DB:CC6

Stock Analysis Report

Comtech Telecommunications

Executive Summary

Comtech Telecommunications Corp. designs, develops, produces, and markets products, systems, and services for communications solutions in the United States and internationally.


Snowflake Analysis

Undervalued with excellent balance sheet.


Similar Companies

Share Price & News

How has Comtech Telecommunications's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: CC6's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

5.3%

CC6

10.1%

DE Communications

7.3%

DE Market


1 Year Return

-31.4%

CC6

-37.9%

DE Communications

-17.7%

DE Market

Return vs Industry: CC6 exceeded the German Communications industry which returned -37.9% over the past year.

Return vs Market: CC6 underperformed the German Market which returned -17.7% over the past year.


Shareholder returns

CC6IndustryMarket
7 Day5.3%10.1%7.3%
30 Day-45.7%-14.5%-17.9%
90 Day-56.3%-32.7%-25.8%
1 Year-30.5%-31.4%-37.6%-37.9%-15.1%-17.7%
3 Year4.7%-0.3%-39.2%-39.4%-18.7%-25.6%
5 Year-40.8%-50.1%13.0%12.8%-17.7%-29.0%

Price Volatility Vs. Market

How volatile is Comtech Telecommunications's share price compared to the market and industry in the last 5 years?


Simply Wall St News

No news available

Valuation

Is Comtech Telecommunications undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CC6 (€13.8) is trading below our estimate of fair value (€32.64)

Significantly Below Fair Value: CC6 is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: CC6 is poor value based on its PE Ratio (15.5x) compared to the Communications industry average (15x).

PE vs Market: CC6 is good value based on its PE Ratio (15.5x) compared to the German market (16.4x).


Price to Earnings Growth Ratio

PEG Ratio: CC6 is good value based on its PEG Ratio (0.4x)


Price to Book Ratio

PB vs Industry: CC6 is good value based on its PB Ratio (0.7x) compared to the DE Communications industry average (2.3x).


Next Steps

Future Growth

How is Comtech Telecommunications forecast to perform in the next 1 to 3 years based on estimates from 4 analysts?

38.7%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CC6's forecast earnings growth (38.7% per year) is above the savings rate (-0.4%).

Earnings vs Market: CC6's earnings (38.7% per year) are forecast to grow faster than the German market (14.3% per year).

High Growth Earnings: earnings are expected to grow significantly over the next 3 years.

Revenue vs Market: CC6's revenue (5.7% per year) is forecast to grow faster than the German market (4.1% per year).

High Growth Revenue: CC6's revenue (5.7% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

Future ROE: Insufficient data to determine if CC6's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Comtech Telecommunications performed over the past 5 years?

16.9%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CC6 has a large one-off loss of $7.5M impacting its January 31 2020 financial results.

Growing Profit Margin: CC6's current net profit margins (3.5%) are lower than last year (4.2%).


Past Earnings Growth Analysis

Earnings Trend: CC6's earnings have grown by 16.9% per year over the past 5 years.

Accelerating Growth: CC6's has had negative earnings growth over the past year, so it can't be compared to its 5-year average.

Earnings vs Industry: CC6 had negative earnings growth (-12.4%) over the past year, making it difficult to compare to the Communications industry average (21.9%).


Return on Equity

High ROE: CC6's Return on Equity (4.3%) is considered low.


Next Steps

Financial Health

How is Comtech Telecommunications's financial position?


Financial Position Analysis

Short Term Liabilities: CC6's short term assets ($289.6M) exceed its short term liabilities ($163.2M).

Long Term Liabilities: CC6's short term assets ($289.6M) exceed its long term liabilities ($235.6M).


Debt to Equity History and Analysis

Debt Level: CC6's debt to equity ratio (28.7%) is considered satisfactory.

Reducing Debt: Insufficient data to determine if CC6's debt to equity ratio has reduced over the past 5 years.

Debt Coverage: CC6's debt is well covered by operating cash flow (54.6%).

Interest Coverage: CC6's interest payments on its debt are well covered by EBIT (5.8x coverage).


Balance Sheet

Inventory Level: CC6 has a low level of unsold assets or inventory.

Debt Coverage by Assets: CC6's debt is covered by short term assets (assets are 1.8x debt).


Next Steps

Dividend

What is Comtech Telecommunications's current dividend yield, its reliability and sustainability?

2.67%

Current Dividend Yield


Upcoming Dividend Payment


Dividend Yield vs Market

Notable Dividend: CC6's dividend (2.67%) is higher than the bottom 25% of dividend payers in the German market (1.7%).

High Dividend: CC6's dividend (2.67%) is low compared to the top 25% of dividend payers in the German market (4.97%).


