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COMMUNICATIONS SYSTEMS INC (JCS) Stock Fundamental Analysis

USA - NASDAQ:JCS - Common Stock

8.18
-0.71 (-7.99%)
Last: 3/28/2022, 8:00:02 PM
8.04
-0.14 (-1.71%)
After Hours: 3/28/2022, 8:00:02 PM
Fundamental Rating

3

JCS gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. JCS scores quite bad on profitability, while its financial health is fine. Not spectacular, but in line with the averages. JCS is quite expensive at the moment. It does show a decent growth rate.


Dividend Valuation Growth Profitability Health

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0

1. Profitability

1.1 Basic Checks

JCS had positive earnings in the past year.
JCS Yearly Net Income VS EBIT VS OCF VS FCFJCS Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 0 5M -5M 10M -10M

1.2 Ratios

Industry RankSector Rank
ROA 4.05%
ROE 4.78%
ROIC N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
JCS Yearly ROA, ROE, ROICJCS Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 0 10 -10 -20

1.3 Margins

Industry RankSector Rank
OM -35.88%
PM (TTM) 4.74%
GM N/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
JCS Yearly Profit, Operating, Gross MarginsJCS Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 0 20 -20 40 -40 -60

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5

2. Health

2.1 Basic Checks

Compared to 1 year ago, JCS has more shares outstanding
There is no outstanding debt for JCS. This means it has a Debt/Equity and Debt/FCF ratio of 0 and it is amongst the best of the sector and industry.
JCS Yearly Shares OutstandingJCS Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2M 4M 6M 8M
JCS Yearly Total Debt VS Total AssetsJCS Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 20M 40M 60M 80M

2.2 Solvency

Based on the Altman-Z score of 1.32, we must say that JCS is in the distress zone and has some risk of bankruptcy.
JCS has no outstanding debt. Therefor its Debt/Equity and Debt/FCF ratios are 0 and belong to the best of the industry.
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Altman-Z 1.32
ROIC/WACCN/A
WACCN/A
JCS Yearly LT Debt VS Equity VS FCFJCS Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 0 20M 40M 60M

2.3 Liquidity

JCS has a Current Ratio of 2.50. This indicates that JCS is financially healthy and has no problem in meeting its short term obligations.
JCS has a Quick Ratio of 2.43. This indicates that JCS is financially healthy and has no problem in meeting its short term obligations.
Industry RankSector Rank
Current Ratio 2.5
Quick Ratio 2.43
JCS Yearly Current Assets VS Current LiabilitesJCS Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 20M 40M 60M

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4

3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 12692.59% over the past year.
The Earnings Per Share has been growing by 33.58% on average over the past years. This is a very strong growth
The Revenue for JCS has decreased by -59.68% in the past year. This is quite bad
Measured over the past years, JCS shows a very negative growth in Revenue. The Revenue has been decreasing by -41.16% on average per year.
EPS 1Y (TTM)12692.59%
EPS 3Y33.58%
EPS 5YN/A
EPS Q2Q%1383.33%
Revenue 1Y (TTM)-59.68%
Revenue growth 3Y-45.12%
Revenue growth 5Y-41.16%
Sales Q2Q%-85.47%

3.2 Future

Based on estimates for the next years, JCS will show a very strong growth in Earnings Per Share. The EPS will grow by 36.22% on average per year.
JCS is expected to show a decrease in Revenue. In the coming years, the Revenue will decrease by -8.38% yearly.
EPS Next Y-91%
EPS Next 2Y-81.92%
EPS Next 3Y36.22%
EPS Next 5YN/A
Revenue Next Year-15.56%
Revenue Next 2Y-15.14%
Revenue Next 3Y-8.38%
Revenue Next 5YN/A

3.3 Evolution

The EPS growth rate is stable: in the next years the growth will be about the same 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.
JCS Yearly Revenue VS EstimatesJCS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 20M 40M 60M 80M 100M
JCS Yearly EPS VS EstimatesJCS Yearly EPS VS EstimatesYearly EPS VS Estimates 2015 2016 2019 2020 2021 2022 2023 0 1 -1 -2 -3

