CIENA CORP's gross profit margin for the third quarter of its fiscal year 2014 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 has average liquidity. Currently, the Quick Ratio is 1.49 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year.
At the same time, stockholders' equity ("net worth") has greatly increased by 45.70% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.
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|Income Statement||Q3 FY14||Q3 FY13|
|Net Sales ($mil)||603.56||538.36|
|Net Income ($mil)||16.16||-1.23|
|Balance Sheet||Q3 FY14||Q3 FY13|
|Cash & Equiv. ($mil)||653.13||478.27|
|Total Assets ($mil)||2100.42||1727.36|
|Total Debt ($mil)||1464.22||1210.91|
|Profitability||Q3 FY14||Q3 FY13|
|Gross Profit Margin||46.07||45.57|
|Return on Assets||-0.93||-6.62|
|Return on Equity||0.0||0.0|
|Debt||Q3 FY14||Q3 FY13|
|Share Data||Q3 FY14||Q3 FY13|
|Shares outstanding (mil)||106.56||103.12|
|Div / share||0.0||0.0|
|Book value / share||-0.42||-0.81|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||3582485.0||3081449.0|
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 25.64||CIEN 87.44||Peers 16.42|
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 13.77||Peers 19.44||CIEN NA||Peers 0.68|
Average. An average price-to-projected earnings ratio can signify an industry neutral stock price and average future growth expectations.
CIEN is trading at a valuation on par with 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 3.23||CIEN 83.34||Peers 377.63|
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 0.74||Peers 3.30||CIEN 16.08||Peers 3.28|
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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