CIENA CORP's gross profit margin for the second quarter of its fiscal year 2015 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. CIENA CORP is extremely liquid. Currently, the Quick Ratio is 2.25 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year, indicating improving cash flow.
At the same time, stockholders' equity ("net worth") has greatly increased by 271.52% from the same quarter last year. Overall, the key liquidity measurements indicate that the company is very unlikely to face financial difficulties in the near future.
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|Income Statement||Q2 FY15||Q2 FY14|
|Net Sales ($mil)||621.6||560.06|
|Net Income ($mil)||20.65||-10.16|
|Balance Sheet||Q2 FY15||Q2 FY14|
|Cash & Equiv. ($mil)||731.43||415.18|
|Total Assets ($mil)||2091.56||1795.46|
|Total Debt ($mil)||1296.23||1214.29|
|Profitability||Q2 FY15||Q2 FY14|
|Gross Profit Margin||45.98||44.91|
|Return on Assets||-0.6||-2.06|
|Return on Equity||-9.13||0.0|
|Debt||Q2 FY15||Q2 FY14|
|Share Data||Q2 FY15||Q2 FY14|
|Shares outstanding (mil)||117.7||105.59|
|Div / share||0.0||0.0|
|Book value / share||1.18||-0.77|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||2916362.0||2931549.0|
HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 21.72 indicates a significant premium versus the S&P 500 average of 2.82 and a significant premium versus the industry average of 4.43. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, CIENA CORP proves to trade at a premium to investment alternatives within the industry.
|CIEN NM||Peers 30.68||CIEN 15.21||Peers 28.21|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
CIEN's P/E is negative making this valuation measure meaningless.
Discount. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.
CIEN is trading at a significant discount to its peers.
|CIEN 16.84||Peers 24.56||CIEN NA||Peers 2.40|
Discount. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth expectations.
CIEN is trading at a discount to its peers.
Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.
Ratio not available.
|CIEN 21.72||Peers 4.43||CIEN 60.00||Peers 133.43|
Premium. A higher price-to-book ratio makes a stock less attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CIEN is trading at a significant premium to its peers.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CIEN is expected to significantly trail its peers on the basis of its earnings growth rate.
|CIEN 1.28||Peers 3.44||CIEN 5.85||Peers 3.31|
Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.
CIEN is trading at a significant discount to its industry on this measurement.
Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.
CIEN has a sales growth rate that significantly exceeds its peers.
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