Ciena Story

<div class='circular--portrait' style='background:#FF6600;color: #FFFAFA;font-size:3em;'>CIE</div>
CIEN -- USA Stock  

USD 55.12  0.12  0.22%

Ciena is scheduled to announce its earnings today. The next earnings report is expected on the 4th of March 2021. Ciena Market Capitalization is quite stable at the moment as compared to the past year. The company's current value of Market Capitalization is estimated at 7.13 Billion. Interest Coverage is expected to rise to 14.16 this year, although the value of Revenue Per Employee will most likely fall to about 453.4 K. Although many aggressive traders are getting into technology space, Ciena may or may not be your first choice.
Published over a month ago
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How much will Ciena owe in January?
The company currently holds 852.88 M in liabilities with Debt to Equity (D/E) ratio of 0.35, which is about average as compared to similar companies. Ciena has a current ratio of 3.49, suggesting that it is liquid enough and is able to pay its financial obligations when due.
Ciena financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Ciena, including all of Ciena's outstanding debt obligations, and compares it with the equity. In simple terms, the high financial leverage means the cost of production, together with running the business day-to-day, is high, whereas, lower financial leverage implies lower fixed cost investment in the business and generally considered by investors to be a good sign. So if creditors own a majority of Ciena assets, the company is considered highly leveraged. Understanding the composition and structure of overall Ciena debt and outstanding corporate bonds gives a good idea of how risky the capital structure of a business is and if it is worth investing in it. Please read more on our technical analysis page.

Understanding Ciena Total Debt

Ciena liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Ciena has to fulfill its short-term liabilities in this reporting year and should be no more than 12 months old. Long-term debt, on the other hand, is anything beyond the 12-month payment timeframe. Common short-term liabilities found on Ciena balance sheet include debt obligations and money owed to different Ciena vendors, workers, and loan providers. Below is the chart of Ciena main long-term debt accounts currently reported on its balance sheet.
You can use Ciena financial leverage analysis tool to get a better grip on understanding its financial position

How important is Ciena's Liquidity

Ciena financial leverage refers to using borrowed capital as a funding source to finance Ciena ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ciena financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Ciena's total debt and its cash.

What do experts say?

Stock analysis is a method for investors and traders to make buying and selling decisions. By studying and evaluating past and current data, investors and traders attempt to gain an edge in the markets by making informed decisions. It is good to see analyst projects for Ciena, but it might be worth checking our own buy vs. sell analysis

Sale by Scott McFeely of 2000 shares of Ciena

Legal trades by Ciena insiders are very common, as founders, directors, or employees of any publicly traded firm often have stock or stock options. These trades are made public in the United States through the filing of Form 4 of the Securities and Exchange Commission. Below entry was recorded recently and is publicly available as an insider trade:
Ciena insider trading alert for sale of common stock by Scott McFeely, SVP Networking Platforms, on 19th of January 2021. This event was filed by Ciena Corp with SEC on 2021-01-19. Statement of changes in beneficial ownership - SEC Form 4. Scott McFeely currently serves as senior vice president - networking platforms of Ciena [view details]   
Note, although insider trading is legal, in the United States, Canada, Australia, and Germany, for mandatory reporting purposes, corporate insiders are defined as a company's officers, directors, and any beneficial owners of more than 10% of a class of the company's equity securities.

Breaking down Ciena Indicators

The entity reported the previous year's revenue of 3.67 B. Net Income was 376.58 M with profit before overhead, payroll, taxes, and interest of 1.54 B.

Liabilities Breakdown

941 M
Current Liabilities
920.8 M
Long-Term Liabilities
Total Liabilities1.63 Billion
Current Liabilities941.01 Million
Long-Term Liabilities920.78 Million

Another setback for Ciena institutional investors

Latest market risk adjusted performance is at 0.53. Ciena has relatively low volatility with skewness of -0.38 and kurtosis of 0.22. However, we advise all investors to independently investigate Ciena to ensure all accessible information is consistent with the expectations about its upside potential and future expected returns.

The Current Takeaway on Ciena Investment

Whereas many of the other players under the communication equipment industry are still a bit expensive, Ciena may offer a potential longer-term growth to institutional investors. To conclude, as of the 10th of December 2020, we believe that Ciena is currently undervalued with low chance of distress in the next two years. Our current 30 days 'Buy-Sell' recommendation on the company is Strong Hold.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Vlad Skutelnik do not own shares of Ciena. Please refer to our Terms of Use for any information regarding our disclosure principles.

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