NasdaqGM:JCS

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Communications Systems

Executive Summary

Communications Systems, Inc., through its subsidiaries, manufactures and sells connectivity infrastructure products and services for broadband networks in North America, Europe, the Middle East, Africa, and internationally. More Details

Risk Analysis

Does not have a meaningful market cap ($45M)



Snowflake Analysis

Flawless balance sheet and overvalued.

Share Price & News

How has Communications Systems's share price performed over time and what events caused price changes?


Latest Share Price and Events

Stable Share Price: JCS is less volatile than 75% of US stocks over the past 3 months, typically moving +/- 5% a week.

Volatility Over Time: JCS's weekly volatility (5%) has been stable over the past year.


Market Performance


7 Day Return

1.9%

JCS

-0.4%

US Communications

2.3%

US Market


1 Year Return

-20.0%

JCS

-1.8%

US Communications

23.8%

US Market

Return vs Industry: JCS underperformed the US Communications industry which returned -1.8% over the past year.

Return vs Market: JCS underperformed the US Market which returned 23.7% over the past year.


Shareholder returns

JCSIndustryMarket
7 Day1.9%-0.4%2.3%
30 Day6.6%3.6%4.8%
90 Day18.3%19.6%14.5%
1 Year-19.4%-20.0%1.0%-1.8%26.6%23.8%
3 Year43.9%34.1%14.7%6.4%45.0%35.4%
5 Year-20.6%-33.0%99.0%76.3%126.2%101.0%

Long-Term Price Volatility Vs. Market

How volatile is Communications Systems's share price compared to the market and industry in the last 5 years?


Simply Wall St News

Valuation

Is Communications Systems undervalued compared to its fair value and its price relative to the market?

0.95x

Price to Book (PB) ratio


Share Price vs. Fair Value

Below Fair Value: Insufficient data to calculate JCS's fair value to establish if it is undervalued.

Significantly Below Fair Value: Insufficient data to calculate JCS's fair value to establish if it is undervalued.


Price To Earnings Ratio

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

PE vs Market: JCS 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 JCS's PEG Ratio to determine if it is good value.


Price to Book Ratio

PB vs Industry: JCS is good value based on its PB Ratio (1x) compared to the US Communications industry average (2.6x).


Next Steps

Future Growth

How is Communications Systems forecast to perform in the next 1 to 3 years based on estimates from 1 analyst?

5.8%

Forecasted annual revenue growth


Earnings and Revenue Growth Forecasts


Analyst Future Growth Forecasts

Earnings vs Savings Rate: Insufficient data to determine if JCS's forecast earnings growth is above the savings rate (2%).

Earnings vs Market: Insufficient data to determine if JCS's earnings are forecast to grow faster than the US market

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

Revenue vs Market: JCS's revenue (5.8% per year) is forecast to grow slower than the US market (10.6% per year).

High Growth Revenue: JCS's revenue (5.8% 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 JCS's Return on Equity is forecast to be high in 3 years time


Next Steps

Past Performance

How has Communications Systems performed over the past 5 years?

32.5%

Historical annual earnings growth


Earnings and Revenue History

Quality Earnings: JCS is currently unprofitable.

Growing Profit Margin: JCS is currently unprofitable.


Past Earnings Growth Analysis

Earnings Trend: JCS is unprofitable, but has reduced losses over the past 5 years at a rate of 32.5% per year.

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

Earnings vs Industry: JCS is unprofitable, making it difficult to compare its past year earnings growth to the Communications industry (-0.1%).


Return on Equity

High ROE: JCS has a negative Return on Equity (-0.88%), as it is currently unprofitable.


Next Steps

Financial Health

How is Communications Systems's financial position?


Financial Position Analysis

Short Term Liabilities: JCS's short term assets ($36.3M) exceed its short term liabilities ($7.8M).

Long Term Liabilities: JCS's short term assets ($36.3M) exceed its long term liabilities ($693.4K).