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2

4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 3.59, the valuation of JCS can be described as very cheap.
JCS is valuated cheaply when we compare the Price/Earnings ratio to 25.07, which is the current average of the S&P500 Index.
JCS is valuated quite expensively with a Price/Forward Earnings ratio of 150.06.
JCS's Price/Forward Earnings ratio indicates a rather expensive valuation when compared to the S&P500 average which is at 34.08.
Industry RankSector Rank
PE 3.59
Fwd PE 150.06
JCS Price Earnings VS Forward Price EarningsJCS Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 50 100 150

4.2 Price Multiples

Industry RankSector Rank
P/FCF N/A
EV/EBITDA -3.04
JCS Per share dataJCS EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 2 4 6

4.3 Compensation for Growth

JCS's earnings are expected to grow with 36.22% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-81.92%
EPS Next 3Y36.22%

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3

5. Dividend

5.1 Amount

With a Yearly Dividend Yield of 3.81%, JCS has a reasonable but not impressive dividend return.
JCS's Dividend Yield is rather good when compared to the S&P500 average which is at 2.44.
Industry RankSector Rank
Dividend Yield 3.81%

5.2 History

JCS has paid a dividend for at least 10 years, which is a reliable track record.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
JCS Yearly Dividends per shareJCS Yearly Dividends per shareYearly Dividends per share 2015 2016 2017 2018 2019 2020 2021 5 10 15 20 25

5.3 Sustainability

4183.41% of the earnings are spent on dividend by JCS. This is not a sustainable payout ratio.
DP4183.41%
EPS Next 2Y-81.92%
EPS Next 3Y36.22%
JCS Yearly Income VS Free CF VS DividendJCS Yearly Income VS Free CF VS DividendYearly Income VS Free CF VS Dividend 2015 2016 2017 2018 2019 2020 2021 0 10M -10M 20M 30M
JCS Dividend Payout.JCS Dividend Payout, showing the Payout Ratio.JCS Dividend Payout.PayoutRetained Earnings

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COMMUNICATIONS SYSTEMS INC

NASDAQ:JCS (3/28/2022, 8:00:02 PM)

After market: 8.04 -0.14 (-1.71%)

8.18

-0.71 (-7.99%)

