Ceragon Story

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CRNT -- USA Stock  

USD 2.37  0.10  4.41%

Ceragon Networks is scheduled to announce its earnings today. The next earnings report is expected on the 2nd of November 2020. 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. While some millenniums are indifferent towards technology space, it makes sense to review Ceragon Networks as a unique investment alternative. We will evaluate why recent Ceragon Networks price moves suggest a bounce in September.
Published over a month ago
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Will Ceragon (NASDAQ:CRNT) continue to grow in September?
The company currently holds 32.85 M in liabilities with Debt to Equity (D/E) ratio of 0.22, which may suggest Ceragon Networks is not taking enough advantage from borrowing. 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.
Ceragon Networks financial leverage ratio helps determine the effect of debt on the overall profitability of the company. It measures the total debt position of Ceragon Networks, including all of Ceragon Networks'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 Ceragon Networks assets, the company is considered highly leveraged. Understanding the composition and structure of overall Ceragon Networks 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 Ceragon Total Liabilities

Ceragon Networks liabilities are broken down into two parts on the balance sheet. These are short-term (or current) obligations and long-term debt. Ceragon Networks 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 Ceragon Networks balance sheet include debt obligations and money owed to different Ceragon Networks vendors, workers, and loan providers. Below is the chart of Ceragon short long-term liabilities accounts currently reported on its balance sheet.
You can use Ceragon Networks financial leverage analysis tool to get a better grip on understanding its financial position

How important is Ceragon Networks's Liquidity

Ceragon Networks financial leverage refers to using borrowed capital as a funding source to finance Ceragon Networks ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Ceragon Networks 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 Ceragon Networks's total debt and its cash.

What is driving Ceragon Networks Investor Appetite?

Ceragon Networks reported the previous year's revenue of 272.29 M. Net Loss for the year was (10.03 M) with profit before overhead, payroll, taxes, and interest of 96.84 M.

Asset Breakdown

63.3 M
Assets Non Current
219.7 M
Current Assets
Total Assets282.99 Million
Current Assets219.65 Million
Assets Non Current63.34 Million
Goodwill8.49 Million
Tax Assets8.01 Million

Another 3 percent reset for Ceragon Networks

Newest downside deviation is at 3.24. As of the 3rd of August, Ceragon Networks shows the Mean Deviation of 2.43, downside deviation of 3.24, and Risk Adjusted Performance of 0.1419. Ceragon Networks technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Ceragon Networks, which can be compared to its rivals. Please confirm Ceragon Networks standard deviation, value at risk, as well as the relationship between the Value At Risk and kurtosis to decide if Ceragon Networks is priced correctly, providing market reflects its regular price of 2.62 per share. Please also double-check Ceragon Networks total risk alpha, which is currently at (0.07) to validate the company can sustain itself at a future point.

Our Bottom Line On Ceragon Networks

Whereas many other companies 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. To conclude, as of the 3rd of August 2020, we believe that at this point, Ceragon Networks is undervalued with low chance of financial distress within the next 2 years. Our concluding advice on the firm is 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 Ceragon Networks. Please refer to our Terms of Use for any information regarding our disclosure principles.

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