Comtech Telecommunications (CMTL) AI Stock Analysis

• Market Cap: $166.00M
• Dividend Yield: N/A
• Average Volume (3M): 262.75K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.25
• Revenue Growth: -1.89%
• EPS Growth: 76.61%
• Country: US
• Employees: 1,500
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.39
• Shares Outstanding: 29,643,225
• 10 Day Avg. Volume: 140,563
• 30 Day Avg. Volume: 262,747
• 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: 2.19
• Enterprise Value/Revenue: 0.73
• Enterprise Value/Gross Profit: 2.51
• Enterprise Value/Ebitda: 6.57
• 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: 49 Neutral
• Price Target: $5.00 ▼(-9.42% Downside)
• Action: Reiterated Date: 02/26/26
• Date: Action: Reiterated 02/26/26

The score is held back primarily by weak financial performance (sharp revenue decline, negative margins, and deteriorating free cash flow). Offsetting this, the latest earnings call indicated meaningful stabilization and improvement in cash flow, liquidity, margins, and adjusted EBITDA, while technical indicators are neutral and valuation remains unattractive due to ongoing losses.

Positive Factors

Operating Cash Flow & Liquidity

Two consecutive quarters of positive operating cash flow and liquidity rising to $47M (from $27M) materially reduce near-term refinancing risk and improve the company's ability to fund contracts and working capital. This creates a firmer base for multi‑quarter recovery if sustained.

Margin Improvement

A shift from low to high gross margins and a move to positive adjusted EBITDA reflect a durable improvement in revenue mix and cost structure. If maintained, higher gross margins enable operating leverage to convert revenue growth into sustainable profits over several quarters.

Contract Wins & Backlog

A large multiyear contract extension materially increases revenue visibility and backlog with a major customer. For a defense/space supplier, such long-term awards support recurring revenue, utilization planning, and predictable cash conversion over multiple reporting periods.

Negative Factors

Severe Revenue Decline

A near-vertical revenue drop undermines scale economics and the firm's ability to absorb fixed costs, weakening competitive position. Restoring topline momentum is critical; without sustained bookings growth, margin gains and cash improvements may prove fragile over the coming quarters.

Large Net Losses

A cumulative net loss of this magnitude erodes shareholder equity and restricts reinvestment capacity. Persistent large losses can limit strategic flexibility, increase reliance on external financing, and hamper the company's ability to execute long-term growth initiatives absent consistent cash generation.

Weak Free Cash Flow Trend

Very weak free cash flow growth signals structural cash conversion problems historically. Although Q4 showed positive operating cash flow, the deep negative FCF trend implies the company remains vulnerable to liquidity stress and may need sustained operational improvement to self-fund capex and debt servicing.

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 Telecommunications generates revenue through a diverse range of products and services. The company’s primary revenue streams include sales of satellite communication equipment, software solutions, and support services. Additionally, Comtech earns income through government contracts, particularly in defense and intelligence sectors, which often involve long-term agreements and recurring service contracts. The company also benefits from partnerships with major telecommunications providers and defense contractors, which enhance its market reach and capabilities. Furthermore, Comtech's focus on innovation and development of cutting-edge technologies positions it to capitalize on emerging trends in communications, contributing to its overall earnings.

Comtech Telecommunications Financial Statement Overview

Summary

Financial statements reflect material stress: steep revenue decline (-95.5% TTM), deeply negative profitability (net margin -31.1%, EBIT margin -21.8% TTM), and worsening free cash flow growth (-172.3% TTM). Leverage is moderate (debt-to-equity 0.85 TTM), but returns are very weak (ROE -54.9% TTM).

Income Statement

Comtech Telecommunications has faced declining revenues with a negative revenue growth rate of -95.5% TTM. The company also exhibits negative margins across the board, including a net profit margin of -31.1% and an EBIT margin of -21.8% TTM, indicating significant profitability challenges. The gross profit margin is relatively stable at 25.6% TTM, but overall, the income statement reflects financial distress and a need for strategic improvements.