Chartmill FA Rating
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)03-29 2022-03-29/amc
Earnings (Next)05-05 2022-05-05
Inst Owners1.16%
Inst Owner Change0%
Ins Owners41.89%
Ins Owner Change0%
Market Cap19.88M
Revenue(TTM)17.17M
Net Income(TTM)813.65K
Analysts80
Price Target12.24 (49.63%)
Short Float %N/A
Short RatioN/A
Dividend
Industry RankSector Rank
Dividend Yield 3.81%
Yearly Dividend0.04
Dividend Growth(5Y)N/A
DP4183.41%
Div Incr YearsN/A
Div Non Decr YearsN/A
Ex-DateN/A
Surprises & Revisions
EPS beat(2)N/A
Avg EPS beat(2)N/A
Min EPS beat(2)N/A
Max EPS beat(2)N/A
EPS beat(4)N/A
Avg EPS beat(4)N/A
Min EPS beat(4)N/A
Max EPS beat(4)N/A
EPS beat(8)N/A
Avg EPS beat(8)N/A
EPS beat(12)N/A
Avg EPS beat(12)N/A
EPS beat(16)N/A
Avg EPS beat(16)N/A
Revenue beat(2)N/A
Avg Revenue beat(2)N/A
Min Revenue beat(2)N/A
Max Revenue beat(2)N/A
Revenue beat(4)N/A
Avg Revenue beat(4)N/A
Min Revenue beat(4)N/A
Max Revenue beat(4)N/A
Revenue beat(8)N/A
Avg Revenue beat(8)N/A
Revenue beat(12)N/A
Avg Revenue beat(12)N/A
Revenue beat(16)N/A
Avg Revenue beat(16)N/A
PT rev (1m)N/A
PT rev (3m)N/A
EPS NQ rev (1m)N/A
EPS NQ rev (3m)N/A
EPS NY rev (1m)N/A
EPS NY rev (3m)N/A
Revenue NQ rev (1m)N/A
Revenue NQ rev (3m)N/A
Revenue NY rev (1m)N/A
Revenue NY rev (3m)N/A
Valuation
Industry RankSector Rank
PE 3.59
Fwd PE 150.06
P/S 1.16
P/FCF N/A
P/OCF N/A
P/B 1.17
P/tB N/A
EV/EBITDA -3.04
EPS(TTM)2.28
EY27.87%
EPS(NY)0.05
Fwd EY0.67%
FCF(TTM)N/A
FCFYN/A
OCF(TTM)N/A
OCFYN/A
SpS7.07
BVpS7
TBVpSN/A
PEG (NY)N/A
PEG (5Y)N/A
Graham NumberN/A
Profitability
Industry RankSector Rank
ROA 4.05%
ROE 4.78%
ROCE N/A
ROIC N/A
ROICexc N/A
ROICexgc N/A
OM -35.88%
PM (TTM) 4.74%
GM N/A
FCFM N/A
ROA(3y)N/A
ROA(5y)N/A
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)N/A
ROIC(5y)N/A
ROICexc(3y)N/A
ROICexc(5y)N/A
ROICexgc(3y)N/A
ROICexgc(5y)N/A
ROCE(3y)N/A
ROCE(5y)N/A
ROICexgc growth 3Y0%
ROICexgc growth 5Y0%
ROICexc growth 3YN/A
ROICexc growth 5YN/A
OM growth 3YN/A
OM growth 5YN/A
PM growth 3YN/A
PM growth 5YN/A
GM growth 3YN/A
GM growth 5YN/A
F-Score5
Asset Turnover0.86
Health
Industry RankSector Rank
Debt/Equity 0
Debt/FCF N/A
Debt/EBITDA N/A
Cap/Depr N/A
Cap/Sales N/A
Interest Coverage N/A
Cash Conversion N/A
Profit Quality N/A
Current Ratio 2.5
Quick Ratio 2.43
Altman-Z 1.32
F-Score5
WACCN/A
ROIC/WACCN/A
Cap/Depr(3y)N/A
Cap/Depr(5y)N/A
Cap/Sales(3y)N/A
Cap/Sales(5y)N/A
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)12692.59%
EPS 3Y33.58%
EPS 5YN/A
EPS Q2Q%1383.33%
EPS Next Y-91%
EPS Next 2Y-81.92%
EPS Next 3Y36.22%
EPS Next 5YN/A
Revenue 1Y (TTM)-59.68%
Revenue growth 3Y-45.12%
Revenue growth 5Y-41.16%
Sales Q2Q%-85.47%
Revenue Next Year-15.56%
Revenue Next 2Y-15.14%
Revenue Next 3Y-8.38%
Revenue Next 5YN/A
EBIT growth 1YN/A
EBIT growth 3YN/A
EBIT growth 5YN/A
EBIT Next YearN/A
EBIT Next 3YN/A
EBIT Next 5YN/A
FCF growth 1YN/A
FCF growth 3YN/A
FCF growth 5YN/A
OCF growth 1YN/A
OCF growth 3YN/A
OCF growth 5YN/A

COMMUNICATIONS SYSTEMS INC / JCS FAQ

What is the ChartMill fundamental rating of COMMUNICATIONS SYSTEMS INC (JCS) stock?

ChartMill assigns a fundamental rating of 5 / 10 to JCS.


What is the valuation status of COMMUNICATIONS SYSTEMS INC (JCS) stock?

ChartMill assigns a valuation rating of 8 / 10 to COMMUNICATIONS SYSTEMS INC (JCS). This can be considered as Undervalued.


What is the profitability of JCS stock?

COMMUNICATIONS SYSTEMS INC (JCS) has a profitability rating of 4 / 10.


Can you provide the PE and PB ratios for JCS stock?

The Price/Earnings (PE) ratio for COMMUNICATIONS SYSTEMS INC (JCS) is 3.59 and the Price/Book (PB) ratio is 1.17.


Can you provide the financial health for JCS stock?

The financial health rating of COMMUNICATIONS SYSTEMS INC (JCS) is 6 / 10.