Ceragon Networks (CRNT) AI Stock Analysis

• Market Cap: $202.55M
• Dividend Yield: N/A
• Average Volume (3M): 638.77K
• Price to Earnings (P/E): 157.0
• Beta (1Y): 1.21
• Revenue Growth: -3.78%
• EPS Growth: -92.62%
• Country: US
• Employees: 1,056
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.02
• Shares Outstanding: 88,839,080
• 10 Day Avg. Volume: 791,081
• 30 Day Avg. Volume: 638,775
• PEG Ratio: 0.06
• Price to Book (P/B): 2.42
• Price to Sales (P/S): 1.02
• P/FCF Ratio: 41.35
• Enterprise Value/Market Cap: 1.08
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 1.78
• Enterprise Value/Ebitda: 7.39
• 1Y Price Target: $3.25
• Price Target Upside: 43.81% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 59 Neutral
• Price Target: $2.50 ▲(10.62% Upside)

Ceragon Networks' overall stock score reflects a mixed financial performance with profitability but declining revenue growth. Technical indicators suggest a neutral to bearish trend, and the high P/E ratio indicates overvaluation. The earnings call provides some optimism for future growth, particularly in North America, but challenges remain.

Positive Factors

Strong Market Position in North America

Ceragon's strong performance in North America, driven by Tier 1 customer deployments, highlights its competitive advantage and market leadership, which is crucial for sustained growth in a key region.

Innovative E-band Technology

Ceragon's advancements in E-band technology enhance network capacity and cost efficiency, positioning the company as a leader in high-capacity, low-latency connectivity solutions, crucial for future growth.

Managed Services Expansion

The expansion into managed services with a significant contract in Colombia showcases Ceragon's capability to manage complex networks, enhancing its market position and providing a steady revenue stream.

Negative Factors

Decline in Revenue Growth

A significant year-over-year revenue decline indicates challenges in maintaining growth momentum, which could impact long-term financial performance and market confidence.

Cash Flow Challenges

The decline in free cash flow growth suggests liquidity issues, potentially limiting Ceragon's ability to invest in growth opportunities and manage financial obligations effectively.

Foreign Exchange Impact

Foreign exchange fluctuations impacting earnings highlight vulnerability to currency risks, which could affect profitability and financial stability in the long term.

Ceragon Networks Business Overview & Revenue Model

Company Description

Ceragon Networks (CRNT) is a leading provider of wireless backhaul solutions, specializing in high-capacity, cost-effective connectivity for mobile network operators and service providers. Operating primarily in the telecommunications sector, Ceragon offers a range of products and services including microwave radios, broadband solutions, and network management systems designed for 4G and 5G networks. Their innovative technology enables efficient data transfer over long distances, supporting the growing demand for mobile data and connectivity around the globe.

How the Company Makes Money

Ceragon Networks generates revenue primarily through the sale of its wireless backhaul equipment and related services. The company's revenue model is built on multiple key streams including product sales, service contracts, and software licensing. Ceragon often engages in long-term contracts with mobile operators, providing not only the hardware needed for network expansion but also ongoing maintenance and support services. Additionally, strategic partnerships with major telecommunications companies and system integrators enhance its market reach and contribute to its revenue growth. Factors such as the increasing demand for high-speed mobile data, the expansion of 5G networks, and a rising trend towards network densification significantly bolster Ceragon's earnings potential.

Ceragon Networks Financial Statement Overview

Summary

Ceragon Networks shows a mixed financial performance. The income statement indicates challenges with declining revenue and net profit margins, though operational efficiency remains intact. The balance sheet is strong, with reduced leverage and a solid equity base. Cash flow improvements are notable, particularly in free cash flow growth, but cash flow coverage ratios indicate potential areas for enhancement.

