Education
About Us
Working with TipRanks
Follow Us
Ceragon Networks (CRNT)
NASDAQ:CRNT
Top Page
Ceragon Networks
(NASDAQ:CRNT)
64Neutral
Positive Factors
Market Expansion
The company is expanding opportunities with new products.
New Product Development
CRNT is poised to benefit from new products and channel relationships beginning in 2H.
Negative Factors
Financial Visibility
Management messaged some concern for reduced 1H25 visibility.
Gross Margin Challenges
Near-term gross margins have been adjusted down due to the strength in the lower margin India business.
Ceragon Networks (CRNT) vs. S&P 500 (SPY)
Market Cap
$212.33M
Dividend YieldN/A
Average Volume (3M)1.55M
Price to Earnings (P/E)8.8
Beta (1Y)0.73
Revenue Growth13.54%
EPS Growth278.70%
CountryUS
Employees1,056
SectorTechnology
Sector Strength44
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.27
Shares Outstanding88,839,080
10 Day Avg. Volume909,801
30 Day Avg. Volume1,546,786
Financial Highlights & Ratios
PEG Ratio0.03
Price to Book (P/B)N/A
Price to Sales (P/S)0.62
Price to Cash Flow (P/CF)N/A
P/FCF Ratio0.00
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$5.33Price Target Upside126.81% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering3
Ceragon Networks Business Overview & Revenue Model
Company DescriptionCeragon Networks Ltd. provides wireless backhaul and fronthaul solutions that enable cellular operators and other wireless service providers. Its solutions use microwave and millimeter wave radio technology to transfer telecommunication traffic between base stations, small/distributed cells, and the core of the service provider's network. The company also uses microwave technology for ultra-high speed, ultra-low latency communication for wireless 5G and 4G, 3G, and other cellular base stations. In addition, it provides IP-20 all-outdoor solutions, such as IP-20C, IP-20C-HP, IP-20S, IP-20E, and IP-20V; IP-20 split-mount/all-indoor solutions comprising IP-20N/IP-20A, IP-20F, and IP-20G; and IP-50 disaggregated solutions, including IP-50E, IP-50C, IP-50S, and IP-50FX for various short-haul, long-haul, fronthaul, and enterprise access applications. Further, the company offers network management system; and network and radio planning, site survey, solutions development, installation, network auditing and optimization, maintenance, training, and other services. It provides its services to oil and gas companies; public safety organizations; business and public institutions; broadcasters; energy utilities; and private communications networks. The company sells its products through direct sales, original equipment manufacturers, distributors, and system integrators. It operates in North America, Europe, Africa, the Asia Pacific, the Middle East, India, and Latin America. The company was formerly known as Giganet Ltd. and changed its name to Ceragon Networks Ltd. in September 2000. Ceragon Networks Ltd. was incorporated in 1996 and is headquartered in Rosh HaAyin, Israel.
How the Company Makes MoneyCeragon Networks generates revenue by selling its wireless backhaul solutions, which include both hardware and software components, to telecommunications service providers and other network operators. The company's key revenue streams include the sale of its high-capacity communication systems, maintenance and support services, and professional services such as network planning and optimization. Ceragon's earnings are influenced by its ability to maintain strong relationships with key telecommunications providers and adapt to the growing demand for high-speed mobile data services. Additionally, strategic partnerships and contracts with major mobile operators contribute significantly to its revenue.
Ceragon Networks Financial Statement Overview
Summary
Ceragon Networks has demonstrated strong revenue growth and improved profitability, with significant increases in revenue and net profit margin. However, the cash flow generation has weakened, indicating a need for strategic focus on boosting operational cash flow.Income Statement
Ceragon Networks has demonstrated strong revenue growth, with a significant increase in total revenue from $347.2 million in 2023 to $394.2 million in 2024, marking a growth rate of approximately 13.5%. The gross profit margin improved to 34.7% in 2024, indicating efficient cost management. Net profit margin improved to 6.1%, showing enhanced profitability. However, EBIT and EBITDA margins were 9.8% and 13.7% respectively, indicating room for operational efficiency improvements.78
Positive
Balance Sheet
The company's balance sheet shows a solid equity ratio of 48.2% in 2024, reflecting a stable capital structure. The debt-to-equity ratio has improved to 0.25, indicating better leverage management. Return on equity increased to 14.5%, highlighting improved profitability from equity. However, the company needs to maintain cautious debt management due to industry volatility.70
Positive
Cash Flow
The free cash flow decreased from $17.99 million in 2023 to $11.62 million in 2024, indicating a decline in cash generation efficiency. The operating cash flow to net income ratio is 1.09, suggesting that operating cash flow aligns closely with net income. The free cash flow to net income ratio is 0.48, showing a moderate conversion of profit into cash. Focus on enhancing cash flow generation is needed.65
Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| Income Statement | Total Revenue | |||
| 394.19M | 347.18M | 295.17M | 290.77M | 262.88M | Gross Profit |
| 136.85M | 119.87M | 93.06M | 88.38M | 75.64M | EBIT |
| 38.73M | 21.21M | 1.35M | 4.81M | -7.57M | EBITDA |
| 53.91M | 30.25M | -1.19M | 13.33M | 3.79M | Net Income Common Stockholders |
| 24.06M | 6.22M | -7.40M | -14.83M | -16.11M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | |||
| 35.31M | 28.24M | 22.95M | 17.08M | 27.10M | Total Assets |
| 345.00M | 298.52M | 301.61M | 292.56M | 272.42M | Total Debt |
| 41.11M | 50.20M | 54.43M | 36.37M | 13.00M | Net Debt |
| 5.80M | 21.97M | 31.48M | 19.29M | -14.10M | Total Liabilities |
| 178.67M | 164.51M | 169.53M | 155.41M | 126.29M | Stockholders Equity |
| 166.32M | 134.02M | 132.07M | 137.15M | 146.13M |
| Cash Flow | Free Cash Flow | |||
| 11.62M | 17.99M | -17.32M | -24.61M | 10.76M | Operating Cash Flow |
| 26.20M | 30.89M | -4.89M | -15.02M | 17.67M | Investing Cash Flow |
| -16.46M | -20.87M | -12.42M | -9.39M | -6.92M | Financing Cash Flow |
| -1.52M | -4.86M | 23.11M | 14.53M | -7.38M |
Ceragon Networks Technical Analysis
Negative
2.35
Price Trends
3.43
Negative
3.74
Negative
3.20
Negative
Market Momentum
-0.25
Negative
30.80
Neutral
14.56
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRNT, the sentiment is Negative. The current price of 2.35 is below the 20-day moving average (MA) of 2.54, below the 50-day MA of 3.43, and below the 200-day MA of 3.20, indicating a bearish trend. The MACD of -0.25 indicates Negative momentum. The RSI at 30.80 is Neutral, neither overbought nor oversold. The STOCH value of 14.56 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRNT.
