CommScope Holding (COMM) AI Stock Analysis

• Market Cap: $1.26B
• Dividend Yield: N/A
• Average Volume (3M): 5.70M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.45
• Revenue Growth: -19.10%
• EPS Growth: 93.30%
• Country: US
• Employees: 20,000
• Sector: Technology
• Sector Strength: 83
• Industry: Communication Equipment
• EPS (TTM): 0.14
• Shares Outstanding: 216,597,030
• 10 Day Avg. Volume: 6,392,106
• 30 Day Avg. Volume: 5,697,499
• PEG Ratio: <0.01
• Price to Book (P/B): -0.79
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.49
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $3.70
• Price Target Upside: -38.94% Downside
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 3

• Rating: 59 Neutral
• Price Target: $6.00 ▼(-0.99%Downside)

CommScope's overall stock score reflects a balance between positive growth signals and significant financial risks. Strong earnings performance and strategic leadership changes are offset by high leverage and past losses. Technical indicators and corporate actions offer some positive momentum, but valuation concerns persist.

Positive Factors

Debt Management

CommScope is leveraging proceeds from the anticipated $2.1 billion sale of its OWN and DAS businesses to Amphenol to reduce its total debt burden.

Debt Refinancing

CommScope recently announced a comprehensive debt refinancing plan which extends debt maturities and gives the company ample time and runways with improving fundamentals providing visibility into EBITDA growth.

Financial Performance

4Q results were better than expected, and management’s indications of 20% FY25 revenue growth and EBITDA of $1.025bn were well above expectations, mostly driven by strong growth of CCS orders by Hyperscalers, significant contract for FDX amplifiers, and absorption of past inventories.

Negative Factors

High Debt Levels

The stock continues to be constrained by the high debt levels, with a high net leverage ratio of 7.8x.

Valuation Concerns

Equity upside potential is constrained by high interest burden and minimal cash flow generation in 2025 due to $600mn+ in debt interest and $200mn in operating costs.

Volatility and Execution Risks

The stock is expected to exhibit high volatility due to the lack of easy fixes.

CommScope Holding Business Overview & Revenue Model

Company Description

CommScope Holding Company, Inc. is a global leader in network infrastructure solutions. Operating in the telecommunications sector, CommScope designs, manufactures, and sells a wide array of products that enable voice, video, and data communication across the globe. The company's core offerings include advanced solutions for wireless and wired networks, enterprise networks, broadband networks, and video and data transmission. CommScope serves customers in various industries, including telecommunications companies, cable television operators, and data center operators, ensuring they can deliver high-quality connectivity solutions.

How the Company Makes Money

CommScope makes money through the sale of its comprehensive range of network infrastructure products and solutions. The company's revenue model is primarily based on manufacturing and supplying products such as antennas, cables, connectors, and network management solutions. Key revenue streams include sales from its four main segments: Broadband Networks, Venue and Campus Networks, Outdoor Wireless Networks, and Home Networks. CommScope also generates income through strategic partnerships with telecom operators, equipment manufacturers, and service providers, which helps to expand its market reach and drive sales. Additionally, the company benefits from long-term contracts with major clients, which provide a steady stream of recurring revenue.

CommScope Holding Financial Statement Overview

Summary

CommScope Holding exhibits a mixed financial performance with strong revenue growth and improved profitability. However, the balance sheet presents significant concerns due to high leverage and negative equity, which pose financial stability risks. Cash flows are positive, providing some flexibility, but the structural weaknesses in the balance sheet demand attention.

Income Statement

CommScope Holding shows a mixed performance in its income statement. The TTM Gross Profit Margin is robust at 38.74%, but the Net Profit Margin stands at 17.06%, which is a significant improvement from negative margins in previous years. The Revenue Growth Rate over the last year is a positive 12.95%, indicating a recovery trend. However, the EBIT and EBITDA margins are moderate, at 11.90% and 17.25% respectively. The company's profitability has improved, but past losses indicate potential volatility.

Balance Sheet

The balance sheet presents challenges with a very high Debt-to-Equity Ratio due to negative equity, indicating high leverage and financial risk. The Equity Ratio is negative, reflecting the equity deficit situation. The Return on Equity is not applicable due to negative equity, making it difficult to assess shareholder returns. The company's heavy debt load and negative equity pose significant financial stability concerns.

Cash Flow

CommScope's cash flow situation shows some strengths. The Operating Cash Flow to Net Income Ratio of 0.33 indicates the company generates decent cash relative to its net income. The Free Cash Flow Growth Rate is slightly negative, but Free Cash Flow remains positive, providing some financial flexibility. However, the Free Cash Flow to Net Income Ratio is lower, reflecting the impact of net income fluctuations.

