Comtech Telecommunications
Market Cap
US$776.1m
Last Updated
2019/10/23 23:34 UTC
Data Sources
Company Financials +
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
| CMTL | Industry | Market | |
|---|---|---|---|
| 7 Day | 1.6% | 2.6% | 0.07% |
| 30 Day | 7.5% | -2.8% | -0.3% |
| 90 Day | 13.3% | -14.1% | -1.6% |
| 1 Year | 11.3%9.7% | 5.6%3.2% | 11.3%8.9% |
| 3 Year | 220.3%203.1% | 53.8%44.0% | 46.3%36.8% |
| 5 Year | 1.4%-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
4 days ago | Simply Wall St
Does Comtech Telecommunications (NASDAQ:CMTL) Have A Healthy Balance Sheet?1 week ago | Simply Wall St
Comtech Telecommunications Corp. (NASDAQ:CMTL) Is About To Go Ex-Dividend, And It Pays A 0.3% Yield2 weeks ago | Simply Wall St
Should You Investigate Comtech Telecommunications Corp. (NASDAQ:CMTL) At US$31.11?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
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
| Entity | Individual |
| Shares | 43,590 |
| Max Price | US$34.33 |
| Entity | Individual |
| Role | Unit President Senior VP and President of Comtech EF Data Corp. & Xicom Technology Inc. |
| Shares | 463 |
| Max Price | US$27.87 |
| Entity | Individual |
| Role | Unit President Senior VP and President of Comtech EF Data Corp. & Xicom Technology Inc. |
| Shares | 477 |
| Max Price | US$23.71 |
| Entity | Individual |
| Role | Unit President Senior VP and President of Comtech EF Data Corp. & Xicom Technology Inc. |
| Shares | 1,158 |
| Max Price | US$25.16 |
| Entity | Individual |
| Role | Lead Director Lead Independent Director |
| Shares | 1,000 |
| Max Price | US$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
| Ticker | Exchange | Primary Security | Security Type | Country | Currency | Listed on |
|---|---|---|---|---|---|---|
| CMTL | NasdaqGS (Nasdaq Global Select) | Yes | Common Stock | US | USD | Dec 1972 |
| CC6 | DB (Deutsche Boerse AG) | Yes | Common Stock | DE | EUR | Dec 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
| Data | Last Updated (UTC time) |
|---|---|
| Company Analysis | 2019/10/23 23:34 |
| End of Day Share Price | 2019/10/23 00:00 |
| Earnings | 2019/07/31 |
| Annual Earnings | 2019/07/31 |
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.