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CIEN

S&P 500
Neutral · 52/100

Ciena

Information Technology
Communications Equipment

$460.33

7.5%

Updated Today 7:15 PM ET

Price — Past Year

▲ Up 480.1% over the last 12 months

Price 50-day average 200-day averageSource: Yahoo Finance · refreshed daily
Key Metrics

Market Cap

$60.62B

P/E

139.78x

Forward P/E (est.)

99.84x

ROE

15.7%

Revenue Growth

30.6%

EPS Growth

319.2%

Profit Margin

7.9%

FCF Yield

0.6%

Debt / Equity

0.58x

ROIC

4.0%

Interest Coverage

2.24x

Current Ratio

2.73x

Dividend Yield

Implied Growth (rev. DCF)

7.8%

Rating Score

52/100

Technical Analysis (Educational)
Research

Technical analysis reads price and volume to judge momentum and timing. It complements the fundamentals above — it does not replace them. Here is what CIEN's chart says today, with each tool explained.

Trend — moving averages. A moving average is the average closing price over a window, which smooths out daily noise. CIEN trades near $460.33, around its 50-day average ($521.20) and 200-day average ($310.04). Price tangled in its moving averages means there is no clear trend — the stock is ranging.

Momentum — RSI. The Relative Strength Index runs 0–100 and measures how strong recent gains are versus losses. Above 70 is "overbought", below 30 "oversold". At 27 it is oversold — selling has been heavy and a bounce is possible.

MACD. MACD compares two moving averages to flag shifts in momentum. Its histogram is currently negative — short-term momentum is fading.

Volatility — ATR. Average True Range is the typical daily move. CIEN's is $40.27 (~8.7% of price), so swings of about that size each day are normal — handy for setting a stop that isn't too tight.

Support & resistance. Over the last month CIEN found buyers near $417.34 (support) and sellers near $637.51 (resistance); its 52-week range is $73.23–$637.51. A decisive break beyond either edge often marks the next move.

Volume. The latest session traded 1.2× the 20-day average — about normal. Rising volume on up-days suggests real buying; on down-days, real selling.

Educational information to help you read a chart — not a recommendation or a forecast. It updates daily as the price and indicators change.

Business Overview
Research

Ciena (CIEN) is a large-cap company in the Communications Equipment industry, part of the Information Technology sector of the S&P 500, with a market value around $60.62B.

In its latest reported year it generated about $4.77B in revenue and $123.34M in net profit.

Our model rates CIEN Neutral (52/100) on growth, profitability, financial health, and valuation. The summary below is built from its filed financials and current ratios and refreshes automatically.

Revenue Growth
Research

4Y CAGR

7.1%

Revenue moved from $3.62B in 2021 to $4.77B in 2025, a 7.1% compound annual growth rate. The most recent year grew a strong 30.6% year over year. Consistent top-line growth is one sign of healthy demand.

Profitability
Research

Gross Margin

42.0%

Operating Margin

4.1%

Net Margin

2.6%

ROE

15.7%

Ciena keeps about 7.9% of each sales dollar as net profit, with a 42.0% gross margin and 4.1% operating margin. Return on equity is 15.7% and return on invested capital about 4.0%. Margins are moderate — typical of a competitive but profitable business.

Debt Analysis
Research

Total Debt

$677.28M

Net Debt

-$367.84M

Net cash position

Net Debt / EBITDA

-1.86x

Debt / Equity

0.58x

Leverage: debt-to-equity is 0.6x, and operating profit covers interest about 2.2x, with a current ratio of 2.7x. That is a moderate, manageable debt load for most businesses. It carries roughly $677.28M of total debt against $1.05B of cash.

Cash Flow Analysis
Research

Operating CF

$806.09M

Free Cash Flow

$665.29M

FCF Margin

13.9%

In the latest year Ciena produced about $806.09M of operating cash flow and $665.29M of free cash flow after capital spending. That is a free-cash-flow yield of about 0.6% on today's price. Cash flow is what ultimately pays shareholders, so it is worth tracking over time.

Valuation Analysis
Research

P/E

139.78x

P/S

12.91x

P/B

9.75x

EV / EBITDA

CIEN trades at 139.8x trailing earnings (about 99.8x on estimated forward earnings), 12.9x sales, and 9.7x book value. Reverse-engineering today's price implies the market expects roughly 7.8% long-term free-cash-flow growth. That is a rich multiple that prices in a lot of future growth.

