Comtech Telecommunications (CMTL)
NASDAQ:CMTL
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Comtech Telecommunications
(NASDAQ:CMTL)
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Rating:48Neutral
Price Target:
$3.50
▼(-36.59% Downside)
Action:ReiteratedDate:03/18/26
The score is held back primarily by weak underlying financial performance (multi-year losses and historically negative cash generation) and bearish technicals. The latest earnings call provides the main offset, pointing to improving margins, sustained positive operating cash flow, and stronger bookings/backlog, but leverage and near-term revenue pressure keep the overall risk profile elevated.
Positive Factors
Backlog & Bookings
A $732M backlog and ~ $1.1B revenue visibility with a 1.64x book-to-bill indicate durable near‑term demand and a multi-quarter revenue conversion runway. This reduces execution risk by providing contracted work and visibility into resource planning and revenue recognition.
Negative Factors
Historically Weak Cash Flow
Chronic annual negative free cash flow through 2025 shows prior reliance on financing or balance sheet actions to fund operations. Although TTM cash flow is positive, the historical inconsistency implies execution risk and a limited track record of sustainably self‑funding growth or deleveraging.
Read all positive and negative factors
Positive Factors
Negative Factors
Backlog & Bookings
A $732M backlog and ~ $1.1B revenue visibility with a 1.64x book-to-bill indicate durable near‑term demand and a multi-quarter revenue conversion runway. This reduces execution risk by providing contracted work and visibility into resource planning and revenue recognition.
Read all positive factors
Comtech Telecommunications (CMTL) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$109.52M
Dividend YieldN/A
Average Volume (3M)298.97K
Price to Earnings (P/E)―
Beta (1Y)1.58
Revenue Growth-1.89%
EPS Growth76.61%
CountryUS
Employees1,500
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)-0.68
Shares Outstanding29,679,464
10 Day Avg. Volume248,141
30 Day Avg. Volume298,968
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 Cap-299.73K
Enterprise Value/Revenue-69.11K
Enterprise Value/Gross Profit-230.32K
Enterprise Value/Ebitda-345.49K
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusN/A
Number of Analyst Covering0
EPS Forecast (FY)-2.3
Revenue Forecast (FY)$460.56M
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, Commerci...
How the Company Makes Money
Comtech makes money primarily by selling communications equipment, software, and services across government and commercial markets. A major portion of revenue is generated through government-related programs and contracts (including U.S. and allie...
Comtech Telecommunications Earnings Call Summary
Earnings Call Date:Mar 16, 2026
(Q2-2026)
| % Change Since: |
Next Earnings Date:Jun 04, 2026
Earnings Call Sentiment Positive
The call conveyed meaningful operational improvement and strategic repositioning: margin expansion, stronger adjusted EBITDA, sustained positive operating cash flow (four consecutive quarters), robust bookings (book-to-bill 1.64x), backlog growth and specific product/program wins (Allerium contract funding, troposcatter and modem programs). These positives are tempered by a year-over-year revenue decline (~15.7%), a significant decrease in Satellite & Space sales (~31%) due to the phasing out of legacy low-margin business and government shutdown timing impacts, and a leveraged balance sheet with substantial preferred liquidation preference. On balance the company demonstrated credible progress toward higher-margin, recurring-revenue business and improved cash generation, but capital structure and near-term revenue timing remain areas to monitor.Positive Updates
Improved Profitability and Margins
Gross profit increased to $36.2M from $33.7M year-over-year; gross margin rose to 33.9% from 26.7% (approx +7.2 percentage points). Adjusted EBITDA increased to $9.1M from $2.9M (over 200% increase). Excluding one-time and noncash items, consolidated operating income would have been $6.2M (5.8% of net sales) versus roughly breakeven a year ago.
Negative Updates
Consolidated Revenue Decline
Consolidated net sales declined to $106.8M from $126.6M year-over-year, a drop of approximately 15.7%. The Satellite & Space segment experienced a ~31% decline in net sales due to phasing out low-margin business and U.S. government shutdown-related timing delays.
Read all updates
Q2-2026 Updates
Positive
Negative
Improved Profitability and Margins
Gross profit increased to $36.2M from $33.7M year-over-year; gross margin rose to 33.9% from 26.7% (approx +7.2 percentage points). Adjusted EBITDA increased to $9.1M from $2.9M (over 200% increase). Excluding one-time and noncash items, consolidated operating income would have been $6.2M (5.8% of net sales) versus roughly breakeven a year ago.
Read all positive updates
Company Guidance
Management guided that multiple next‑generation satellite modems will transition to production in fiscal 2026 (one already in low‑rate production; the EDIM program ramping late in the year) and emphasized long‑term unit opportunity, leaving the company with revenue visibility of approximately $1.1 billion, a backlog of $732 million and net bookings of $175.4 million in Q2 (book‑to‑bill 1.64x vs 0.63x a year ago). For Q2 management reported net sales of $106.8 million (vs $126.6M prior), gross profit $36.2 million (33.9% of sales, up from 26.7%), an operating loss of $1.2 million (or $6.2M adjusted, 5.8% of sales), adjusted EBITDA of $9.1 million (vs $2.9M), and positive operating cash flow of $4.9 million (fourth consecutive quarter). Liquidity totaled ~$49.9 million (≈$30.2M cash + $19.6M revolver availability), outstanding credit facility borrowings were ≈$125M (revolver drawn $7.6M), subordinated facility borrowings $102.8M, and convertible preferred liquidation preference $213.4M; management also noted funded awards of >$5.5M (troposcatter), >$4.5M (cyber support) and Allerium funding >$107M toward a >$130M multiyear extension plus >$10.5M for a South Central NG911 deployment.Comtech Telecommunications Financial Statement Overview
Summary
Income Statement
27
Negative
Balance Sheet
56
Neutral
Cash Flow
41
Neutral
| Breakdown | TTM | Jul 2025 | Jul 2024 | Jul 2023 | Jul 2022 | Jul 2021 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 474.95M | 499.53M | 540.40M | 549.99M | 486.24M | 581.70M |
| Gross Profit | 142.52M | 127.87M | 157.18M | 184.46M | 179.84M | 213.96M |
| EBITDA | 95.01M | -76.06M | -44.14M | 18.66M | -334.00K | -37.76M |
| Net Income | 12.33M | -155.30M | -99.98M | -26.90M | -33.05M | -73.48M |
Balance Sheet | ||||||
| Total Assets | 703.83M | 740.84M | 912.43M | 996.24M | 974.30M | 993.11M |
| Cash, Cash Equivalents and Short-Term Investments | 32.83T | 40.02M | 32.43M | 18.96M | 21.65M | 30.86M |
| Total Debt | 252.63M | 250.68M | 212.66M | 214.81M | 183.11M | 249.41M |
| Total Liabilities | 438.25M | 446.87M | 426.11M | 445.73M | 402.51M | 492.39M |
| Stockholders Equity | 265.58M | 293.97M | 486.33M | 550.51M | 571.79M | 500.72M |
Cash Flow | ||||||
| Free Cash Flow | 14.51M | -16.86M | -67.58M | -22.74M | -17.62M | -56.67M |
| Operating Cash Flow | 26.69M | -8.29M | -54.49M | -4.43M | 2.00M | -40.64M |
| Investing Cash Flow | -12.18M | -8.56M | 20.14M | -18.31M | -19.62M | -15.48M |
| Financing Cash Flow | -8.35M | 24.44M | 47.83M | 20.05M | 8.41M | 39.10M |
Comtech Telecommunications Technical Analysis
Neutral
5.52
Price Trends
4.74
Negative
4.52
Negative
3.52
Positive
Market Momentum
-0.29
Negative
43.08
Neutral
82.35
Negative
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 5.52 is above the 20-day moving average (MA) of 3.67, above the 50-day MA of 4.74, and above the 200-day MA of 3.52, indicating a neutral trend. The MACD of -0.29 indicates Negative momentum. The RSI at 43.08 is Neutral, neither overbought nor oversold. The STOCH value of 82.35 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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 | $175.51M | -18.31 | -5.49% | ― | -9.26% | 36.90% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
56 Neutral | $84.52M | -27.50 | -3.58% | ― | 9.55% | 65.17% | |
55 Neutral | $125.67M | -7.31 | -10.53% | ― | -4.61% | 63.88% | |
48 Neutral | $109.52M | -3.04 | 4.39% | ― | -1.89% | 76.61% | |
47 Neutral | $46.61M | -8.96 | -19.98% | ― | 93.47% | 37.19% |
* Technology Sector Average
CMTL
Comtech Telecommunications
3.69
2.32
169.34%
KVHI
KVH Industries
9.01
4.16
85.77%
OCC
Optical Cable
11.37
8.59
308.99%
SILC
Silicom
22.06
8.29
60.20%
AMPG
AmpliTech Group
1.84
0.52
39.39%
FKWL
Franklin Wireless
3.79
-1.12
-22.81%
Comtech Telecommunications Corporate Events
Business Operations and StrategyExecutive/Board ChangesShareholder Meetings
Comtech Shareholders Approve Directors, Pay and Equity Plan
Positive
Mar 12, 2026
Comtech Telecommunications held its Fiscal 2025 Annual Meeting of Stockholders on March 9, 2026, at which shareholders elected seven directors to the board, including Kenneth H. Traub and Lieutenant General (Ret.) Bruce T. Crawford, with voting ou...
Executive/Board ChangesShareholder Meetings
Comtech Telecommunications Announces Planned Board Director Retirement
Neutral
Jan 29, 2026
On January 23, 2026, Comtech Telecommunications Corp. announced that director Wendi B. Carpenter will retire from its Board of Directors and will not stand for re-election at the company’s Fiscal 2025 Annual Meeting of Stockholders, schedule...
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.