NasdaqGS:COMM

Stock Analysis Report

CommScope Holding Company

Executive Summary

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

Rewards

Trading at 75.1% below its fair value

Earnings are forecast to grow 110.63% per year

Risk Analysis

Interest payments are not well covered by earnings



Snowflake Analysis

Reasonable growth potential and slightly overvalued.


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

Stable Share Price: COMM has not had significant price volatility in the past 3 months.


Market Performance


7 Day Return

0.8%

COMM

-2.2%

US Communications

0.5%

US Market


1 Year Return

-38.6%

COMM

-7.3%

US Communications

20.3%

US Market

Return vs Industry: COMM underperformed the US Communications industry which returned -7.3% over the past year.

Return vs Market: COMM underperformed the US Market which returned 20.3% over the past year.


Shareholder returns

COMMIndustryMarket
7 Day0.8%-2.2%0.5%
30 Day0.5%-4.4%2.0%
90 Day3.9%3.4%9.4%
1 Year-38.6%-38.6%-5.3%-7.3%22.8%20.3%
3 Year-61.6%-61.6%31.7%23.6%50.1%40.4%
5 Year-53.7%-53.7%56.7%39.3%73.1%54.1%

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

Below Fair Value: COMM ($14.49) is trading below our estimate of fair value ($58.13)

Significantly Below Fair Value: 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

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 overvalued based on its PB Ratio (2.3x) compared to the US Communications industry average (1.8x).


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?

110.6%

Forecasted annual earnings growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: COMM is forecast to become profitable over the next 3 years, which is considered faster growth than the savings rate (1.7%).

Earnings vs Market: COMM is forecast to become profitable over the next 3 years, which is considered above average market growth.

High Growth Earnings: COMM's is expected to become profitable in the next 3 years.

Revenue vs Market: COMM's revenue (5.7% per year) is forecast to grow slower than the US market (7.6% per year).

High Growth Revenue: COMM'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: COMM's Return on Equity is forecast to be high in 3 years time (30%)


Next Steps

Past Performance

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

-24.4%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: COMM is currently unprofitable.

Growing Profit Margin: COMM is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: COMM is unprofitable, and losses have increased over the past 5 years at a rate of -24.4% 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 (-20.3%).


Return on Equity

High ROE: COMM has a negative Return on Equity (-23.34%), as it is currently unprofitable.


Return on Assets


Return on Capital Employed


Next Steps

Financial Health

How is CommScope Holding Company's financial position?


Financial Position Analysis

Short Term Liabilities: COMM's short term assets ($3.8B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: COMM's short term assets ($3.8B) do not cover its long term liabilities ($10.9B).


Debt to Equity History and Analysis

Debt Level: COMM's debt to equity ratio (459.2%) is considered high.

Reducing Debt: COMM's debt to equity ratio has increased from 209.6% to 459.2% over the past 5 years.


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).


Cash Runway Analysis

For companies that have on average been loss making in the past we assess whether they have at least 1 year of cash runway.

Stable Cash Runway: COMM has been profitable on average in the past, therefore cash runway is not a concern.

Forecast Cash Runway: COMM has been profitable on average in the past, therefore cash runway is not a concern.


Next Steps

Dividend

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


Dividend Yield vs Market

companyn/amarketbottom25%1.4%markettop25%3.7%industryaverage3.0%forecastin3Years0%

Current dividend yield vs market & industry

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.


Stability and Growth of Payments

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

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

4.1yrs

Average management tenure


CEO

Eddie Edwards (70yo)

9.1yrs

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 ($USD8.89M) is above average for companies of similar size in the US market ($USD4.89M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marvin Edwards
President9.1yrsUS$8.89m0.15% $4.2m
Alexander Pease
Executive VP & CFO1.8yrsUS$2.28m0.030% $835.1k
Morgan C. Kurk
Executive VP & CTO0.8yrsUS$2.32m0.018% $519.0k
Frank Wyatt
Senior VP20.1yrsUS$1.70m0.037% $1.0m
Brooke Clark
Senior VP & Chief Accounting Officer1.4yrsno data0.0031% $88.4k
Karen Renner
Senior VP & Chief Information Officer1.1yrsno datano data
Kevin Powers
Vice President of Investor Relations0yrsno datano data
Fiona Nolan
Senior Vice President of Global Marketing8.1yrsno datano data
Robyn Mingle
Senior VP & Chief Human Resources Officer4.1yrsno data0.011% $311.9k
Mike Kelley
Senior Vice President of Global Cable Operations12.8yrsno datano data

4.1yrs

Average Tenure

54.5yo

Average Age

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


Board Members

NamePositionTenureCompensationOwnership
Marvin Edwards
President9.1yrsUS$8.89m0.15% $4.2m
Campbell Dyer
Independent Director0.8yrsno datano data
Frank Drendel
Chairman of The Board9.1yrsUS$2.05m1.3% $36.6m
L. Krause
Independent Director9.1yrsUS$259.99k0.036% $1.0m
Stephen Gray
Independent Director9.1yrsUS$258.75k0.010% $286.5k
Austin Adams
Independent Director6.1yrsUS$254.99k0.014% $403.6k
Claudius Watts
Lead Independent Director2.3yrsUS$291.23k0.034% $961.2k
Joanne Maguire
Independent Director4.1yrsUS$254.99k0.0085% $239.5k
Thomas J. Manning
Independent Director5.4yrsUS$254.99k0.010% $290.2k
Timothy Yates
Independent Director6.3yrsUS$269.99k0.023% $648.7k

6.2yrs

Average Tenure

67.5yo

Average Age

Experienced Board: COMM's board of directors are considered experienced (6.2 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 not been meaningfully diluted in the past year.


Top Shareholders

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$2.815b
  • Shares outstanding: 194.24m
  • 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 structured cable solutions, intelligent infrastructure management hardware and software, and network rack and cabinet enclosures under the SYSTIMAX, NETCONNECT, and Uniprise brands; and fiber management systems, patch cords and panels, pre-terminated fiber connectivity products, cabling systems, and cable assemblies for use in offices and data centers. It also provides fiber optic connectivity solutions, including hardened connector systems, fiber distribution hubs and management systems, couplers and splitters, plug and play multiport service terminals, hardened optical terminating enclosures, high density cable assemblies, optical distribution frames, and splice closures that support video, voice, and high-speed data services provided by telecommunications operators and multi-system operators. The company’s CommScope Mobility Solutions segment offers macro cell site solutions, such as base station and microwave antennas, hybrid fiber-feeder and power cables, coaxial cables, connectors, and filters; towers comprising cabinets, platforms, fiber backhaul connectivity hubs, and power solutions; metro cell solutions for street poles and other urban outdoor structures that include radio frequency delivery and connectivity solutions, equipment housing, and concealment; and small cell and distributed antenna system (DAS) solutions, which comprise DAS and distributed cell solutions under the Andrew brand. The company sells its products through a network of distributors, system integrators, and value-added resellers. The company was formerly known as Cedar I Holding Company, Inc. CommScope Holding Company, Inc. was founded in 1976 and is headquartered in Hickory, North Carolina. 


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2020/02/20 04:00
End of Day Share Price2020/02/19 00:00
Earnings2019/09/30
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.