Fact based stock research
Ciena (NYSE:CIEN)

US1717793095

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For every stock, we judge its performance against its peers and rank it on a scale of 1 to 100. The higher the rank, the better the stock performs than its peers. And, we do this for six investment strategies:
Value - shows how good of a value the stock is. Green is "inexpensive"; red is "expensive".

Growth - shows a company's growth potential. Green is "high growth" expected; red is "tough times ahead".

Safety - relates to the amount of debt a company has. Green is low debt level; red is high debt level.

Combined Financial - this isn't an average of the first three ranks but rather a consolidated view across several financial indicators. Green = good; red = tread carefully.

(NEW) Sentiment - quantifies professional analyst ratings and holdings as well as market pulse. Green = positive sentiment; red = skepticism (Only available to Premium Subscribers).

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Ciena stock research in summary

ciena.com

ANALYSIS: With an Obermatt Combined Rank of 78 (better than 78% compared with investment alternatives), Ciena (Communications Equipment, USA) shares have much better financial characteristics than comparable stocks. Shares of Ciena are low in value (priced high) with a consolidated Value Rank of 43 (worse than 57% of alternatives). But they show above-average growth (Growth Rank of 79) and are safely financed (Safety Rank of 62, which means below-average debt burdens). ...read more

RECOMMENDATION: A Combined Rank of 78, is a strong buy recommendation based on Ciena's financial characteristics. Investors looking for growth and low financial risk may find this stock attractive. While the company Ciena exhibits low value (Obermatt Value Rank of 43), which means that the stock price is rather high, it also demonstrates above-average growth (Obermatt Growth Rank of 79). This is a typical case, as high-growth companies are often expensive. Good financing practices (Obermatt Safety Rank of 62) are a double-edged sword: if the company continues growing, low debt limits shareholder returns. But if the company increases its debt, it will also increase risk. In other words, this is an investment on the safer side, despite the above-average price (low value). Obermatt Premium subscribers can further check the stock’s Sentiment Ranks, which also flow into the Obermatt 360° View for investors. ...read more

Latest Obermatt Ranks


360° View^new
Sentiment Rank^new
Value Rank	n/a
Growth Rank	n/a
Safety Rank	n/a
Combined Rank	n/a

Country	USA
Industry	Communications Equipment
Index	S&P MIDCAP
Size class	X-Large

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Further information

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Review the performance ranks of the individual metrics that form each investment strategy.

Research History: Ciena

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	30	37	44	n/a
GROWTH
GROWTH	35	73	61	n/a
SAFETY
SAFETY	77	88	70	n/a
SENTIMENT
SENTIMENT	n/a	71	54	^new
360° VIEW
360° VIEW	n/a	89	70	^new

Most recent update of the stock research: . Financial reporting date used for calculating ranks: . Stock research history is based on the Obermatt Method. The higher the rank, the better Ciena is in the corresponding investment strategy.
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Combined financial peformance in Detail

RESEARCH HISTORY	2021	2022	2023	2024
VALUE
VALUE	30	37	44	n/a
GROWTH
GROWTH	35	73	61	n/a
SAFETY
SAFETY	77	88	70	n/a
COMBINED
COMBINED	63	88	76	n/a

Last update of combined financial performance: . Stock analysis on combined financial performance: The higher the rank of Ciena the better the performance.

Value Metrics in Detail

ANALYSIS: With an Obermatt Value Rank of 43 (worse than 57% compared with alternatives), Ciena shares are more expensive than the average comparable stock. The Value Rank is based on consolidating four value indicators, with three out of four indicators above average for Ciena. Price-to-Sales (P/S) is 60, which means that the stock price compared with what market professionals expect for future sales is lower than for 60% of comparable companies, indicating a good value regarding Ciena's revenue size. The same is valid for expected Price to Profits (or Price / Earnings, P/E), more favorable than for 53% of alternatives, and it's also true for the Price-to-Book Capital ratio (also referred to as market-to-book ratio) with a Price-to-Capital Rank of 65. But, compared with other companies in the same industry, dividend yields are expected to be lower than average; only 1% of all competitors have even lower dividend yields than Ciena (a Dividend Yield Rank of 1). 99% alternative investments in the same business provide a higher dividend yield. ...read more

RECOMMENDATION: The overall picture with a consolidated Value Rank of 43, is a hold recommendation based on Ciena's stock price compared with the company's operational size and dividend yields. The below-average dividend yield may be a good sign, as it could mean the company has more attractive investment opportunities for the generated cash than to pay it out as dividends. A low dividend yield can also indicate a growth phase. We recommend further analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks, including the 360° View, before making an investment decision. ...read more

VALUE METRICS	2021	2022	2023	2024
PRICE VS. REVENUES (P/S)
PRICE VS. REVENUES (P/S)	36	44	55	n/a
PRICE VS. PROFITS (P/E)
PRICE VS. PROFITS (P/E)	85	45	54	n/a
PRICE VS. CAPITAL (Market-to-Book)
PRICE VS. CAPITAL (Market-to-Book)	29	50	64	n/a
DIVIDEND YIELD
DIVIDEND YIELD	1	1	1	n/a
CONSOLIDATED RANK: VALUE
CONSOLIDATED RANK: VALUE	30	37	44	n/a

Last update of Value Rank: . Stock analysis on value ratios: The higher the rank, the lower the value ratio of Ciena; except for dividend yield where the rank is higher, the higher the yield.

