COMMUNICATIONS SYSTEMS INC (JCS) Stock Fundamental Analysis

NASDAQ:JCS

8.18
-0.71 (-7.99%)
At close: Mar 28, 2022
8.04
-0.14 (-1.71%)
After Hours: 3/28/2022, 8:00:02 PM
Overview Stock Chart Technical Analysis Fundamental Analysis Analyst Ratings Earnings Estimates Financials Ownership News
Fundamental Rating

3

We assign a fundamental rating of 3 out of 10 to JCS. JCS was compared to 48 industry peers in the Communications Equipment industry. The financial health of JCS is average, but there are quite some concerns on its profitability. JCS is valied quite expensively at the moment, while it does show a decent growth rate.


Dividend Valuation Growth Profitability Health

0

1. Profitability

1.1 Basic Checks

  • In the past year JCS was profitable.
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 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 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 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 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 2016 2017 2018 2019 2020 2021 20M 40M 60M

2.2 Solvency

  • JCS has an Altman-Z score of 1.32. This is a bad value and indicates that JCS is not financially healthy and even 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 2016 2017 2018 2019 2020 2021 0 20M 40M 60M

2.3 Liquidity

  • A Current Ratio of 2.50 indicates that JCS has no problem at all paying its short term obligations.
  • A Quick Ratio of 2.43 indicates that JCS has no problem at all paying 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 2016 2017 2018 2019 2020 2021 10M 20M 30M 40M 50M

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WACCDebt/EquityHow to determine the health of a companyAltman-Z scoreShow peers with great health

4

3. Growth

3.1 Past

  • JCS shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 12692.59%, which is quite impressive.
  • Measured over the past years, JCS shows a very strong growth in Earnings Per Share. The EPS has been growing by 33.58% on average per year.
  • 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.
  • Based on estimates for the next years, JCS will show a decrease in Revenue. The Revenue will decrease by -8.38% on average per year.
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.
  • The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.
JCS Yearly Revenue VS EstimatesJCS Yearly Revenue VS EstimatesYearly Revenue VS Estimates 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

  • The Price/Earnings ratio is 3.59, which indicates a rather cheap valuation of JCS.
  • JCS is valuated cheaply when we compare the Price/Earnings ratio to 27.97, which is the current average of the S&P500 Index.
  • Based on the Price/Forward Earnings ratio of 150.06, the valuation of JCS can be described as expensive.
  • When comparing the Price/Forward Earnings ratio of JCS to the average of the S&P500 Index (27.96), we can say JCS is valued expensively.
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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Price/EarningsPrice/FCFFCF per shareEV/EBITDAPEG RATIOShow best valued peers

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 1.84.
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 2016 2017 2018 2019 2020 2021 5 10 15 20 25

5.3 Sustainability

  • JCS pays out 4183.41% of its income as dividend. 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 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
Earnings (Next)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 for JCS stock?

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


Can you provide the profitability details for COMMUNICATIONS SYSTEMS INC?

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


What are the PE and PB ratios of COMMUNICATIONS SYSTEMS INC (JCS) stock?

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


What is the expected EPS growth for COMMUNICATIONS SYSTEMS INC (JCS) stock?

The Earnings per Share (EPS) of COMMUNICATIONS SYSTEMS INC (JCS) is expected to decline by -91% in the next year.