CIEN : NYSE : Technology
$21.57 | %
Today's Range: 21.26 - 21.78
Avg. Daily Volume: 3012100.0
09/22/17 - 4:02 PM ET

Financial Analysis


CIENA CORP's gross profit margin for the third 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 is extremely liquid. Currently, the Quick Ratio is 2.21 which clearly shows the ability to cover any short-term cash needs. The company's liquidity has increased from the same period last year.

At the same time, stockholders' equity ("net worth") has greatly increased by 30.87% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)728.72670.55
EBITDA ($mil)108.1691.83
EBIT ($mil)84.259.19
Net Income ($mil)60.0133.55


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)794.281150.24
Total Assets ($mil)2736.663043.66
Total Debt ($mil)1015.641508.99
Equity ($mil)944.31721.56


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin47.7848.71
EBITDA Margin14.8413.69
Operating Margin11.558.83
Sales Turnover1.010.85
Return on Assets5.060.72
Return on Equity14.663.07
Debt Q3 FY17 Q3 FY16
Current Ratio2.921.95
Debt/Capital0.520.68
Interest Expense13.4215.97
Interest Coverage6.283.71


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)142.67139.25
Div / share0.00.0
EPS0.390.23
Book value / share6.625.18
Institutional Own % n/a n/a
Avg Daily Volume3139742.03348162.0

Valuation


BUY. CIENA CORP's P/E ratio indicates a discount compared to an average of 28.23 for the Communications Equipment industry and a value on par with the S&P 500 average of 24.93. To use another comparison, its price-to-book ratio of 3.23 indicates valuation on par with the S&P 500 average of 3.11 and a discount versus the industry average of 3.52. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. Upon assessment of these and other key valuation criteria, CIENA CORP proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CIEN 23.24 Peers 28.23   CIEN 12.96 Peers 16.97

Discount. A lower P/E ratio than its peers can signify a less expensive stock or lower growth expectations.

CIEN is trading at a discount to its peers.

 

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 discount to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CIEN 10.43 Peers 671.79   CIEN 0.10 Peers 0.76

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.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CIEN 3.23 Peers 3.52   CIEN 513.33 Peers -7.15

Average. 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 is trading at a valuation on par with 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CIEN 1.10 Peers 3.15   CIEN 7.64 Peers 7.47

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.

 

Average. Comparing a company's sales growth to its industry helps to determine if the company is adding or losing market share.

CIEN is keeping pace with its peers on the basis of sales growth.

 

 

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