NasdaqGS:CMTL

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

Fundamentals

Excellent balance sheet with moderate growth potential.


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


Market Performance


7 Day Return

1.6%

CMTL

2.6%

US Communications

0.07%

US Market


1 Year Return

9.7%

CMTL

3.2%

US Communications

8.9%

US Market

Return vs Industry: CMTL exceeded the US Communications industry which returned 3.2% over the past year.

Return vs Market: CMTL underperformed the US Market which returned 8.9% over the past year.


Shareholder returns

CMTLIndustryMarket
7 Day1.6%2.6%0.07%
30 Day7.5%-2.8%-0.3%
90 Day13.3%-14.1%-1.6%
1 Year11.3%9.7%5.6%3.2%11.3%8.9%
3 Year220.3%203.1%53.8%44.0%46.3%36.8%
5 Year1.4%-15.0%94.0%72.9%62.1%44.3%

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

Valuation

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

27.9%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMTL ($31.98) is trading below our estimate of fair value ($44.38)

Significantly Below Fair Value: CMTL is trading below fair value, but not by a significant amount.


Price To Earnings Ratio

PE vs Industry: CMTL is poor value based on its PE Ratio (30.8x) compared to the Communications industry average (29.6x).

PE vs Market: CMTL is poor value based on its PE Ratio (30.8x) compared to the US market (17.8x).


Price to Earnings Growth Ratio

PEG Ratio: CMTL is poor value based on its PEG Ratio (1.4x)


Price to Book Ratio

PB vs Industry: CMTL is good value based on its PB Ratio (1.4x) compared to the US Communications industry average (1.8x).


Next Steps

Future Growth

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

22.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMTL's forecast earnings growth (22.1% per year) is above the savings rate (2.7%).

Earnings vs Market: CMTL's earnings (22.1% per year) are forecast to grow faster than the US market (14.5% per year).

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

Revenue vs Market: CMTL's revenue (6% per year) is forecast to grow slower than the US market (7.2% per year).

High Growth Revenue: CMTL's revenue (6% 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 CMTL'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?

8.7%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: CMTL's earnings have grown by 8.7% per year over the past 5 years.

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

Earnings vs Industry: CMTL had negative earnings growth (-15.9%) over the past year, making it difficult to compare to the Communications industry average (23.8%).


Return on Equity

High ROE: CMTL's Return on Equity (4.7%) is considered low.


Return on Assets

ROA vs Industry: CMTL's Return on Assets is below or equal to the Communications industry average last year.


Return on Capital Employed

ROCE Improving: CMTL has significantly improved its Return on Capital Employed over the past 3 years.


Next Steps

Financial Health

How is Comtech Telecommunications's financial position?


Financial Position Analysis

Short Term Liabilities: CMTL's short term assets ($280.3M) exceeds its short term liabilities ($145.3M)

Long Term Liabilities: CMTL's short term assets (280.3M) exceeds its long term liabilities (207.3M)


Debt to Equity History and Analysis

Debt Level: CMTL's debt to equity ratio (30.8%) is considered satisfactory

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

Debt Coverage: CMTL's debt is well covered by operating cash flow (41.3%).

Interest Coverage: CMTL's interest payments on its debt are well covered by EBIT (3.6x coverage).


Balance Sheet

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

Debt Coverage by Assets: CMTL's debt is covered by short term assets (assets are 1.7x debt).


Next Steps

Dividend

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

1.25%

Current Dividend Yield


Dividend Yield vs Market

company1.3%marketbottom25%1.4%markettop25%3.7%industryaverage2.9%forecastin3Years1.3%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: CMTL's dividend (1.25%) isn’t notable compared to the bottom 25% of dividend payers in the US market (1.45%).

High Dividend: CMTL's dividend (1.25%) is low compared to the top 25% of dividend payers in the US market (3.68%).

Stable Dividend: CMTL has been paying a dividend for less than 10 years and during this time payments have been volatile.

Growing Dividend: CMTL has only been paying a dividend for 9 years, and since then payments have fallen.


Current Payout to Shareholders

Dividend Coverage: With its reasonably low payout ratio (38.5%), CMTL's dividend payments are well covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: CMTL's dividends in 3 years are forecast to be well covered by earnings (24.9% payout ratio).


