Comtech Telecommunications (CMTL) AI Stock Analysis

• Market Cap: $131.26M
• Dividend Yield: N/A
• Average Volume (3M): 267.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.16
• 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: 167,365
• 30 Day Avg. Volume: 267,293
• 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: 44 Neutral
• Price Target: $3.00 ▼(-3.54% Downside)

Comtech Telecommunications' overall stock score reflects significant financial challenges, with declining revenues and negative profitability. While recent earnings call improvements and strategic board appointments provide some optimism, the company's financial distress and technical indicators suggest caution.

Positive Factors

Improved Cash Flow

Positive operating cash flow indicates improved financial health and operational efficiency, enhancing the company's ability to invest in growth and innovation.

Increased Liquidity

Increased liquidity provides financial flexibility, enabling Comtech to manage obligations and invest in strategic initiatives, supporting long-term stability.

Board Appointment

The strategic board appointment brings governance and financial expertise, potentially improving decision-making and strategic direction for sustainable growth.

Negative Factors

Declining Revenues

Declining revenues reflect challenges in market demand or competitive positioning, potentially impacting long-term growth and profitability.

Overall Net Loss

A substantial net loss indicates ongoing financial challenges, which can strain resources and limit the company's ability to invest in future growth.

Decline in Bookings

A decline in bookings suggests potential future revenue shortfalls, impacting the company's ability to sustain operations and invest in growth.

Comtech Telecommunications Business Overview & Revenue Model

Company Description

Comtech Telecommunications Corp. (CMTL) is a leading provider of advanced communications solutions, primarily serving government, military, and commercial customers. The company operates through two main segments: Commercial Solutions and Government Solutions. Comtech's core products and services include satellite communications technologies, mobile data communications, and cybersecurity solutions, which enable secure and reliable communication across various platforms and environments.

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: 3.11
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 3.11 is below the 20-day moving average (MA) of 3.30, below the 50-day MA of 3.16, and above the 200-day MA of 2.35, indicating a bullish trend. The MACD of 0.17 indicates Negative momentum. The RSI at 72.47 is Negative, neither overbought nor oversold. The STOCH value of 82.90 is Negative, 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	$135.64M	-11.18	-8.78%	―	-9.26%	36.90%
AMPG	58 Neutral	$62.74M	-5.95	-27.13%	―	93.47%	37.19%
SILC	57 Neutral	$77.18M	-5.82	-10.53%	―	-4.61%	63.88%
CMTL	44 Neutral	$131.26M	-1.91	-7.88%	―	-1.89%	76.61%
OCC	42 Neutral	$39.38M	-23.41	-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.