Ciena Corporation (CIEN)

FairStock Score: 39/100 — MIXED

Key Financials

AI Analysis

AI-generated, general educational analysis — not personal investment advice.

I see Ciena as a cyclical network-equipment supplier with real recent momentum but not a classic value bargain. In fiscal Q3 2026, the quarter ended 2026-08-01, revenue was $1.7B, net income $266.4M, and diluted EPS $1.83, up from revenue of $1.2B, net income $50.3M, and EPS $0.35 in fiscal Q3 2025, the quarter ended 2025-08-02. That is excellent short-term growth, and trailing free cash flow was $814.4M. But the longer record is uneven: in fiscal 2025, the year ended 2025-11-01, revenue was $4.8B and net income $123.3M; fiscal 2024, ended 2024-11-02, had $4.0B and $84.0M; fiscal 2023, ended 2023-10-28, had $4.4B and $254.8M. FairStock accordingly classifies it as a slow grower — shrinking, with five-year profit growth of -19.3% a year and revenue growth of 6.2%. The moat evidence is thin: ROCE of 7.73% is modest, and revenue and profit have swung with the equipment cycle. Balance-sheet risk looks manageable with an Altman Z-score of 5.99, though debt/equity is 1.07 and Piotroski is 4/9. At the 2026-10-26 close of $335.93, FairStock's P/E is 75.32, P/B 15.60, EV/EBITDA 47.60, and FCF yield 1.7%; the Graham Number is $46.49, a margin of safety of -588.88%. The PEG ratio of 0.17 hints that fast recent profit growth could justify the multiple, but that depends on a rebound lasting. I need durable demand and cash conversion before calling this cheap.

In plain English: Ciena provides hardware, software, and services for network operators. Recent quarterly sales and profits jumped, but the five-year record is uneven, and at $335.93 on 2026-10-26 the stock looks expensive compared with its profits and assets.

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Data as of 2026-10-26 close · note generated 2026-10-28 · model deepseek-flash

Sources (SEC EDGAR): fiscal Q3 2026 10-Q (period ended 2026-08-01) · fiscal Q2 2026 10-Q (period ended 2026-05-02) · fiscal Q1 2026 10-Q (period ended 2026-01-31) · fiscal Q3 2025 10-Q (period ended 2025-08-02) · FY2025 10-K (period ended 2025-11-01) · FY2024 10-K (period ended 2024-11-02) · FY2023 10-K (period ended 2023-10-28)

Fundamentals from company filings and market-data providers; prices are end-of-day, not real-time. AI-generated analysis is general and educational — not personal investment advice. Scoring methodology · Score test · Disclaimer