Comtech Telecommunications (CMTL) AI Stock Analysis

• Market Cap: $60.55M
• Dividend Yield: N/A
• Average Volume (3M): 174.92K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.20
• Revenue Growth: -12.02%
• EPS Growth: -615.33%
• Country: US
• Employees: 1,500
• Sector: Technology
• Sector Strength: 91
• Industry: Communication Equipment
• EPS (TTM): -0.49
• Shares Outstanding: 29,395,264
• 10 Day Avg. Volume: 122,615
• 30 Day Avg. Volume: 174,916
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 7.16
• Enterprise Value/Revenue: 0.88
• Enterprise Value/Gross Profit: 3.97
• Enterprise Value/Ebitda: -2.36
• 1Y Price Target: $4.00
• Price Target Upside: 99.00% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 45 Neutral
• Price Target: $2.00 ▼(-0.50% Downside)

Comtech Telecommunications faces significant financial challenges, with declining revenue and profitability being the most critical issues. While recent corporate events and earnings call insights show some positive developments, such as improved financial flexibility and operational improvements, the overall outlook remains cautious due to ongoing financial struggles and weak technical indicators.

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 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, 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: Negative
• Last Price: 2.01
• 50DMA: Negative
• 100DMA: Positive
• 200DMA: Negative
• 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 Negative. The current price of 2.01 is below the 20-day moving average (MA) of 2.15, below the 50-day MA of 2.31, and below the 200-day MA of 2.37, indicating a bearish trend. The MACD of -0.08 indicates Positive momentum. The RSI at 40.88 is Neutral, neither overbought nor oversold. The STOCH value of 48.98 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	$36.02B	6.70	-7.27%	1.99%	8.63%	-7.76%
OCC	61 Neutral	$44.51M	―	-14.60%	―	5.77%	29.54%
AMPG	58 Neutral	$63.78M	―	-30.53%	―	58.04%	21.09%
AIRG	51 Neutral	$53.56M	―	-21.97%	―	6.84%	49.74%
UTSI	49 Neutral	$22.75M	―	-9.04%	―	-30.95%	-8.17%
CMTL	45 Neutral	$60.55M	―	-43.88%	―	-12.02%	-615.33%
FKWL	―	$47.14M	―	-4.62%	―	―	―

Comtech Telecommunications Corporate Events

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.

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.