NasdaqGS:COMM

Stock Analysis Report

CommScope Holding Company

Executive Summary

CommScope Holding Company, Inc. provides infrastructure solutions for communications networks worldwide.

Snowflake

Fundamentals

Fair value with limited growth.


Similar Companies

Share Price & News

How has CommScope Holding Company's share price performed over time and what events caused price changes?


Latest Share Price and Events


Market Performance


7 Day Return

3.8%

COMM

2.1%

US Communications

1.8%

US Market


1 Year Return

-54.6%

COMM

1.6%

US Communications

7.3%

US Market

Return vs Industry: COMM underperformed the US Communications industry which returned 1.6% over the past year.

Return vs Market: COMM underperformed the US Market which returned 7.3% over the past year.


Shareholder returns

COMMIndustryMarket
7 Day3.8%2.1%1.8%
30 Day-4.0%-3.8%-0.7%
90 Day-20.6%-14.7%0.06%
1 Year-54.6%-54.6%3.9%1.6%9.7%7.3%
3 Year-63.6%-63.6%52.9%43.4%46.3%36.9%
5 Year-49.0%-49.0%92.3%72.2%64.5%46.5%

Price Volatility Vs. Market

How volatile is CommScope Holding Company's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is CommScope Holding Company undervalued compared to its fair value and its price relative to the market?

>50%

Undervalued compared to fair value


Share Price vs. Fair Value

Undervalued: COMM ($11.63) is trading below our estimate of fair value ($61.8)

Significantly Undervalued: COMM is trading below fair value by more than 20%.


Price To Earnings Ratio

PE vs Industry: COMM is unprofitable, so we can't compare its PE Ratio to the Communications industry average.

PE vs Market: COMM is unprofitable, so we can't compare its PE Ratio to the US market.


Price to Earnings Growth Ratio

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


Price to Book Ratio

PB vs Industry: COMM is good value based on its PB Ratio (1.6x) compared to the US Communications industry average (1.9x).


Next Steps

Future Growth

How is CommScope Holding Company forecast to perform in the next 1 to 3 years based on estimates from 14 analysts?

132.0%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COMM is forecast to remain unprofitable over the next 3 years.

Earnings vs Market: COMM is forecast to remain unprofitable over the next 3 years.

High Growth Earnings: COMM is forecast to remain unprofitable over the next 3 years.

Revenue vs Market: COMM's revenue (12.4% per year) is forecast to grow faster than the US market (7.3% per year).

High Growth Revenue: COMM's revenue (12.4% per year) is forecast to grow slower than 20% per year.


Earnings per Share Growth Forecasts


Future Return on Equity

High Future ROE: COMM's Return on Equity is forecast to be high in 3 years time (24.8%)


Next Steps

Past Performance

How has CommScope Holding Company performed over the past 5 years?

-6.6%

Historical annual earnings growth


Earnings and Revenue History


Past Earnings Growth Analysis

Earnings Trend: COMM is unprofitable, and losses have increased over the past 5 years at a rate of -6.6% per year.

Accelerating Growth: Unable to compare COMM's earnings growth over the past year to its 5-year average as it is currently unprofitable

Earnings vs Industry: COMM is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (22.8%).


Return on Equity

High ROE: COMM has a negative Return on Equity (-12.2%), as it is currently unprofitable.


Return on Assets

ROA vs Industry: COMM is currently unprofitable, so its Return on Assets is negative.


Return on Capital Employed

ROCE Improving: COMM is currently unprofitable, so its Return on Capital Employed is negative.


Next Steps

Financial Health

How is CommScope Holding Company's financial position?


Financial Position Analysis

Short Term Liabilities: COMM's short term assets ($4.3B) exceeds its short term liabilities ($2.3B)

Long Term Liabilities: COMM's short term assets (4.3B) do not cover its long term liabilities (11.2B)


Debt to Equity History and Analysis

Debt Level: COMM's debt to equity ratio (426.5%) is considered high

Reducing Debt: COMM's debt to equity ratio has increased from 221.6% to 426.5% over the past 5 years.

