One-glance verdict
Undervalued
$3.83 our estimate vs market $2.11
Wall Street consensus: $4.83 (26.2% higher than our fair-value estimate)
45% below our estimate, below the bear case
Fundamentals snapshot
Ceragon Networks Ltd.
CRNT · NMS · Technology · Communication Equipment
Current price
$2.11
52-week range
$1.85 - $3.29
Market cap
$192.60M
Balance sheet
Healthy
2.20x Stretched
Net cash $5.99M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
1 Risk
1 rewards · 1 risks
- Reward Free cash flow was positive in 7/10 years.
- Risk Return on equity was -1.9% last year — the company lost money on shareholders' equity.
What this company does
Ceragon Networks Ltd.
Ceragon Networks sells wireless equipment that acts like an invisible, high-speed cable, connecting mobile phone towers to the main internet network for carriers like AT&T and Verizon. The company makes money by selling this hardware and related support services all over the world. This is important because it helps mobile providers expand their networks for things like 5G, especially in areas where laying physical cables is too expensive or difficult.
How the company got here
Founded in 1996 as Giganet Ltd., the company changed its name to Ceragon Networks Ltd. in 2000. It has grown by developing technology that helps mobile carriers connect their cell towers wirelessly, especially as mobile data usage has exploded with the rise of smartphones. Key moments in its history include acquiring Nera Networks AS in 2011 to expand its reach and technology, and more recently, focusing on the transition to 5G networks. This has positioned Ceragon as a specialized player in the critical infrastructure that underpins modern mobile communication.
What it actually does
Ceragon Networks builds and sells equipment that allows mobile phone companies to connect their cell towers to each other and to their main network without using physical cables. Think of it as a wireless bridge for the massive amounts of data you use on your phone. Instead of digging trenches for fiber optic cables, a mobile operator can use Ceragon's microwave and millimeter wave radios to beam data from one point to another, which is often faster and cheaper to set up. This is a crucial part of the 'backhaul' (the process of getting data from the cell tower back to the central network) for mobile services.
Wireless Haulage Solutions
This is the company's core business and makes up the vast majority of its revenue. Ceragon designs and sells specialized radio systems that transmit data between cell sites and the main network. Mobile operators and other wireless service providers pay Ceragon for this hardware to build out and upgrade their networks. This segment is essential for expanding coverage into new areas and for increasing the capacity of existing networks to handle more data, especially with the demands of 5G.
Services
This is a smaller but important part of Ceragon's business. Beyond just selling equipment, the company offers a range of services to its customers. This includes planning and designing the network layout, installing the equipment, and providing ongoing maintenance and support to ensure everything runs smoothly. Customers pay for these services to ensure their wireless networks are reliable and optimized for the best performance.
What management is betting on now
The company's main focus is on the global rollout of 5G mobile networks. Management believes that the need for faster speeds and more data capacity will drive mobile operators to upgrade their existing network connections, creating high demand for Ceragon's wireless equipment. They are also expanding into new markets, such as providing high-speed internet access for private networks and rural communities. The company is also emphasizing the development of its new 'system-on-a-chip' technology, which they believe will make their products more powerful and cost-effective for their customers.
Price history
How the share price has moved
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Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2024 Q4
$11.62M
FY2025 Q4
$17.95M
Revenue
$338.73M
Net income
$-2.09M
Diluted EPS
-0.02
Operating cash flow
$31.56M
Free cash flow
$17.95M
Fetching…
Sources
Revenue
$394.19M
Net income
$24.06M
Diluted EPS
0.27
Operating cash flow
$26.20M
Free cash flow
$11.62M
Fetching…
Sources
Is it cheap or expensive?
Fair value $3.83 vs current price $2.11
Wall Street consensus is the average analyst price target: $4.83 (26.2% higher than our fair-value estimate).
Our most-likely fair value is $3.83 a share — about 81.6% above today's price of $2.11, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Healthy
Net cash $6.0M - more cash than debt. Interest coverage 2.2x.
Net debt
$-5.99M
Interest coverage
2.20x
Ceragon Networks Ltd. is healthier than 0 of 1 peers on balance-sheet leverage.
Healthy
Worse cushion
Baseline
Better cushion
CRNT
BASELINE
Ceragon Networks Ltd.
Total debt $28.78M Interest coverage 2.20x This is the baseline the peer rows are being compared against.
What you should know
The case for and against CRNT
1 Reward
1 Risk
Rewards
-
Free cash flow was positive in 7/10 years.
Risks
-
Return on equity was -1.9% last year — the company lost money on shareholders' equity.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
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Forward P/E
11.85x
P/B
1.12x
P/S
0.56x
EV/EBITDA
7.82x
PEG ratio
0.98x
Profitability
How much profit each dollar creates
Gross margin
33.7%
Operating margin
1.7%
Net margin
-0.9%
ROE
-1.9%
ROA
1.9%
Health
Liquidity and balance-sheet strength
Debt / equity
0.17x
Current ratio
1.85x
Quick ratio
1.35x
Total debt
$28.78M
Total cash
$34.77M
Growth
How the business has been compounding
Revenue TTM
$1.38B
Revenue 5Y CAGR
3.9%
EPS TTM
-0.03
EPS 5Y CAGR
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Cash flow
How much cash the business throws off
Operating CF TTM
$83.75M
Free CF TTM
$17.95M
FCF margin
1.3%
Dividend
Shareholder payout
Yield
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Payout ratio
0.0%
Last ex-div date
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