Ceragon Networks (CRNT) AI Stock Analysis

• Market Cap: $202.55M
• Dividend Yield: N/A
• Average Volume (3M): 700.22K
• Price to Earnings (P/E): 14.9
• Beta (1Y): 1.11
• Revenue Growth: 5.06%
• EPS Growth: 29.66%
• Country: US
• Employees: 1,056
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.03
• Shares Outstanding: 88,839,080
• 10 Day Avg. Volume: 944,406
• 30 Day Avg. Volume: 700,218
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 1.13
• Enterprise Value/Revenue: 0.58
• Enterprise Value/Gross Profit: 1.71
• Enterprise Value/Ebitda: 4.45
• 1Y Price Target: $2.92
• Price Target Upside: 28.07% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 4

• Rating: 66 Neutral
• Price Target: $2.00 ▼(-12.28% Downside)

Ceragon Networks' overall score is driven by its strong financial performance and strategic positioning, despite technical indicators suggesting a bearish trend. The company's valuation is reasonable, and its earnings call highlights resilience in key markets, offsetting some regional challenges.

Positive Factors

Revenue Growth

Ceragon's consistent revenue growth reflects its strong market position and ability to capitalize on the increasing demand for mobile data and connectivity.

Strategic Partnerships

Strategic partnerships with major carriers enhance Ceragon's market reach and provide a stable revenue stream, supporting long-term growth.

Innovation and Product Success

Innovative solutions like point-to-multipoint technology position Ceragon favorably in emerging markets, driving sustained demand and revenue.

Negative Factors

Revenue Decline in Key Market

A significant revenue decline in India due to customer financial challenges poses a risk to Ceragon's overall revenue stability.

Overall Revenue Decrease

A decline in overall revenue highlights potential vulnerabilities in Ceragon's market strategy and the need for diversification.

Operating Income Decline

A decrease in operating income suggests challenges in maintaining profitability, which could impact future investments and growth initiatives.

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 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 strong financial health with significant improvements in profitability and revenue growth. The income statement reflects efficient operations and cost management. Balance sheet metrics indicate a stable financial position with prudent use of debt. Cash flow performance, while showing some pressure, remains manageable.

Income Statement

Ceragon Networks has demonstrated a strong recovery in its income statement metrics. The TTM gross profit margin stands at 33.95%, reflecting efficient cost management. The net profit margin has improved significantly to 5.75%, indicating profitability growth. Revenue growth is consistent, with a notable increase from $262.88M in 2020 to $394.34M in TTM 2025, evidencing a robust upward trajectory. EBIT and EBITDA margins are also healthy at 8.71% and 13.02% respectively, showcasing operational efficiency.

Balance Sheet

The balance sheet of Ceragon Networks shows a stable financial position with a debt-to-equity ratio of 0.24, suggesting conservative leverage. The return on equity is 13.58%, indicating effective use of equity capital. However, the equity ratio is 48.25%, showing a balanced asset financing between debt and equity. The company maintains adequate cash reserves, although total assets have seen moderate growth.

Cash Flow

Cash flow analysis reveals moderate performance with a free cash flow of $6.16M in TTM 2025, a decrease from previous years. The operating cash flow to net income ratio is close to 1, suggesting that net income is well-backed by cash flows. However, the free cash flow to net income ratio is lower, indicating some pressure in converting profits into free cash flows. Despite fluctuations in capital expenditures, the company manages its cash flows carefully.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	394.34M	394.19M	347.18M	295.17M	290.77M	262.88M
Gross Profit	133.88M	136.85M	119.87M	93.06M	88.38M	75.64M
EBITDA	51.33M	45.34M	30.25M	-1.19M	13.33M	3.79M
Net Income	22.68M	24.06M	6.22M	-7.40M	-14.83M	-16.11M
Balance Sheet
Total Assets	346.18M	345.00M	298.52M	301.61M	292.56M	272.42M
Cash, Cash Equivalents and Short-Term Investments	27.69M	35.31M	28.24M	22.95M	17.08M	27.10M
Total Debt	40.77M	41.11M	50.20M	54.43M	36.37M	13.00M
Total Liabilities	179.17M	178.67M	164.51M	169.53M	155.41M	126.29M
Stockholders Equity	167.01M	166.32M	134.02M	132.07M	137.15M	146.13M
Cash Flow
Free Cash Flow	6.16M	9.73M	17.99M	-17.32M	-24.61M	10.76M
Operating Cash Flow	22.19M	26.20M	30.89M	-4.89M	-15.02M	17.67M
Investing Cash Flow	-23.34M	-16.46M	-20.87M	-12.42M	-9.39M	-6.92M
Financing Cash Flow	828.00K	-1.52M	-4.86M	23.11M	14.53M	-7.38M

Ceragon Networks Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.28
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRNT, the sentiment is Neutral. The current price of 2.28 is above the 20-day moving average (MA) of 2.23, above the 50-day MA of 2.13, and below the 200-day MA of 2.83, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 53.21 is Neutral, neither overbought nor oversold. The STOCH value of 21.32 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CRNT.

Ceragon Networks Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FEIM	76 Outperform	$333.91M	15.00	―	―	18.30%	262.72%
CRNT	66 Neutral	$202.55M	14.88	8.61%	―	5.06%	29.66%
AUDC	57 Neutral	$276.31M	21.09	7.98%	3.90%	-0.93%	3.10%
INSG	55 Neutral	$237.08M	48.02	-61.70%	―	-10.99%	―
AVNW	54 Neutral	$290.10M	249.01	―	―	6.50%	-88.62%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%

Ceragon Networks Corporate Events

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.

Ceragon Networks Reports Q2 2025 Financial Results Amid Strategic Growth

Ceragon Networks reported its financial results for the second quarter of 2025, ending June 30, with revenues of $82.3 million, a decrease from the previous year. Despite the revenue decline, the company achieved profitability on a non-GAAP basis and generated free cash flow. Ceragon’s strategic initiatives in North America led to significant growth, including securing a ‘preferred vendor’ status with a new tier-1 mobile network operator. The company’s innovative technology and acquisitions have expanded its capabilities, supporting incremental revenue and potential market share gains globally. The management anticipates consistent revenue levels for the second half of 2025 and sees a foundation for renewed growth in 2026.

Ceragon Networks to Release Q2 2025 Financial Results on August 6

On July 28, 2025, Ceragon Networks announced that it will release its second-quarter financial results for the period ending June 30, 2025, on August 6, 2025, before the market opens. The company will host a Zoom webcast on the same day at 8:30 a.m. ET to discuss the results, which will include a Q&A session. This announcement is significant as it provides stakeholders with insights into the company’s financial performance and strategic direction, potentially impacting investor confidence and market positioning.

Ceragon Networks to Announce Q2 2025 Financial Results on August 6

On July 28, 2025, Ceragon Networks announced that it will release its second-quarter financial results for the period ending June 30, 2025, on August 6, 2025, before the market opens. The company will host a Zoom webcast at 8:30 a.m. ET on the same day to discuss the results, including a Q&A session. This announcement is significant for stakeholders as it provides insights into the company’s financial performance and strategic direction, potentially impacting its market positioning and investor confidence.