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Ciena (CIEN) Piotroski F-Score : 7 (As of Jul. 19, 2024)


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What is Ciena Piotroski F-Score?

Good Sign:

Piotroski F-Score is 7, indicates a very healthy situation.

The zones of discrimination were as such:

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Ciena has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

The historical rank and industry rank for Ciena's Piotroski F-Score or its related term are showing as below:

CIEN' s Piotroski F-Score Range Over the Past 10 Years
Min: 2   Med: 6   Max: 8
Current: 7

During the past 13 years, the highest Piotroski F-Score of Ciena was 8. The lowest was 2. And the median was 6.


Ciena Piotroski F-Score Historical Data

The historical data trend for Ciena's Piotroski F-Score can be seen below:

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

* Premium members only.

Ciena Piotroski F-Score Chart

Ciena Annual Data
Trend Oct14 Oct15 Oct16 Oct17 Oct18 Oct19 Oct20 Oct21 Oct22 Oct23
Piotroski F-Score
Get a 7-Day Free Trial Premium Member Only Premium Member Only 8.00 7.00 7.00 2.00 6.00

Ciena Quarterly Data
Jul19 Oct19 Jan20 Apr20 Jul20 Oct20 Jan21 Apr21 Jul21 Oct21 Jan22 Apr22 Jul22 Oct22 Jan23 Apr23 Jul23 Oct23 Jan24 Apr24
Piotroski F-Score Get a 7-Day Free Trial Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only Premium Member Only 2.00 5.00 6.00 8.00 7.00

Competitive Comparison of Ciena's Piotroski F-Score

For the Communication Equipment subindustry, Ciena's Piotroski F-Score, along with its competitors' market caps and Piotroski F-Score data, can be viewed below:

* Competitive companies are chosen from companies within the same industry, with headquarter located in same country, with closest market capitalization; x-axis shows the market cap, and y-axis shows the term value; the bigger the dot, the larger the market cap. Note that "N/A" values will not show up in the chart.


Ciena's Piotroski F-Score Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Ciena's Piotroski F-Score distribution charts can be found below:

* The bar in red indicates where Ciena's Piotroski F-Score falls into.


How is the Piotroski F-Score calculated?

* For Operating Data section: All numbers are indicated by the unit behind each term and all currency related amount are in USD.
* For other sections: All numbers are in millions except for per share data, ratio, and percentage. All currency related amount are indicated in the company's associated stock exchange currency.

This Year (Apr24) TTM:Last Year (Apr23) TTM:
Net Income was 29.733 + 91.199 + 49.547 + -16.849 = $154 Mil.
Cash Flow from Operations was 8.688 + 195.472 + 266.076 + 58.473 = $529 Mil.
Revenue was 1067.886 + 1129.487 + 1037.709 + 910.826 = $4,146 Mil.
Gross Profit was 448.941 + 486.281 + 466.962 + 388.661 = $1,791 Mil.
Average Total Assets from the begining of this year (Apr23)
to the end of this year (Apr24) was
(5775.638 + 5723.214 + 5601.495 + 5593.21 + 5614.803) / 5 = $5661.672 Mil.
Total Assets at the begining of this year (Apr23) was $5,776 Mil.
Long-Term Debt & Capital Lease Obligation was $1,569 Mil.
Total Current Assets was $3,541 Mil.
Total Current Liabilities was $912 Mil.
Net Income was 10.512 + 57.645 + 76.241 + 57.654 = $202 Mil.

Revenue was 867.981 + 971.01 + 1056.521 + 1132.655 = $4,028 Mil.
Gross Profit was 340.779 + 433.597 + 455.946 + 487.683 = $1,718 Mil.
Average Total Assets from the begining of last year (Apr22)
to the end of last year (Apr23) was
(4964.129 + 4900.782 + 5069.632 + 5672.497 + 5775.638) / 5 = $5276.5356 Mil.
Total Assets at the begining of last year (Apr22) was $4,964 Mil.
Long-Term Debt & Capital Lease Obligation was $1,586 Mil.
Total Current Assets was $3,869 Mil.
Total Current Liabilities was $1,058 Mil.

*Note: If the latest quarterly/semi-annual/annual total assets data is 0, then we will use previous quarterly/semi-annual/annual data for all the items in the balance sheet.