Ceragon Networks Risk Analysis
Ceragon Networks disclosed 51 risk factors in its most recent earnings report. Ceragon Networks reported the most risks in the “Finance & Corporate” category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Ceragon Networks Peers Comparison
Overall Rating
UnderperformOutperform
Sector (57)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $242.12B | 26.67 | 20.02% | 2.63% | -5.34% | -30.57% | |
66 Neutral | $8.75B | 111.95 | 2.76% | ― | -7.29% | -64.31% | |
64 Neutral | $212.33M | 8.78 | 16.02% | ― | 13.54% | 278.70% | |
60 Neutral | $12.03B | 41.98 | 6.21% | 2.44% | -8.82% | -10.01% | |
57 Neutral | $20.97B | 10.32 | -14.01% | 2.49% | 4.46% | -23.38% | |
51 Neutral | $1.16B | ― | 17.08% | ― | -28.32% | 73.59% | |
45 Neutral | $710.75M | ― | -123.20% | ― | -19.70% | -70.40% |
* Technology Sector Average
Performance Comparison
CRNT
Ceragon Networks
2.35
-0.72
-23.45%
ADTN
Adtran
8.72
3.22
58.55%
CIEN
Ciena
60.43
11.24
22.85%
CSCO
Cisco Systems
61.71
13.20
27.21%
JNPR
Juniper Networks
36.19
0.02
0.06%
COMM
CommScope Holding
5.31
3.99
302.27%
Ceragon Networks Earnings Call Summary
Earnings Call Date: Feb 11, 2025 | % Change Since: -51.04% | Next Earnings Date: May 5, 2025
Earnings Call Sentiment Positive
The earnings call reflects a strong financial year for Ceragon with record profits, significant growth in India, and successful product launches. However, challenges remain with low visibility for 2025 and fluctuation in gross margins.Highlights
Record Year for Ceragon
Ceragon achieved record operating profit on the highest revenue levels since 2012, with a 13% annual revenue growth during 2024 despite a market decline of more than 10%.
Strong Performance in India
India's revenue reached $55.6 million, marking an all-time record quarter for Ceragon, driven by deployments in 4G and 5G networks and significant traction with the IP-50EXA product.
Increased Bookings from Private Networks
Ceragon reported over a 50% increase in bookings from private networks, enhancing their revenue diversification strategy.
Successful Product Launches
Introduction of IP-50CX and IP-50EX products, as well as the new Siklu By Ceragon product, strengthened Ceragon's technological lead and market position.
Positive Outlook on Managed Services
Secured additional recurring revenue from managed services worth approximately $7 million ARR, representing more than 30% of current ARR.
Lowlights
Low Visibility in 2025
Ceragon enters 2025 with low visibility, particularly affected by the cyclical nature of the CSP market and shifting dynamics in private networks.
Challenges with Gross Margin Fluctuations
Non-GAAP gross margin slightly decreased to 34.3% in Q4 2024 from 35.1% in Q4 2023, due to changes in regional revenue mix and volumes.
DSO Increase
Days Sales Outstanding increased to 126 days, reflecting business growth in India and impacting cash flow management.
Company Guidance
In the earnings conference call for Ceragon Networks, the company provided detailed guidance and performance metrics for both the past fiscal year and the upcoming period. For fiscal year 2024, Ceragon achieved a 13.5% increase in revenue, reaching $394.2 million, and a record non-GAAP operating profit of $48.8 million, representing 12.4% of revenues. The company noted significant growth in its annual recurring revenue (ARR) by more than 30% and a 50% increase in bookings from private networks. For 2025, Ceragon projects revenue between $390 million to $430 million and expects non-GAAP operating margins of at least 10%, while aiming to increase free cash flow compared to 2024. The company emphasized its strategic growth pillars, including expanding its millimeter-wave products, increasing market share in private networks, and boosting recurring revenue, which positions it to potentially outperform the market in the forthcoming year.Glossary
OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.
NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.
UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.