COMMSCOPE HOLDING CO INC (COMM) Stock Fundamental Analysis
NASDAQ:COMM - Nasdaq - US20337X1090 - Common Stock - Currency: USD
Taking everything into account, COMM scores 5 out of 10 in our fundamental rating. COMM was compared to 49 industry peers in the Communications Equipment industry. While COMM is still in line with the averages on profitability rating, there are concerns on its financial health. COMM is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
COMM had positive earnings in the past year.
In the past year COMM had a positive cash flow from operations.
COMM had negative earnings in each of the past 5 years.
In the past 5 years COMM always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 10.14%, COMM belongs to the best of the industry, outperforming 87.76% of the companies in the same industry.
COMM's Return On Invested Capital of 7.59% is fine compared to the rest of the industry. COMM outperforms 77.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for COMM is significantly below the industry average of 13.73%.
The 3 year average ROIC (3.31%) for COMM is below the current ROIC(7.59%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.14% | ||
| ROE | N/A | ||
| ROIC | 7.59% |
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
COMM's Profit Margin of 16.03% is amongst the best of the industry. COMM outperforms 89.80% of its industry peers.
Looking at the Operating Margin, with a value of 13.06%, COMM belongs to the top of the industry, outperforming 83.67% of the companies in the same industry.
In the last couple of years the Operating Margin of COMM has grown nicely.
Looking at the Gross Margin, with a value of 40.03%, COMM is in line with its industry, outperforming 46.94% of the companies in the same industry.
In the last couple of years the Gross Margin of COMM has grown nicely.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 13.06% | ||
| PM (TTM) | 16.03% | ||
| GM | 40.03% |
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
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so COMM is still creating some value.
COMM has more shares outstanding than it did 1 year ago.
COMM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for COMM is higher compared to a year ago.
2.2 Solvency
Based on the Altman-Z score of 0.34, we must say that COMM is in the distress zone and has some risk of bankruptcy.
COMM has a Altman-Z score (0.34) which is in line with its industry peers.
The Debt to FCF ratio of COMM is 31.62, which is on the high side as it means it would take COMM, 31.62 years of fcf income to pay off all of its debts.
COMM has a Debt to FCF ratio of 31.62. This is comparable to the rest of the industry: COMM outperforms 40.82% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 31.62 | ||
| Altman-Z | 0.34 |
ROIC/WACC1.12
WACC6.79%
2.3 Liquidity
COMM has a Current Ratio of 2.19. This indicates that COMM is financially healthy and has no problem in meeting its short term obligations.
The Current ratio of COMM (2.19) is better than 65.31% of its industry peers.
COMM has a Quick Ratio of 1.46. This is a normal value and indicates that COMM is financially healthy and should not expect problems in meeting its short term obligations.
COMM has a Quick ratio (1.46) which is in line with its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.46 |
3. Growth
3.1 Past
The Earnings Per Share has grown by an impressive 177.27% over the past year.
Measured over the past years, COMM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.92% on average per year.
COMM shows a decrease in Revenue. In the last year, the revenue decreased by -4.15%.
The Revenue for COMM have been decreasing by -12.81% on average. This is quite bad
EPS 1Y (TTM)177.27%
EPS 3Y-34.53%
EPS 5Y-28.92%
EPS Q2Q%275%
Revenue 1Y (TTM)-4.15%
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 42.23% yearly.
The Revenue is expected to grow by 4.68% on average over the next years.
EPS Next Y132.12%
EPS Next 2Y77.37%
EPS Next 3Y42.23%
EPS Next 5YN/A
Revenue Next Year5.56%
Revenue Next 2Y6.92%
Revenue Next 3Y4.68%
Revenue Next 5YN/A
3.3 Evolution
When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
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 9.34, the valuation of COMM can be described as reasonable.
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 (25.82), we can say COMM is valued rather cheaply.
COMM is valuated cheaply with a Price/Forward Earnings ratio of 4.65.
Compared to the rest of the industry, the Price/Forward Earnings ratio of COMM indicates a rather cheap valuation: COMM is cheaper than 100.00% of the companies listed in the same industry.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.76, COMM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 4.65 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COMM is valued cheaper than 85.71% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, COMM is valued cheaply inside the industry as 95.92% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 5.39 | ||
| EV/EBITDA | 8.3 |
4.3 Compensation for Growth
COMM's low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
COMM has a very decent profitability rating, which may justify a higher PE ratio.