Debt Coverage: COMM's debt is not well covered by operating cash flow (0.9%).

Interest Coverage: COMM is unprofitable, therefore interest payments are not well covered by earnings.


Balance Sheet

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

Debt Coverage by Assets: COMM's debt is not covered by short term assets (assets are 0.4x debt).


Next Steps

Dividend

What is CommScope Holding Company's current dividend yield, its reliability and sustainability?

0.013%

Forecast Dividend Yield


Dividend Yield vs Market

companyn/amarketbottom25%1.5%markettop25%3.7%industryaverage2.9%forecastin3Years0.01%

Current dividend yield vs market & industry


Stability and Growth of Payments

Notable Dividend: Unable to evaluate COMM's dividend yield against the bottom 25% of dividend payers, as the company has not reported any payouts.

High Dividend: Unable to evaluate COMM's dividend yield against the top 25% of dividend payers, as the company has not reported any payouts.

Stable Dividend: Insufficient data to determine if COMM's dividends per share have been stable in the past.

Growing Dividend: Insufficient data to determine if COMM's dividend payments have been increasing.


Current Payout to Shareholders

Dividend Coverage: Insufficient data to calculate payout ratio to determine if its dividend payments are covered by earnings.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of COMM's dividend in 3 years as they are not forecast to pay a notable one for the US market.


Next Steps

Management

What is the CEO of CommScope Holding Company's salary, the management and board of directors tenure and is there insider trading?

3.8yrs

Average management tenure


CEO

Eddie Edwards (70yo)

8.8yrs

Tenure

US$8,893,345

Compensation

Mr. Marvin S. Edwards, also known as Eddie, Jr., has been the Chief Executive Officer of CommScope Inc. and CommScope Holding Company, Inc. since January 14, 2011 and its President since January 1, 2010. M ...


CEO Compensation Analysis

Compensation vs. Market: Eddie's total compensation ($USD8.89M) is about average for companies of similar size in the US market ($USD4.07M).

Compensation vs Earnings: Eddie's compensation has increased whilst the company is unprofitable.


Management Age and Tenure

3.8yrs

Average Tenure

54.5yo

Average Age

Experienced Management: COMM's management team is considered experienced (3.8 years average tenure).


Board Age and Tenure

5.9yrs

Average Tenure

67.5yo

Average Age

Experienced Board: COMM's board of directors are considered experienced (5.9 years average tenure).


Insider Trading

Insider Buying: COMM insiders have bought more shares than they have sold in the past 3 months.


Recent Insider Transactions

BuyUS$252,24810 Sep 19
L. Krause
EntityIndividual
Role
Member of the Board of Directors
Independent Director
Shares21,250
Max PriceUS$11.87
BuyUS$63,00024 May 19
Bruce McClelland
EntityIndividual
Shares3,500
Max PriceUS$18.00
BuyUS$73,12016 May 19
Bruce McClelland
EntityIndividual
Shares4,000
Max PriceUS$18.28
SellUS$147,46207 Mar 19
Peter Karlsson
EntityIndividual
Shares6,517
Max PriceUS$22.63
BuyUS$1,72127 Feb 19
Alexander Pease
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares75
Max PriceUS$22.94
BuyUS$747,81216 Nov 18
Alexander Pease
EntityIndividual
Role
Chief Financial Officer
Executive VP & CFO
Shares40,000
Max PriceUS$18.70
BuyUS$140,99914 Nov 18
Frank Wyatt
EntityIndividual
Role
Chief Legal Officer
Senior VP
Shares7,500
Max PriceUS$18.80
BuyUS$41,93914 Nov 18
Brooke Clark
EntityIndividual
Role
Chief Accounting Officer
Senior VP & Chief Accounting Officer
Shares2,250
Max PriceUS$18.64
BuyUS$474,95014 Nov 18
Claudius Watts
EntityIndividual
Role
Lead Director
Lead Independent Director
Shares25,000
Max PriceUS$19.00
BuyUS$99,29313 Nov 18
Robyn Mingle
EntityIndividual
Role
Head of Human Resources
Senior VP & Chief Human Resources Officer
Shares5,100
Max PriceUS$19.47
BuyUS$78,40013 Nov 18
Robert Granow
EntityIndividual
Shares4,000
Max PriceUS$19.60

