Ciena Corp EBITDA vs. Profit Margin
| CIEN Stock | USD 69.72 0.55 0.80% |
EBITDA | First Reported 2010-12-31 | Previous Quarter 606.1 M | Current Value 636.4 M | Quarterly Volatility 198.3 M |
| Current Value | Last Year | Change From Last Year | 10 Year Trend | ||||||
|---|---|---|---|---|---|---|---|---|---|
| Gross Profit Margin | 0.32 | 0.468 |
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| Operating Profit Margin | 0.14 | 0.1379 |
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| Return On Equity | 0.15 | 0.144 |
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For Ciena Corp profitability analysis, we use financial ratios and fundamental drivers that measure the ability of Ciena Corp to generate income relative to revenue, assets, operating costs, and current equity. These fundamental indicators attest to how well Ciena Corp utilizes its assets to generate profit and value for its shareholders. The profitability module also shows relationships between Ciena Corp's most relevant fundamental drivers. It provides multiple suggestions of what could affect the performance of Ciena Corp over time as well as its relative position and ranking within its peers.
Ciena |
Ciena Corp's Revenue Breakdown by Earning Segment
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Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Ciena Corp. If investors know Ciena will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Ciena Corp listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth (0.50) | Earnings Share 0.94 | Revenue Per Share 27.627 | Quarterly Revenue Growth (0.12) | Return On Assets 0.0252 |
The market value of Ciena Corp is measured differently than its book value, which is the value of Ciena that is recorded on the company's balance sheet. Investors also form their own opinion of Ciena Corp's value that differs from its market value or its book value, called intrinsic value, which is Ciena Corp's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Ciena Corp's market value can be influenced by many factors that don't directly affect Ciena Corp's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Ciena Corp's value and its price as these two are different measures arrived at by different means. Investors typically determine if Ciena Corp is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Ciena Corp's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.
Ciena Corp Profit Margin vs. EBITDA Fundamental Analysis
Comparative valuation techniques use various fundamental indicators to help in determining Ciena Corp's current stock value. Our valuation model uses many indicators to compare Ciena Corp value to that of its competitors to determine the firm's financial worth. Ciena Corp is rated third in ebitda category among its peers. It is rated below average in profit margin category among its peers . The ratio of EBITDA to Profit Margin for Ciena Corp is about 15,320,726,744 . At this time, Ciena Corp's EBITDA is very stable compared to the past year. The reason why the comparable model can be used in almost all circumstances is due to the vast number of multiples that can be utilized, such as the price-to-earnings (P/E), price-to-book (P/B), price-to-sales (P/S), price-to-cash flow (P/CF), and many others. The P/E ratio is the most commonly used of these ratios because it focuses on the Ciena Corp's earnings, one of the primary drivers of an investment's value.Ciena Corp's Earnings Breakdown by Geography
Ciena Profit Margin vs. EBITDA
EBITDA stands for earnings before interest, taxes, depreciation, and amortization. It is a measure of a company operating cash flow based on data from the company income statement and is a very good way to compare companies within industries or across different sectors. However, unlike Operating Cash Flow, EBITDA does not include the effects of changes in working capital.
Ciena Corp |
| = | 527.03 M |
In a nutshell, EBITDA is calculated by adding back each of the excluded items to the post-tax profit, and can be used to compare companies with very different capital structures.
Profit Margin measures overall efficiency of a company and shows its ability to withstand competition as well as defend against adverse conditions such as rising costs, falling prices, decline in sales or management distress. Profit margin tells investors how well the company executes on its overall pricing strategies as well as how effective the company in controlling its costs.
Ciena Corp |
| = | 0.03 % |
In a nutshell, Profit Margin indicator shows the amount of money the company makes from total sales or revenue. It can provide a good insight into companies in the same sector, as well as help to identify trends of a company from year to year.
Ciena Profit Margin Comparison
Ciena Corp is currently under evaluation in profit margin category among its peers.
Ciena Corp Profitability Projections
The most important aspect of a successful company is its ability to generate a profit. For investors in Ciena Corp, profitability is also one of the essential criteria for including it into their portfolios because, without profit, Ciena Corp will eventually generate negative long term returns. The profitability progress is the general direction of Ciena Corp's change in net profit over the period of time. It can combine multiple indicators of Ciena Corp, where stable trends show no significant progress. An accelerating trend is seen as positive, while a decreasing one is unfavorable. A rising trend means that profits are rising, and operational efficiency may be rising as well. A decreasing trend is a sign of poor performance and may indicate upcoming losses.
| Last Reported | Projected for Next Year | ||
| Accumulated Other Comprehensive Income | -34 M | -32.3 M | |
| Operating Income | 411.2 M | 431.7 M | |
| Income Before Tax | 372.2 M | 390.8 M | |
| Total Other Income Expense Net | -39 M | -40.9 M | |
| Net Income | 293.1 M | 307.7 M | |
| Income Tax Expense | 61.9 M | 65 M | |
| Net Income Applicable To Common Shares | 293.1 M | 307.7 M | |
| Net Income From Continuing Ops | 293.1 M | 307.7 M | |
| Non Operating Income Net Other | -22.7 M | -21.6 M | |
| Interest Income | 55.8 M | 58.6 M | |
| Net Interest Income | -29.9 M | -31.4 M | |
| Change To Netincome | 193.3 M | 203 M | |
| Net Income Per Share | 2.34 | 2.46 | |
| Income Quality | 1.37 | 1.43 | |
| Net Income Per E B T | 0.79 | 0.83 |
Ciena Profitability Driver Comparison
Profitability drivers are factors that can directly affect your investment outlook on Ciena Corp. Investors often realize that things won't turn out the way they predict. There are maybe way too many unforeseen events and contingencies during the holding period of Ciena Corp position where the market behavior may be hard to predict, tax policy changes, gold or oil price hikes, calamities change, and many others. The question is, are you prepared for these unexpected events? Although some of these situations are obviously beyond your control, you can still follow the important profit indicators to know where you should focus on when things like this occur. Below are some of the Ciena Corp's important profitability drivers and their relationship over time.
Use Ciena Corp in pair-trading
One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Ciena Corp position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Ciena Corp will appreciate offsetting losses from the drop in the long position's value.Ciena Corp Pair Trading
Ciena Corp Pair Trading Analysis
The ability to find closely correlated positions to Ciena Corp could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Ciena Corp when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Ciena Corp - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Ciena Corp to buy it.
The correlation of Ciena Corp is a statistical measure of how it moves in relation to other instruments. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Ciena Corp moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Ciena Corp moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Ciena Corp can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.Use Investing Themes to Complement your Ciena Corp position
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To fully project Ciena Corp's future profitability, investors should examine all historical financial statements. These statements provide investors with a comprehensive snapshot of the financial position of Ciena Corp at a specified time, usually calculated after every quarter, six months, or one year. Three primary documents fall into the category of financial statements. These documents include Ciena Corp's income statement, its balance sheet, and the statement of cash flows.