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Comtech Telecommunications (CMTL)
NASDAQ:CMTL
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Comtech Telecommunications
(NASDAQ:CMTL)
Rating:53Neutral
Price Target:
$2.50
▲(6.84%Upside)
Comtech Telecommunications (CMTL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$72.31M
Dividend YieldN/A
Average Volume (3M)354.15K
Price to Earnings (P/E)―
Beta (1Y)1.20
Revenue Growth-12.02%
EPS Growth-615.33%
CountryUS
Employees1,500
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.49
Shares Outstanding29,395,264
10 Day Avg. Volume317,814
30 Day Avg. Volume354,152
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)0.25
Price to Sales (P/S)0.00
P/FCF Ratio-1.54
Enterprise Value/Market Cap4.09
Enterprise Value/Revenue0.15
Enterprise Value/Gross Profit2.71
Enterprise Value/Ebitda-0.46
Forecast
1Y Price Target
$6.00Price Target Upside156.41% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering1
Comtech Telecommunications Business Overview & Revenue Model
Company DescriptionComtech 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 MoneyComtech Telecommunications generates revenue through a combination of product sales, service contracts, and government-funded projects. Its key revenue streams include the sale of satellite communication systems, terrestrial network infrastructure, and high-performance transmission equipment. Additionally, the company engages in long-term service agreements and provides ongoing support and maintenance for its products, ensuring steady income from existing contracts. Significant partnerships with defense agencies and telecommunication providers further bolster its earnings, as these collaborations often involve multi-year agreements and substantial investment in infrastructure and technology solutions.
Comtech Telecommunications Earnings Call Summary
Earnings Call Date:Jun 09, 2025
(Q3-2025)
| % Change Since: -7.87%|
Next Earnings Date:Sep 24, 2025
Earnings Call Sentiment Neutral
The earnings call reflected a company in transition, with significant efforts in cost reduction and financial restructuring yielding positive outcomes. However, historical challenges and the loss of a significant contract highlight ongoing obstacles. The sentiment is cautiously optimistic with a focus on transformation.Q3-2025 Updates
Positive Updates
Successful Capital Infusion and Renegotiation
Secured a $40 million capital infusion, enabling renegotiation with senior secured lenders, waiving prior covenant breaches and improving financial flexibility.
Cost Reduction Achievements
Reduced annual labor costs by approximately $33 million through workforce reductions since July 31, 2024.
Positive Cash Flow from Operations
Generated GAAP cash flow from operations of a positive $2.3 million, marking the first positive cash flow in the past 8 quarters.
T&W Segment Performance
Terrestrial and Wireless Networks segment experienced higher net sales and improved metrics, including operating income, net income, and adjusted EBITDA.
New Product Launch
Development of next-generation 911 call handling solution is nearly complete, and launch is anticipated at the National Emergency Number Association Conference.
Negative Updates
De-booking of GFSR Contract
Loss of a large multiyear GFSR contract resulting in a $36 million de-booking for the Satellite and Space business.
Historical Challenges and Leadership Turnover
Burdensome capital structure, high cost structure, extensive leadership turnover, and operational discipline issues.
Ongoing Regulatory Inquiry
Request for information from the Director of Defense Trade Controls related to voluntary disclosures about potential modem misclassification.
Company Guidance
During Comtech's third-quarter fiscal 2025 conference call, the company provided key guidance and updates on its transformation plan. Comtech reported a consolidated net sales figure of $126.8 million, with a gross margin of 30.7%, an improvement from the previous quarter. The company secured a $40 million capital infusion, which allowed for renegotiation of terms with senior secured lenders, enhancing financial flexibility. Cost reduction measures were highlighted, including a $33 million annual decrease in labor costs achieved through workforce reductions. The Satellite and Space segment faced a $36 million de-booking due to a contract loss but achieved a higher book-to-bill ratio excluding the de-booking. The Terrestrial and Wireless segment showed growth with higher net sales, driven by next-generation 911 services and location-based solutions. Comtech reported positive GAAP cash flow from operations of $2.3 million, marking the first positive cash flow in eight quarters. The company is focused on leveraging its core strengths and opportunities in Satellite and Space, as well as Terrestrial and Wireless, to drive future growth and improve operational efficiency.Comtech Telecommunications Financial Statement Overview
Summary