Next Steps

Management

What is the CEO of Comtech Telecommunications's salary, the management and board of directors tenure and is there insider trading?

3.7yrs

Average management tenure


CEO

Fred Kornberg (83yo)

3.1yrs

Tenure

US$3,434,946

Compensation

Mr. Fred Kornberg has been the Chief Executive Officer and President of Comtech Telecommunications Corp. since September 29, 2016 and previously served as its Chief Executive Officer and President from 197 ...


CEO Compensation Analysis

Compensation vs. Market: Fred's total compensation ($USD3.43M) is about average for companies of similar size in the US market ($USD2.67M).

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


Management Age and Tenure

3.7yrs

Average Tenure

60yo

Average Age

Experienced Management: CMTL's management team is considered experienced (3.7 years average tenure).


Board Age and Tenure

8.1yrs

Average Tenure

80yo

Average Age

Experienced Board: CMTL's board of directors are considered experienced (8.1 years average tenure).


Insider Trading

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


Recent Insider Transactions

SellUS$1,496,04130 Sep 19
Richard Burt
EntityIndividual
Shares43,590
Max PriceUS$34.33
SellUS$12,90417 Jul 19
John Branscum
EntityIndividual
Role
Unit President
Senior VP and President of Comtech EF Data Corp. & Xicom Technology Inc.
Shares463
Max PriceUS$27.87
SellUS$11,31217 Apr 19
John Branscum
EntityIndividual
Role
Unit President
Senior VP and President of Comtech EF Data Corp. & Xicom Technology Inc.
Shares477
Max PriceUS$23.71
SellUS$29,12922 Jan 19
John Branscum
EntityIndividual
Role
Unit President
Senior VP and President of Comtech EF Data Corp. & Xicom Technology Inc.
Shares1,158
Max PriceUS$25.16
SellUS$25,50019 Dec 18
Edwin Kantor
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares1,000
Max PriceUS$25.50

Ownership Breakdown


Management Team

  • Brian Duggan (77yo)

    Vice President of International Marketing

    • Tenure: 10yrs
  • Fred Kornberg (83yo)

    Chairman

    • Tenure: 3.1yrs
    • Compensation: US$3.43m
  • Gail Segui (73yo)

    Treasurer

    • Tenure: 21.8yrs
    • Compensation: US$119.50k
  • Mike Porcelain (50yo)

    Senior VP & COO

    • Tenure: 1yrs
    • Compensation: US$1.41m
  • Kent Hellebust (60yo)

    President of Safety and Security Technologies

    • Tenure: 6.5yrs
  • Michael Bondi (46yo)

    Senior VP & CFO

    • Tenure: 1yrs
  • Jay Whitehurst (59yo)

    President of Location Technologies

    • Tenure: 3.7yrs
  • Nancy Stallone (59yo)

    VP of Finance & Corporate Secretary

    • Tenure: 3.8yrs
    • Compensation: US$528.85k
  • John Branscum (60yo)

    Senior VP and President of Comtech EF Data Corp. & Xicom Technology Inc.

    • Tenure: 4.8yrs
    • Compensation: US$1.07m
  • Mike Atcheson

    President of Mission-Critical Technologies

    • Tenure: 2.6yrs

Board Members

  • Ira Kaplan (83yo)

    Independent Director

    • Tenure: 17.3yrs
    • Compensation: US$190.00k
  • Robert Paul (77yo)

    Independent Director

    • Tenure: 12.6yrs
    • Compensation: US$187.50k
  • Fred Kornberg (83yo)

    Chairman

    • Tenure: 3.1yrs
    • Compensation: US$3.43m
  • Yacov Shamash (69yo)

    Independent Director

    • Tenure: 3yrs
    • Compensation: US$187.50k
  • Edwin Kantor (87yo)

    Lead Independent Director

    • Tenure: 8.1yrs
    • Compensation: US$207.50k
  • Larry Waldman (73yo)

    Independent Director

    • Tenure: 4.2yrs
    • Compensation: US$200.00k

Company Information

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


Key Information

  • Name: Comtech Telecommunications Corp.
  • Ticker: CMTL
  • Exchange: NasdaqGS
  • Founded: 1967
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$776.090m
  • Shares outstanding: 24.27m
  • 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 Commerci ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/23 23:34
End of Day Share Price2019/10/23 00:00
Earnings2019/07/31
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.