Balance Sheet

The company's balance sheet shows a moderate debt-to-equity ratio of 0.85 TTM, suggesting manageable leverage. However, the return on equity is significantly negative at -54.9% TTM, indicating poor returns for shareholders. The equity ratio is not explicitly calculated, but the overall balance sheet suggests a need for improved financial health and asset management.

Cash Flow

Comtech's cash flow statement reveals a challenging situation with negative free cash flow growth of -172.3% TTM. Despite this, the free cash flow to net income ratio is positive at 2.03, indicating some ability to generate cash relative to net losses. The operating cash flow to net income ratio is negative, highlighting ongoing cash flow difficulties.

Breakdown	TTM	Jul 2025	Jul 2024	Jul 2023	Jul 2022	Jul 2021
Income Statement
Total Revenue	494.76M	499.53M	540.40M	549.99M	486.24M	581.70M
Gross Profit	145.08M	127.87M	157.18M	184.46M	179.84M	213.96M
EBITDA	55.36M	-76.06M	-44.14M	18.66M	-334.00K	-37.76M
Net Income	-22.77M	-155.30M	-99.98M	-26.90M	-33.05M	-73.48M
Balance Sheet
Total Assets	734.12M	740.84M	912.43M	996.24M	974.30M	993.11M
Cash, Cash Equivalents and Short-Term Investments	43.63M	40.02M	32.43M	18.96M	21.65M	30.86M
Total Debt	258.29M	250.68M	212.66M	214.81M	183.11M	249.41M
Total Liabilities	455.08M	446.87M	426.11M	445.73M	402.51M	492.39M
Stockholders Equity	279.04M	293.97M	486.33M	550.51M	571.79M	500.72M
Cash Flow
Free Cash Flow	12.18M	-16.86M	-67.58M	-22.74M	-17.62M	-56.67M
Operating Cash Flow	21.59M	-8.29M	-54.49M	-4.43M	2.00M	-40.64M
Investing Cash Flow	-9.41M	-8.56M	20.14M	-18.31M	-19.62M	-15.48M
Financing Cash Flow	1.81M	24.44M	47.83M	20.05M	8.41M	39.10M

Comtech Telecommunications Technical Analysis

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

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMTL, the sentiment is Neutral. The current price of 5.52 is below the 20-day moving average (MA) of 5.60, above the 50-day MA of 5.27, and above the 200-day MA of 3.21, indicating a neutral trend. The MACD of <0.01 indicates Positive momentum. The RSI at 43.61 is Neutral, neither overbought nor oversold. The STOCH value of 34.92 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for CMTL.

Comtech Telecommunications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SILC	64 Neutral	$113.02M	-10.07	-10.53%	―	-4.61%	63.88%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KVHI	58 Neutral	$117.24M	-9.73	-8.78%	―	-9.26%	36.90%
AMPG	50 Neutral	$66.98M	-5.36	-27.13%	―	93.47%	37.19%
CMTL	49 Neutral	$166.00M	-2.23	-7.88%	―	-1.89%	76.61%
OCC	48 Neutral	$55.35M	-33.53	-6.86%	―	9.55%	65.17%

Comtech Telecommunications Corporate Events

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.

Comtech Appoints Mary Raymond to Board of Directors

On December 11, 2025, Comtech Telecommunications Corp. announced the appointment of Mary J. Raymond as an independent director to its Board of Directors. Ms. Raymond brings over three decades of experience in public company finance and governance, having served in senior roles at Coherent Corp., Hudson Global, and other major firms. Her appointment is seen as a strategic move to leverage her expertise in governance, finance, and mergers and acquisitions, enhancing Comtech’s board as the company continues its positive momentum.

The most recent analyst rating on (CMTL) stock is a Hold with a $3.00 price target. To see the full list of analyst forecasts on Comtech Telecommunications stock, see the CMTL Stock Forecast page.