Breakdown
TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement		Total Revenue
4.75B	4.21B	5.79B	9.23B	8.59B	8.44B
	Gross Profit
1.84B	1.58B	2.15B	2.80B	2.68B	2.75B
	EBIT
565.20M	256.50M	-112.90M	471.40M	132.30M	218.40M
	EBITDA
819.50M	648.10M	519.10M	85.30M	813.00M	746.60M
	Net Income Common Stockholders
827.70M	-315.50M	-1.45B	-1.29B	-462.60M	-573.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
493.30M	564.90M	543.80M	398.10M	360.30M	521.90M
	Total Assets
7.51B	8.75B	9.37B	11.69B	13.26B	13.58B
	Total Debt
7.28B	9.27B	9.32B	9.50B	9.51B	9.52B
	Net Debt
6.78B	8.71B	8.77B	9.10B	9.15B	9.00B
	Total Liabilities
8.81B	10.98B	11.18B	12.13B	12.36B	12.18B
	Stockholders Equity
-1.30B	-2.23B	-1.81B	-445.70M	899.50M	1.40B
Cash Flow		Free Cash Flow
229.10M	247.80M	236.60M	88.70M	-9.10M	315.00M
	Operating Cash Flow
263.90M	273.10M	289.90M	190.00M	122.30M	436.20M
	Investing Cash Flow
1.96B	-57.20M	38.30M	-82.10M	-136.80M	-120.20M
	Financing Cash Flow
-2.08B	-83.00M	-181.70M	-65.00M	-139.50M	-383.80M

CommScope Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 6.06
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COMM, the sentiment is Positive. The current price of 6.06 is above the 20-day moving average (MA) of 5.80, above the 50-day MA of 4.80, and above the 200-day MA of 5.23, indicating a bullish trend. The MACD of 0.33 indicates Positive momentum. The RSI at 60.31 is Neutral, neither overbought nor oversold. The STOCH value of 66.22 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for COMM.

CommScope Holding Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DGII	79 Outperform	$1.24B	30.24	7.30%	―	-4.47%	195.28%
HLIT	74 Outperform	$1.07B	21.05	12.45%	―	20.53%	-27.75%
EXTR	65 Neutral	$2.18B	―	-78.83%	―	-11.00%	-792.47%
Sector *	62 Neutral	$11.72B	10.43	-7.10%	2.91%	7.41%	-7.94%
GILT	61 Neutral	$334.12M	24.55	4.79%	―	13.49%	-39.61%
COMM	59 Neutral	$1.26B	―	17.08%	―	-19.10%	93.30%
ADTN	57 Neutral	$636.62M	―	-66.95%	―	-10.18%	75.30%

CommScope Holding Corporate Events

CommScope Appoints Krista R. Bowen as Chief Legal Officer

On May 9, 2025, CommScope Holding Company announced that Justin Choi will step down from his role as Senior Vice President, Chief Legal Officer, and Secretary, effective May 14, 2025, with his employment ending on June 2, 2025. Choi, who joined the company in 2021, played a significant role in guiding CommScope through various divestitures. The company’s Board of Directors has appointed Krista R. Bowen as the new Chief Legal Officer, effective May 14, 2025. Bowen, who has been with CommScope since 2010, brings extensive experience in M&A, corporate governance, and global trade compliance to her new role.

The most recent analyst rating on (COMM) stock is a Hold with a $2.50 price target. To see the full list of analyst forecasts on CommScope Holding stock, see the COMM Stock Forecast page.

CommScope Holding Approves Proposals at Annual Meeting

On May 8, 2025, CommScope Holding Company held its Annual Meeting of Stockholders where all five proxy proposals were approved. Stockholders re-elected eight directors and ratified Ernst & Young LLP as the independent registered public accounting firm for 2025. Additionally, the compensation of the company’s named executive officers was approved on a non-binding advisory basis, and additional shares under the 2019 Long-Term Incentive Plan were sanctioned. The holders of Series A Convertible Preferred Stock also re-elected two directors.

CommScope Appoints New Senior VP for Financial Leadership

On March 28, 2025, CommScope Holding Company announced the appointment of Charles A. Gilstrap as Senior Vice President, Treasury, Tax & Chief Accounting Officer, effective April 1, 2025. This appointment marks a strategic move in the company’s leadership, with Mr. Gilstrap replacing Jennifer L. Crawford, who will return to her role as Segment CFO for Connectivity & Cable Solutions. The announcement also detailed Mr. Gilstrap’s compensation package and severance protection agreement, indicating a robust support structure for his new role. These changes are expected to strengthen CommScope’s financial management and align with its long-term strategic goals.