Ceragon Networks Ltd. Ordinary Shares (CRNT)

FairStock Score: 35/100 — MIXED

Key Financials

AI Analysis

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

I look for understandable businesses with durable advantages and conservative finances. Ceragon sells wireless transport equipment to telecom carriers, microwave and millimeter-wave gear, in a competitive hardware niche with 1,091 employees. In the second quarter of 2026, revenue was $93.9M but net income was -$2.1M and margin was -2.23%. The provided growth figures show revenue growth of -4.12% and profit growth of -37.04%; those are not the marks of a compounding franchise. Returns are poor: FairStock calculations show ROE -1.91% and ROCE 1.86%. The Piotroski F-Score is 4/9, suggesting only mediocre fundamentals. The balance sheet is not highly levered at D/E 0.17, but an Altman Z-Score of 0.54 from FairStock signals meaningful financial risk. On the positive side, trailing free cash flow is $13.0M, a 5.6% FCF yield on the $231.3M market cap, and at the $2.06 close on 2026-10-13, P/B is 1.09. So the price is not demanding relative to book or cash flow; EV/EBITDA of 12.07 is not obviously cheap. P/E of -68.67 simply reflects losses. FairStock Score 35/100 captures the weak profile. Graham would want a margin of safety; here asset value and FCF offer some support, but declining revenue, negative net income, and low returns make business quality questionable. Without evidence of durable pricing power or a cycle upturn, this looks like a turnaround speculation, not a fat pitch. I would watch cash generation and revenue stabilization before calling it a sound value.

In plain English: Ceragon Networks makes wireless transport equipment that telecom operators use to move traffic between cell sites and their networks. The business looks weak right now: revenue slipped and the latest quarter lost money. At $2.06 on 2026-10-13, the price looks closer to fair than a bargain against its assets and cash flow, because profits are negative and sales are shrinking.

The full AI analysis, bull and bear case and key monitorables are in FairStock Pro.

Data as of 2026-10-13 close · note generated 2026-10-15 · model deepseek-flash

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