Ceragon Networks Ltd

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CRNT : NASDAQ : Technology
$2.23 -0.04 | -1.76%
Today's Range: 2.21 - 2.3
Avg. Daily Volume: 463900.0
12/02/16 - 4:00 PM ET

Financial Analysis


CERAGON NETWORKS LTD'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. Even though sales decreased, the net income has increased. 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 12.57% 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 Q3 FY16 Q3 FY15
Net Sales ($mil)79.1385.37
EBITDA ($mil)8.299.02
EBIT ($mil)5.766.17
Net Income ($mil)3.481.44


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)32.3739.57
Total Assets ($mil)242.56271.5
Total Debt ($mil)20.343.93
Equity ($mil)108.3696.26


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin35.9734.88
EBITDA Margin10.4710.56
Operating Margin7.287.23
Sales Turnover1.171.42
Return on Assets3.43-20.69
Return on Equity7.68-58.35
Debt Q3 FY16 Q3 FY15
Current Ratio1.851.53
Debt/Capital0.160.31
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)77.6477.13
Div / share0.00.0
EPS0.040.02
Book value / share1.41.25
Institutional Own % n/a n/a
Avg Daily Volume502300.0592709.0

Valuation


HOLD. CERAGON NETWORKS LTD's P/E ratio indicates a discount compared to an average of 32.47 for the Communications Equipment industry and a value on par with the S&P 500 average of 25.16. To use another comparison, its price-to-book ratio of 1.67 indicates a discount versus the S&P 500 average of 2.79 and a significant discount 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. 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 23.30 Peers 32.47   CRNT 8.09 Peers 14.62

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

CRNT is trading at a significant 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 15.53 Peers 19.18   CRNT 0.02 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.

CRNT 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.

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 1.67 Peers 3.57   CRNT 113.69 Peers 77.07

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 0.64 Peers 3.14   CRNT -26.07 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.

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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