NasdaqGS:COMM

Stock Analysis Report

CommScope Holding Company

Executive Summary

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


Snowflake Analysis

Slightly overvalued with concerning outlook.


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


Market Performance


7 Day Return

-9.9%

COMM

-0.06%

US Communications

-2.8%

US Market


1 Year Return

-65.6%

COMM

-29.3%

US Communications

-15.9%

US Market

Return vs Industry: COMM underperformed the US Communications industry which returned -28.3% over the past year.

Return vs Market: COMM underperformed the US Market which returned -14.9% over the past year.


Shareholder returns

COMMIndustryMarket
7 Day-9.9%-0.06%-2.8%
30 Day-18.7%-7.3%-18.8%
90 Day-37.3%-18.5%-24.0%
1 Year-65.6%-65.6%-27.7%-29.3%-14.2%-15.9%
3 Year-79.3%-79.3%11.5%4.5%9.9%2.8%
5 Year-71.1%-71.1%37.6%22.0%27.2%13.3%

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 ($8.51) is trading below our estimate of fair value ($37.63)

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 (2x) compared to the US Communications industry average (1.3x).


Next Steps

Future Growth

How is CommScope Holding Company forecast to perform in the next 1 to 3 years based on estimates from 13 analysts?

77.8%

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 (3.5% per year) is forecast to grow slower than the US market (7.1% per year).

High Growth Revenue: COMM's revenue (3.5% 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 very high in 3 years time (55.1%).


Next Steps

Past Performance

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

-42.0%

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 -42% 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 (-13.2%).


Return on Equity

High ROE: COMM has a negative Return on Equity (-50.62%), as it is currently unprofitable.


Next Steps

Financial Health

How is CommScope Holding Company's financial position?


Financial Position Analysis

Short Term Liabilities: COMM's short term assets ($3.5B) exceed its short term liabilities ($2.0B).

Long Term Liabilities: COMM's short term assets ($3.5B) do not cover its long term liabilities ($10.6B).


Debt to Equity History and Analysis

Debt Level: COMM's debt to equity ratio (536.3%) is considered high.

Reducing Debt: COMM's debt to equity ratio has increased from 204.1% to 536.3% 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

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?

1.8yrs

Average management tenure


CEO

Eddie Edwards (70yo)

9.25s

Tenure

US$13,992,038

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 ($USD13.99M) is above average for companies of similar size in the US market ($USD4.70M).

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


Leadership Team

NamePositionTenureCompensationOwnership
Marvin Edwards
President9.25yrsUS$13.99m0.18% $3.1m
Alexander Pease
Executive VP & CFO2yrsUS$3.75m0.030% $503.4k
Morgan C. Kurk
Executive VP & CTO1yrUS$2.76m0.022% $366.9k
Frank Wyatt
Senior VP20.25yrsUS$2.63m0.054% $891.3k
Robyn Mingle
Senior VP & Chief Human Resources Officer4.25yrsUS$1.96m0.013% $217.7k
Gordon Robb
Senior Vice President of Global Operations0.17yrno datano data
Brooke Clark
Senior VP & Chief Accounting Officer1.58yrsno data0.0042% $70.3k
Karen Renner
Senior VP & Chief Information Officer1.25yrsno datano data
Kevin Powers
Vice President of Investor Relationsno datano datano data
Peter Karlsson
Chief Sales Officer of Global Salesno dataUS$2.12m0.014% $240.8k

1.8yrs

Average Tenure

54yo

Average Age

Experienced Management: COMM's management team is not considered experienced ( 1.8 years average tenure), which suggests a new team.


Board Members

NamePositionTenureCompensationOwnership
Marvin Edwards
President9.25yrsUS$13.99m0.18% $3.1m
Daniel Akerson
Independent Director1yrUS$269.15k0.00031% $5.2k
Frank Drendel
Chairman of the Board9.25yrsUS$2.76m1.3% $21.6m
L. Krause
Independent Director9.25yrsUS$288.60k0.036% $592.3k
Stephen Gray
Independent Director9.25yrsUS$288.60k0.010% $168.3k
Austin Adams
Independent Director6.25yrsUS$283.60k0.014% $237.1k
Claudius Watts
Lead Independent Director2.42yrsUS$318.60k0.049% $819.8k
Joanne Maguire
Independent Director4.25yrsUS$283.60k0.0085% $140.6k
Thomas J. Manning
Independent Director5.58yrsUS$283.60k0.010% $170.3k
Timothy Yates
Independent Director6.5yrsUS$298.60k0.023% $381.1k

6.4yrs

Average Tenure

70yo

Average Age

Experienced Board: COMM's board of directors are considered experienced (6.4 years average tenure).


Ownership

Who are the major shareholders and have insiders been buying or selling?


Insider Trading Volume

Insider Buying: COMM 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$1.662b
  • Shares outstanding: 195.28m
  • 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 and entertainment networks worldwide. The company’s Connectivity segment offers fiber optic, copper cable, and connectivity solutions for use in data centers, business enterprises, telecommunications, cable television, and residential broadband networks. Its Mobility segment provides building blocks for cellular base station sites and related connectivity; indoor, small cell, and distributed antenna wireless systems; and wireless network backhaul planning and optimization solutions. The company’s Customer Premises Equipment segment provides subscriber-based solutions that support broadband and video applications connecting cable, telecommunications, and satellite service providers. This segment offers devices that provide residential connectivity to service provider’s network, such as digital subscriber line, cable modems, and telephony and data gateways that incorporate routing and Wi-Fi functionality. It also provides set top boxes that support cable, satellite, and IPTV content delivery, as well as digital video recorders, high definition set top boxes, and hybrid set top devices. Its Network & Cloud Segment offers cable modem termination systems, video infrastructure, distribution and transmission equipment, and cloud solutions that enable facility-based service providers to construct residential and metro distribution network. The company’s Ruckus segment provides converged wired and wireless networks for enterprises and service providers. This segment offers indoor and outdoor Wi-Fi and LTE access points, access, and aggregation switches; IoT suite, and on-premises and cloud-based control and management systems; and software and software-as-a-service applications for security, location, reporting, and analytics. 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 Analysis2020/04/04 02:33
End of Day Share Price2020/04/03 00:00
Earnings2019/12/31
Annual Earnings2019/12/31


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.