COMMUNICATIONS SYSTEMS INC (JCS)
Common Stock
We assign a fundamental rating of 3 out of 10 to JCS. JCS was compared to 54 industry peers in the Communications Equipment industry. While JCS seems to be doing ok healthwise, there are quite some concerns on its profitability. JCS is valied quite expensively at the moment, while it does show a decent growth rate.
1. Profitability
1.1 Basic Checks
In the past year JCS was profitable.
The reported net income has been mixed in the past 5 years: JCS reported negative net income in multiple years.
In multiple years JCS reported negative operating cash flow during the last 5 years.
1.2 Ratios
| Industry Rank | Sector 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
1.3 Margins
| Industry Rank | Sector 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
2. Health
2.1 Basic Checks
The number of shares outstanding for JCS has been increased compared to 1 year ago.
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.
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.
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.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | N/A | ||
| Altman-Z | 1.32 |
ROIC/WACCN/A
WACCN/A
2.3 Liquidity
A Current Ratio of 2.50 indicates that JCS has no problem at all paying 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 Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.5 | ||
| Quick Ratio | 2.43 |
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.
JCS shows a strong growth in Earnings Per Share. Measured over the last years, the EPS has been growing by 33.58% yearly.
JCS shows a very negative growth in Revenue. In the last year, the Revenue has decreased by -59.68%.
The Revenue for JCS have been decreasing by -41.16% on average. This is quite bad
EPS 1Y (TTM)12692.59%
EPS 3Y33.58%
EPS 5YN/A
EPS growth Q2Q1383.33%
Revenue 1Y (TTM)-59.68%
Revenue growth 3Y-45.12%
Revenue growth 5Y-41.16%
Revenue growth Q2Q-85.47%
3.2 Future
The Earnings Per Share is expected to grow by 36.22% on average over the next years. This is a very strong growth
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.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 3.59, which indicates a rather cheap valuation of JCS.
When comparing the Price/Earnings ratio of JCS to the average of the S&P500 Index (24.84), we can say JCS is valued rather cheaply.
A Price/Forward Earnings ratio of 150.06 indicates a quite expensive valuation of JCS.
Compared to an average S&P500 Price/Forward Earnings ratio of 21.35, JCS is valued quite expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 3.59 | ||
| Fwd PE | 150.06 |
4.2 Price Multiples
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | N/A | ||
| EV/EBITDA | -3.04 |
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%
5. Dividend
5.1 Amount
JCS has a Yearly Dividend Yield of 3.81%. Purely for dividend investing, there may be better candidates out there.
Compared to an average S&P500 Dividend Yield of 2.41, JCS pays a better dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
5.2 History
JCS has been paying a dividend for at least 10 years, so it has a reliable track record.
Dividend Growth(5Y)N/A
Div Incr YearsN/A
Div Non Decr YearsN/A
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%
COMMUNICATIONS SYSTEMS INC
NASDAQ:JCS (3/28/2022, 7:00:02 PM)
After market: 8.04 -0.14 (-1.71%)8.18
-0.71 (-7.99%)
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 Cap19.88M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | 3.81% |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Revenue beat(2)
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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 | 3.59 | ||
| Fwd PE | 150.06 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
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 | 4.05% | ||
| ROE | 4.78% | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | -35.88% | ||
| PM (TTM) | 4.74% | ||
| GM | N/A | ||
| 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 Turnover0.86
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | 0 | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 2.5 | ||
| Quick Ratio | 2.43 | ||
| 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)12692.59%
EPS 3Y33.58%
EPS 5Y
EPS growth Q2Q
EPS Next Y-91%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-59.68%
Revenue growth 3Y-45.12%
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