Comtech Telecommunications (CMTL) AI Stock Analysis

• Market Cap: $93.04M
• Dividend Yield: N/A
• Average Volume (3M): 267.29K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.11
• Revenue Growth: -7.56%
• EPS Growth: -47.16%
• Country: US
• Employees: 1,500
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): -0.39
• Shares Outstanding: 29,629,242
• 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: 4.99
• Enterprise Value/Revenue: 0.93
• Enterprise Value/Gross Profit: 3.63
• Enterprise Value/Ebitda: -6.15
• 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: 48 Neutral
• Price Target: $3.00 ▼(-7.41% Downside)

Comtech Telecommunications' overall stock score reflects significant financial challenges, with ongoing losses and cash flow inefficiencies weighing heavily. While recent improvements in cash flow and liquidity are positive, they are overshadowed by a substantial net loss and declining sales. The technical outlook is neutral, and the valuation remains unattractive due to negative profitability.

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 manage debt.

Major Contract Extension

Securing a major contract extension strengthens revenue visibility and reinforces the company's market position in critical communication services.

Increased Liquidity

Increased liquidity provides greater financial flexibility, enabling the company to navigate uncertainties and invest in strategic initiatives.

Negative Factors

Overall Net Loss

A substantial net loss indicates ongoing profitability challenges, which can hinder long-term financial sustainability and investor confidence.

Decrease in Annual Net Sales

A decrease in annual net sales suggests potential market share loss or demand issues, impacting revenue growth and competitive positioning.

Decline in Bookings

A decline in bookings indicates reduced future revenue potential, which could affect long-term growth prospects and operational planning.

Comtech Telecommunications Business Overview & Revenue Model

Company Description

Comtech Telecommunications Corp. (CMTL) is a leading provider of advanced communications solutions for both commercial and government applications. The company operates in various sectors, including satellite communications, telecommunications, and cybersecurity. CMTL's core products and services encompass satellite ground systems, secure wireless communications, and integrated network solutions, catering to a diverse clientele that includes defense, public safety, and commercial enterprises.

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, with volatile revenue and profitability. Despite a recent surge in revenue, the company struggles with negative net income and EBIT margins. The balance sheet shows moderate leverage, but negative return on equity and cash flow inefficiencies highlight ongoing financial difficulties.

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	TTM	Dec 2025	Dec 2024	Dec 2023	Dec 2022	Dec 2021
Income Statement
Total Revenue	499.53M	499.53M	540.40M	549.99M	486.24M	581.70M
Gross Profit	127.87M	127.87M	157.18M	184.46M	179.84M	213.96M
EBITDA	-75.42M	-76.06M	-44.14M	18.66M	-334.00K	-37.76M
Net Income	-155.30M	-155.30M	-99.98M	-26.90M	-33.05M	-73.48M
Balance Sheet
Total Assets	740.84M	740.84M	912.43M	996.24M	974.30M	993.11M
Cash, Cash Equivalents and Short-Term Investments	40.02M	40.02M	32.43M	18.96M	21.65M	30.86M
Total Debt	250.68M	250.68M	212.66M	214.81M	183.11M	249.41M
Total Liabilities	446.87M	446.87M	426.11M	445.73M	402.51M	492.39M
Stockholders Equity	293.97M	293.97M	486.33M	550.51M	571.79M	500.72M
Cash Flow
Free Cash Flow	-16.86M	-16.86M	-67.58M	-22.74M	-17.62M	-56.67M
Operating Cash Flow	-8.29M	-8.29M	-54.49M	-4.43M	2.00M	-40.64M
Investing Cash Flow	-8.56M	-8.56M	20.14M	-18.31M	-19.62M	-15.48M
Financing Cash Flow	24.44M	24.44M	47.83M	20.05M	8.41M	39.10M

Comtech Telecommunications Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• 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 3.24 is above the 20-day moving average (MA) of 3.09, above the 50-day MA of 2.98, and above the 200-day MA of 2.24, indicating a bullish trend. The MACD of 0.05 indicates Negative momentum. The RSI at 58.90 is Neutral, neither overbought nor oversold. The STOCH value of 86.16 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%
SILC	57 Neutral	$91.37M	-6.89	-10.53%	―	-4.61%	63.88%
OCC	54 Neutral	$71.14M	―	-5.41%	―	12.67%	80.62%
AMPG	51 Neutral	$63.98M	―	-27.13%	―	93.47%	37.19%
KVHI	49 Neutral	$115.29M	―	-8.78%	―	-9.26%	36.90%
CMTL	48 Neutral	$93.04M	-0.47	-26.69%	―	-7.56%	-47.16%

Comtech Telecommunications Corporate Events

Comtech Telecommunications Delays Annual Report Filing

Comtech Telecommunications Corp. has announced a delay in filing its Form 10-K (Yearly Report) for the financial period ending July 31, 2025. The delay is primarily due to the need for adjustments following post-closing reviews of financial statements, specifically concerning revised engineering estimates related to a development project in the Satellite and Space Communications segment. The company anticipates filing the report within the 15-day extension period allowed under Rule 12b-25. Financially, Comtech expects a significant reduction in net sales and gross profit by approximately $2.5 million, with results for fiscal 2025 anticipated to be lower than fiscal 2024. However, improved performance is expected in the fourth quarter of fiscal 2025. The notification was signed by Michael A. Bondi, Chief Financial Officer, as part of the company’s ongoing compliance efforts.

The most recent analyst rating on (CMTL) stock is a Hold with a $2.00 price target. To see the full list of analyst forecasts on Comtech Telecommunications stock, see the CMTL Stock Forecast page.

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.

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.