TSXV:CMI

Stock Analysis Report

C-Com Satellite Systems

Executive Summary

C-Com Satellite Systems Inc. develops and deploys commercial grade mobile auto-deploying satellite-based technology for the delivery of two-way high-speed Internet, VoIP, and video services into vehicles.

Rewards

PE ratio (40.6x) is below the Communications industry average (40.8x)

Risk Analysis

Earnings have declined by -6.37% per year over past 5 years

High level of non-cash earnings

Dividend of 2.7% is not well covered by earnings

Does not have a meaningful market cap (CA$70M)



Snowflake Analysis

Flawless balance sheet with questionable track record.


Similar Companies

Gilat Satellite Networks

NasdaqGS:GILT

Share Price & News

How has C-Com Satellite Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CMI has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

1.6%

CMI

1.5%

CA Communications

1.6%

CA Market


1 Year Return

52.9%

CMI

0.6%

CA Communications

9.9%

CA Market

Return vs Industry: CMI exceeded the Canadian Communications industry which returned -1.5% over the past year.

Return vs Market: CMI exceeded the Canadian Market which returned 10.4% over the past year.


Shareholder returns

CMIIndustryMarket
7 Day1.6%1.5%1.6%
30 Day2.8%3.2%2.9%
90 Day5.7%4.8%6.4%
1 Year57.9%52.9%1.1%0.6%13.5%9.9%
3 Year120.4%94.7%-4.5%-6.4%17.4%6.7%
5 Year82.7%46.8%-34.2%-36.6%36.5%16.4%

Price Volatility Vs. Market

How volatile is C-Com Satellite Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is C-Com Satellite Systems undervalued compared to its fair value and its price relative to the market?

40.62x

Price to Earnings (PE) ratio


Share Price vs. Fair Value

Below Fair Value: CMI (CA$1.85) is trading above our estimate of fair value (CA$0.42)

Significantly Below Fair Value: CMI is trading above our estimate of fair value.


Price To Earnings Ratio

PE vs Industry: CMI is good value based on its PE Ratio (40.6x) compared to the Communications industry average (40.8x).

PE vs Market: CMI is poor value based on its PE Ratio (40.6x) compared to the Canadian market (15.8x).


Price to Earnings Growth Ratio

PEG Ratio: Insufficient data to calculate CMI's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: CMI is overvalued based on its PB Ratio (3.5x) compared to the CA Communications industry average (1.3x).


Next Steps

Future Growth

How is C-Com Satellite Systems forecast to perform in the next 1 to 3 years based on estimates from 0 analysts?

85.1%

Forecasted Tech industry annual growth in earnings


In this section we usually present revenue and earnings growth projections based on the consensus estimates of professional analysts to help investors understand the company’s ability to generate profit. But as C-Com Satellite Systems has not provided enough past data and has no analyst forecast, its future earnings cannot be reliably calculated by extrapolating past data or using analyst predictions.

This is quite a rare situation as 97% of companies covered by SimplyWall St do have past financial data.


Next Steps

Past Performance

How has C-Com Satellite Systems performed over the past 5 years?

-6.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMI has a high level of non-cash earnings.

Growing Profit Margin: CMI's current net profit margins (14.3%) are higher than last year (14.2%).


Past Earnings Growth Analysis

Earnings Trend: CMI's earnings have declined by -6.4% per year over the past 5 years.

Accelerating Growth: CMI's earnings growth over the past year (0.3%) exceeds its 5-year average (-6.4% per year).

Earnings vs Industry: CMI earnings growth over the past year (0.3%) underperformed the Communications industry 12.6%.


Return on Equity

High ROE: CMI's Return on Equity (8.5%) is considered low.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is C-Com Satellite Systems's financial position?


Financial Position Analysis

Short Term Liabilities: CMI's short term assets (CA$21.8M) exceed its short term liabilities (CA$1.7M).

Long Term Liabilities: CMI's short term assets (CA$21.8M) exceed its long term liabilities (CA$181.0K).


Debt to Equity History and Analysis

Debt Level: CMI is debt free.

Reducing Debt: CMI has not had any debt for past 5 years.

Debt Coverage: CMI has no debt, therefore it does not need to be covered by operating cash flow.

Interest Coverage: CMI has no debt, therefore coverage of interest payments is not a concern.


Balance Sheet

Inventory Level: CMI has a high level of physical assets or inventory.

Debt Coverage by Assets: Insufficient data to determine if CMI's debt is covered by short term assets.


Next Steps

Dividend

What is C-Com Satellite Systems's current dividend yield, its reliability and sustainability?

2.70%

Current Dividend Yield


Dividend Yield vs Market

company2.7%marketbottom25%1.9%markettop25%5.4%industryaverage2.8%forecastin3Yearsn/a

Current dividend yield vs market & industry

Notable Dividend: CMI's dividend (2.7%) is higher than the bottom 25% of dividend payers in the Canadian market (1.88%).

High Dividend: CMI's dividend (2.7%) is low compared to the top 25% of dividend payers in the Canadian market (5.48%).


Stability and Growth of Payments

Stable Dividend: Whilst dividend payments have been stable, CMI has been paying a dividend for less than 10 years.

Growing Dividend: CMI's dividend payments have increased, but the company has only paid a dividend for 7 years.


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (109.8%), CMI's dividend payments are not well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: Insufficient data to determine if a dividend will be paid in 3 years and that it will be covered by earnings.


