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Ciena (STU:CIE1) Profitability Rank : 7 (As of Jan. 2025)


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What is Ciena Profitability Rank?

Ciena has the Profitability Rank of 7.

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way. It is rated on a scale of 1 to 10 and is based on these factors:

1. Operating Margin %
2. Piotroski F-Score
3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.
4. Consistency of the profitability
5. Predictability Rank

A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Ciena's Operating Margin % for the quarter that ended in Jan. 2025 was 7.67%. As of today, Ciena's Piotroski F-Score is 4.


Competitive Comparison of Ciena's Profitability Rank

For the Communication Equipment subindustry, Ciena's Profitability Rank, along with its competitors' market caps and Profitability Rank 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 Profitability Rank Distribution in the Hardware Industry

For the Hardware industry and Technology sector, Ciena's Profitability Rank distribution charts can be found below:

* The bar in red indicates where Ciena's Profitability Rank falls into.


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Ciena Profitability Rank Calculation

GuruFocus Profitability Rank ranks how profitable a company is and how likely the company's business will stay that way.

The rank is rated on a scale of 1 to 10. A higher score indicates superior profitability, with companies rated 7 or above considered to have more robust and sustainable profit generation. Conversely, a score of 3 or lower suggests challenges in generating consistent profits.

Ciena has the Profitability Rank of 7.

Profitability Rank is not directly related to the Financial Strength. But if a company is consistently profitable, its financial strength will be stronger.

Profitability Rank is based on these factors:

1. Operating Margin %

Operating Margin % - also known as operating income margin, operating profit margin and return on sales (ROS) - is the ratio of Operating Income divided by net sales or Revenue, usually presented in percent.

Ciena's Operating Margin % for the quarter that ended in Jan. 2025 is calculated as:

Operating Margin %=Operating Income (Q: Jan. 2025 ) / Revenue (Q: Jan. 2025 )
=79.412 / 1035.803
=7.67 %

* 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.

2. Piotroski F-Score

The zones of discrimination were as such:

Good or high score = 8 or 9
Bad or low score = 0 or 1

Ciena has an F-score of 4 indicating the company's financial situation is typical for a stable company.

3. Trend of the Operating Margin % (5-year average). The company with an uptrend profit margin has a higher rank.

Warning Sign:

Ciena Corp operating margin has been in a 5-year decline. The average rate of decline per year is -16.2%.

4. Consistency of the profitability

5. Predictability Rank


Ciena Profitability Rank Related Terms

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Ciena Business Description

Traded in Other Exchanges
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 which generates maximum revenue; Platform Software and Services; Blue Planet Automation Software, and Global Services segments. Geographically, the company derives a majority of its revenue from the Americas, and the rest from the Asia-Pacific (APAC), and Europe, Middle East, and Africa (EMEA) region.

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