COMTECH TELECOMMUNICATIONS (CMTL)
US2058262096 - Common Stock
Taking everything into account, CMTL scores 4 out of 10 in our fundamental rating. CMTL was compared to 54 industry peers in the Communications Equipment industry. Both the profitability and financial health of CMTL have multiple concerns. CMTL may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year CMTL was profitable.
In the past year CMTL has reported a negative cash flow from operations.
In multiple years CMTL reported negative net income over the last 5 years.
In multiple years CMTL reported negative operating cash flow during the last 5 years.
1.2 Ratios
CMTL's Return On Assets of -4.84% is in line compared to the rest of the industry. CMTL outperforms 46.30% of its industry peers.
The Return On Equity of CMTL (-8.42%) is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.84% | ||
| ROE | -8.42% | ||
| ROIC | N/A |
ROA(3y)-5.08%
ROA(5y)-2.34%
ROE(3y)-9.47%
ROE(5y)-4.49%
ROIC(3y)N/A
ROIC(5y)N/A
1.3 Margins
CMTL has a worse Gross Margin (32.00%) than 70.37% of its industry peers.
In the last couple of years the Gross Margin of CMTL has declined.
CMTL does not have Profit Margin and Operating Margin available, so we won't be analyzing them here.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 32% |
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y-3.02%
GM growth 5Y-3.09%
2. Health
2.1 Basic Checks
CMTL does not have a ROIC to compare to the WACC, probably because it is not profitable.
CMTL has more shares outstanding than it did 1 year ago.
The number of shares outstanding for CMTL has been increased compared to 5 years ago.
The debt/assets ratio for CMTL is higher compared to a year ago.
2.2 Solvency
CMTL has an Altman-Z score of 0.93. This is a bad value and indicates that CMTL is not financially healthy and even has some risk of bankruptcy.
CMTL has a Altman-Z score (0.93) which is comparable to the rest of the industry.
CMTL has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 0.93 |
ROIC/WACCN/A
WACC9.2%
2.3 Liquidity
A Current Ratio of 0.99 indicates that CMTL may have some problems paying its short term obligations.
CMTL has a worse Current ratio (0.99) than 90.74% of its industry peers.
A Quick Ratio of 0.74 indicates that CMTL may have some problems paying its short term obligations.
Looking at the Quick ratio, with a value of 0.74, CMTL is doing worse than 83.33% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.74 |
3. Growth
3.1 Past
CMTL shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 148.51%, which is quite impressive.
CMTL shows quite a strong growth in Revenue. In the last year, the Revenue has grown by 11.16%.
CMTL shows a decrease in Revenue. Measured over the last years, the Revenue has been decreasing by -0.73% yearly.
EPS 1Y (TTM)148.51%
EPS 3YN/A
EPS 5YN/A
EPS growth Q2Q34.78%
Revenue 1Y (TTM)11.16%
Revenue growth 3Y-3.74%
Revenue growth 5Y-0.73%
Revenue growth Q2Q0.39%
3.2 Future
Based on estimates for the next years, CMTL will show a very strong growth in Earnings Per Share. The EPS will grow by 108.72% on average per year.
Based on estimates for the next years, CMTL will show a quite strong growth in Revenue. The Revenue will grow by 8.28% on average per year.
EPS Next Y154.52%
EPS Next 2Y108.72%
EPS Next 3YN/A
EPS Next 5YN/A
Revenue Next Year5.04%
Revenue Next 2Y8.28%
Revenue Next 3YN/A
Revenue Next 5YN/A
3.3 Evolution
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 4.18, the valuation of CMTL can be described as very cheap.
Based on the Price/Earnings ratio, CMTL is valued cheaply inside the industry as 96.30% of the companies are valued more expensively.
The average S&P500 Price/Earnings ratio is at 24.92. CMTL is valued rather cheaply when compared to this.
CMTL is valuated cheaply with a Price/Forward Earnings ratio of 3.00.
Based on the Price/Forward Earnings ratio, CMTL is valued cheaper than 96.30% of the companies in the same industry.
CMTL's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 21.49.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.18 | ||
| Fwd PE | 3 |
4.2 Price Multiples
Compared to the rest of the industry, the Enterprise Value to EBITDA ratio of CMTL indicates a rather cheap valuation: CMTL is cheaper than 88.89% of the companies listed in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | 5.67 |
4.3 Compensation for Growth
CMTL's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
A more expensive valuation may be justified as CMTL's earnings are expected to grow with 108.72% in the coming years.
PEG (NY)0.03
PEG (5Y)N/A
EPS Next 2Y108.72%
EPS Next 3YN/A
5. Dividend
5.1 Amount
CMTL has a Yearly Dividend Yield of 3.23%. Purely for dividend investing, there may be better candidates out there.
In the last 3 months the price of CMTL has falen by -71.13%. A price decline artificially increases the dividend yield. It may be a sign investors do not expect the dividend to last.
CMTL's Dividend Yield is rather good when compared to the industry average which is at 17.04. CMTL pays more dividend than 85.19% of the companies in the same industry.
Compared to an average S&P500 Dividend Yield of 2.43, CMTL pays a bit more dividend than the S&P500 average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
5.2 History
The dividend of CMTL decreases each year by -4.86%.
CMTL has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)-4.86%
Div Incr Years0
Div Non Decr Years0
5.3 Sustainability
CMTL has negative earnings and hence a negative payout ratio. The dividend may be in danger.
DP-6.35%
EPS Next 2Y108.72%
EPS Next 3YN/A
COMTECH TELECOMMUNICATIONS
NASDAQ:CMTL (4/26/2024, 7:00:00 PM)
After market: 2.0501 0 (0%)2.05
+0.18 (+9.63%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap58.36M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.23% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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PT rev (1m)
PT rev (3m)
EPS NQ rev (1m)
EPS NQ rev (3m)
EPS NY rev (1m)
EPS NY rev (3m)
Revenue NQ rev (1m)
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Revenue NY rev (1m)
Revenue NY rev (3m)
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 4.18 | ||
| Fwd PE | 3 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)0.03
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.84% | ||
| ROE | -8.42% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | N/A | ||
| PM (TTM) | N/A | ||
| GM | 32% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.57
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 0.99 | ||
| Quick Ratio | 0.74 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
Growth
EPS 1Y (TTM)148.51%
EPS 3YN/A
EPS 5Y
EPS growth Q2Q
EPS Next Y154.52%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)11.16%
Revenue growth 3Y-3.74%
Revenue growth 5Y
Revenue growth Q2Q
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
FCF growth 1Y
FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
OCF growth 5Y