CIEN : NYSE : Technology
$21.18 up 0.73 | 3.6%
Today's Range: 20.6501 - 21.34
Avg. Daily Volume: 2505600.0
12/05/16 - 1:50 PM ET

Financial Analysis


CIENA CORP's gross profit margin for the third quarter of its fiscal year 2016 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 1.58 which shows the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

At the same time, stockholders' equity ("net worth") has greatly increased by 305.70% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)670.55602.93
EBITDA ($mil)91.8372.6
EBIT ($mil)59.1947.58
Net Income ($mil)33.5523.63


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)1150.24857.16
Total Assets ($mil)3043.662163.7
Total Debt ($mil)1508.991285.58
Equity ($mil)721.56177.85


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin48.7147.08
EBITDA Margin13.6912.04
Operating Margin8.837.89
Sales Turnover0.851.08
Return on Assets0.72-0.24
Return on Equity3.07-2.92
Debt Q3 FY16 Q3 FY15
Current Ratio1.952.98
Debt/Capital0.680.88
Interest Expense15.9711.88
Interest Coverage3.714.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)139.25118.73
Div / share0.00.0
EPS0.230.19
Book value / share5.181.5
Institutional Own % n/a n/a
Avg Daily Volume2740318.03191657.0

Valuation


HOLD. CIENA CORP's P/E ratio indicates a significant premium compared to an average of 32.47 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 25.16. For additional comparison, its price-to-book ratio of 4.24 indicates a premium versus the S&P 500 average of 2.79 and a premium versus the industry average of 3.57. 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.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CIEN 146.40 Peers 32.47   CIEN 14.30 Peers 14.62

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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CIEN 12.84 Peers 19.18   CIEN 0.11 Peers 0.93

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.

 

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 4.24 Peers 3.57   CIEN 250.00 Peers 77.07

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 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.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CIEN 1.19 Peers 3.14   CIEN 9.88 Peers 12.45

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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