Ceragon Networks Ltd.
Ceragon Networks Ltd. Fundamental Analysis
Ceragon Networks Ltd. (CRNT) shows moderate financial fundamentals with a PE ratio of -99.93, profit margin of -0.62%, and ROE of -1.22%. The company generates $0.3B in annual revenue with strong year-over-year growth of 13.54%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 38.6/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
Fundamental Health Score
We analyze CRNT's fundamental strength across five key dimensions:
Efficiency Score
WeakCRNT struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCRNT trades at attractive valuation levels.
Growth Score
ModerateCRNT shows steady but slowing expansion.
Financial Health Score
ExcellentCRNT maintains a strong and stable balance sheet.
Profitability Score
WeakCRNT struggles to sustain strong margins.
Key Financial Metrics
Is CRNT Expensive or Cheap?
P/E Ratio
CRNT trades at -99.93 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, CRNT's PEG of 0.42 indicates potential undervaluation.
Price to Book
The market values Ceragon Networks Ltd. at 1.21 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 8.84 times EBITDA. This is generally considered low.
How Well Does CRNT Make Money?
Net Profit Margin
For every $100 in sales, Ceragon Networks Ltd. keeps $-0.62 as profit after all expenses.
Operating Margin
Core operations generate 2.01 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-1.22 in profit for every $100 of shareholder equity.
ROA
Ceragon Networks Ltd. generates $-0.66 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
Ceragon Networks Ltd. generates limited operating cash flow of $33.14M, signaling weaker underlying cash strength.
Free Cash Flow
Ceragon Networks Ltd. produces free cash flow of $17.16M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $0.19 in free cash annually.
FCF Yield
CRNT converts 8.29% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
-99.93
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.42
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.21
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.61
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.29
vs 25 benchmark
Current Ratio
Current assets to current liabilities
1.87
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.01
vs 25 benchmark
ROA
Return on assets percentage
-0.01
vs 25 benchmark
ROCE
Return on capital employed
0.03
vs 25 benchmark
How CRNT Stacks Against Its Sector Peers
| Metric | CRNT Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | -99.93 | 35.19 | Better (Cheaper) |
| ROE | -1.22% | 1155.00% | Weak |
| Net Margin | -0.62% | -127067.00% (disorted) | Weak |
| Debt/Equity | 0.29 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 1.87 | 4.71 | Neutral |
| ROA | -0.66% | -314918.00% (disorted) | Weak |
CRNT outperforms its industry in 2 out of 6 key metrics, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews Ceragon Networks Ltd.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
28.59%
Industry Style: Growth, Innovation, High Beta
High GrowthEPS CAGR
1422.56%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
288.74%
Industry Style: Growth, Innovation, High Beta
High Growth