Income Statement

Ceragon Networks shows a mixed performance in its income statement. The TTM data reveals a gross profit margin of 33.79%, which is a slight decline from the previous annual report. The net profit margin has decreased to 3.57% from 6.10%, indicating reduced profitability. Revenue growth is negative at -3.51% in the TTM, a reversal from the previous year's growth. However, the company maintains a stable EBIT margin of 7.82% and an EBITDA margin of 11.29%, suggesting operational efficiency. Overall, while the company has managed to maintain operational margins, declining revenue and net profitability are concerns.

Balance Sheet

The balance sheet of Ceragon Networks indicates a stable financial position. The debt-to-equity ratio has improved to 0.22 in the TTM, reflecting a decrease in leverage compared to previous years. Return on equity is at 8.20%, showing a positive return on shareholders' investments. The equity ratio stands at 52.32%, suggesting a strong equity base relative to total assets. Overall, the company demonstrates a solid balance sheet with reduced leverage and a healthy equity position.

Cash Flow

Ceragon Networks' cash flow statement shows significant improvement in free cash flow growth, which is up by 117.67% in the TTM. The operating cash flow to net income ratio is 0.22, indicating that operating cash flow is covering net income, albeit at a lower rate than desired. The free cash flow to net income ratio is 0.47, showing that a substantial portion of net income is being converted into free cash flow. While the company has shown strong growth in free cash flow, the overall cash flow coverage ratios suggest room for improvement in cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	363.33M	394.19M	347.18M	295.17M	290.77M	262.88M
Gross Profit	123.00M	136.85M	119.87M	93.06M	88.38M	75.64M
EBITDA	29.56M	45.34M	30.25M	-1.19M	13.08M	3.50M
Net Income	1.39M	24.06M	6.22M	-19.69M	-14.83M	-17.09M
Balance Sheet
Total Assets	326.92M	345.00M	298.52M	289.32M	292.56M	272.42M
Cash, Cash Equivalents and Short-Term Investments	42.99M	35.31M	28.24M	22.95M	17.08M	27.10M
Total Debt	47.61M	41.11M	50.20M	54.43M	36.37M	13.00M
Total Liabilities	154.81M	178.67M	164.51M	169.53M	155.41M	126.29M
Stockholders Equity	172.11M	166.32M	134.02M	119.78M	137.15M	146.13M
Cash Flow
Free Cash Flow	5.00M	9.73M	17.99M	-17.32M	-24.61M	11.17M
Operating Cash Flow	21.66M	26.20M	30.89M	-4.89M	-15.02M	17.25M
Investing Cash Flow	-24.19M	-16.46M	-20.87M	-12.42M	-9.39M	-6.49M
Financing Cash Flow	11.53M	-1.52M	-4.86M	23.11M	14.53M	-7.38M

Ceragon Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 2.26
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

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 2.26 is below the 20-day moving average (MA) of 2.46, below the 50-day MA of 2.36, and below the 200-day MA of 2.48, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 41.67 is Neutral, neither overbought nor oversold. The STOCH value of 27.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CRNT.

Ceragon Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
AVNW	72 Outperform	$296.42M	22.14	5.24%	―	10.89%	―
AUDC	65 Neutral	$264.39M	20.28	7.67%	3.89%	0.15%	17.21%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CRNT	59 Neutral	$202.55M	157.05	0.84%	―	-3.78%	-92.62%
LTRX	58 Neutral	$197.19M	―	-13.39%	―	-26.85%	-93.91%
INSG	47 Neutral	$190.83M	-49.07	―	―	-17.45%	76.52%
FIEE	28 Underperform	$15.68M	-6.15	-117.93%	―	-99.49%	92.50%

Ceragon Networks Corporate Events

Ceragon Networks Reports Solid Q3 2025 Financial Results Amid Market Growth

On November 11, 2025, Ceragon Networks reported its financial results for the third quarter ending September 30, 2025, showing solid revenue and cash flow despite a decline in year-over-year revenue. The company achieved $85.5 million in revenue and a non-GAAP net income of $1.7 million, with significant contributions from North America and renewed activity in India. Ceragon’s CEO highlighted the company’s improved market visibility and potential growth opportunities driven by trends in network utilization and AI evolution, positioning Ceragon to benefit from increased demand for wireless transport solutions.

