Comtech Telecommunications (CMTL) AI Stock Analysis

• Market Cap: $98.31M
• Dividend Yield: N/A
• Average Volume (3M): 239.13K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.06
• Revenue Growth: -7.56%
• EPS Growth: -47.16%
• Country: US
• Employees: 1,500
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.39
• Shares Outstanding: 29,610,416
• 10 Day Avg. Volume: 338,517
• 30 Day Avg. Volume: 239,125
• PEG Ratio: 0.00
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 4.72
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 3.63
• Enterprise Value/Ebitda: -4.40
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 54 Neutral
• Price Target: $3.50 ▲(14.01% Upside)

Comtech Telecommunications' overall stock score reflects significant financial challenges, despite some positive technical indicators and improvements highlighted in the earnings call. The company's weak financial performance, particularly in profitability and cash flow, is the most significant factor impacting the score. Technical analysis shows some positive momentum, but valuation concerns and mixed earnings call outcomes temper the overall outlook.

Comtech Telecommunications Business Overview & Revenue Model

Company Description

Comtech Telecommunications Corp. (CMTL) is a leading provider of advanced communications solutions for both commercial and government applications. The company operates in various sectors, including satellite communications, telecommunications, and cybersecurity. CMTL's core products and services encompass satellite ground systems, secure wireless communications, and integrated network solutions, catering to a diverse clientele that includes defense, public safety, and commercial enterprises.

How the Company Makes Money

Comtech Telecommunications generates revenue through multiple key streams, primarily by selling advanced telecommunications equipment and providing related services. The company earns a significant portion of its income from government contracts, particularly in defense and public safety sectors, where it offers specialized solutions and products. CMTL also generates revenue from commercial customers by providing satellite communication services and network infrastructure solutions. Strategic partnerships with other technology firms and government agencies enhance its market reach and capabilities, contributing to its earnings through collaborative projects and joint ventures. Additionally, maintenance and support services for existing systems provide a recurring revenue model that bolsters overall financial stability.

Comtech Telecommunications Financial Statement Overview

Summary

Comtech Telecommunications faces significant financial challenges, with declining revenue, negative net income, and weak cash flow generation. The balance sheet shows manageable leverage but a decrease in stockholders' equity and negative return on equity. Overall, the company's financial health is strained, requiring 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.

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.

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.

Breakdown	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	499.53M	10.00T>	540.40M	549.99M	486.24M	581.70M
Gross Profit	127.87M	10.00T>	157.18M	184.46M	179.84M	213.96M
EBITDA	-105.38M	-33.02T	-44.14M	18.66M	-345.00K	-37.76M
Net Income	-182.23M	-10.00T>	-99.98M	-26.90M	-33.05M	-73.48M
Balance Sheet
Total Assets	740.84M	10.00T>	912.43M	996.24M	974.30M	993.11M
Cash, Cash Equivalents and Short-Term Investments	40.02M	40.02T	32.43M	18.96M	21.65M	30.86M
Total Debt	36.63M	36.63T	212.66M	214.81M	183.11M	249.41M
Total Liabilities	446.87M	10.00T>	426.11M	445.73M	402.51M	492.39M
Stockholders Equity	10.00T>	10.00T>	486.33M	550.51M	571.79M	500.72M
Cash Flow
Free Cash Flow	-16.86M	-16.86T	-77.87M	-22.74M	-17.62M	-56.67M
Operating Cash Flow	-8.29M	-8.29T	-64.79M	-4.43M	2.00M	-40.64M
Investing Cash Flow	-8.56M	-8.56T	20.14M	-18.31M	-19.62M	-15.48M
Financing Cash Flow	24.44M	24.44T	58.12M	20.05M	8.41M	39.10M

Comtech Telecommunications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.07
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: 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 3.07 is above the 20-day moving average (MA) of 3.04, above the 50-day MA of 2.77, and above the 200-day MA of 2.18, indicating a bullish trend. The MACD of 0.09 indicates Negative momentum. The RSI at 62.58 is Neutral, neither overbought nor oversold. The STOCH value of 70.25 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CMTL.

Comtech Telecommunications Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
KVHI	58 Neutral	$104.72M	―	-8.78%	―	-9.26%	36.90%
SILC	57 Neutral	$91.37M	-6.89	-10.53%	―	-4.61%	63.88%
OCC	56 Neutral	$69.81M	―	-5.41%	―	12.67%	80.62%
CMTL	54 Neutral	$98.31M	-0.48	-26.69%	―	-7.56%	-47.16%
AMPG	49 Neutral	$53.66M	―	-30.53%	―	58.04%	21.09%

Comtech Telecommunications Corporate Events

Comtech Telecommunications Delays Annual Report Filing

Comtech Telecommunications Corp. has announced a delay in filing its Form 10-K (Yearly Report) for the financial period ending July 31, 2025. The delay is primarily due to the need for adjustments following post-closing reviews of financial statements, specifically concerning revised engineering estimates related to a development project in the Satellite and Space Communications segment. The company anticipates filing the report within the 15-day extension period allowed under Rule 12b-25. Financially, Comtech expects a significant reduction in net sales and gross profit by approximately $2.5 million, with results for fiscal 2025 anticipated to be lower than fiscal 2024. However, improved performance is expected in the fourth quarter of fiscal 2025. The notification was signed by Michael A. Bondi, Chief Financial Officer, as part of the company’s ongoing compliance efforts.

The most recent analyst rating on (CMTL) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Comtech Telecommunications stock, see the CMTL Stock Forecast page.

Comtech Telecommunications Appoints Lloyd Sprung to Board

On August 18, 2025, Comtech Telecommunications Corp. announced the appointment of Lloyd A. Sprung as an independent director to its Board of Directors. Mr. Sprung, who brings over three decades of experience in corporate finance, capital markets, and restructuring, will serve on the Audit and Strategic Review Committees. His appointment fulfills a requirement of Comtech’s Credit Agreement with TCW Asset Management Company LLC and is expected to enhance the company’s strategic initiatives and shareholder value.

The most recent analyst rating on (CMTL) stock is a Buy with a $9.25 price target. To see the full list of analyst forecasts on Comtech Telecommunications stock, see the CMTL Stock Forecast page.