Comtech Telecommunications (CMTL) AI Stock Analysis

• Market Cap: $100.61M
• Dividend Yield: N/A
• Average Volume (3M): 261.33K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.28
• Revenue Growth: -1.89%
• EPS Growth: 76.61%
• Country: US
• Employees: 1,500
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.68
• Shares Outstanding: 29,679,464
• 10 Day Avg. Volume: 205,754
• 30 Day Avg. Volume: 261,330
• PEG Ratio: >-0.01
• Price to Book (P/B): 0.22
• Price to Sales (P/S): 0.13
• P/FCF Ratio: -3.79
• Enterprise Value/Market Cap: 45.90K
• Enterprise Value/Revenue: 0.04
• Enterprise Value/Gross Profit: 0.13
• Enterprise Value/Ebitda: 48.60K
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): -2.3
• Revenue Forecast (FY): $460.56M

• Rating: 48 Neutral
• Price Target: $3.50 ▼(-36.59% Downside)
• Action: Reiterated Date: 03/18/26
• Date: Action: Reiterated 03/18/26

The score is held back primarily by weak underlying financial performance (multi-year losses and historically negative cash generation) and bearish technicals. The latest earnings call provides the main offset, pointing to improving margins, sustained positive operating cash flow, and stronger bookings/backlog, but leverage and near-term revenue pressure keep the overall risk profile elevated.

Positive Factors

Margin expansion and improving profitability

Gross margin widened materially and adjusted EBITDA more than tripled, reflecting product mix improvement and cost discipline. Sustained higher gross margins across contracts and improving adjusted operating metrics increase the chance of durable profitability as the company scales higher‑margin programs and reduces legacy low‑margin exposure.

Robust backlog and book‑to‑bill supporting revenue visibility

A backlog of $732M and strong book‑to‑bill give multi‑quarter revenue visibility, underpinning planned production ramps. This backlog should smooth revenue recognition as next‑gen modem programs move to production and supports recurring service transitions, reducing near‑term top‑line uncertainty if execution stays on plan.

Strategic shift toward recurring, higher‑margin products/services

Winning multiyear Allerium funding and migrating PSAP customers to cloud/AI services shows movement to recurring revenue and software‑enabled offerings. Coupled with planned production of next‑gen modems, this structural shift improves revenue mix toward higher gross margins and more predictable lifecycle support revenue over time.

Negative Factors

Historic unprofitable operations and cash flow volatility

The company has posted losses and negative free cash flow across several annual periods, indicating a history of cash burn and execution risk. Although recent trailing results show positive operating cash flow, multi‑year instability weakens confidence in durability and means future growth depends on sustaining positive cash generation.

Elevated leverage and complex capital structure

Large secured and subordinated borrowings plus a sizable preferred liquidation preference constrain financial flexibility and raise refinancing risk. Even with covenant relief, high structural leverage can limit investment capacity, increase interest and payout obligations, and magnify downside in revenue shortfalls.

Near‑term revenue pressure from phasing out legacy business and timing sensitivity

Deliberately exiting low‑margin legacy contracts improved margins but reduced revenue and introduced timing risk tied to government ordering cycles. Reliance on government program timing and phasing of legacy work creates structural revenue volatility until new production ramps and recurring services fully offset lost legacy sales.

Comtech Telecommunications Business Overview & Revenue Model

Company Description

Comtech Telecommunications Corp., together with its subsidiaries, designs, develops, produces, and markets products, systems, and services for communications solutions in the United States and internationally. It operates in two segments, Commercial Solutions and Government Solutions. The Commercial Solutions segment offers satellite ground station technologies, including single channel per carrier and time division multiple access modems, amplifiers, frequency converters, and network software to modulate, demodulate, and amplify signals, as well as to carry voice, video, and/or data over networks; and public safety and location technologies, such as 911 call handling and mapping solutions that allow cellular carriers and voice over the Internet carriers to deliver emergency calls to public safety emergency call centers. The Government Solutions segment provides tactical satellite-based networks, such as satellite modems, ruggedized routers, and solid-state drives; sustainment services for the secret Internet Protocol router and non-classified Internet Protocol router access point; and small aperture terminals. This segment also offers high-performance transmission technologies that are used in communication systems comprising electronic warfare, radar, and identification friend or foe (IFF); troposcatter technologies for satellite communication; and high-power radio frequency microwave amplifiers and related switching control technologies that are used in electronic warfare, communications, radar, IFF, and medical applications. The company serves satellite systems integrators, wireless and other communication service providers, satellite broadcasters, prime contractors and system suppliers, medical equipment companies, aviation industry system integrators, oil companies, and domestic and international defense and government customers, as well as end-customers. Comtech Telecommunications Corp. was founded in 1967 and is headquartered in Melville, New York.

How the Company Makes Money

Comtech makes money primarily by selling communications equipment, software, and services across government and commercial markets. A major portion of revenue is generated through government-related programs and contracts (including U.S. and allied defense and public safety agencies) for specialized communications systems—such as satellite communication terminals/modems, troposcatter/over-the-horizon systems, and satellite ground infrastructure—where Comtech is paid for product deliveries as well as associated engineering, integration, testing, training, and lifecycle support. It also earns revenue from commercial and government customers through recurring or project-based services tied to its technology deployments, which can include managed services, maintenance/support, and software-enabled solutions. In its public safety/location business, revenue is generated by providing 911-related technologies and services (including call handling and location capabilities) to emergency communications customers; depending on the offering, this can include a mix of product sales and ongoing service/support arrangements. Specific revenue mix by stream, pricing model details, and named partnerships materially contributing to earnings are null.