Comtech Telecommunications faces severe financial challenges with declining revenue, negative net income, and weak cash flow generation. Operational inefficiencies and a strained balance sheet present significant risks, necessitating strategic improvements.Income Statement
Comtech Telecommunications has been experiencing a declining revenue trend with a significant drop in total revenue over the TTM period compared to previous years. The company consistently reports negative net income, indicating struggles with profitability. Gross profit margin remains weak, and both EBIT and EBITDA margins are negative, reflecting operational inefficiencies.25
Negative
Balance Sheet
The balance sheet shows a moderate debt-to-equity ratio, suggesting manageable leverage levels. However, the company has recorded a decrease in stockholders' equity, and the return on equity is negative due to recurring net losses. The equity ratio indicates a reasonable proportion of equity financing compared to assets, yet the weakening financial health is evident.40
Negative
Cash Flow
Free cash flow remains negative, pointing to ongoing cash flow challenges. The company is not generating sufficient operating cash flow to cover capital expenditures. The negative free cash flow to net income ratio highlights difficulties in turning profits into cash. Despite positive financing cash flow, overall cash flow management remains problematic.30
Negative
| Breakdown | TTM | Sep 2024 | Sep 2023 | Sep 2022 | Sep 2021 | Sep 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 495.35M | 540.40M | 549.99M | 486.24M | 581.70M | 616.72M |
| Gross Profit | 109.06M | 157.18M | 184.46M | 179.84M | 213.96M | 226.83M |
| EBITDA | -183.77M | -44.81M | 18.66M | -345.00K | -37.76M | 47.34M |
| Net Income | -247.81M | -99.98M | -26.90M | -33.05M | -73.48M | 7.02M |
Balance Sheet | ||||||
| Total Assets | 751.14M | 912.43M | 996.24M | 974.30M | 993.11M | 929.65M |
| Cash, Cash Equivalents and Short-Term Investments | 28.43M | 32.43M | 18.96M | 21.65M | 30.86M | 47.88M |
| Total Debt | 251.52M | 212.66M | 214.81M | 183.11M | 249.41M | 181.86M |
| Total Liabilities | 465.64M | 426.11M | 445.73M | 402.51M | 492.39M | 380.35M |
| Stockholders Equity | 285.50M | 486.33M | 550.51M | 571.79M | 500.72M | 549.30M |
Cash Flow | ||||||
| Free Cash Flow | -47.06M | -77.87M | -22.74M | -17.62M | -56.67M | 45.54M |
| Operating Cash Flow | -36.35M | -64.79M | -4.43M | 2.00M | -40.64M | 52.76M |
| Investing Cash Flow | -10.71M | 20.14M | -18.31M | -19.62M | -15.48M | -20.18M |
| Financing Cash Flow | 48.30M | 58.12M | 20.05M | 8.41M | 39.10M | -30.28M |
Comtech Telecommunications Technical Analysis
Positive
2.34
Price Trends
1.90
Positive
1.87
Positive
2.66
Negative
Market Momentum
0.14
Negative
59.61
Neutral
60.37
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMTL, the sentiment is Positive. The current price of 2.34 is above the 20-day moving average (MA) of 2.25, above the 50-day MA of 1.90, and below the 200-day MA of 2.66, indicating a neutral trend. The MACD of 0.14 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 60.37 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMTL.
Comtech Telecommunications Risk Analysis
Comtech Telecommunications disclosed 45 risk factors in its most recent earnings report. Comtech Telecommunications reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Comtech Telecommunications Peers Comparison
Overall Rating
UnderperformOutperform
Sector (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
63 Neutral | $33.22B | 5.73 | -11.55% | 1.90% | 5.54% | -20.14% | |
53 Neutral | $72.31M | ― | -43.88% | ― | -12.02% | -615.33% | |
52 Neutral | $43.41M | ― | -29.09% | ― | -21.44% | -3.31% | |
50 Neutral | $49.30M | ― | -25.57% | ― | 8.46% | 39.81% | |
49 Neutral | $25.38M | ― | -9.04% | ― | -30.95% | -8.17% | |
48 Neutral | $23.86M | ― | -14.60% | ― | 5.77% | 29.54% | |
| $48.20M | ― | -4.62% | ― | ― | ― |
* Technology Sector Average
Performance Comparison
CMTL
Comtech Telecommunications
2.34
-0.89
-27.55%
OCC
Optical Cable
3.00
0.32
11.94%
UTSI
UTStarcom
2.68
0.03
1.13%
AIRG
Airgain
4.14
-1.77
-29.95%
AMPG
AmpliTech Group
2.19
1.14
108.57%
FKWL
Franklin Wireless
4.09
0.54
15.21%
Comtech Telecommunications Corporate Events
Private Placements and FinancingBusiness Operations and Strategy
Comtech Telecommunications Enhances Financial Flexibility with Amendments
Positive
Mar 4, 2025
On March 3, 2025, Comtech Telecommunications Corp. announced amendments to its credit agreements, including a waiver of certain defaults and adjustments to financial covenants, such as reducing interest rate margins and liquidity requirements. Additionally, the company restructured its convertible preferred stock, exchanging Series B-2 for Series B-3 shares, which included board observer rights and information access for investors. These changes aim to strengthen Comtech’s financial flexibility and governance structure.
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.