CIENA CORP's gross profit margin for the fourth quarter of its fiscal year 2014 has decreased when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. CIENA CORP has strong liquidity. Currently, the Quick Ratio is 1.60 which shows the ability to cover short-term cash needs. The company managed to increase its liquidity from the same period a year ago, despite already having strong liquidity to begin with. This would indicate improved cash flow.
During the same period, stockholders' equity ("net worth") has increased by 15.79% from the same quarter last year. The key liquidity measurements indicate that the company is unlikely to face financial difficulties in the near future.
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|Income Statement||Q4 FY14||Q4 FY13|
|Net Sales ($mil)||590.96||583.39|
|Net Income ($mil)||-30.7||-9.8|
|Balance Sheet||Q4 FY14||Q4 FY13|
|Cash & Equiv. ($mil)||726.93||471.52|
|Total Assets ($mil)||2072.63||1802.77|
|Total Debt ($mil)||1464.85||1212.02|
|Profitability||Q4 FY14||Q4 FY13|
|Gross Profit Margin||35.5||42.55|
|Return on Assets||-1.96||-4.73|
|Return on Equity||0.0||0.0|
|Debt||Q4 FY14||Q4 FY13|
|Share Data||Q4 FY14||Q4 FY13|
|Shares outstanding (mil)||106.98||103.71|
|Div / share||0.0||0.0|
|Book value / share||-0.65||-0.8|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3607140.0||2985235.0|
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. Along with this, the price-to-book ratio is also meaningless due to a negative book value for the company, making any comparisons useless. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.
|CIEN NM||Peers 25.38||CIEN 22.95||Peers 15.96|
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.
Premium. 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 premium to its peers.
|CIEN 13.11||Peers 20.21||CIEN NA||Peers 0.68|
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 NM||Peers 3.36||CIEN 53.58||Peers 368.09|
Neutral. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.
CIEN's P/B is negative making this valuation measure meaningless.
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 0.90||Peers 3.40||CIEN 9.87||Peers 3.05|
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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