Comtech Telecommunications Financial Statement Overview

Summary

Financials remain pressured by persistent net losses and historically negative operating/free cash flow, despite relatively resilient gross margins. The balance sheet is workable with positive equity, but leverage has risen and returns are negative. A recent TTM/quarterly improvement in operating cash flow and profitability metrics is constructive, but durability is not yet proven.

Income Statement

Profitability remains the key weak spot. Over the annual periods, revenue has generally trended down to slightly negative growth, and the company has posted net losses each year with deeply negative net margins (worsening in 2025 vs. 2024). While gross margin has been relatively resilient (roughly mid-20%s to high-30%s range historically), operating performance has been inconsistent and often negative. The latest TTM (Trailing-Twelve-Months) shows an unusually large revenue figure and extremely weak net profitability, which reinforces elevated earnings volatility and lowers confidence in the run-rate.

Balance Sheet

Leverage is moderate but moving in the wrong direction. Debt relative to equity increased in 2025 versus prior years, indicating rising balance-sheet pressure. Equity remains positive, which provides a cushion, but returns on equity are consistently negative due to ongoing losses. Overall, the balance sheet is not distressed, yet it is becoming less flexible as profitability has not improved alongside higher leverage.

Cash Flow

Cash generation has been inconsistent and often negative. Operating cash flow was negative in most annual periods (2021–2025), and free cash flow was negative each year in the annual set, signaling reliance on financing or balance-sheet capacity to fund operations. The TTM (Trailing-Twelve-Months) prints positive operating cash flow and positive free cash flow, which is a constructive development, but cash flow has not been stable enough year-to-year to be considered durable. The cash flow profile is improving lately, but still carries execution risk.

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	10.00T>	499.53M	540.40M	549.99M	486.24M	581.70M
Gross Profit	36.22T	127.87M	157.18M	184.46M	179.84M	213.96M
EBITDA	95.01M	-76.06M	-44.14M	18.66M	-334.00K	-37.76M
Net Income	-20.16T	-155.30M	-99.98M	-26.90M	-33.05M	-73.48M
Balance Sheet
Total Assets	703.83M	740.84M	912.43M	996.24M	974.30M	993.11M
Cash, Cash Equivalents and Short-Term Investments	32.83T	40.02M	32.43M	18.96M	21.65M	30.86M
Total Debt	37.44T	250.68M	212.66M	214.81M	183.11M	249.41M
Total Liabilities	10.00T>	446.87M	426.11M	445.73M	402.51M	492.39M
Stockholders Equity	265.58M	293.97M	486.33M	550.51M	571.79M	500.72M
Cash Flow
Free Cash Flow	5.26T	-16.86M	-67.58M	-22.74M	-17.62M	-56.67M
Operating Cash Flow	12.95T	-8.29M	-54.49M	-4.43M	2.00M	-40.64M
Investing Cash Flow	-7.68T	-8.56M	20.14M	-18.31M	-19.62M	-15.48M
Financing Cash Flow	-8.35M	24.44M	47.83M	20.05M	8.41M	39.10M

Comtech Telecommunications Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 5.52
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMTL, the sentiment is Negative. The current price of 5.52 is above the 20-day moving average (MA) of 5.02, above the 50-day MA of 5.44, and above the 200-day MA of 3.41, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 25.15 is Positive, neither overbought nor oversold. The STOCH value of 21.64 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMTL.

Comtech Telecommunications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
KVHI	65 Neutral	$150.96M	-18.31	-5.49%	―	-9.26%	36.90%
SILC	64 Neutral	$108.80M	-8.28	-10.53%	―	-4.61%	63.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
OCC	57 Neutral	$61.56M	-27.50	-3.58%	―	9.55%	65.17%
AMPG	50 Neutral	$65.97M	-106.24	-21.04%	―	93.47%	37.19%
CMTL	48 Neutral	$100.61M	―	-122.91%	―	-1.89%	76.61%

Comtech Telecommunications Corporate Events

Comtech Shareholders Approve Directors, Pay and Equity Plan

Comtech Telecommunications held its Fiscal 2025 Annual Meeting of Stockholders on March 9, 2026, at which shareholders elected seven directors to the board, including Kenneth H. Traub and Lieutenant General (Ret.) Bruce T. Crawford, with voting outcomes aligned with board recommendations. Investors also approved, on an advisory basis, the compensation of named executive officers, ratified Deloitte & Touche LLP as independent auditor for the fiscal year ending July 31, 2026, and endorsed an amendment to increase the shares available under the 2023 Equity and Incentive Plan, reinforcing the company’s governance stability and capacity for future equity-based incentives.

The most recent analyst rating on (CMTL) stock is a Hold with a $5.00 price target. To see the full list of analyst forecasts on Comtech Telecommunications stock, see the CMTL Stock Forecast page.

Comtech Telecommunications Announces Planned Board Director Retirement

On January 23, 2026, Comtech Telecommunications Corp. announced that director Wendi B. Carpenter will retire from its Board of Directors and will not stand for re-election at the company’s Fiscal 2025 Annual Meeting of Stockholders, scheduled for March 9, 2026; she will serve out the remainder of her term until that date, and her departure is not due to any disagreement with the company or the board. Upon the conclusion of Carpenter’s term at the Fiscal 2025 Annual Meeting, the size of Comtech’s board will be reduced to seven members, signaling a modest governance change but no reported strategic shift or internal conflict, which should reassure shareholders that the transition is part of routine board refreshment rather than a response to controversy.

The most recent analyst rating on (CMTL) stock is a Hold with a $6.00 price target. To see the full list of analyst forecasts on Comtech Telecommunications stock, see the CMTL Stock Forecast page.