Fundamental Analysis of COMMSCOPE HOLDING CO INC(NASDAQ:COMM) stock

Fundamental Rating

We assign a fundamental rating of 3 out of 10 to COMM. COMM was compared to 54 industry peers in the Communications Equipment industry. COMM has a medium profitability rating, but doesn't score so well on its financial health evaluation. COMM has a valuation in line with the averages, but it does not seem to be growing.

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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.

COMM had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

With a Return On Assets value of -16.14%, COMM is not doing good in the industry: 74.07% of the companies in the same industry are doing better.

COMM's Return On Invested Capital of 4.84% is fine compared to the rest of the industry. COMM outperforms 72.22% 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 9.88%.

The last Return On Invested Capital (4.84%) for COMM is above the 3 year average (3.68%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	-16.14%
ROE	N/A
ROIC	4.84%

ROA(3y)-10.53%

ROA(5y)-8.59%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)3.68%

ROIC(5y)2.76%

1.3 Margins

COMM has a Operating Margin of 8.43%. This is amongst the best in the industry. COMM outperforms 81.48% of its industry peers.

In the last couple of years the Operating Margin of COMM has declined.

Looking at the Gross Margin, with a value of 37.11%, COMM is in line with its industry, outperforming 48.15% of the companies in the same industry.

COMM's Gross Margin has been stable in the last couple of years.

		Industry Rank	Sector Rank
OM	8.43%
PM (TTM)	N/A
GM	37.11%

OM growth 3Y40.94%

OM growth 5Y-5.11%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y4.44%

GM growth 5Y0.75%

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ROA

ROE

ROIC

Operating and Profit Margin

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2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COMM is destroying value.

The number of shares outstanding for COMM has been increased compared to 1 year ago.

The number of shares outstanding for COMM has been increased compared to 5 years ago.

Compared to 1 year ago, COMM has a worse debt to assets ratio.

2.2 Solvency

Based on the Altman-Z score of 0.25, we must say that COMM is in the distress zone and has some risk of bankruptcy.

Looking at the Altman-Z score, with a value of 0.25, COMM is doing worse than 62.96% of the companies in the same industry.

COMM has a debt to FCF ratio of 39.22. This is a negative value and a sign of low solvency as COMM would need 39.22 years to pay back of all of its debts.

COMM has a Debt to FCF ratio of 39.22. This is comparable to the rest of the industry: COMM outperforms 50.00% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	39.22
Altman-Z	0.25

ROIC/WACC0.85

WACC5.73%

2.3 Liquidity

A Current Ratio of 2.03 indicates that COMM has no problem at all paying its short term obligations.

The Current ratio of COMM (2.03) is comparable to the rest of the industry.

A Quick Ratio of 1.27 indicates that COMM should not have too much problems paying its short term obligations.

Looking at the Quick ratio, with a value of 1.27, COMM is in line with its industry, outperforming 44.44% of the companies in the same industry.

		Industry Rank	Sector Rank
Current Ratio	2.03
Quick Ratio	1.27

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The earnings per share for COMM have decreased strongly by -60.84% in the last year.

COMM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.13% yearly.

The Revenue for COMM has decreased by -37.27% in the past year. This is quite bad

COMM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.85% yearly.

EPS 1Y (TTM)-60.84%

EPS 3Y-24.99%

EPS 5Y-22.13%

EPS growth Q2Q-104.08%

Revenue 1Y (TTM)-37.27%

Revenue growth 3Y-11.79%

Revenue growth 5Y4.85%

Revenue growth Q2Q-88.36%

3.2 Future

The Earnings Per Share is expected to decrease by -32.04% on average over the next years. This is quite bad

The Revenue is expected to decrease by -6.27% on average over the next years.

EPS Next Y-155.45%

EPS Next 2Y-24.69%

EPS Next 3Y-32.04%

EPS Next 5YN/A

Revenue Next Year-33.06%

Revenue Next 2Y-13.86%

Revenue Next 3Y-6.27%

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 decreasing.

When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is decreasing.

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4. Valuation

4.1 Price/Earnings Ratio

With a Price/Earnings ratio of 1.53, the valuation of COMM can be described as very cheap.

COMM's Price/Earnings ratio is rather cheap when compared to the industry. COMM is cheaper than 98.15% of the companies in the same industry.

When comparing the Price/Earnings ratio of COMM to the average of the S&P500 Index (28.28), we can say COMM is valued rather cheaply.

COMM is expected to report negative earnings next year, which makes the Forward Price/Earnings Ratio negative.

		Industry Rank	Sector Rank
PE	1.53
Fwd PE	N/A

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, COMM is valued cheaply inside the industry as 83.33% of the companies are valued more expensively.

Based on the Price/Free Cash Flow ratio, COMM is valued cheaper than 98.15% of the companies in the same industry.

		Industry Rank	Sector Rank
P/FCF	0.89
EV/EBITDA	8.52

4.3 Compensation for Growth

COMM's earnings are expected to decrease with -32.04% in the coming years. This may justify a cheaper valuation.

PEG (NY)N/A

PEG (5Y)N/A

EPS Next 2Y-24.69%

EPS Next 3Y-32.04%

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5. Dividend

5.1 Amount

No dividends for COMM!.

		Industry Rank	Sector Rank
Dividend Yield	N/A

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COMMSCOPE HOLDING CO INC

NASDAQ:COMM (5/3/2024, 7:00:00 PM)

After market: 1 +0.01 (+0.81%)

0.992

-0.06 (-5.52%)

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 Cap210.54M

Analysts

Price Target

Dividend

		Industry Rank	Sector Rank
Dividend Yield	N/A

Dividend Growth(5Y)

Div Incr Years

Div Non Decr Years

Ex-Date

Surprises & Revisions

EPS beat(2)

Avg EPS beat(2)

Min EPS beat(2)

Max EPS beat(2)

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EPS beat(16)

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Revenue beat(2)

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Revenue beat(8)

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Revenue beat(16)

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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)

Revenue NQ rev (3m)

Revenue NY rev (1m)

Revenue NY rev (3m)

Valuation

		Industry Rank	Sector Rank
PE	1.53
Fwd PE	N/A
P/S
P/FCF
P/OCF
P/B
P/tB
EV/EBITDA

EPS(TTM)

EPS(NY)

Fwd EY

FCF(TTM)

FCFY

OCF(TTM)

OCFY

SpS

BVpS

TBVpS

PEG (NY)N/A

PEG (5Y)N/A

Profitability

		Industry Rank	Sector Rank
ROA	-16.14%
ROE	N/A
ROCE
ROIC
ROICexc
ROICexgc
OM	8.43%
PM (TTM)	N/A
GM	37.11%
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 Turnover0.62

Health

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF
Debt/EBITDA
Cap/Depr
Cap/Sales
Interest Coverage
Cash Conversion
Profit Quality
Current Ratio	2.03
Quick Ratio	1.27
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)-60.84%

EPS 3Y-24.99%

EPS 5Y

EPS growth Q2Q

EPS Next Y-155.45%

EPS Next 2Y

EPS Next 3Y

EPS Next 5Y

Revenue 1Y (TTM)-37.27%

Revenue growth 3Y-11.79%

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

COMMSCOPE HOLDING CO INC (COMM)

1. Profitability

1.1 Basic Checks

1.2 Ratios

1.3 Margins

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2. Health

2.1 Basic Checks

2.2 Solvency

2.3 Liquidity

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3. Growth

3.1 Past

3.2 Future

3.3 Evolution

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4. Valuation

4.1 Price/Earnings Ratio

4.2 Price Multiples

4.3 Compensation for Growth

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5. Dividend

5.1 Amount

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