Next Steps

Management

What is the CEO of C-Com Satellite Systems's salary, the management and board of directors tenure and is there insider trading?

13.5yrs

Average management tenure


CEO

Leslie Klein 0

22.1yrs

Tenure

CA$540,500

Compensation

Dr. Leslie Klein, Ph.D., P.Eng. has been the Chief Executive Officer of C-com Satellite Systems Inc. since December 1997 and serves as its President. Dr. Klein has been a Director of C-com Satellite System ...


CEO Compensation Analysis

Compensation vs Market: Leslie's total compensation ($USD413.70K) is above average for companies of similar size in the Canadian market ($USD165.67K).

Compensation vs Earnings: Leslie's compensation has been consistent with company performance over the past year.


Management Age and Tenure

13.5yrs

Average Tenure

Experienced Management: CMI's management team is seasoned and experienced (13.5 years average tenure).


Board Age and Tenure

15.9yrs

Average Tenure

Experienced Board: CMI's board of directors are seasoned and experienced ( 15.9 years average tenure).


Insider Trading

Insider Buying: CMI insiders have only sold shares in the past 3 months.


Recent Insider Transactions

SellCA$11,56928 Nov 19
Eli Fathi
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares6,700
Max PriceCA$1.75
SellCA$15,13815 Nov 19
Eli Fathi
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares8,700
Max PriceCA$1.74
SellCA$32,02712 Aug 19
Ronald Leslie
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares20,000
Max PriceCA$1.63
SellCA$17,15018 Jun 19
Ronald Leslie
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares9,800
Max PriceCA$1.75
SellCA$5,51023 May 19
Bilal Awada
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares2,900
Max PriceCA$1.90
SellCA$77,17722 May 19
Bilal Awada
EntityIndividual
Role
Chief Technology Officer
Chief Technology Officer
Shares42,700
Max PriceCA$1.90
SellCA$18,77206 May 19
Eli Fathi
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares12,000
Max PriceCA$1.62
SellCA$37,80029 Apr 19
Eli Fathi
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares24,000
Max PriceCA$1.59

Ownership Breakdown

Dilution of Shares: Shareholders have not been meaningfully diluted in the past year.


Management Team

  • Leslie Klein

    CEO, President & Director

    • Tenure: 22.1yrs
    • Compensation: CA$540.50k
  • Jim Fowles

    Chief Financial Officer

    • Tenure: 13.5yrs
    • Compensation: CA$58.21k
  • Bilal Awada

    Chief Technology Officer

    • Compensation: CA$218.75k
  • Drew Klein

    Vice President of Sales

    • Tenure: 0.7yrs
  • Brigitte Legault

    Marketing Manager


    Board Members

    • Leslie Klein

      CEO, President & Director

      • Tenure: 22.1yrs
      • Compensation: CA$540.50k
    • Ron Leslie

      Independent Director

      • Tenure: 18.6yrs
      • Compensation: CA$31.00k
    • Eli Fathi

      Independent Director

      • Tenure: 13.3yrs
      • Compensation: CA$31.00k
    • Arunas Slekys

      Independent Director

      • Tenure: 4.8yrs
      • Compensation: CA$31.00k

    Company Information

    C-Com Satellite Systems Inc.'s company bio, employee growth, exchange listings and data sources


    Key Information

    • Name: C-Com Satellite Systems Inc.
    • Ticker: CMI
    • Exchange: TSXV
    • Founded: 1997
    • Industry: Communications Equipment
    • Sector: Tech
    • Market Cap: CA$69.479m
    • Shares outstanding: 37.97m
    • Website: https://www.c-comsat.com

    Location

    • C-Com Satellite Systems Inc.
    • 2574 Sheffield Road
    • Ottawa
    • Ontario
    • K1B 3V7
    • Canada

    Listings

    TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
    CMITSXV (TSX Venture Exchange)YesCommon SharesCACADAug 2000
    CYSN.FOTCPK (Pink Sheets LLC)YesCommon SharesUSUSDAug 2000
    D7FBST (Boerse-Stuttgart)YesCommon SharesDEEURAug 2000

    Biography

    C-Com Satellite Systems Inc. develops and deploys commercial grade mobile auto-deploying satellite-based technology for the delivery of two-way high-speed Internet, VoIP, and video services into vehicles. The company offers iNetVu, a proprietary mobile auto-deploying antenna for the delivery of satellite based Internet services into vehicles while stationary virtually anywhere one can drive, as well as for the transportable platforms. It also provides driveaway, flyaway, and fixed motorized antennas. In addition, the company offers accessories, such as powersmart products, beacon receivers, transportable cases and skids, cables, transportable enclosed skids, and custom integrations, as well as antenna controllers. Its products and services deliver solutions for fixed and mobile applications. The company operates in Canada, the United States, Africa, Asia, Saudi Arabia, Europe, and internationally. C-Com Satellite Systems Inc. was founded in 1997 and is headquartered in Ottawa, Canada. 


    Company Analysis and Financial Data Status

    All financial data provided by Standard & Poor's Capital IQ.
    DataLast Updated (UTC time)
    Company Analysis2020/01/17 23:32
    End of Day Share Price2020/01/17 00:00
    Earnings2019/08/31
    Annual Earnings2018/11/30


    Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.