Ceragon Networks (CRNT) AI Stock Analysis

• Market Cap: $172.35M
• Dividend Yield: N/A
• Average Volume (3M): 740.55K
• Price to Earnings (P/E): 127.6
• Beta (1Y): 1.24
• 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: 451,170
• 30 Day Avg. Volume: 740,548
• 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: 1.27
• Enterprise Value/Revenue: 0.60
• Enterprise Value/Gross Profit: 1.78
• Enterprise Value/Ebitda: 7.39
• 1Y Price Target: $3.25
• Price Target Upside: 64.14% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 3
• EPS Forecast (FY): 0.13
• Revenue Forecast (FY): $340.63M

• Rating: 49 Neutral
• Price Target: $2.00 ▲(1.01% Upside)

Ceragon Networks' overall stock score is primarily impacted by its mixed financial performance and bearish technical indicators. The high P/E ratio suggests overvaluation, further weighing down the score. While the earnings call highlighted some positive developments, the financial and technical challenges are more significant factors in the current assessment.

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 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 Money

Ceragon Networks generates revenue through the sale of its wireless backhaul and fronthaul equipment, including microwave radios and related software solutions. Key revenue streams include direct sales to telecommunications operators and enterprises, as well as ongoing maintenance and support services. Additionally, the company benefits from partnerships with major telecom equipment manufacturers and system integrators, which help expand its market reach. Revenue is also supported by contracts for network planning and optimization services, as well as upgrades and enhancements to existing customer networks, ensuring a steady flow of income from both new installations and ongoing service agreements.

Ceragon Networks Financial Statement Overview

Summary

Ceragon Networks shows a mixed financial picture. The income statement indicates profitability with decent margins, but a decline in revenue growth is concerning. The balance sheet is strong with low leverage, providing stability. However, cash flow challenges could impact future growth, necessitating improvements in cash generation.

Income Statement

Ceragon Networks shows a mixed performance in its income statement. The TTM (Trailing-Twelve-Months) data indicates a decline in revenue growth rate by 4.52%, which is concerning. However, the company maintains a decent gross profit margin of 33.79% and a net profit margin of 3.57%, indicating some level of profitability. The EBIT and EBITDA margins are moderate at 7.82% and 11.29%, respectively, suggesting operational efficiency. Despite the revenue decline, the company has managed to stay profitable, which is a positive sign.

Balance Sheet

The balance sheet reflects a stable financial position with a debt-to-equity ratio of 0.22, indicating a conservative approach to leverage. The return on equity (ROE) is 8.20%, which shows the company is generating a reasonable return on shareholders' equity. The equity ratio stands at 52.64%, suggesting a solid equity base relative to total assets. Overall, the balance sheet portrays financial stability with manageable debt levels.

Cash Flow

The cash flow statement reveals some challenges, with a significant decline in free cash flow growth rate by 56.74% in the TTM period. The operating cash flow to net income ratio is 0.22, indicating that operating cash flow is not significantly higher than net income, which could be a concern for liquidity. The free cash flow to net income ratio is 0.47, suggesting that not all net income is translating into free cash flow. The company needs to improve its cash flow generation to support future growth.

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	5.43M	9.73M	17.99M	-17.32M	-24.61M	11.17M
Operating Cash Flow	22.53M	26.20M	30.89M	-4.89M	-15.02M	17.25M
Investing Cash Flow	-25.02M	-16.46M	-20.87M	-12.42M	-9.39M	-6.49M
Financing Cash Flow	11.84M	-1.52M	-4.86M	23.11M	14.53M	-7.38M

Ceragon Networks Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 1.98
• 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 1.98 is below the 20-day moving average (MA) of 2.10, below the 50-day MA of 2.31, and below the 200-day MA of 2.32, indicating a bearish trend. The MACD of -0.11 indicates Positive momentum. The RSI at 38.68 is Neutral, neither overbought nor oversold. The STOCH value of 55.00 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
AUDC	65 Neutral	$264.39M	20.28	7.67%	4.39%	0.15%	17.21%
AVNW	63 Neutral	$266.63M	19.92	5.24%	―	10.89%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
LTRX	61 Neutral	$205.06M	―	-13.39%	―	-26.85%	-93.91%
CRNT	49 Neutral	$172.35M	127.63	0.84%	―	-3.78%	-92.62%
INSG	46 Neutral	$158.03M	-43.32	―	―	-17.45%	76.52%
FIEE	28 Underperform	$15.49M	―	-66.84%	―	-5.65%	88.68%

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.