Stability and Growth of Payments

Stable Dividend: CC6's dividend payments have been volatile in the past 10 years.

Growing Dividend: CC6's dividend payments have fallen over the past 10 years.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (41.3%), CC6's dividend payments are 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

How experienced are the management team and are they aligned to shareholders interests?

4.1yrs

Average management tenure


CEO

Fred Kornberg (83yo)

3.5s

Tenure

US$3,740,558

Compensation

Mr. Fred Kornberg has been the Chief Executive Officer of Comtech Telecommunications Corp. since September 29, 2016. Mr. Kornberg was the President of Comtech Telecommunications Corp. from September 29, 20 ...


CEO Compensation Analysis

Compensation vs Market: Fred's total compensation ($USD3.74M) is above average for companies of similar size in the German market ($USD1.03M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Fred Kornberg
Chairman & CEO3.5yrsUS$3.74m1.43% $4.8m
Michael Porcelain
President & COOno dataUS$2.20m0.38% $1.3m
Michael Bondi
Chief Financial Officer1.42yrsUS$960.58k0.10% $332.9k
John Branscum
Senior VP and President of Comtech EF Data Corp. & Xicom Technology Inc.5.17yrsUS$1.01m0.17% $573.6k
Brian Duggan
Vice President of International Marketing10.42yrsno datano data
Jay Whitehurst
President of Location Technologies4.08yrsno datano data
Michael Atcheson
President of Mission-Critical Technologies3yrsno datano data
Kent Hellebust
President of Safety and Security Technologies6.92yrsno datano data
Lajuana Johnson
Senior VP of Mobile Datacom Managed Servicesno datano datano data
Mike Scott
Senior VP of Space & Component Technologyno datano datano data

4.1yrs

Average Tenure

60yo

Average Age

Experienced Management: CC6's management team is considered experienced (4.1 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fred Kornberg
Chairman & CEO3.5yrsUS$3.74m1.43% $4.8m
Ira Kaplan
Independent Director17.75yrsUS$190.00k0.034% $112.4k
Robert Paul
Independent Director13yrsUS$187.50k0.080% $266.5k
Yacov Shamash
Independent Director3.42yrsUS$187.50k0.031% $105.0k
Edwin Kantor
Lead Independent Director8.5yrsUS$207.50k0.017% $58.1k
Lawrence Waldman
Independent Director4.58yrsUS$200.00k0.031% $105.0k
Lisa Lesavoy
Directorno datano datano data

8.5yrs

Average Tenure

80yo

Average Age

Experienced Board: CC6's board of directors are considered experienced (8.5 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: Insufficient data to determine if insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 2%.


Top Shareholders

Company Information

Comtech Telecommunications Corp.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Comtech Telecommunications Corp.
  • Ticker: CC6
  • Exchange: DB
  • Founded: 1967
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$370.544m
  • Listing Market Cap: US$334.194m
  • Shares outstanding: 24.72m
  • Website: https://www.comtechtel.com

Number of Employees


Location

  • Comtech Telecommunications Corp.
  • 68 South Service Road
  • Suite 230
  • Melville
  • New York
  • 11747
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
CMTLNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDDec 1972
CC6DB (Deutsche Boerse AG)YesCommon StockDEEURDec 1972

Biography

Comtech Telecommunications Corp. designs, develops, produces, and markets products, systems, and services for communications solutions in the United States and internationally. It operates through Commercial Solutions and Government Solutions segments. The Commercial Solutions segment offers satellite ground station technologies, including modems, amplifiers, converters, and network software to modulate, demodulate, and amplify signals, as well as to carry voice, video, and/or data over networks; and public safety and location technologies that enable 911 call routing via cellular and over the Internet. The Government Solutions segment offers mission-critical technologies tactical satellite-based networks, such as satellite modems, ruggedized routers, and solid-state drives; very small aperture terminals; and sustainment services for the secret Internet protocol router and non-classified Internet protocol router access point. This segment also offers high-performance transmission technologies that are used in communication systems comprising electronic warfare, radar, and identification friend or foe (IFF); troposcatter technologies for satellite communication; and high-power amplifiers and related switching technologies used in electronic warfare, communications, radar, IFF, and medical applications consisting of oncology cancer treatment systems. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, prime contractors and system suppliers, Medical equipment companies, aviation industry system integrators, oil companies, and domestic and international defense and government customers. Comtech Telecommunications Corp. was founded in 1967 and is headquartered in Melville, New York. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/03/29 22:44
End of Day Share Price2020/03/27 00:00
Earnings2020/01/31
Annual Earnings2019/07/31


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.