Ceragon Networks LtdFind Ratings Reports
CERAGON NETWORKS LTD's gross profit margin for the second quarter of its fiscal year 2021 has increased when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the subsector, the net income growth has not. CERAGON NETWORKS LTD has average liquidity. Currently, the Quick Ratio is 1.28 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.
During the same period, stockholders' equity ("net worth") has remained unchanged 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.
STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12-months. To learn more visit www.TheStreetRatings.com.
|Income Statement||Q2 FY21||Q2 FY20|
|Net Sales ($mil)||68.62||62.43|
|Net Income ($mil)||-1.71||-5.48|
|Balance Sheet||Q2 FY21||Q2 FY20|
|Cash & Equiv. ($mil)||28.67||35.17|
|Total Assets ($mil)||294.42||272.1|
|Total Debt ($mil)||34.14||19.68|
|Profitability||Q2 FY21||Q2 FY20|
|Gross Profit Margin||35.74||30.73|
|Return on Assets||-2.58||-5.98|
|Return on Equity||-5.21||-11.04|
|Debt||Q2 FY21||Q2 FY20|
|Share Data||Q2 FY21||Q2 FY20|
|Shares outstanding (mil)||81.7||80.66|
|Div / share||0.0||0.0|
|Book value / share||1.79||1.83|
|Institutional Own %||n/a||n/a|
|Avg Daily Volume||678908.0||917057.0|
HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 2.02 indicates a significant discount versus the S&P 500 average of 4.62 and a significant discount versus the subsector average of 324.13. The price-to-sales ratio is well below both the S&P 500 average and the subsector average, indicating a discount. After reviewing these and other key valuation criteria, CERAGON NETWORKS LTD proves to trade at a discount to investment alternatives.
|CRNT NM||Peers 29.37||CRNT 109.00||Peers 17.38|
Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.
CRNT's P/E is negative making this valuation measure meaningless.
Premium. 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 premium to its peers.
|CRNT 27.85||Peers 20.44||CRNT NA||Peers 0.76|
Neutral. A lower price-to-projected earnings ratio than its peers can signify a less expensive stock or lower future growth potential.
Ratio not available.
Neutral. 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.
Ratio not available.
|CRNT 2.02||Peers 324.13||CRNT 57.15||Peers 100.83|
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.
Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.
However, CRNT is expected to significantly trail its peers on the basis of its earnings growth rate.
|CRNT 1.05||Peers 4.57||CRNT 7.54||Peers 6.79|
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 subsector on this measurement.
Higher. A sales growth rate that exceeds the subsector implies that a company is gaining market share.
CRNT has a sales growth rate that exceeds its peers.