One-glance verdict
Undervalued
$3.90 our estimate vs market $2.00
Wall Street consensus: $4.83 (24.1% higher than our fair-value estimate)
49% below our estimate, below the bear case
Fundamentals snapshot
Ceragon Networks Ltd.
CRNT · NMS · Technology · Communication Equipment
Current price
$2.00
52-week range
$1.85 - $3.29
Market cap
$182.56M
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
2 Risks
1 rewards · 2 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.
- Risk Insider ownership is only 14.6% (peer median: 14.8%).
What this company does
Ceragon Networks Ltd.
Ceragon Networks sells equipment that helps mobile phone companies send information wirelessly between cell towers and their main networks, mainly using special radio technology. Their money comes from selling these advanced wireless gear and related services globally to these mobile providers. This is important because it's how our phones get signals and stay connected.
How the company got here
Ceragon Networks, originally Giganet Ltd., was founded in 1996 and is based in Israel. The company rebranded to Ceragon Networks in September 2000. It has since focused on providing wireless transport solutions, evolving its technology to meet the growing demands of cellular and wireless service providers globally. This journey has involved adapting to new radio technologies and expanding its market reach across various continents.
What it actually does
Ceragon Networks provides the essential technology that allows wireless signals to travel efficiently between different parts of a mobile network. Think of it like the invisible highways for your phone's data. Their solutions use advanced microwave and millimeter wave radio technology to send information, like calls and internet data, between cell towers (base stations), smaller cell sites, and the main network infrastructure. This ensures that your mobile service works smoothly and reliably.
Wireless Transport Solutions
This is the core business of Ceragon Networks, making up the vast majority of its revenue. The company designs and sells equipment that uses microwave and millimeter wave radio technology to wirelessly transport telecommunication traffic. This traffic includes voice calls and data from cellular base stations to the main network. Their products are crucial for mobile operators looking to expand their network coverage and capacity without the need for expensive fiber optic cables.
Services
Beyond selling hardware, Ceragon Networks also offers a range of professional services to support its customers. These services include planning and designing wireless networks, conducting site surveys to find the best locations for equipment, and providing installation and maintenance. They also offer training to help clients manage their networks effectively, ensuring the smooth operation and optimization of the wireless transport solutions they provide.
What management is betting on now
Ceragon Networks is focused on advancing its wireless transport solutions to meet the increasing demands of 5G networks and beyond. Management is prioritizing the development of higher-capacity and more efficient radio technologies. This strategic focus aims to help cellular operators upgrade their networks, enabling faster speeds and greater reliability for end-users. By staying at the forefront of wireless technology, Ceragon seeks to maintain its competitive edge and capture growth opportunities in the evolving telecommunications landscape.
Price history
How the share price has moved
—
Loading price history…
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 $3.90 vs current price $2.00
Wall Street consensus is the average analyst price target: $4.83 (24.1% higher than our fair-value estimate).
Our most-likely fair value is $3.90 a share — about 94.8% above today's price of $2.00, 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.'s profit covers its interest bill about 2.2 times over. which is stronger than most peers shown here.
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.
Total debt $99.18M Interest coverage 2.78x +27% vs CRNT Carries about 1.3x more debt cushion than CRNT.
Total debt $2.85M Interest coverage 1.74x -21% vs CRNT Carries about 1.3x less debt cushion than CRNT.
Total debt $53.70M Interest coverage 1.25x -43% vs CRNT Carries about 1.8x less debt cushion than CRNT.
What you should know
The case for and against CRNT
1 Reward
2 Risks
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.
-
Insider ownership is only 14.6% (peer median: 14.8%).
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)
—
Forward P/E
11.24x
P/B
1.06x
P/S
0.53x
EV/EBITDA
7.39x
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
-0.04
EPS 5Y CAGR
—
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
0.0%
Payout ratio
0.0%
Last ex-div date
—