Ownership Breakdown


Management Team

  • Burk Wyatt (56yo)

    Senior VP

    • Tenure: 19.8yrs
    • Compensation: US$1.70m
  • Robyn Mingle (53yo)

    Senior VP & Chief Human Resources Officer

    • Tenure: 3.8yrs
  • Eddie Edwards (70yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$8.89m
  • Morgan C. Kurk (50yo)

    Executive VP & CTO

    • Tenure: 0.5yrs
    • Compensation: US$2.32m
  • Mike Kelley (58yo)

    Senior Vice President of Global Cable Operations

    • Tenure: 12.5yrs
  • Karen Renner (57yo)

    Senior VP & Chief Information Officer

    • Tenure: 0.8yrs
  • Alexander Pease (47yo)

    Executive VP & CFO

    • Tenure: 1.5yrs
    • Compensation: US$2.28m
  • Fiona Nolan

    Senior Vice President of Global Marketing

    • Tenure: 7.8yrs
  • Kevin Powers

    Vice President of Investor Relations

    • Tenure: 0yrs
  • Brooke Clark (44yo)

    Senior VP & Chief Accounting Officer

    • Tenure: 1.1yrs

Board Members

  • Cam Dyer (45yo)

    Independent Director

    • Tenure: 0.5yrs
  • Frank Drendel (74yo)

    Chairman of The Board

    • Tenure: 8.8yrs
    • Compensation: US$2.05m
  • Bill Krause (77yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$259.99k
  • Steve Gray (60yo)

    Independent Director

    • Tenure: 8.8yrs
    • Compensation: US$258.75k
  • Austin Adams (76yo)

    Independent Director

    • Tenure: 5.8yrs
    • Compensation: US$254.99k
  • Bud Watts (57yo)

    Lead Independent Director

    • Tenure: 1.9yrs
    • Compensation: US$291.23k
  • Eddie Edwards (70yo)

    President

    • Tenure: 8.8yrs
    • Compensation: US$8.89m
  • Joanne Maguire (65yo)

    Independent Director

    • Tenure: 3.8yrs
    • Compensation: US$254.99k
  • Tom Manning (63yo)

    Independent Director

    • Tenure: 5.1yrs
    • Compensation: US$254.99k
  • Tim Yates (71yo)

    Independent Director

    • Tenure: 6yrs
    • Compensation: US$269.99k

Company Information

CommScope Holding Company, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: CommScope Holding Company, Inc.
  • Ticker: COMM
  • Exchange: NasdaqGS
  • Founded: 1976
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$2.257b
  • Shares outstanding: 194.11m
  • Website: https://www.commscope.com

Number of Employees


Location

  • CommScope Holding Company, Inc.
  • 1100 CommScope Place, SE
  • Hickory
  • North Carolina
  • 28602
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
COMMNasdaqGS (Nasdaq Global Select)YesCommon StockUSUSDOct 2013
CM9DB (Deutsche Boerse AG)YesCommon StockDEEUROct 2013

Biography

CommScope Holding Company, Inc. provides infrastructure solutions for communications networks worldwide. The company’s CommScope Connectivity Solutions segment offers optical fiber and twisted pair structu ...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2019/10/18 00:36
End of Day Share Price2019/10/17 00:00
Earnings2019/06/30
Annual Earnings2018/12/31


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.