Comtech Telecommunications (CMTL) AI Stock Analysis

• Market Cap: $162.07M
• Dividend Yield: N/A
• Average Volume (3M): 358.69K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.18
• 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: 29,629,375
• 10 Day Avg. Volume: 493,244
• 30 Day Avg. Volume: 358,690
• 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: 0.00
• Enterprise Value/Revenue: 0.00
• Enterprise Value/Gross Profit: 0.00
• Enterprise Value/Ebitda: 0.00
• 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: 52 Neutral
• Price Target: $6.00 ▲(8.70% Upside)

The score is held down primarily by weak financial performance (steep revenue decline, negative margins, and deteriorating free cash flow trends). Offsetting this, technicals are strongly positive with the stock trading above major moving averages, and the earnings call indicates operational stabilization (improving cash flow, liquidity, margins, and EBITDA), though elevated loss levels and weaker bookings remain key risks.

Positive Factors

Operating cash flow recovery

Two consecutive quarters of positive operating cash flow indicate the company’s operations are beginning to generate internal funds. Durable cash generation reduces reliance on external financing, supports working capital for government contracts, and provides runway for restructuring and strategic investments.

Stronger liquidity position

A materially improved liquidity cushion expands financial flexibility to fund contract execution, R&D and potential M&A without immediate refinancing. Higher cash plus improved credit terms lowers near-term solvency risk and supports multi-month operational stability.

Material contract extension

A >$130M multiyear extension increases revenue visibility and backlog stability, especially important in government/defense segments where long-term contracts underpin recurring revenue, capacity planning, and margin predictability over multiple fiscal periods.

Negative Factors

Sharp revenue decline

A near-vertical revenue drop erodes scale and makes fixed-cost absorption difficult, pressuring margins and cash generation. Reduced top-line scale can weaken supplier leverage, contract competitiveness, and long-term market position absent sustainable new contract wins.

Deep negative profitability

Persistent negative EBIT and net margins indicate the core business is not covering costs sustainably. Continued losses constrain reinvestment, force reliance on financing, and impair the company’s ability to compete on pricing or fund innovation over the medium term.

Declining bookings and large net loss

A sharp drop in bookings reduces future revenue visibility and backlog renewal risk; coupled with a substantial FY net loss, this heightens the need for further restructuring or external capital. Both trends weaken long-term growth prospects and strategic optionality.

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

Comtech Telecommunications faces significant financial challenges. Despite a reported surge in revenue, the company's profitability and cash flow generation remain weak. The balance sheet shows moderate leverage, but the negative return on equity highlights the difficulty in achieving financial returns. The company needs to focus on improving operational efficiency and cost management to enhance its financial health.

Income Statement

Comtech Telecommunications has experienced significant volatility in its revenue and profitability. The company reported a massive increase in revenue for the latest period, but this is likely due to an anomaly in data reporting. Historically, the company has struggled with negative net income and EBIT margins, indicating challenges in achieving profitability. The gross profit margin has been declining, suggesting pressure on cost management.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio that has been relatively stable. However, the return on equity has been negative, reflecting ongoing losses. The equity ratio indicates a reasonable level of equity financing, but the company's ability to generate returns on this equity remains a concern.

Cash Flow

Cash flow analysis reveals consistent challenges in generating positive operating and free cash flows. The company has reported negative operating cash flow in recent years, and free cash flow has also been negative, indicating potential liquidity issues. The ratios of cash flow to net income suggest inefficiencies in converting earnings into cash.

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

Comtech Telecommunications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 5.52
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• 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 5.52 is above the 20-day moving average (MA) of 4.54, above the 50-day MA of 3.70, and above the 200-day MA of 2.55, indicating a bullish trend. The MACD of 0.63 indicates Negative momentum. The RSI at 70.38 is Negative, neither overbought nor oversold. The STOCH value of 64.43 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	$142.88M	-12.09	-8.78%	―	-9.26%	36.90%
SILC	57 Neutral	$86.25M	-6.48	-10.53%	―	-4.61%	63.88%
AMPG	54 Neutral	$67.84M	-7.59	-27.13%	―	93.47%	37.19%
CMTL	52 Neutral	$162.07M	-2.38	-7.88%	―	-1.89%	76.61%
OCC	42 Neutral	$36.90M	-21.93	-6.86%	―	9.55%	65.17%

Comtech Telecommunications Corporate Events

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.