Ceragon Networks Ltd

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CRNT : NASDAQ : Technology
$3.31 | %
Today's Range: 0.0 - 0.0
Avg. Daily Volume: 939900.0
03/28/17 - 4:00 PM ET

Financial Analysis


CERAGON NETWORKS LTD's gross profit margin for the fourth 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. CERAGON NETWORKS LTD has average liquidity. Currently, the Quick Ratio is 1.30 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, indicating improving cash flow.

During the same period, stockholders' equity ("net worth") has increased by 12.97% 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 Q4 FY16 Q4 FY15
Net Sales ($mil)84.6775.64
EBITDA ($mil)9.087.22
EBIT ($mil)6.554.08
Net Income ($mil)8.335.23


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)36.3436.32
Total Assets ($mil)244.23265.33
Total Debt ($mil)17.034.92
Equity ($mil)116.16102.82


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin35.436.74
EBITDA Margin10.729.54
Operating Margin7.745.39
Sales Turnover1.21.32
Return on Assets4.670.38
Return on Equity9.830.98
Debt Q4 FY16 Q4 FY15
Current Ratio1.891.59
Debt/Capital0.130.25
Interest Expense0.00.0
Interest Coverage0.00.0


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)77.6477.64
Div / share0.00.0
EPS0.10.07
Book value / share1.51.32
Institutional Own % n/a n/a
Avg Daily Volume924768.0364665.0

Valuation


HOLD. The current P/E ratio indicates a significant discount compared to an average of 40.97 for the Communications Equipment industry and a value on par with the S&P 500 average of 26.33. For additional comparison, its price-to-book ratio of 2.30 indicates a discount versus the S&P 500 average of 2.93 and a 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 26.46 Peers 40.97   CRNT 10.36 Peers 17.74

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 13.23 Peers 19.16   CRNT 0.66 Peers 1.01

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 2.30 Peers 3.45   CRNT 550.00 Peers 5.61

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 0.91 Peers 3.31   CRNT -15.97 Peers 21.16

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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