Comtech Telecommunications (CMTL) AI Stock Analysis

• Market Cap: $66.14M
• Dividend Yield: N/A
• Average Volume (3M): 331.04K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.21
• Revenue Growth: -12.02%
• EPS Growth: -615.33%
• Country: US
• Employees: 1,500
• Sector: Technology
• Sector Strength: 94
• Industry: Communication Equipment
• EPS (TTM): -0.49
• Shares Outstanding: 29,395,264
• 10 Day Avg. Volume: 228,767
• 30 Day Avg. Volume: 331,040
• PEG Ratio: 0.06
• Price to Book (P/B): 0.25
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -1.54
• Enterprise Value/Market Cap: 4.47
• Enterprise Value/Revenue: 0.15
• Enterprise Value/Gross Profit: 2.71
• Enterprise Value/Ebitda: -0.46
• 1Y Price Target: $6.00
• Price Target Upside: 166.67% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 1

• Rating: 47 Neutral
• Price Target: $2.00 ▼(-11.11%Downside)

Comtech's overall stock score reflects significant financial challenges as the most impactful factor, despite some positive corporate events and restructuring efforts highlighted in the earnings call. Technical indicators offer a neutral view, while valuation remains a concern due to negative earnings.

Comtech Telecommunications Business Overview & Revenue Model

Company Description

Comtech Telecommunications Corp. (CMTL) is a leading provider of advanced communication solutions for both commercial and government sectors. The company specializes in designing, developing, and producing innovative products and services that enable secure and reliable communication across various platforms. Its core offerings include satellite earth station technology, over-the-horizon microwave systems, and advanced network infrastructure. Comtech serves a diverse client base, including military agencies, government bodies, and commercial enterprises, delivering critical communication capabilities that ensure seamless connectivity and operational efficiency.

How the Company Makes Money

Comtech 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 Financial Statement Overview

Summary

Comtech Telecommunications faces significant financial challenges, including declining revenue and profitability, persistent negative net income, and weak cash flow generation. Despite a moderate debt-to-equity ratio, the balance sheet reveals a decrease in stockholders' equity and negative return on equity.

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	Sep 2024	Sep 2023	Sep 2022	Sep 2021	Sep 2020
Income Statement
Total Revenue	540.40M	549.99M	486.24M	581.70M	616.72M
Gross Profit	157.18M	184.46M	179.84M	213.96M	226.83M
EBITDA	-44.81M	18.66M	-345.00K	-37.76M	47.34M
Net Income	-99.98M	-26.90M	-33.05M	-73.48M	7.02M
Balance Sheet
Total Assets	912.43M	996.24M	974.30M	993.11M	929.65M
Cash, Cash Equivalents and Short-Term Investments	32.43M	18.96M	21.65M	30.86M	47.88M
Total Debt	212.66M	214.81M	183.11M	249.41M	181.86M
Total Liabilities	426.11M	445.73M	402.51M	492.39M	380.35M
Stockholders Equity	486.33M	550.51M	571.79M	500.72M	549.30M
Cash Flow
Free Cash Flow	-77.87M	-22.74M	-17.62M	-56.67M	45.54M
Operating Cash Flow	-64.79M	-4.43M	2.00M	-40.64M	52.76M
Investing Cash Flow	20.14M	-18.31M	-19.62M	-15.48M	-20.18M
Financing Cash Flow	58.12M	20.05M	8.41M	39.10M	-30.28M

Comtech Telecommunications Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 2.25
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

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 2.25 is below the 20-day moving average (MA) of 2.53, above the 50-day MA of 2.24, and below the 200-day MA of 2.56, indicating a neutral trend. The MACD of 0.05 indicates Positive momentum. The RSI at 43.89 is Neutral, neither overbought nor oversold. The STOCH value of 4.21 is Positive, 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
Sector *	68 Neutral	¥227.94B	14.57	7.50%	2.72%	9.28%	6.70%
AMPG	61 Neutral	$57.40M	―	-29.09%	―	-21.44%	-3.31%
AIRG	57 Neutral	$56.61M	―	-25.57%	―	8.46%	39.81%
OCC	54 Neutral	$47.19M	―	-14.60%	―	5.77%	29.54%
UTSI	49 Neutral	$24.05M	―	-9.04%	―	-30.95%	-8.17%
CMTL	47 Neutral	$66.14M	―	-43.88%	―	-12.02%	-615.33%

Comtech Telecommunications Corporate Events

Comtech Secures $35M Infusion, Amends Credit Agreement

On July 21, 2025, Comtech Telecommunications Corp. announced amendments to its senior secured credit agreement and a new $35 million capital infusion. These changes improve the terms of the credit agreement, increase financial flexibility, and enhance liquidity to support the company’s business plans. The amendments include a suspension of certain financial covenants until January 2027, altered interest rate margins, and deferred repayment obligations. The capital infusion, provided by an existing holder of the company’s convertible preferred stock, will be used to prepay a portion of the senior secured debt and increase liquidity. This move reflects strong confidence from lenders and stakeholders in Comtech’s transformation plan, positioning the company to capitalize on opportunities in its Terrestrial and Wireless, and Satellite and Space business segments.

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.