CERAGON NETWORKS LTD

CRNTdata completeness 100%17 fiscal years on file
The thesis, from the filings

CERAGON NETWORKS LTD earns about 4% on invested capital, below its ~9% cost of capital, but has diluted owners by 8% over 5 years — no moat visible in the numbers. The estimate methods put fair value between $3.76 and $4.06 a share.Whether it’s worth owning at today’s price is the last question — and yours to answer, below.

i. The business — what you’d actually own
FigureFY 2021FY 2022FY 2023FY 2024FY 2025
Revenue$290.8M1$295.2M2$347.2M3$394.2M3$338.7M3
Net income−$14.8M4−$19.7M5$6.22M6$24.1M6−$2.09M6
Operating cash flow−$15M7−$4.9M8$30.9M9$26.2M9$31.6M9
Capital expenditure$9.38M10$10.5M11$9.96M12$14.6M12$13.6M12
Free cash flow (derived)−$24.4M7−$15.4M8$20.9M9$11.6M9$17.9M9
Total debt$14.8M13$37.5M14$32.6M15$25.2M16$19M16
Cash & equivalents$17.1M17$22.9M18$28.2M19$35.3M20$38.4M20
Diluted shares83.4M84.1M85.5M88.5M89.8M

Superscripts are receipts. Each links to the SEC filing the number came from (full list at the bottom).

ii. Your slice — ownership made literal
If you owned
shares
Net assets behind them
$19.24
your share of equity
Profit it earned you last year
−$0.23
Free cash flow it threw off
$2
Debt you’d be carrying
$2.12

10 shares is a claim on $19.24 of net worth that earned you −$0.23 and generated $2 of cash last year, against $2.12 of debt.

iii. Is this a good business?
Moat signal · return on invested capital
4% avg · 5y
FY21 0%FY22 -7%FY23 7%FY24 19%FY25 2%

It earned about 4% on invested capital against a ~9% cost of capital — below the cost of funding. The numbers show no moat.

seeing a moat in the numbers →
Management signal · capital allocation
+8% shares · 5y

Share count is up 8% over 5 years — owners have been diluted. Worth asking what they got for it. Total debt has risen 28% over the same window.

reading capital allocation →

Signals, not verdicts — read from the filings above. Numbers don’t prove a moat; they show its footprint. You decide.

iv. What it’s worth — engine v0.1.0

The 2 estimate methods that apply put fair value between $3.76 and $4.06 a share. They rest on different assumptions, so where they diverge is the story.

DCF · Growth Exit 10Y
$4.06
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears10
  • fcfGrowth5.0%
  • fcfBase$17.9M
DCF · Growth Exit 5Y
$3.76
assumptions (10)
  • riskFreeRate4.7%
  • equityRiskPremium5.0%
  • beta100.0%
  • equityWeight85.0%
  • costOfDebtSpread1.5%
  • taxRate21.0%
  • terminalGrowth2.5%
  • projectionYears5
  • fcfGrowth5.0%
  • fcfBase$17.9M
Earnings Power Value
not applicable
normalized (5y-median) earnings non-positive — EPV undefined
Graham Number
not applicable
diluted EPS missing or non-positive — Graham Number undefined

Different models answer different questions — which to trust when →

v. The price question — last, on purpose
Is today’s price fair?
See live price ↗
Type a price. The ledger answers.
Or set your own belief
FCF growth, next 5 years5.0%
Discount rate (WACC)8.93%
Terminal growth2.5%
At your growth, a share is worth $3.76
The three cases
Bear0.0%$3.07
Base5.0%$3.76
Bull10.0%$4.59

Bear/base/bull growth = 0% / filed history / history + 5pp. Type a price to see the return each case implies.

Default growth 5.0%= this company’s own filed history (median-to-median FCF CAGR, clamped 0–20%). Your adjustments are recorded anonymously. They become the “what do owners actually believe” dataset.

Sources — the receipts
  1. 20-F · period ending 2021-12-31 · accession 0001178913-24-001034 (Revenues)
  2. 20-F · period ending 2022-12-31 · accession 0001178913-25-000997 (Revenues)
  3. 20-F · period ending 2023-12-31 · accession 0001178913-26-002118 (Revenues)
  4. 20-F · period ending 2021-12-31 · accession 0001178913-24-001034 (NetIncomeLoss)
  5. 20-F · period ending 2022-12-31 · accession 0001178913-25-000997 (NetIncomeLoss)
  6. 20-F · period ending 2023-12-31 · accession 0001178913-26-002118 (NetIncomeLoss)
  7. 20-F · period ending 2021-12-31 · accession 0001178913-24-001034 (NetCashProvidedByUsedInOperatingActivities)
  8. 20-F · period ending 2022-12-31 · accession 0001178913-25-000997 (NetCashProvidedByUsedInOperatingActivities)
  9. 20-F · period ending 2023-12-31 · accession 0001178913-26-002118 (NetCashProvidedByUsedInOperatingActivities)
  10. 20-F · period ending 2021-12-31 · accession 0001178913-24-001034 (PaymentsToAcquirePropertyPlantAndEquipment)
  11. 20-F · period ending 2022-12-31 · accession 0001178913-25-000997 (PaymentsToAcquirePropertyPlantAndEquipment)
  12. 20-F · period ending 2023-12-31 · accession 0001178913-26-002118 (PaymentsToAcquirePropertyPlantAndEquipment)
  13. 20-F · period ending 2021-12-31 · accession 0001178913-23-001573 (ShortTermBorrowings)
  14. 20-F · period ending 2022-12-31 · accession 0001178913-24-001034 (ShortTermBorrowings)
  15. 20-F · period ending 2023-12-31 · accession 0001178913-25-000997 (ShortTermBorrowings)
  16. 20-F · period ending 2024-12-31 · accession 0001178913-26-002118 (ShortTermBorrowings)
  17. 20-F · period ending 2021-12-31 · accession 0001178913-23-001573 (CashAndCashEquivalentsAtCarryingValue)
  18. 20-F · period ending 2022-12-31 · accession 0001178913-24-001034 (CashAndCashEquivalentsAtCarryingValue)
  19. 20-F · period ending 2023-12-31 · accession 0001178913-25-000997 (CashAndCashEquivalentsAtCarryingValue)
  20. 20-F · period ending 2024-12-31 · accession 0001178913-26-002118 (CashAndCashEquivalentsAtCarryingValue)