CIEN : NYSE : Technology
$25.835 up 0.26 | 1.0%
Today's Range: 25.28 - 25.87
Avg. Daily Volume: 3322700.0
07/20/17 - 3:59 PM ET

Financial Analysis

CIENA CORP's gross profit margin for the second quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. The company managed to grow both sales and net income at a faster pace than the average competitor in its industry this quarter as compared to the same quarter a year ago. CIENA CORP has strong liquidity. Currently, the Quick Ratio is 1.82 which shows 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 26.53% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)707.02640.72
EBITDA ($mil)93.065.14
EBIT ($mil)62.132.25
Net Income ($mil)38.0314.0

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)903.41117.21
Total Assets ($mil)2777.12981.58
Total Debt ($mil)1163.321538.59
Equity ($mil)846.55669.01

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin47.8346.89
EBITDA Margin13.1510.16
Operating Margin8.785.03
Sales Turnover0.980.84
Return on Assets4.030.41
Return on Equity13.231.83
Debt Q2 FY17 Q2 FY16
Current Ratio2.413.3
Interest Expense13.3112.61
Interest Coverage4.672.56

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)141.77138.01
Div / share0.00.0
Book value / share5.974.85
Institutional Own % n/a n/a
Avg Daily Volume3326495.02928600.0


BUY. CIENA CORP's P/E ratio indicates a premium compared to an average of 24.30 for the Communications Equipment industry and a premium compared to the S&P 500 average of 24.41. For additional comparison, its price-to-book ratio of 4.32 indicates a premium versus the S&P 500 average of 3.04 and a premium versus the industry average of 3.45. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CIEN 33.95 Peers 24.30   CIEN 13.98 Peers 15.13

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

CIEN is trading at a significant premium to its peers.


Average. 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 valuation on par to its peers.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CIEN 12.59 Peers 21.83   CIEN 0.14 Peers 1.07

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 significant discount to its peers.


Discount. 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.

CIEN trades at a significant discount to its peers.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CIEN 4.32 Peers 3.45   CIEN 590.90 Peers 9.93

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.


Higher. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

CIEN is expected to have an earnings growth rate that significantly exceeds its peers.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CIEN 1.35 Peers 3.02   CIEN 8.23 Peers 10.55

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.


Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CIEN trails its peers on the basis of sales growth



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