

Dividend

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

Dividend Score

0/6

Dividend Score 0/6

Notable Dividend
High Dividend
Stable Dividend
Growing Dividend
Earnings Coverage
Future Dividend Coverage

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.

Earnings Payout to Shareholders

Earnings Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.

Cash Payout to Shareholders

Cash Flow Coverage: Unable to calculate sustainability of dividends as CIEN has not reported any payouts.

Discover strong dividend paying companies

Management

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

9.1yrs

Average management tenure

CEO

Gary Smith (61 yo)

21yrs

Tenure

US$11,450,851

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 ($USD11.45M) is above average for companies of similar size in the US market ($USD8.23M).

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 (9.1 years average tenure).

Board Members

Experienced Board: CIEN's board of directors are seasoned and experienced ( 16.3 years average tenure).

Ownership

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

Ownership Breakdown

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

Data	Last Updated (UTC time)
Company Analysis	2022/05/21 00:00
End of Day Share Price	2022/05/20 00:00
Earnings	2022/01/29
Annual Earnings	2021/10/30