NasdaqGS:CMTL

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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. More Details


Snowflake Analysis

Excellent balance sheet and slightly overvalued.


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: CMTL's share price has been volatile over the past 3 months.


Market Performance


7 Day Return

-11.8%

CMTL

-7.1%

US Communications

-4.6%

US Market


1 Year Return

-58.4%

CMTL

-21.2%

US Communications

11.5%

US Market

Return vs Industry: CMTL underperformed the US Communications industry which returned -21.2% over the past year.

Return vs Market: CMTL underperformed the US Market which returned 11.5% over the past year.


Shareholder returns

CMTLIndustryMarket
7 Day-11.8%-7.1%-4.6%
30 Day2.6%-6.3%-0.9%
90 Day-11.9%-21.4%2.2%
1 Year-57.5%-58.4%-19.0%-21.2%14.0%11.5%
3 Year-29.7%-33.1%6.9%-0.3%34.5%25.6%
5 Year-33.4%-43.0%28.4%14.1%73.0%53.6%

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?

7.6%

Undervalued compared to fair value


Share Price vs. Fair Value

Below Fair Value: CMTL ($14.39) is trading below our estimate of fair value ($15.57)

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 (50.8x) compared to the US Communications industry average (45x).

PE vs Market: CMTL is poor value based on its PE Ratio (50.8x) compared to the US market (18.1x).


Price to Earnings Growth Ratio

PEG Ratio: CMTL is poor value based on its PEG Ratio (2.5x)


Price to Book Ratio

PB vs Industry: CMTL is good value based on its PB Ratio (0.7x) compared to the US Communications industry average (1.6x).


Next Steps

Future Growth

How is Comtech Telecommunications forecast to perform in the next 1 to 3 years based on estimates from 2 analysts?

20.1%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: CMTL's forecast earnings growth (20.1% per year) is above the savings rate (2.2%).

Earnings vs Market: CMTL's earnings (20.1% per year) are forecast to grow slower than the US market (22% per year).

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

Revenue vs Market: CMTL's revenue (3.1% per year) is forecast to grow slower than the US market (10% per year).

High Growth Revenue: CMTL's revenue (3.1% 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?

19.3%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: CMTL has a large one-off loss of $20.8M impacting its July 31 2020 financial results.

Growing Profit Margin: CMTL's current net profit margins (1.1%) are lower than last year (3.7%).


Past Earnings Growth Analysis

Earnings Trend: CMTL's earnings have grown by 19.3% 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 (-72%) over the past year, making it difficult to compare to the Communications industry average (-7.9%).


Return on Equity

High ROE: CMTL's Return on Equity (1.3%) is considered low.


Next Steps

Financial Health

How is Comtech Telecommunications's financial position?


Financial Position Analysis

Short Term Liabilities: CMTL's short term assets ($277.1M) exceed its short term liabilities ($159.7M).

Long Term Liabilities: CMTL's short term assets ($277.1M) exceed its long term liabilities ($220.6M).


Debt to Equity History and Analysis

Debt Level: CMTL's debt to equity ratio (27.2%) 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 (35.3%).

Interest Coverage: CMTL's interest payments on its debt are well covered by EBIT (6.1x coverage).


Balance Sheet


Next Steps

Dividend

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

2.78%

Current Dividend Yield


Dividend Yield vs Market

Notable Dividend: CMTL's dividend (2.78%) is higher than the bottom 25% of dividend payers in the US market (1.71%).

High Dividend: CMTL's dividend (2.78%) is low compared to the top 25% of dividend payers in the US market (4.86%).


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: With its high payout ratio (141.3%), CMTL'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

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

2.8yrs

Average management tenure


CEO

Fred Kornberg (84 yo)

4.08yrs

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 ($USD3.74M) is above average for companies of similar size in the US market ($USD1.94M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Fred Kornberg
Chairman & CEO4.08yrsUS$3.74m1.6%
$ 5.8m
Michael Porcelain
President & COOno dataUS$2.20m0.47%
$ 1.7m
Michael Bondi
Chief Financial Officer2yrsUS$960.58k0.12%
$ 443.9k
Brian Duggan
Vice President of International Marketing11yrsno datano data
Michael Atcheson
President of Mission-Critical Technologies3.58yrsno datano data
Kent Hellebust
President of Safety and Security Technologies7.5yrsno datano data
Lajuana Johnson
Senior VP of Mobile Datacom Managed Servicesno datano datano data
Michael Scott
Senior VP of Space & Component Technologyno datano datano data
Roger Seaton
Senior VP of Tactical Communicationsno datano datano data
Jeffrey Harig
President of the Government Group of Comtech EF Data Corp.0.58yrno datano data
Mark Toppenberg
President of the Commercial Group of Comtech EF Data Corp.0.58yrno datano data
Marcus Alston
Chief Trade Compliance Officer0.083yrno datano data

2.8yrs

Average Tenure

61yo

Average Age

Experienced Management: CMTL's management team is considered experienced (2.8 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Fred Kornberg
Chairman & CEO4.08yrsUS$3.74m1.6%
$ 5.8m
Ira Kaplan
Independent Director18.33yrsUS$190.00k0.062%
$ 223.1k
Robert Paul
Independent Director13.58yrsUS$187.50k0.11%
$ 387.2k
Yacov Shamash
Independent Director4yrsUS$187.50k0.060%
$ 215.3k
Edwin Kantor
Lead Independent Director9.08yrsUS$207.50k0.046%
$ 165.4k
Lawrence Waldman
Independent Director5.17yrsUS$200.00k0.060%
$ 215.3k
Lisa Lesavoy
Director0.58yrno datano data

9.1yrs

Average Tenure

81yo

Average Age

Experienced Board: CMTL's board of directors are considered experienced (9.1 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.


Ownership Breakdown

Dilution of Shares: Shareholders have been diluted in the past year, with total shares outstanding growing by 3%.


Top Shareholders

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$359.668m
  • Shares outstanding: 24.99m
  • 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 in two segments, ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/10/28 23:46
End of Day Share Price2020/10/28 00:00
Earnings2020/07/31
Annual Earnings2020/07/31


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.