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.

Gilat Satellite Networks Ltd.

Digi International, Inc.

Harmonic, Inc.

CommScope Holding Co., Inc.

Clearfield, Inc.

AudioCodes Ltd.

Comtech Telecommunications Corp.

Aviat Networks, Inc.

Ceragon Networks Ltd.

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 for the last 4 consecutive quarters

PRE-TAX PROFIT(Q) At USD -0.23 MM has Fallen at -120.48%
NET PROFIT(Q) At USD -0.8 MM has Fallen at -244.15%
NET SALES(HY) At USD 167.33 MM has Grown at -14.44%

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 14.78%, its profits have fallen by -91.3%

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.

14.78%

0.08

52.25%

S&P 500

22.24%

1.67

13.28%

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

26.44%

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

1.15

EV to EBIT

16.52

EV to EBITDA

7.19

EV to Capital Employed

1.16

EV to Sales

0.54

PEG Ratio

Dividend Yield

ROCE (Latest)

7.02%

ROE (Latest)

1.29%

Technicals

Technical key factors

Indicator

Weekly

Monthly

MACD

Bullish

Bearish

RSI

No Signal

Bollinger Bands

Bullish

Mildly Bearish

Moving Averages

Bullish (Daily)

KST

Bullish

Bearish

Dow Theory

Mildly Bullish

OBV

Mildly Bullish

Mildly Bearish

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 37.39 MM

RAW MATERIAL COST(Y)

Fallen by -8.08% (YoY

CASH AND EQV(HY)

Highest at USD 77.53 MM

DEBT-EQUITY RATIO (HY)

Lowest at -3.26 %

-25What is not working for the Company

PRE-TAX PROFIT(Q)

At USD -0.23 MM has Fallen at -120.48%

NET PROFIT(Q)

At USD -0.8 MM has Fallen at -244.15%

NET SALES(HY)

At USD 167.33 MM has Grown at -14.44%

ROCE(HY)

Lowest at -1.45%

DEBTORS TURNOVER RATIO(HY)

Lowest at 2.79 times

INTEREST(Q)

At USD 2.86 MM has Grown at 72.46%

EPS(Q)

Lowest at USD -0.01

Here's what is working for Ceragon Networks Ltd.

Operating Cash Flow

Highest at USD 37.39 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 77.53 MM

in the last six Semi-Annual periods

MOJO Watch

Short Term liquidity is improving

Cash and Cash Equivalents

Debt-Equity Ratio

Lowest at -3.26 %

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 -8.08% (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

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

Pre-Tax Profit

At USD -0.23 MM has Fallen at -120.48%

over average net sales of the previous four periods of USD 1.13 MM

MOJO Watch

Near term Pre-Tax Profit trend is very negative

Pre-Tax Profit (USD MM)

Net Profit

At USD -0.8 MM has Fallen at -244.15%

over average net sales of the previous four periods of USD 0.56 MM

MOJO Watch

Near term Net Profit trend is very negative

Net Profit (USD MM)

Interest

At USD 2.86 MM has Grown at 72.46%

period on period (QoQ)

MOJO Watch

Rising interest cost signifies increased borrowings

Interest Paid (USD MM)

Net Sales

At USD 167.33 MM has Grown at -14.44%

Year on Year (YoY)

MOJO Watch

Near term sales trend is negative

Net Sales (USD MM)

Debtors Turnover Ratio

Lowest at 2.79 times and Fallen

In each half year in the last five Semi-Annual periods

MOJO Watch

Company's pace of selling Debtors has slowed

Debtors Turnover Ratio

EPS

Lowest at USD -0.01

in the last five periods

MOJO Watch

Declining profitability; company has created lower earnings for shareholders

EPS (USD)