Profitability

Question 1. Return on Assets (ROA)

Net income before extraordinary items for the year divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Ciena's current Net Income (TTM) was 154. ==> Positive ==> Score 1.

Question 2. Cash Flow Return on Assets (CFROA)

Net cash flow from operating activities (operating cash flow) divided by Total Assets at the beginning of the year.

Score 1 if positive, 0 if negative.

Ciena's current Cash Flow from Operations (TTM) was 529. ==> Positive ==> Score 1.

Question 3. Change in Return on Assets

Compare this year's return on assets (1) to last year's return on assets.

Score 1 if it's higher, 0 if it's lower.

ROA (This Year)=Net Income/Total Assets (Apr23)
=153.63/5775.638
=0.02659966

ROA (Last Year)=Net Income/Total Assets (Apr22)
=202.052/4964.129
=0.04070241

Ciena's return on assets of this year was 0.02659966. Ciena's return on assets of last year was 0.04070241. ==> Last year is higher ==> Score 0.

Question 4. Quality of Earnings (Accrual)

Compare Cash flow return on assets (2) to return on assets (1)

Score 1 if CFROA > ROA, 0 if CFROA <= ROA.

Ciena's current Net Income (TTM) was 154. Ciena's current Cash Flow from Operations (TTM) was 529. ==> 529 > 154 ==> CFROA > ROA ==> Score 1.

Funding

Question 5. Change in Gearing or Leverage

Compare this year's gearing (long-term debt divided by average total assets) to last year's gearing.

Score 0 if this year's gearing is higher, 1 otherwise.

Gearing (This Year: Apr24)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Apr23 to Apr24
=1569.152/5661.672
=0.27715346

Gearing (Last Year: Apr23)=Long-Term Debt & Capital Lease Obligation/Average Total Assets from Apr22 to Apr23
=1586.379/5276.5356
=0.30064783

Ciena's gearing of this year was 0.27715346. Ciena's gearing of last year was 0.30064783. ==> This year is lower or equal to last year. ==> Score 1.

Question 6. Change in Working Capital (Liquidity)

Compare this year's current ratio (current assets divided by current liabilities) to last year's current ratio.

Score 1 if this year's current ratio is higher, 0 if it's lower

Current Ratio (This Year: Apr24)=Total Current Assets/Total Current Liabilities
=3541.347/912.191
=3.88224286

Current Ratio (Last Year: Apr23)=Total Current Assets/Total Current Liabilities
=3868.626/1057.929
=3.65679171

Ciena's current ratio of this year was 3.88224286. Ciena's current ratio of last year was 3.65679171. ==> This year's current ratio is higher. ==> Score 1.

Question 7. Change in Shares in Issue

Compare the number of shares in issue this year, to the number in issue last year.

Score 0 if there is larger number of shares in issue this year, 1 otherwise.

Ciena's number of shares in issue this year was 144.914. Ciena's number of shares in issue last year was 150.147. ==> There is smaller number of shares in issue this year, or the same. ==> Score 1.

Efficiency

Question 8. Change in Gross Margin

Compare this year's gross margin (Gross Profit divided by sales) to last year's.

Score 1 if this year's gross margin is higher, 0 if it's lower.

Gross Margin (This Year: TTM)=Gross Profit/Revenue
=1790.845/4145.908
=0.43195483

Gross Margin (Last Year: TTM)=Gross Profit/Revenue
=1718.005/4028.167
=0.42649796

Ciena's gross margin of this year was 0.43195483. Ciena's gross margin of last year was 0.42649796. ==> This year's gross margin is higher. ==> Score 1.

Question 9. Change in asset turnover

Compare this year's asset turnover (total sales for the year divided by total assets at the beginning of the year) to last year's asset turnover ratio.

Score 1 if this year's asset turnover ratio is higher, 0 if it's lower

Asset Turnover (This Year)=Revenue/Total Assets at the Beginning of This Year (Apr23)
=4145.908/5775.638
=0.71782684

Asset Turnover (Last Year)=Revenue/Total Assets at the Beginning of Last Year (Apr22)
=4028.167/4964.129
=0.81145494

Ciena's asset turnover of this year was 0.71782684. Ciena's asset turnover of last year was 0.81145494. ==> Last year's asset turnover is higher ==> Score 0.

