COMMSCOPE HOLDING CO INC (COMM) Stock Fundamental Analysis
NASDAQ:COMM - Nasdaq - US20337X1090 - Common Stock - Currency: USD
COMM gets a fundamental rating of 4 out of 10. The analysis compared the fundamentals against 49 industry peers in the Communications Equipment industry. There are concerns on the financial health of COMM while its profitability can be described as average. COMM may be a bit undervalued, certainly considering the very reasonable score on growth
1. Profitability
1.1 Basic Checks
In the past year COMM was profitable.
COMM had a positive operating cash flow in the past year.
In the past 5 years COMM always reported negative net income.
In the past 5 years COMM always reported a positive cash flow from operatings.
1.2 Ratios
COMM's Return On Assets of -4.35% is in line compared to the rest of the industry. COMM outperforms 44.90% of its industry peers.
COMM has a Return On Invested Capital of 5.26%. This is in the better half of the industry: COMM outperforms 73.47% of its industry peers.
Measured over the past 3 years, the Average Return On Invested Capital for COMM is significantly below the industry average of 11.12%.
The last Return On Invested Capital (5.26%) for COMM is above the 3 year average (3.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.35% | ||
| ROE | N/A | ||
| ROIC | 5.26% |
ROA(3y)-10.89%
ROA(5y)-8.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.31%
ROIC(5y)2.7%
1.3 Margins
Looking at the Operating Margin, with a value of 10.42%, COMM is in the better half of the industry, outperforming 79.59% of the companies in the same industry.
In the last couple of years the Operating Margin of COMM has grown nicely.
COMM's Gross Margin of 38.18% is in line compared to the rest of the industry. COMM outperforms 46.94% of its industry peers.
In the last couple of years the Gross Margin of COMM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 10.42% | ||
| PM (TTM) | N/A | ||
| GM | 38.18% |
OM growth 3Y40.69%
OM growth 5Y34.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.25%
GM growth 5Y5.41%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COMM is destroying value.
Compared to 1 year ago, COMM has more shares outstanding
COMM has more shares outstanding than it did 5 years ago.
COMM has a worse debt/assets ratio than last year.
2.2 Solvency
COMM has an Altman-Z score of 0.25. This is a bad value and indicates that COMM is not financially healthy and even has some risk of bankruptcy.
COMM has a worse Altman-Z score (0.25) than 61.22% of its industry peers.
COMM has a debt to FCF ratio of 37.28. This is a negative value and a sign of low solvency as COMM would need 37.28 years to pay back of all of its debts.
COMM has a Debt to FCF ratio (37.28) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 37.28 | ||
| Altman-Z | 0.25 |
ROIC/WACC0.8
WACC6.59%
2.3 Liquidity
COMM has a Current Ratio of 2.83. This indicates that COMM is financially healthy and has no problem in meeting its short term obligations.
COMM has a Current ratio of 2.83. This is in the better half of the industry: COMM outperforms 73.47% of its industry peers.
A Quick Ratio of 2.23 indicates that COMM has no problem at all paying its short term obligations.
COMM's Quick ratio of 2.23 is fine compared to the rest of the industry. COMM outperforms 75.51% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
COMM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 177.27%, which is quite impressive.
The earnings per share for COMM have been decreasing by -28.92% on average. This is quite bad
The Revenue has decreased by -7.87% in the past year.
Measured over the past years, COMM shows a very negative growth in Revenue. The Revenue has been decreasing by -12.81% on average per year.
EPS 1Y (TTM)177.27%
EPS 3Y-34.53%
EPS 5Y-28.92%
EPS Q2Q%275%
Revenue 1Y (TTM)-7.87%
Revenue growth 3Y-21.17%
Revenue growth 5Y-12.81%
Sales Q2Q%-4.81%
3.2 Future
COMM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.41% yearly.
The Revenue is expected to grow by 5.39% on average over the next years.
EPS Next Y111.52%
EPS Next 2Y71.02%
EPS Next 3Y46.41%
EPS Next 5YN/A
Revenue Next Year5.66%
Revenue Next 2Y6.92%
Revenue Next 3Y5.39%
Revenue Next 5YN/A
3.3 Evolution
The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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
COMM is valuated cheaply with a Price/Earnings ratio of 7.80.
Compared to the rest of the industry, the Price/Earnings ratio of COMM indicates a rather cheap valuation: COMM is cheaper than 93.88% of the companies listed in the same industry.
When comparing the Price/Earnings ratio of COMM to the average of the S&P500 Index (28.22), we can say COMM is valued rather cheaply.
A Price/Forward Earnings ratio of 4.17 indicates a rather cheap valuation of COMM.
