Ceragon Networks Ltd. (CRNT) Stock Recommendation | Score, Valuation, Technicals & Financial Trend

Score

Click here to find our call on this stock

Strong Sell

Sell

Hold

Buy

Strong Buy

Comparison

Company

Score

Quality

Valuation

Financial

Technical

Arlo Technologies, Inc.

Aviat Networks, Inc.

CommScope Holding Co., Inc.

Digi International, Inc.

Gilat Satellite Networks Ltd.

Clearfield, Inc.

AudioCodes Ltd.

Comtech Telecommunications Corp.

Ceragon Networks Ltd.

Harmonic, Inc.

Infinera Corp.

Why is Ceragon Networks Ltd. ?

Poor Management Efficiency with a low ROCE of 10.35%

The company has been able to generate a Return on Capital Employed (avg) of 10.35% signifying low profitability per unit of total capital (equity and debt)

The company has declared negative results in Mar'2025 after 3 consecutive positive quarters

PRE-TAX PROFIT(Q) At USD 0.06 MM has Fallen at -97.53%
NET PROFIT(Q) At USD 0.01 MM has Fallen at -99.3%
ROCE(HY) Lowest at -1.23%

Risky -

The stock is trading risky as compared to its average historical valuations
Over the past year, while the stock has generated a return of -17.05%, its profits have fallen by -91.3%

Underperformed the market in the last 1 year

Even though the market (S&P 500) has generated returns of 14.90% in the last 1 year, the stock has hugely underperformed and has generate negative returns of -17.05% returns

Real-Time Research Report

Verdict Report

How much should you sell?

All quantity irrespective of whether you are making profits or losses

(If sector exposure > 30%, please use optimiser tool to see which are the best stocks to hold in Telecom - Equipment & Accessories)

When to re-enter? - We will constantly monitor the company and review our call based on new data

Is Ceragon Networks Ltd. for you?

High Risk, Low Return

Absolute

Risk Adjusted

Volatility

Ceragon Networks Ltd.

-17.05%

-0.30

50.76%

S&P 500

14.9%

0.77

19.29%

Quality

Management Risk

Growth

Capital Structure

Quality grade scale :

Below Average, Average, Good, Excellent

Quality key factors

Factor

Value

Sales Growth (5y)

5.20%

EBIT Growth (5y)

28.18%

EBIT to Interest (avg)

1.80

Debt to EBITDA (avg)

0.28

Net Debt to Equity (avg)

Sales to Capital Employed (avg)

1.96

Tax Ratio

12.08%

Dividend Payout Ratio

Pledged Shares

Institutional Holding

24.96%

ROCE (avg)

10.35%

ROE (avg)

4.35%

Valuation

Valuation Scorecard

Valuation grade scale :

Very Risky, Risky, Very Expensive, Expensive, Fair, Attractive, Very Attractive

Valuation Key Factors

Factor

Value

P/E Ratio

Industry P/E

Price to Book Value

1.24

EV to EBIT

18.04

EV to EBITDA

7.86

EV to Capital Employed

1.27

EV to Sales

0.59

PEG Ratio

Dividend Yield

ROCE (Latest)

7.02%

ROE (Latest)

1.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bearish

RSI

No Signal

Bullish

Bollinger Bands

Bearish

Moving Averages

Mildly Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bearish

No Trend

OBV

Mildly Bearish

Mildly Bullish

Technical Indicator Scale: Bearish, Mildly Bearish, Sideways, Mildly Bullish, Bullish Turned

Technical Movement

Analyse All Technical Factors

Financial Trend

Financial Trend Scorecard

Financial Trend scale:

Very Negative, Negative, Flat, Positive, Very Positive, Outstanding

5What is working for the Company

OPERATING CASH FLOW(Y)

Highest at USD 33.47 MM

RAW MATERIAL COST(Y)

Fallen by 0.94% (YoY

CASH AND EQV(HY)

Highest at USD 81.36 MM

DEBT-EQUITY RATIO (HY)

Lowest at -1.18 %

-24What is not working for the Company

PRE-TAX PROFIT(Q)

At USD 0.06 MM has Fallen at -97.53%

NET PROFIT(Q)

At USD 0.01 MM has Fallen at -99.3%

ROCE(HY)

Lowest at -1.23%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.68 times

NET SALES(Q)

At USD 82.33 MM has Fallen at -9.36%

OPERATING PROFIT(Q)

Lowest at USD 5.64 MM

OPERATING PROFIT MARGIN(Q)

Lowest at 6.85 %

Here's what is working for Ceragon Networks Ltd.

Operating Cash Flow

Highest at USD 33.47 MM

in the last three years

MOJO Watch

The company has generated higher cash revenues from business operations

Operating Cash Flows (USD MM)

Cash and Eqv

Highest at USD 81.36 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -1.18 %

in the last five Semi-Annual periods

MOJO Watch

The company has been reducing its borrowing as compared to equity capital

Debt-Equity Ratio

Raw Material Cost

Fallen by 0.94% (YoY)

MOJO Watch

The company's ability to pass on the cost of raw materials to customers has improved; this may lead to a rise in profit margin

Raw Material Cost as a percentage of Sales

Depreciation

Highest at USD 3.93 MM

in the last five periods

MOJO Watch

The expenditure on assets done by the company may have gone into operation

Depreciation (USD MM)

Here's what is not working for Ceragon Networks Ltd.

Pre-Tax Profit

At USD 0.06 MM has Fallen at -97.53%

over average net sales of the previous four periods of USD 2.35 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD 0.01 MM has Fallen at -99.3%

over average net sales of the previous four periods of USD 1.51 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Net Sales

At USD 82.33 MM has Fallen at -9.36%

over average net sales of the previous four periods of USD 90.83 MM

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Operating Profit

Lowest at USD 5.64 MM

in the last five periods

MOJO Watch

Near term Operating Profit trend is negative

Operating Profit (USD MM)

Operating Profit Margin

Lowest at 6.85 %

in the last five periods

MOJO Watch

Company's profit margin has deteriorated

Operating Profit to Sales

Debtors Turnover Ratio

Lowest at 2.68 times

in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio