Comtech Telecommunications (CMTL)
NASDAQ:CMTL
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Comtech Telecommunications
(NASDAQ:CMTL)
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Rating:53Neutral
Price Target:
$2.50
▼(-54.71% Downside)
Action:Reiterated
Date:06/18/26
The score is driven mainly by improving but still mixed financial performance (turning positive on operating/free cash flow, yet with a history of losses) and a relatively positive earnings-call outlook centered on deleveraging and covenant relief. These are tempered by weak technicals (strong downtrend across key moving averages with negative MACD) and limited valuation support given the provided P/E and missing dividend yield.
Positive Factors
Deleveraging via strategic divestiture
Proceeds from the Satellite & Space sale earmarked to prepay senior and subordinated debt materially reduce leverage and interest burden. Combined with covenant suspension through mid‑2027, this structural deleveraging improves solvency and strategic flexibility to refocus capital on Allerium growth.
Negative Factors
Declining revenue trend
Management intentionally phased out lower‑margin S&S revenues, causing a material top‑line decline. Reduced scale and lower book‑to‑bill (consolidated 0.67) constrain operating leverage and make sustained revenue growth and backlog conversion key execution risks over the medium term.
Read all positive and negative factors
Positive Factors
Negative Factors
Deleveraging via strategic divestiture
Proceeds from the Satellite & Space sale earmarked to prepay senior and subordinated debt materially reduce leverage and interest burden. Combined with covenant suspension through mid‑2027, this structural deleveraging improves solvency and strategic flexibility to refocus capital on Allerium growth.
Read all positive factors
Comtech Telecommunications (CMTL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$71.91M
Dividend YieldN/A
Average Volume (3M)634.33K
Price to Earnings (P/E)―
Beta (1Y)1.66
Revenue Growth-8.31%
EPS Growth77.99%
CountryUS
Employees1,500
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-2.21
Shares Outstanding29,961,432
10 Day Avg. Volume1,237,081
30 Day Avg. Volume634,330
Financial Highlights & Ratios
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 Cap109.28K
Enterprise Value/Revenue17.30K
Enterprise Value/Gross Profit58.19K
Enterprise Value/Ebitda0.33
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-2.39
Revenue Forecast (FY)$441.50M
Comtech Telecommunications Business Overview & Revenue Model
Company Description
Comtech Telecommunications Corp., founded in 1967 and headquartered in Melville, New York, is a global innovator in communication solutions. The company actively develops, manufactures, and supplies a wide array of products, systems, and services ...
How the Company Makes Money
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Comtech Telecommunications Earnings Call Summary
Earnings Call Date:Jun 15, 2026
(Q3-2026)
| % Change Since: |
Next Earnings Date:Oct 06, 2026
Earnings Call Sentiment Positive
The call conveyed a transformational narrative: management delivered operational improvements (fifth straight quarter of positive operating cash flow), higher gross margins, a strategic sale of the Satellite & Space business that will generate substantial proceeds (~$143M–$145M net) to materially reduce debt, and covenant relief that improves liquidity and flexibility. Allerium (public safety) shows encouraging recurring revenue, strong contract wins, and attractive margins. Offsetting these positives are lower consolidated net sales (~-16%), a meaningful decline in adjusted EBITDA (~-35%), continued significant subordinated debt and preferred liquidation preferences, and one-time/non-cash charges that widened the operating loss. Overall, the strategic deleveraging and margin/cash flow improvements materially strengthen the company’s outlook, though revenue and EBITDA declines and legacy capital structure obligations remain notable near-term headwinds.Positive Updates
Strategic Sale of Satellite & Space Business
Announced sale of most of the Satellite & Space (S&S) business for $157.5M (gross) with expected net proceeds of $143M–$145M to be used to reduce debt: 65% to prepay senior secured facility and 35% to prepay subordinated debt. Management positions the transaction as a defining milestone to sharpen focus on Allerium (public safety).
Negative Updates
Decline in Consolidated Net Sales
Consolidated net sales decreased to $106.0M in Q3 FY2026 from $126.8M in Q3 FY2025 — a decline of $20.8M (~-16.4%). Management attributes part of the decline to phasing out low- or no-margin S&S revenues.
Read all updates
Q3-2026 Updates
Positive
Negative
Strategic Sale of Satellite & Space Business
Announced sale of most of the Satellite & Space (S&S) business for $157.5M (gross) with expected net proceeds of $143M–$145M to be used to reduce debt: 65% to prepay senior secured facility and 35% to prepay subordinated debt. Management positions the transaction as a defining milestone to sharpen focus on Allerium (public safety).
Read all positive updates
Company Guidance
Management’s guidance centered on using the announced sale of most of the Satellite & Space business for $157.5M (expected net proceeds ~$143–145M) to materially strengthen the balance sheet—allocating ~65% of proceeds to prepay senior secured debt and ~35% to subordinated debt (starting with the subordinated priority term loan)—alongside credit amendments that suspend testing of net leverage, fixed‑charge coverage and minimum EBITDA covenants through the four quarters ending July 31, 2027; pro forma liquidity is ~ $50M (≈$26M cash + ≈$24M revolver, with ~$27.3M revolver available as of June 12), senior borrowings were ~$119.7M (reduced to $116M), subordinated borrowings ~$104.1–104.8M (including PIK) with a $32.5M make‑whole on part of the subordinated facility and convertible preferred liquidation preference of roughly $218–220M. They also guided toward accelerating Allerium’s recurring software-and-services growth with a simpler operating model and reinvestment of proceeds—RemainCo carries a $554M funded backlog and management cited a pro‑forma RemainCo adjusted EBITDA of ~$34M after estimated near‑term cost savings of ~$12M—backed by five consecutive quarters of positive operating cash flow (Q3 operating cash inflow $6.1M vs $2.3M prior). As context for that guidance, current operating baselines reported for Q3 were consolidated net sales $106M, gross profit $36.1M (34%), operating loss $3.1M (or adjusted operating income $5.1M / 4.8% ex‑items), adjusted EBITDA $8.2M (~8%), net bookings $70.5M (book‑to‑bill 0.67), S&S net sales $50.3M (adj. EBITDA $4.1M, ~8%), and Allerium net sales $55.7M (adj. EBITDA $10.4M, ~19%).Comtech Telecommunications Financial Statement Overview
Summary
Income Statement
34
Negative
Balance Sheet
58
Neutral
Cash Flow
52
Neutral
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 454.16M | 499.53M | 540.40M | 549.99M | 486.24M | 581.70M |
| Gross Profit | 135.04M | 127.87M | 157.18M | 184.46M | 179.84M | 213.96M |
| EBITDA | 23.78T | -76.06M | -44.14M | 18.66M | -334.00K | -37.76M |
| Net Income | -25.06M | -155.30M | -99.98M | -26.90M | -33.05M | -73.48M |
Balance Sheet | ||||||
| Total Assets | 693.48M | 740.84M | 912.43M | 996.24M | 974.30M | 993.11M |
| Cash, Cash Equivalents and Short-Term Investments | 28.50T | 40.02M | 32.43M | 18.96M | 21.65M | 30.86M |
| Total Debt | 36.36T | 250.68M | 212.66M | 214.81M | 183.11M | 249.41M |
| Total Liabilities | 430.21M | 446.87M | 426.11M | 445.73M | 402.51M | 492.39M |
| Stockholders Equity | 263.28M | 293.97M | 486.33M | 550.51M | 571.79M | 500.72M |
Cash Flow | ||||||
| Free Cash Flow | 5.94T | -16.86M | -67.58M | -22.74M | -17.62M | -56.67M |
| Operating Cash Flow | 30.50M | -8.29M | -54.49M | -4.43M | 2.00M | -40.64M |
| Investing Cash Flow | -15.14M | -8.56M | 20.14M | -18.31M | -19.62M | -15.48M |
| Financing Cash Flow | -15.29M | 24.44M | 47.83M | 20.05M | 8.41M | 39.10M |
Comtech Telecommunications Technical Analysis
Negative
5.52
Price Trends
4.09
Negative
4.46
Negative
3.96
Negative
Market Momentum
-0.36
Positive
30.88
Neutral
6.19
Positive
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 5.52 is above the 20-day moving average (MA) of 4.55, above the 50-day MA of 4.09, and above the 200-day MA of 3.96, indicating a bearish trend. The MACD of -0.36 indicates Positive momentum. The RSI at 30.88 is Neutral, neither overbought nor oversold. The STOCH value of 6.19 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMTL.
Comtech Telecommunications Risk Analysis
Comtech Telecommunications disclosed 45 risk factors in its most recent earnings report. Comtech Telecommunications reported the most risks in the "Finance & Corporate" category.
Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy
Latest Risks Added 0 New Risks
Comtech Telecommunications Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
67 Neutral | $197.73M | 197.08 | 4.67% | ― | 13.61% | ― | |
62 Neutral | $267.87M | -24.26 | -9.30% | ― | 14.63% | 0.37% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
57 Neutral | $227.80M | -32.63 | -17.50% | ― | 149.18% | 54.90% | |
53 Neutral | $71.91M | ― | -9999.00% | ― | -8.31% | 77.99% | |
53 Neutral | $187.96M | -36.65 | -3.82% | ― | 7.22% | 46.78% |
* Technology Sector Average
CMTL
Comtech Telecommunications
2.40
0.17
7.62%
KVHI
KVH Industries
9.64
4.20
77.21%
OCC
Optical Cable
22.40
19.70
729.63%
SILC
Silicom
46.95
31.96
213.18%
AMPG
AmpliTech Group
8.99
6.99
349.50%
FKWL
Franklin Wireless
2.62
-1.30
-33.16%
Comtech Telecommunications Corporate Events
Executive/Board Changes
Comtech Telecommunications Announces Board Resignation of Director Crawford
Neutral
Jun 16, 2026
Comtech Telecommunications Corp. announced that director Bruce T. Crawford resigned from its Board of Directors effective June 16, 2026. His departure follows his appointment as president and Chief Executive Officer of AFCEA International and was ...
Business Operations and StrategyFinancial DisclosuresM&A TransactionsPrivate Placements and Financing
Comtech Reshapes Portfolio With Major Satellite Business Sale
Positive
Jun 15, 2026
Following a strategic review, Comtech on June 14–15, 2026 agreed to sell most of its Satellite and Space Communications segment to Gilat Satellite Networks for $157.5 million in cash, while retaining certain cyber assets and some receivables...
Executive/Board Changes
Comtech Telecommunications Announces Upcoming Board Director Resignation
Neutral
May 14, 2026
Comtech Telecommunications Corp. announced that director Bruce T. Crawford has notified the company of his intention to resign from its Board of Directors, effective on or about June 15, 2026. The move coincides with Crawford’s planned appoi...
Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
Disclaimer
This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.