Taking a closer look at some quality ratios for Ciena Corporation (NYSE:CIEN), the firm has a Gross Margin (Marx) ratio of 0.413941. This number is based on the research by University of Rochester professor Robert Novy-Marx. Marx believed that a high gross income ratio was a sign of a quality company. Going a little further, Ciena Corporation has a Gross Margin score of 12. This score is based on the Gross Margin (Marx) calculation using a scale from 1 to 100 where a 1 would be considered positive, and a 100 would be seen as negative.
Ciena Corporation (NYSE:CIEN) currently has an EV (Enterprise Value) of 3962946). Enterprise Value measures the complete value of a specific company. EV may often be used as a more comprehensive alternative to simply tracking the market cap of a firm. Enterprise Value is often used by value investors to help spot undervalued companies. EV is typically thought to be a more accurate calculation of total company value due to the inclusion of debt obligations. Shifting gears, let’s take a look at the MF Rank (Magic Formula) on shares of Ciena Corporation (NYSE:CIEN). After a recent look, Ciena Corporation has an MF Rank of 6307. The Magic Formula was devised by hedge fund manager Joel Greenblatt. The formula was detailed in his book “The Little Book That Beats the Market”. The goal of the formula is to identify high quality companies that are trading at an attractive price. The formula uses ROIC and earnings yield ratios to help spot the undervalued quality stocks. The MF Rank combines the two ratios providing a ranking. Typically, companies with the lowest combined rank may be the higher quality selections. Active market trackers might be watching Return on Invested Capital (ROIC) information on Ciena Corporation (NYSE:CIEN). ROIC is a metric that can be used to assess the efficiency of a particular company at allocating controlled capital into investments that are profitable. ROIC can provide a good sense of how a company is using its money to generate returns. ROIC may provide the clearest view of just how efficient a company is at using its capital. Ciena Corporation currently has an ROIC of 0.133191. The current ROIC 5 year average is -0.000318 and the ROIC Quality ratio is currently 2.618825.
Ciena Corporation (NYSE:CIEN) has a current Value Composite Score of 53. Using a scale from 0 to 100, a lower score would represent an undervalued company and a higher score would indicate an expensive or overvalued company. This ranking was developed by James O’Shaughnessy using six different valuation ratios including price to book value, price to sales, EBITDA to EV, price to cash flow, price to earnings, and shareholder yield.