Evaluation

Piotroski F-Score= Que. 1+ Que. 2+ Que. 3+Que. 4+Que. 5+Que. 6+Que. 7+Que. 8+Que. 9
=1+1+0+1+1+1+1+1+0
=7

Good or high score = 7, 8, 9
Bad or low score = 0, 1, 2, 3

Ciena has an F-score of 7. It is a good or high score, which usually indicates a very healthy situation.

Ciena  (NYSE:CIEN) Piotroski F-Score Explanation

The developer of the system is Joseph D. Piotroski is relatively unknown accounting professor who shuns publicity and rarely gives interviews.

He graduated from the University of Illinois with a B.S. in accounting in 1989, received an M.B.A. from Indiana University in 1994. Five years later, in 1999, after earning a Ph.D. in accounting from the University of Michigan, he became an associate professor of accounting at the University of Chicago.

In 2000, he wrote a research paper called "Value Investing: The Use of Historical Financial Statement Information to Separate Winners from Losers" (pdf).

He wanted to see if he can develop a system (using a simple nine-point scoring system) that can increase the returns of a strategy of investing in low price to book (referred to in the paper as high book to market) value companies.

What he found was something that exceeded his most optimistic expectations.

Buying only those companies that scored highest (8 or 9) on his nine-point scale, or F-Score as he called it, over the 20 year period from 1976 to 1996 led to an average out-performance over the market of 13.4%.

Even more impressive were the results of a strategy of investing in the highest F-Score companies (8 or 9) and shorting companies with the lowest F-Score (0 or 1).

Over the same period from 1976 to 1996 (20 years) this strategy led to an average yearly return of 23%, substantially outperforming the average S&P 500 index return of 15.83% over the same period.


Ciena Piotroski F-Score Related Terms

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Ciena (CIEN) Business Description

Address
7035 Ridge Road, Hanover, MD, USA, 21076
Ciena Corp is a network and technology company. It provides network hardware, software, and services that support the transport, switching, aggregation, service delivery, and management of video, data, and voice traffic on communications networks. It serves various industries such as communication services providers, web-scale providers, cable operators, government, and large enterprises world-wide. The business activities function through Networking Platforms; Platform Software and Services; Blue Planet Automation Software, and Global Services segments. Geographically, its presence is seen in the markets of the United States, Canada, the Caribbean, Latin America, Europe, the Middle East, Africa, the Asia Pacific, Japan, and India. The maximum revenue is generated from Americas.
Executives
David M Rothenstein officer: Sr. VP, General Counsel 7035 RIDGE ROAD, HANOVER MD 21076
Gary B Smith director, officer: President, CEO C/O CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076
Brodie Gage officer: SVP Global Products & Supply 2351 ALFRED-NOBEL BLVD, SUITE N-300, SAINT LAURENT A8 H4S 2A9
Dino Diperna officer: SVP Global R&D 385 TERRY FOX DR, OTTAWA A6 K2K OL1
Jason Phipps officer: SVP Global Sales and Marketing 7410 RIDGE RD, HANOVER MD 21076
Joseph Cumello officer: SVP, General Mgr. Blue Planet 7035 RIDGE RD, HANOVER MD 21076
Scott Mcfeely officer: SVP, Networking Platforms 7035 RIDGE RD, HANOVER MD 21076
Mary G Puma director AXCELIS TECHNOLOGIES INC., 108 CHERRY HILL DRIVE, BEVERLY MA 01915
Andrew C Petrik officer: VP, CONTROLLER 7035 RIDGE ROAD, HANOVER MD 21076
Sheela Kosaraju officer: SVP, General Counsel 43-51 WORSHIP ST, LONDON X0 EC2A 2DX
Stephen B Alexander officer: SVP, Chief Technology Officer C/O CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076
Rick Hamilton officer: SVP, Software and Services 9500 AMBERGIEN, AUSTIN TX 78729
Moylan James E Jr officer: SVP Finance, CFO CIENA CORPORATION, 7035 RIDGE ROAD, HANOVER MD 21076
Judith M Obrien director 855 MAUDE AVENUE, MOUNTAIN VIEW CA 94043
Thomas Michael Nevens director C/O BORLAND SOFTWARE CORPORATION, 20450 STEVENS CREEK BLVD, SUITE 800, CUPERTINO CA 95014