Shares of Mid-cap utilities company Ciena moved 1.3% this evening, and are now trading at $42.05 per share. The average analyst target price for the stock is $56.06.
Ciena Corporation provides hardware and software services for delivery of video, data, and voice traffic metro, aggregation, and access communications network worldwide.
Based on its trailing earning per share of 1.35, Ciena has a trailing 12 month Price to Earnings (P/E) ratio of 31.1 CIEN has a forward P/E ratio of 12.7.
The company has a price to earnings growth (PEG) ratio of 2.03. A number between 0 and 1 could mean that the market is undervaluing Ciena's estimated growth potential
An Exceptionally Strong Balance Sheet
| 2017-12-22 | 2018-12-21 | 2019-12-20 | 2020-12-18 | 2021-12-17 | 2022-12-16 | |
|---|---|---|---|---|---|---|
| Revenue (MM) | $2,802 | $3,094 | $3,572 | $3,532 | $3,621 | $3,633 |
| Gross Margins | 44.0% | 42.0% | 43.0% | 47.0% | 48.0% | 43.0% |
| Operating Margins | 9% | 8% | 10% | 15% | 15% | 7% |
| Net Margins | 45.0% | -11.0% | 7.0% | 10.0% | 14.0% | 4.0% |
| Net Income (MM) | $1,262 | -$345 | $253 | $361 | $500 | $153 |
| Net Interest Expense (MM) | -$55 | -$55 | -$37 | -$31 | -$31 | -$47 |
| Depreciation & Amort. (MM) | -$123 | -$110 | -$123 | -$133 | -$132 | -$140 |
| Earnings Per Share | $7.43 | -$2.4 | $1.61 | $2.32 | $3.19 | $1.0 |
| EPS Growth | n/a | -132.3% | 167.08% | 44.1% | 37.5% | -68.65% |
| Diluted Shares (MM) | 170 | 144 | 158 | 156 | 157 | 152 |
| Free Cash Flow (MM) | $329 | $297 | $476 | $576 | $621 | -$77 |
| Capital Expenditures (MM) | -$95 | -$68 | -$63 | -$83 | -$80 | -$91 |
| Net Current Assets (MM) | $191 | $315 | $661 | $940 | $1,344 | $1,029 |
| Long Term Debt (MM) | $584 | $686 | $680 | $676 | $670 | $1,061 |
| Net Debt / EBITDA | 0.05 | -0.55 | -0.66 | -0.86 | -1.4 | -0.2 |
Ciena has slimmer gross margins than its peers, weak operating margins with a stable trend, and declining EPS growth. On the other hand, the company benefits from an excellent current ratio and low leverage. Furthermore, Ciena has weak revenue growth and a flat capital expenditure trend and irregular cash flows.
