Ceragon Networks Ltd

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CRNT : NASDAQ : Technology
$2.64 -0.01 | -0.38%
Today's Range: 2.62 - 2.68
Avg. Daily Volume: 316200.0
07/20/17 - 3:59 PM ET

Financial Analysis


CERAGON NETWORKS LTD's gross profit margin for the first quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. The company grew its sales and net income significantly quarter versus same quarter a year prior, and was able to outpace the average competitor in the industry when comparing revenue growth, but not when comparing net income growth. CERAGON NETWORKS LTD has average liquidity. Currently, the Quick Ratio is 1.26 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has increased from the same period last year.

During the same period, stockholders' equity ("net worth") has increased by 14.10% 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 Q1 FY17 Q1 FY16
Net Sales ($mil)76.0259.83
EBITDA ($mil)4.33.54
EBIT ($mil)1.961.23
Net Income ($mil)-0.13-0.44


Balance Sheet Q1 FY17 Q1 FY16
Cash & Equiv. ($mil)36.4641.88
Total Assets ($mil)243.85236.48
Total Debt ($mil)11.529.85
Equity ($mil)118.03103.44


Profitability Q1 FY17 Q1 FY16
Gross Profit Margin32.3339.28
EBITDA Margin5.655.91
Operating Margin2.572.06
Sales Turnover1.271.33
Return on Assets4.813.2
Return on Equity9.947.31
Debt Q1 FY17 Q1 FY16
Current Ratio1.911.77
Debt/Capital0.090.22
Interest Expense1.60.0
Interest Coverage1.220.0


Share Data Q1 FY17 Q1 FY16
Shares outstanding (mil)77.7777.64
Div / share0.00.0
EPS0.0-0.01
Book value / share1.521.33
Institutional Own % n/a n/a
Avg Daily Volume313122.0714908.0

Valuation


HOLD. This stock's P/E ratio indicates a discount compared to an average of 24.30 for the Communications Equipment industry and a discount compared to the S&P 500 average of 24.41. To use another comparison, its price-to-book ratio of 1.88 indicates a discount versus the S&P 500 average of 3.04 and a significant discount 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. Upon assessment of these and other key valuation criteria, CERAGON NETWORKS LTD 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
CRNT 20.36 Peers 24.30   CRNT 10.64 Peers 15.13

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

CRNT 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.

CRNT is trading at a significant 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
CRNT 10.96 Peers 21.83   CRNT 0.51 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.

CRNT 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.

CRNT 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
CRNT 1.88 Peers 3.45   CRNT 40.00 Peers 9.93

Discount. 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.

CRNT is trading at a significant discount to its peers.

 

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

CRNT 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
CRNT 0.72 Peers 3.02   CRNT -1.84 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.

CRNT 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.

CRNT significantly trails its peers on the basis of sales growth

 

 

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