Growth Metrics in Detail

ANALYSIS: With an Obermatt Growth Rank of 79 (better than 79% compared with alternatives) for 2025, Ciena shows one of the highest growth dynamics in its industry. Investors also speak of high momentum. The Growth Rank is based on consolidating four value indicators, with all but one indicator above average for Ciena. Sales Growth has a value of 55 which means that currently professionals expect the company to grow more than 55% of its competitors. Profit Growth with a value of 56 and Capital Growth with a rank of 61 means that currently, professionals expect the company to grow both profits and invested capital more than of its competitors. But Stock Returns has only a rank of 45, which means that stock returns have recently been below 55% of alternative investments. ...read more

RECOMMENDATION: The overall picture with a consolidated Growth Rank of 79, is a buy recommendation for growth and momentum investors. Ciena has only one below-average growth indicator, the stock returns. This is probably the least reliable growth indicator, because it measures company and investor expectations at the same time. The three other growth indicators, which are all positive for Ciena, are more reliable measures of growth momentum. For this reason, the company seems to be on a good trajectory, unless you think the current period is not representative, because of unique events that will not be repeated in the future. While momentum is a popular investment factor, the value aspect might be the more important one, in the longer term. We recommend analyzing the stock with Obermatt’s Value, Safety, and Sentiment Ranks to arrive at a 360° View of the stock purchase case. ...read more

GROWTH METRICS	2021	2022	2023	2024
REVENUE GROWTH
REVENUE GROWTH	38	35	60	n/a
PROFIT GROWTH
PROFIT GROWTH	56	41	56	n/a
CAPITAL GROWTH
CAPITAL GROWTH	n/a	70	68	n/a
STOCK RETURNS
STOCK RETURNS	61	83	35	n/a
CONSOLIDATED RANK: GROWTH
CONSOLIDATED RANK: GROWTH	35	73	61	n/a

Last update of Growth Rank: . Stock analysis on growth metrics: The higher the rank, the higher the growth and returns of Ciena.

Safety Metrics in Detail

ANALYSIS: With an Obermatt Safety Rank of 62 (better than 62% compared with alternatives), the company Ciena has financing practices on the safer side, which mean that their overall debt burden is lower than average. This doesn't mean that the business of Ciena is safe, it only means that the company is on the safer side regarding possible bankruptcy, assuming that public reporting is correct. The Safety Rank is based on consolidating three financing indicators, with just one indicator above average for Ciena and the other two below average. Refinancing is at 75, meaning the portion of the debt about to be refinanced is below average. It has less debt in the refinancing stage than 75% of its competitors. But Leverage is high with a rank of 36, meaning the company has an above-average debt-to-equity ratio. It has more debt than 64% of its competitors. Liquidity is also on the riskier side with a rank of 43, meaning the company generates less profit to service its debt than 57% of its competitors. ...read more

RECOMMENDATION: With a consolidated Safety Rank of 62 (better than 62% compared with alternatives), Ciena has a financing structure that is safer than that of its competitors. A good Refinancing Rank means that the problems of the company may not be around the corner. But high Leverage is only good if things go well, and low Liquidity is a signal for caution. The financing signals for Ciena are on the riskier side, requiring the company's future to be on the safer side. Investors may want to look at Growth and Sentiment ranks before making an investment decision. In the long-term, investors may have a debt challenge with Ciena and should also compare Obermatt’s Value, Growth, and Sentiment Ranks before making a decision. ...read more

SAFETY METRICS	2021	2022	2023	2024
LEVERAGE
LEVERAGE	61	64	38	n/a
REFINANCING
REFINANCING	53	63	77	n/a
LIQUIDITY
LIQUIDITY	84	80	44	n/a
CONSOLIDATED RANK: SAFETY
CONSOLIDATED RANK: SAFETY	77	88	70	n/a

Last update of Safety Rank: . Stock analysis on safety metrics: The higher the rank, the lower the leverage of Ciena and the more cash is available to service its debt.

Sentiment Metrics in Detail

SENTIMENT	2021	2022	2023	2024
ANALYST OPINIONS
ANALYST OPINIONS	n/a	81	89	^new
OPINIONS CHANGE
OPINIONS CHANGE	n/a	57	1	^new
PRO HOLDINGS
PRO HOLDINGS	n/a	7	30	^new
MARKET PULSE
MARKET PULSE	n/a	84	71	^new
CONSOLIDATED RANK: SENTIMENT
CONSOLIDATED RANK: SENTIMENT	n/a	71	54	^new

Last update of Sentiment Rank: . Stock analysis on sentiment metrics: The higher the rank, the more positive the sentiment for Ciena.
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