Ceragon Story

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CRNT -- USA Stock  

USD 2.31  0.05  2.12%

Ceragon Networks Price to Sales Ratio is comparatively stable at the moment as compared to the past year. Ceragon Networks reported Price to Sales Ratio of 0.59 in 2019. Return on Invested Capital is likely to grow to 0.0486 in 2020, whereas Average Equity is likely to drop slightly above 146 M in 2020. There are many examples of prices decreasing after a drastic change in one of the technical and fundamental indicators. In this short article, we will review a few of Ceragon Networks' essential fundamentals. We will analyze why Ceragon Networks investors may still consider a stake in the business. Will private investors continue to hold, or should we expect a sell-off?
Published over a month ago
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Does Ceragon Networks (NASDAQ:CRNT) has stable technical and fundamental indicators based on the newest gain?
Ceragon Networks is UNDERVALUED at 2.87 per share with modest projections ahead. Ceragon Networks appears to be unstable, given 1 month investment horizon. Ceragon Networks secures Sharpe Ratio (or Efficiency) of 0.1, which signifies that the company had 0.1% of return per unit of risk over the last month. Our standpoint towards foreseeing the volatility of a stock is to use all available market data together with stock specific technical indicators that cannot be diversified away. We have found twenty-one technical indicators for Ceragon Networks, which you can use to evaluate future volatility of the firm. Please makes use of Ceragon Networks Risk Adjusted Performance of 0.1419, mean deviation of 2.43, and Downside Deviation of 3.24 to double-check if our risk estimates are consistent with your expectations.
Typically, a company's financial statements are the reports that show the financial position of the company. There are three main documents that fall into the category of financial statements. These documents include Ceragon Networks income statement, its balance sheet, and the statement of cash flows. Potential Ceragon Networks investors and stakeholders use financial statements to determine how well the company is positioned to perform in the future. Although Ceragon Networks investors may use each financial statement separately, they are all related. The changes in Ceragon Networks's assets and liabilities, for example, are also reflected in the revenues and expenses that we see on Ceragon Networks's income statement, which results in the company's gains or losses. Cash flows can provide more information regarding cash listed on a balance sheet, but not equivalent to net income shown on the income statement. Please read more on our technical analysis and fundamental analysis pages. The goal of Ceragon Networks fundamental analysis is to do accurate financial forecasts. There are several possible objectives to fundamental analysis, such as projecting of Ceragon Networks performance into the future periods or doing a reasonable stock valuation. The intrinsic value of Ceragon Networks shares is the value that is considered the true value of the share. If the intrinsic value Ceragon is higher than its market price, buying is generally recommended. If it is equal to the market price, it is recommended to hold; and if it is less than the market price, then one should sell all shares Ceragon Networks. Please read more on our fundamental analysis page.

What is Ceragon Asset Breakdown?

Ceragon Networks reports assets on its Balance Sheet. It represents the amount of Ceragon resources that either has an existing economic value or will provide some form of benefits in the future. To get a better handle on how balance sheet or income statements item affect Ceragon volatility, please check the breakdown of all its fundamentals

Are Ceragon Networks Earnings Expected to grow?

The future earnings power of Ceragon Networks involves the interaction of many company-specific, industry, and economic forces. Earnings estimates embody investors' opinions of Ceragon Networks factors such as sales growth, product demand, competitive industry environment, profit margins, and cost controls. Ceragon Networks stock prices adjust as these expectations change or are proven wrong. The main thing to remember is that equities with high expected earnings growth tend to underperform the market because it is usually difficult to meet the market's high expectations. Companies with low earnings expectations tend to do better than expected. Please use our latest analysis of Ceragon expected earnings.

Ceragon Networks Gross Profit

Ceragon Networks Gross Profit growth is one of the most critical measures in evaluating the company. The Gross Profit growth rate is calculated simply by comparing Ceragon Networks previous period's values with its current period's values. Each time period you're measuring should be of equal lengths the increase or decrease, in a company's Gross Profit between two periods. Here we show Ceragon Networks Gross Profit growth over the last 10 years. Please check Gross Profit in more details.

What is driving Ceragon Networks Investor Appetite?

Although in the United States, the Securities and Exchange Commission has enforced strong rules to prevent insiders from engaging in insider trading, finding insiders among active shareholders of Ceragon Networks is not uncomon. Many companies such as Ceragon Networks have both institutions investors and insiders sharing the ownership. Retail investors typically buy and sell stocks in round lots of 100 shares or more. Other other hand institutional investors are known to buy and sell in block trades of 10,000 shares or more. Let's take a look at how the ownership of Ceragon is distributed among investors.

Ownership Allocation

Ceragon Networks holds a total of eighty-one million one hundred thirty thousand outstanding shares. Ceragon Networks retains significant amount of outstanding shares owned by insiders. An insider is usually defined as a CEO, other corporate executive, director, or institutional investor who own at least 10% of the company outstanding shares. Since such a large part of the company is owned by insiders, it is advisable to analyze if each of these insiders have been buying or selling the stock in recent months. Please note that no matter how much assets the company secures, if the real value of the firm is less than the current market value, you may not be able to make money on it.

Retail Investors
60.57%
Insiders
24.25%
Institutions
15.18%
Retail Investors60.57
Insiders24.25
Institutions15.18
 2017 2018 2019 2020 (projected)
Revenues USD332.03 M343.87 M285.58 M343.12 M
Revenues332.03 M343.87 M285.58 M343.12 M

Asset Utilization

The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Ceragon Networks has an asset utilization ratio of 102.62 percent. This implies that the company is making $1.03 for each dollar of assets. An increasing asset utilization means that Ceragon Networks is more efficient with each dollar of assets it utilizes for everyday operations.

Current Assets
219.7 M
Assets Non Current
63.3 M
Current Assets219.65 Million73.34
Assets Non Current63.34 Million21.15
Goodwill8.49 Million2.83
Tax Assets8.01 Million2.67

Are Ceragon Networks technical indicators showing a correction?

The treynor ratio is down to 3.0 as of today. Ceragon Networks shows above-average downside volatility for the selected time horizon. We advise investors to inspect Ceragon Networks further and ensure that all market timing and asset allocation strategies are consistent with the estimation of Ceragon Networks future alpha.

Our Final Take On Ceragon Networks

Whereas many of the other players in the communication equipment industry are either recovering or due for a correction, Ceragon may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither pick up nor exit any shares of Ceragon Networks at this time. The Ceragon Networks risk-reward trade off is not appealing enough to do any trading. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Ceragon Networks.

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 Raphi Shpitalnik do not own shares of Ceragon Networks. Please refer to our Terms of Use for any information regarding our disclosure principles.

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