100.00% of the companies in the same industry are more expensive than COMM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of COMM to the average of the S&P500 Index (20.86), we can say COMM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.8 | ||
| Fwd PE | 4.17 |
4.2 Price Multiples
73.47% of the companies in the same industry are more expensive than COMM, based on the Enterprise Value to EBITDA ratio.
Based on the Price/Free Cash Flow ratio, COMM is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 4.16 | ||
| EV/EBITDA | 11.09 |
4.3 Compensation for Growth
The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
COMM's earnings are expected to grow with 46.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y71.02%
EPS Next 3Y46.41%
5. Dividend
5.1 Amount
No dividends for COMM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
4.76
+0.21 (+4.62%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.46%
Inst Owner Change0.18%
Ins Owners3.41%
Ins Owner Change10.9%
Market Cap1.03B
Analysts47.69
Price Target5.57 (17.02%)
Short Float %6.64%
Short Ratio2.31
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)1
Avg EPS beat(2)228.18%
Min EPS beat(2)-115.91%
Max EPS beat(2)572.27%
EPS beat(4)3
Avg EPS beat(4)711.16%
Min EPS beat(4)-115.91%
Max EPS beat(4)2322.22%
EPS beat(8)4
Avg EPS beat(8)329.57%
EPS beat(12)7
Avg EPS beat(12)224.78%
EPS beat(16)9
Avg EPS beat(16)171.8%
Revenue beat(2)1
Avg Revenue beat(2)-10.98%
Min Revenue beat(2)-25.42%
Max Revenue beat(2)3.46%
Revenue beat(4)3
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-25.42%
Max Revenue beat(4)10.69%
Revenue beat(8)3
Avg Revenue beat(8)-6.45%
Revenue beat(12)6
Avg Revenue beat(12)-4.03%
Revenue beat(16)8
Avg Revenue beat(16)-3.11%
PT rev (1m)0%
PT rev (3m)35.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)304.92%
EPS NY rev (1m)-1.52%
EPS NY rev (3m)59.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 7.8 | ||
| Fwd PE | 4.17 | ||
| P/S | 0.21 | ||
| P/FCF | 4.16 | ||
| P/OCF | 3.77 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.09 |
EPS(TTM)0.61
EY12.82%
EPS(NY)1.14
Fwd EY23.96%
FCF(TTM)1.14
FCFY24.04%
OCF(TTM)1.26
OCFY26.49%
SpS22.2
BVpS-10.29
TBVpS-29.15
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.35% | ||
| ROE | N/A | ||
| ROCE | 6.66% | ||
| ROIC | 5.26% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 13.79% | ||
| OM | 10.42% | ||
| PM (TTM) | N/A | ||
| GM | 38.18% | ||
| FCFM | 5.16% |
ROA(3y)-10.89%
ROA(5y)-8.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.31%
ROIC(5y)2.7%
ROICexc(3y)3.52%
ROICexc(5y)2.85%
ROICexgc(3y)10.08%
ROICexgc(5y)9.58%
ROCE(3y)4.18%
ROCE(5y)3.41%
ROICexcg growth 3Y5.33%
ROICexcg growth 5Y9.67%
ROICexc growth 3Y28.11%
ROICexc growth 5Y30.3%
OM growth 3Y40.69%
OM growth 5Y34.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.25%
GM growth 5Y5.41%
F-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 37.28 | ||
| Debt/EBITDA | 10.6 | ||
| Cap/Depr | 6.83% | ||
| Cap/Sales | 0.53% | ||
| Interest Coverage | 0.77 | ||
| Cash Conversion | 31.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 0.25 |
F-Score5
WACC6.59%
ROIC/WACC0.8
Cap/Depr(3y)10.29%
Cap/Depr(5y)12.46%
Cap/Sales(3y)0.96%
Cap/Sales(5y)1.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)177.27%
EPS 3Y-34.53%
EPS 5Y-28.92%
EPS Q2Q%275%
EPS Next Y111.52%
EPS Next 2Y71.02%
EPS Next 3Y46.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-7.87%
Revenue growth 3Y-21.17%
Revenue growth 5Y-12.81%
Sales Q2Q%-4.81%
Revenue Next Year5.66%
Revenue Next 2Y6.92%
Revenue Next 3Y5.39%
Revenue Next 5YN/A
EBIT growth 1Y2.58%
EBIT growth 3Y10.9%
EBIT growth 5Y17.23%
EBIT Next Year41.13%
EBIT Next 3Y16.83%
EBIT Next 5YN/A
FCF growth 1Y4.73%
FCF growth 3YN/A
FCF growth 5Y-12.83%
OCF growth 1Y-5.8%
OCF growth 3Y30.71%
OCF growth 5Y-14.46%