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
Debt/Capital0.580.7
Interest Expense13.3112.61
Interest Coverage4.672.56


Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)141.77138.01
Div / share0.00.0
EPS0.250.1
Book value / share5.974.85
Institutional Own % n/a n/a
Avg Daily Volume3326495.02928600.0

Valuation


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.


Price/Earnings
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.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
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.

 
Price/Book
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.

 
Price/Sales
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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