COMM's earnings are expected to grow with 42.23% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.07
PEG (5Y)N/A
EPS Next 2Y77.37%
EPS Next 3Y42.23%
5. Dividend
5.1 Amount
No dividends for COMM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
5.7
+0.21 (+3.83%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.46%
Inst Owner Change2.85%
Ins Owners3.41%
Ins Owner Change12.12%
Market Cap1.23B
Analysts47.69
Price Target4.9 (-14.04%)
Short Float %5.98%
Short Ratio2.13
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)2
Avg EPS beat(2)337.81%
Min EPS beat(2)103.34%
Max EPS beat(2)572.27%
EPS beat(4)3
Avg EPS beat(4)720.48%
Min EPS beat(4)-115.91%
Max EPS beat(4)2322.22%
EPS beat(8)4
Avg EPS beat(8)342.04%
EPS beat(12)7
Avg EPS beat(12)231.78%
EPS beat(16)9
Avg EPS beat(16)176.99%
Revenue beat(2)1
Avg Revenue beat(2)0.73%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)3.46%
Revenue beat(4)2
Avg Revenue beat(4)-3.32%
Min Revenue beat(4)-25.42%
Max Revenue beat(4)10.69%
Revenue beat(8)3
Avg Revenue beat(8)-5.62%
Revenue beat(12)5
Avg Revenue beat(12)-4.64%
Revenue beat(16)7
Avg Revenue beat(16)-3.3%
PT rev (1m)-12.09%
PT rev (3m)14.29%
EPS NQ rev (1m)18.01%
EPS NQ rev (3m)124.99%
EPS NY rev (1m)9.74%
EPS NY rev (3m)103.24%
Revenue NQ rev (1m)0.86%
Revenue NQ rev (3m)10.84%
Revenue NY rev (1m)-0.1%
Revenue NY rev (3m)10.53%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 9.34 | ||
| Fwd PE | 4.65 | ||
| P/S | 0.26 | ||
| P/FCF | 5.39 | ||
| P/OCF | 4.68 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 8.3 |
EPS(TTM)0.61
EY10.7%
EPS(NY)1.23
Fwd EY21.52%
FCF(TTM)1.06
FCFY18.56%
OCF(TTM)1.22
OCFY21.38%
SpS21.94
BVpS-6.02
TBVpS-24.73
PEG (NY)0.07
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 10.14% | ||
| ROE | N/A | ||
| ROCE | 9.61% | ||
| ROIC | 7.59% | ||
| ROICexc | 8.22% | ||
| ROICexgc | 25.63% | ||
| OM | 13.06% | ||
| PM (TTM) | 16.03% | ||
| GM | 40.03% | ||
| FCFM | 4.82% |
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-Score6
Asset Turnover0.63
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 31.62 | ||
| Debt/EBITDA | 7.57 | ||
| Cap/Depr | 10.36% | ||
| Cap/Sales | 0.73% | ||
| Interest Coverage | 0.95 | ||
| Cash Conversion | 27.59% | ||
| Profit Quality | 30.08% | ||
| Current Ratio | 2.19 | ||
| Quick Ratio | 1.46 | ||
| Altman-Z | 0.34 |
F-Score6
WACC6.79%
ROIC/WACC1.12
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 Y132.12%
EPS Next 2Y77.37%
EPS Next 3Y42.23%
EPS Next 5YN/A
Revenue 1Y (TTM)-4.15%
Revenue growth 3Y-21.17%
Revenue growth 5Y-12.81%
Sales Q2Q%-4.81%
Revenue Next Year5.56%
Revenue Next 2Y6.92%
Revenue Next 3Y4.68%
Revenue Next 5YN/A
EBIT growth 1Y66.74%
EBIT growth 3Y10.9%
EBIT growth 5Y17.23%
EBIT Next Year41.13%
EBIT Next 3Y16.83%
EBIT Next 5YN/A
FCF growth 1Y226.35%
FCF growth 3YN/A
FCF growth 5Y-12.83%
OCF growth 1Y66.5%
OCF growth 3Y30.71%
OCF growth 5Y-14.46%