Metrics vs. Typical Range

Where this stock sits versus what most companies trade at.

TTM P/E
139.8xExpensive
Forward P/E
99.8xExpensive
P/S ratio
12.9xExpensive
Revenue growth
30.6%Strong
EPS growth
319.2%Strong
Gross margin
42.0%Average
Net margin
7.9%Weak
ROE
15.7%Average

Typical ranges are general references (e.g., many stocks trade at ~18–26x earnings), not hard rules. Context only — not investment advice.

Sector Peer Comparison

How CIEN stacks up against its Information Technology peers — valuation, profitability, and growth versus the sector median.

In the Information Technology sector (72 S&P 500 companies), CIEN ranks #50 of 72 by our overall rating. It trades at a premium versus the sector on earnings (139.8x P/E vs. 35.6x median) with a lower return on equity (15.7% vs. 25.6%) and faster revenue growth (30.6% vs. 17.4%).

P/E vs sector

139.8x

median 35.6x

ROE vs sector

15.7%

median 25.6%

Growth vs sector

30.6%

median 17.4%

Sector rank

#50

of 72 by rating

CompanyP/ERev Gr.Rating
CIENThis stock139.8x30.6%Neutral· 52
MSI31.2x8.3%Neutral· 48
LITE151x69.0%Neutral· 43
FFIV30.7x9.7%Favorable· 62
ANET58x30.6%Strong· 80
CSCO39.6x9.2%Favorable· 62
KEYS60.7x19.2%Favorable· 58
HPE40.3x22.6%Neutral· 46
Information Technology median35.6x17.4%61/100

Valuation vs. quality map

sector medianMSILITEFFIVANETCSCOKEYSHPECIENP/E — cheaper ←→ pricierROE — more profitable ↑

The sweet spot is upper-left: more profitable (higher ROE) for a lower P/E. Dashed lines mark the sector median.

Compare side by side

Peers are the closest Information Technology companies by sub-industry and size. Sector median is across all 72 S&P 500 names in the sector. Educational, not a recommendation.

5-Year Projection Model

Project revenue → earnings → price. Edit the assumptions to build your own case.

2030 price target (Base Case)

$327.58$545.96

vs. $460.33 today · expected CAGR -7%3%

Metric20262027202820292030
Revenue$6.25B$8.18B$10.72B$14.05B$18.40B
Net income$187.44M$245.55M$321.67M$421.39M$552.02M
EPS$1.32$1.73$2.27$2.98$3.90
Share price (low)$111.23$145.71$190.88$250.06$327.58
Share price (high)$185.39$242.85$318.14$416.76$545.96
CAGR (low–high)-76% / -60%-44% / -27%-25% / -12%-14% / -2%-7% / 3%

Educational model on sample fundamentals — not a forecast or investment advice. Outputs are only as good as your assumptions.

Bull Case

The case for CIEN:

  • Revenue is growing 30.6% a year, a sign of real demand.
  • Strong return on equity (15.7%) shows capital is put to work well.
Bear Case

The case against CIEN:

  • Interest coverage is thin (2.2x), so debt costs bite.
  • A rich 139.8x earnings multiple prices in a lot of growth.
  • Limited free cash flow at today's price.
Key Risks
Research

Valuation risk — at 139.8x earnings, disappointing results could compress the multiple.

Market risk — sector rotation, the economic cycle, and broad sentiment move the stock regardless of fundamentals.

Investment Thesis
Research

On balance, the picture is mixed: Ciena is a large-cap information technology business still growing nicely, with modest profitability, and a sound balance sheet. It trades at 139.8x earnings, which our model scores Neutral (52/100). Weigh this against your own goals and time horizon — this is educational information, not a recommendation.

Data notice. Fundamentals and financial statements are sourced from company filings (SEC EDGAR) and market-data providers; prices and market caps refresh on trading days and may be delayed. Ratings, projections, technical signals, and written summaries are model- or rule-generated for education and may simplify or lag the latest filings.

Not advice. Nothing on this page is investment advice or a recommendation to buy, hold, or sell any security. Do your own research and consult a licensed financial professional before investing.