Ceragon Story

CRNT -  USA Stock  

USD 3.78  0.02  0.53%

As many millenniums are trying to avoid technology space, it makes sense to review Ceragon Networks a little further and try to understand its current market patterns. We will analyze why it could be a much better year for Ceragon Networks shareholders. Is current the firm value sustainable? We will go over Ceragon Networks valuation drivers to give you a better outlook on taking a position in it.
Published over a month ago
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Our prognosis on Ceragon Networks (NASDAQ:CRNT) to bounce back in June
The company currently holds 13 M in liabilities with Debt to Equity (D/E) ratio of 0.09, which may suggest Ceragon Networks is not taking enough advantage from borrowing. Ceragon Networks has a current ratio of 1.95, which is within standard range for the sector.
We provide trade advice to complement the prevailing expert consensus on Ceragon Networks. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time.
We determine the current worth of Ceragon Networks using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Ceragon Networks based exclusively on its fundamental and basic technical indicators. By analyzing Ceragon Networks's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Ceragon Networks's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Ceragon Networks. We calculate exposure to Ceragon Networks's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Ceragon Networks's related companies.

Ceragon Networks Investment Alerts

Ceragon investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Ceragon Networks performance across your portfolios.Please check all investment alerts for Ceragon

Ceragon Networks Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Ceragon value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Ceragon Networks competition to find correlations between indicators driving the intrinsic value of Ceragon.

How Ceragon utilizes its cash?

To perform a cash flow analysis of Ceragon Networks, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Ceragon Networks is receiving and how much cash it distributes out in a given period. The Ceragon Networks cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Ceragon Networks Net Cash Flow from Operations is comparatively stable at the moment as compared to the past year. Ceragon Networks reported Net Cash Flow from Operations of 17.25 Million in 2020

Breaking it down a bit more

The entity reported the previous year's revenue of 262.88 M. Net Loss for the year was (17.09 M) with profit before overhead, payroll, taxes, and interest of 74.64 M.
 2018 2019 2020 2021 (projected)
Current Assets225.19 M215.63 M199.87 M210.18 M
Total Assets283 M289.89 M272.42 M273.91 M

Margins Breakdown

Ceragon profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Ceragon Networks itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Ceragon Networks profit margins.
EBITDA Margin0.0164
Gross Margin0.33
Profit Margin(0.0701)

Ceragon Networks Earnings Before Interest Taxes and Depreciation Amortization USD is increasing over the last 8 years. Ceragon Networks Average Equity is comparatively stable at the moment. Furthermore, Ceragon Networks Average Assets is decreasing over the last 8 years. Ceragon Networks Earnings Before Interest Taxes and Depreciation Amortization USD is comparatively stable at the moment. Ceragon Networks Average Equity is decreasing over the last 8 years. The newest value of Ceragon Networks Average Equity is 137,741,371. Furthermore, Ceragon Networks Average Assets is decreasing over the last 8 years. The previous year's value of Ceragon Networks Average Assets was 277,732,732.

Analysis of Ceragon Networks

Newest potential upside is at 9.32.
As of the 3rd of May, Ceragon Networks shows the mean deviation of 3.34, and Risk Adjusted Performance of (0.07). 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 interpolate 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 3.33 per share. Given that Ceragon Networks has jensen alpha of (0.48), we suggest you to validate Ceragon Networks's prevailing market performance to make sure the company can sustain itself at a future point.

Our Final Perspective on Ceragon Networks

Whereas other companies in the communication equipment industry are either recovering or due for a correction, Ceragon Networks may not be performing as strong as the other in terms of long-term growth potentials. In closing, as of the 3rd of May 2021, we believe that at this point, Ceragon Networks is unstable with very low chance of bankruptcy within the next 2 years. From a slightly different point of view, the entity appears to be undervalued. However, our overall 30 days buy-or-sell advice on the firm is Sell.

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 Gabriel 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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