Debt to Equity History and Analysis

Debt Level: JCS is debt free.

Reducing Debt: JCS has no debt compared to 5 years ago when its debt to equity ratio was 5.1%.


Balance Sheet


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: JCS has sufficient cash runway for more than 3 years based on its current free cash flow.

Forecast Cash Runway: JCS has sufficient cash runway for 2.3 years if free cash flow continues to grow at historical rates of 1.5% each year.


Next Steps

Dividend

What is Communications Systems's current dividend yield, its reliability and sustainability?


Dividend Yield vs Market

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

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


Stability and Growth of Payments

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

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


Current Payout to Shareholders

Dividend Coverage: JCS is not paying a notable dividend for the US market.


Future Payout to Shareholders

Future Dividend Coverage: No need to calculate the sustainability of JCS'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?

4.3yrs

Average management tenure


CEO

Anita Kumar

0.083

Tenure

Ms. Anita Kumar serves as Chief Executive Officer and Director of Communications Systems, Inc. since December 9, 2020. Ms. Kumar joined CSI in 2011 and was promoted to General Manager of Transition Network...


Leadership Team

NamePositionTenureCompensationOwnership
Roger Lacey
Executive Chairman and Interim Group President of Transition Networks & Net2Edge2.08yrsUS$472.19k0.97%
$ 437.7k
Mark Fandrich
CFO, Treasurerno dataUS$502.49k0.24%
$ 107.1k
Scott Fluegge
President & GM of JDL Technologies7.33yrsUS$309.70k0.29%
$ 130.0k
Anita Kumar
CEO & Director0.083yrno data0.088%
$ 39.7k
Kristin Hlavka
Corporate Controller9.67yrsUS$200.67k0.20%
$ 89.2k
Seweryn Sadura
General Manager of Suttleno dataUS$211.52kno data

4.3yrs

Average Tenure

50yo

Average Age

Experienced Management: JCS's management team is considered experienced (4.3 years average tenure).


Board Members

NamePositionTenureCompensationOwnership
Roger Lacey
Executive Chairman and Interim Group President of Transition Networks & Net2Edge2.08yrsUS$472.19k0.97%
$ 437.7k
Anita Kumar
CEO & Director0.083yrno data0.088%
$ 39.7k
Randall Sampson
Lead Independent Director2.08yrsUS$32.57k1.08%
$ 485.8k
Richard Primuth
Independent Director7.25yrsUS$58.82k0.28%
$ 126.5k
Steven Webster
Independent Director3.67yrsUS$30.69k0.054%
$ 24.2k
Michael Zapata
Independent Director0.58yrno datano data

2.1yrs

Average Tenure

63yo

Average Age

Experienced Board: JCS's board of directors are not considered experienced ( 2.1 years average tenure), which suggests a new board.


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

Communications Systems, Inc.'s company bio, employee growth, exchange listings and data sources


Key Information

  • Name: Communications Systems, Inc.
  • Ticker: JCS
  • Exchange: NasdaqGM
  • Founded: 1969
  • Industry: Communications Equipment
  • Sector: Tech
  • Market Cap: US$45.111m
  • Shares outstanding: 9.32m
  • Website: https://www.commsystems.com

Number of Employees


Location

  • Communications Systems, Inc.
  • 10900 Red Circle Drive
  • Minnetonka
  • Minnesota
  • 55343
  • United States

Listings

TickerExchangePrimary SecuritySecurity TypeCountryCurrencyListed on
JCSNasdaqGM (Nasdaq Global Market)YesCommon StockUSUSDNov 1981

Biography

Communications Systems, Inc., through its subsidiaries, manufactures and sells connectivity infrastructure products and services for broadband networks in North America, Europe, the Middle East, Africa, an...


Company Analysis and Financial Data Status

All financial data provided by Standard & Poor's Capital IQ.
DataLast Updated (UTC time)
Company Analysis2021/01/24 00:16
End of Day Share Price2021/01/22 00:00
Earnings2020/09/30
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.