Ceragon Networks Secures $2.7M Managed Services Contract in Colombia

On November 10, 2025, Ceragon Networks announced a significant two-year managed services contract worth $2.7 million with a major mobile operator in Colombia. This contract involves providing a comprehensive suite of managed services, including remote technical support and on-site assistance, leveraging Ceragon’s Network Digital Twin for predictive maintenance. The agreement enhances Ceragon’s position in Latin America, showcasing its capability to manage complex, multi-vendor networks and reinforcing its role as a key partner for mobile operators. This partnership is expected to optimize operational expenditures for the mobile operator, improve network resilience, and support the growing demand for expert managed services in the region.

Ceragon Networks to Announce Q3 2025 Financial Results on November 11

Ceragon Networks Ltd. announced it will release its third-quarter 2025 financial results on November 11, 2025. The company will host an investor conference call on the same day to discuss the results, which will include a Q&A session. This announcement underscores Ceragon’s ongoing commitment to transparency and engagement with its stakeholders, as it continues to position itself as a leading provider in the wireless connectivity industry.

Ceragon Networks to Engage Investors at November Conferences

On October 27, 2025, Ceragon Networks announced its participation in several investor conferences scheduled for November 2025, including the Craig-Hallum Alpha Select Conference, ROTH Technology Conference, and Needham Tech Week. This engagement with the investment community highlights Ceragon’s proactive approach to strengthening its market presence and fostering investor relations, potentially impacting its strategic positioning and stakeholder confidence.

Ceragon Networks Showcases E-Band Innovations in North America and Europe

On October 22, 2025, Ceragon Networks announced the successful completion of three proof-of-concept E-band deployments with Tier-1 operators and a leading ISP in North America and Europe. These deployments showcased Ceragon’s advanced auto-alignment and stabilization technologies, significantly boosting network capacity, extending reach, and reducing costs compared to traditional solutions. The trials demonstrated the potential for substantial commercial contracts, positioning Ceragon as a leader in wireless connectivity solutions and enhancing its market position by enabling high-capacity, low-latency connectivity for its clients.

Ceragon Networks to Showcase Innovations at India Mobile Congress 2025

Ceragon Networks announced its participation in the India Mobile Congress 2025, held from October 8-11 in New Delhi, where it will showcase its latest wireless innovations. The company will demonstrate its IP-100FR2 and IP-100E products, multi-gigabit mesh solutions, end-to-end private network solutions, and AI-optimized networks. These innovations aim to enhance network efficiency, reliability, and speed, reinforcing Ceragon’s position as a leader in wireless connectivity solutions. The event will also feature Ceragon executives participating in panels discussing spectrum allocation and network connectivity, highlighting the company’s commitment to advancing wireless technology.

Ceragon Networks Releases Interim Financial Results for Mid-2025

Ceragon Networks Ltd. has released its unaudited interim consolidated financial statements for the six months ending June 30, 2025. The financial report, which includes an Operating and Financial Review and Prospects, indicates a decrease in total assets from $344,996,000 at the end of 2024 to $328,385,000 by mid-2025. This financial update may impact the company’s market positioning and stakeholder confidence.

Ceragon Networks Secures $8 Million Network Modernization Project in EMEA

On August 13, 2025, Ceragon Networks announced a significant project to modernize a private communications network for a leading power utility in the EMEA region, expected to generate $8 million in revenue. This project, which began earlier in the year, showcases Ceragon’s advanced microwave solutions and high-power radios, enhancing the utility’s nationwide backbone network. The initiative underscores Ceragon’s technical prowess and positions the company favorably for future phases and projects, having already secured approximately 75% of the orders for this phase.