Ciena Corporation Fundamental Analysis (XETRA: CIE1.DE)
Ciena Corporation Fundamental Analysis (XETRA: CIE1.DE)
Ciena Corporation (XETRA: CIE1.DE) shows moderate financial fundamentals with a PE ratio of 74.95, profit margin of 10.86%, and ROE of 22.76%. The company generates $6.0B in annual revenue with strong year-over-year growth of 18.79%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 74.8/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
Fundamental Health Score
We analyze CIE1.DE's fundamental strength across five key dimensions:
Efficiency Score
WeakCIE1.DE struggles to generate sufficient returns from assets.
Valuation Score
ModerateCIE1.DE shows balanced valuation metrics.
Growth Score
ExcellentCIE1.DE delivers strong and consistent growth momentum.
Financial Health Score
ModerateCIE1.DE shows balanced financial health with some risks.
Profitability Score
ModerateCIE1.DE maintains healthy but balanced margins.
Key Financial Metrics
Is CIE1.DE Expensive or Cheap?
P/E Ratio
CIE1.DE trades at 74.95 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, CIE1.DE's PEG of 0.18 indicates potential undervaluation.
Price to Book
The market values Ciena Corporation at 16.05 times its book value. This suggests the stock is fully valued or overvalued on an asset basis.
EV/EBITDA
Enterprise value stands at 50.95 times EBITDA. This signals the market has high growth expectations.
How Well Does CIE1.DE Make Money?
Net Profit Margin
For every $100 in sales, Ciena Corporation keeps $10.86 as profit after all expenses.
Operating Margin
Core operations generate 12.29 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $22.76 in profit for every $100 of shareholder equity.
ROA
Ciena Corporation generates $8.16 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ciena Corporation produces operating cash flow of $1.05B, showing steady but balanced cash generation.
Free Cash Flow
Ciena Corporation generates strong free cash flow of $810.92M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $5.73 in free cash annually.
FCF Yield
CIE1.DE converts 1.67% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
74.95
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.18
vs 25 benchmark
P/B Ratio
Price to book value ratio
16.05
vs 25 benchmark
P/S Ratio
Price to sales ratio
8.13
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
1.07
vs 25 benchmark
Current Ratio
Current assets to current liabilities
3.80
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
0.23
vs 25 benchmark
ROA
Return on assets percentage
0.08
vs 25 benchmark
ROCE
Return on capital employed
0.11
vs 25 benchmark
How CIE1.DE Stacks Against Its Sector Peers
| Metric | CIE1.DE Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 74.95 | 34.00 | Worse (Expensive) |
| ROE | 22.76% | 783.00% | Weak |
| Net Margin | 10.86% | -3153.00% (disorted) | Strong |
| Debt/Equity | 1.07 | 0.60 | Weak (High Leverage) |
| Current Ratio | 3.80 | 12.44 | Strong Liquidity |
| ROA | 8.16% | 336.00% | Weak |
CIE1.DE outperforms its industry in 2 out of 6 key metrics, particularly excelling in Net Margin, but lagging in P/E Ratio.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ciena Corporation's 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
46.49%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
-62.97%
Industry Style: Growth, Innovation, High Beta
DecliningFCF CAGR
77.14%
Industry Style: Growth, Innovation, High Beta
High Growth