CommScope Holding (COMM) AI Stock Analysis

• Market Cap: $3.38B
• Dividend Yield: N/A
• Average Volume (3M): 8.17M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.93
• Revenue Growth: -11.03%
• EPS Growth: 91.98%
• Country: US
• Employees: 20,000
• Sector: Technology
• Sector Strength: 98
• Industry: Communication Equipment
• EPS (TTM): 0.44
• Shares Outstanding: 221,525,710
• 10 Day Avg. Volume: 15,717,362
• 30 Day Avg. Volume: 8,169,790
• PEG Ratio: 0.05
• Price to Book (P/B): -0.50
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 4.51
• Enterprise Value/Market Cap: 2.95
• Enterprise Value/Revenue: 2.10
• Enterprise Value/Gross Profit: 5.12
• Enterprise Value/Ebitda: 12.98
• 1Y Price Target: $16.42
• Price Target Upside: 7.74% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 59 Neutral
• Price Target: $15.00 ▼(-1.57% Downside)

CommScope's overall stock score reflects a mix of strong earnings performance and strategic initiatives, offset by financial challenges and valuation concerns. The company's strategic sale of the CCS business and strong segment growth are positive, but high leverage and profitability issues remain significant risks.

Positive Factors

Asset Sale

CommScope monetized its most valuable remaining asset, announcing the sale of its CCS business for $10.5bn, which allows the company to emerge from its debt load.

Financial Performance

CommScope reported Q2'25 non-GAAP core revenue and core EBITDA significantly ahead of market expectations.

Growth Outlook

Fundamentals have improved thanks to post-pandemic inventory normalization and cable TV upgrades, with a strong growth outlook led by cloud operator demand.

Negative Factors

Debt Levels

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

Equity Upside Potential

Despite debt paydown and positive business momentum, the stock has been range bound at $4-$7, and limited upside potential to the equity is expected due to a high interest burden and operating costs.

Leverage Ratio

The asset sale did not improve the leverage ratio, and with $7.4bn of remaining debt, the stock still trades at 8.7x 2025E EV/EBITDA, in line with the historical range.

CommScope Holding Business Overview & Revenue Model

Company Description

CommScope Holding Company, Inc. provides infrastructure solutions for communications and entertainment networks. It operates through four segments: Broadband Networks (Broadband), Outdoor Wireless Networks (OWN), Venue and Campus Networks (VCN), and Home Networks (Home). The Broadband segment provides converged cable access platforms, passive optical networking products, video systems, access technologies, fiber and coaxial cables, fiber and copper connectivity products, and hardened closures to the telco and cable provider broadband market. The OWN segment provides base station antennas, radio frequency filters, tower connectivity, microwave antennas, metro cell products, cabinets, steel towers, accessories, Spectrum Access System, and Comsearch products to the macro and metro cell markets. The VCN segment offers Wi-Fi and switching, distributed antenna systems, licensed and unlicensed small cells, enterprise fiber, and copper infrastructures for campuses, venues, data centers, and buildings. The Home segment provides devices and related software, and management solutions that offer residential connectivity and services to subscribers, such as digital subscriber lines, cable modems, and telephony and data gateways; and set top boxes and software that support cable, satellite, and Internet protocol television content delivery, which include digital video recorders, high definition set top boxes, and hybrid set top devices. It offers its products and services through specialized resellers and distributors, satellite video distributors, and system integrators, as well as directly to customers in the United States, Europe, the Middle East, Africa, the Asia Pacific, the Caribbean, Latin America, and Canada. The company was formerly known as Cedar I Holding Company, Inc. and changed its name to CommScope Holding Company, Inc. in January 2011. CommScope Holding Company, Inc. was founded in 1976 and is headquartered in Hickory, North Carolina.

How the Company Makes Money

CommScope generates revenue through multiple streams, primarily by selling its network infrastructure products and services to telecommunications operators, enterprises, and data center operators. Key revenue sources include the sale of hardware such as fiber optic cables, connectivity solutions, and wireless infrastructure products. Additionally, the company offers professional services, including network design, installation, and maintenance, which contribute to its revenue. Significant partnerships with major telecommunications companies and service providers also enhance its market presence and sales potential, while ongoing investments in research and development enable CommScope to innovate and adapt to the evolving needs of the communication industry.

CommScope Holding Financial Statement Overview

Summary

CommScope shows a mixed financial performance with strong revenue growth and improved profitability. However, its negative equity and high leverage pose significant financial risks. Positive cash flows provide some stability, but structural weaknesses in the balance sheet are concerning.

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	1.95B	1.58B	2.15B	2.80B	2.68B	2.75B
EBITDA	767.10M	648.10M	519.10M	85.30M	813.00M	746.60M
Net Income	895.50M	-315.50M	-1.45B	-1.29B	-462.60M	-573.40M
Balance Sheet
Total Assets	7.74B	8.75B	9.37B	11.69B	13.26B	13.58B
Cash, Cash Equivalents and Short-Term Investments	571.10M	564.90M	543.80M	398.10M	360.30M	521.90M
Total Debt	7.25B	9.27B	9.32B	9.50B	9.51B	9.52B
Total Liabilities	8.92B	10.98B	11.18B	12.13B	12.36B	12.18B
Stockholders Equity	-1.18B	-2.23B	-1.81B	-445.70M	899.50M	1.40B
Cash Flow
Free Cash Flow	248.10M	247.80M	236.60M	88.70M	-9.10M	315.00M
Operating Cash Flow	290.20M	273.10M	289.90M	190.00M	122.30M	436.20M
Investing Cash Flow	2.01B	-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: 15.24
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

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 15.24 is above the 20-day moving average (MA) of 10.00, above the 50-day MA of 8.17, and above the 200-day MA of 5.92, indicating a bullish trend. The MACD of 2.03 indicates Negative momentum. The RSI at 80.98 is Negative, neither overbought nor oversold. The STOCH value of 94.25 is Negative, 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
HLIT	75 Outperform	$995.40M	14.96	16.36%	―	24.14%	16.17%
GILT	74 Outperform	$501.61M	22.41	7.49%	―	19.67%	12.32%
DGII	71 Outperform	$1.21B	28.50	7.21%	―	-2.37%	147.46%
EXTR	69 Neutral	$2.66B	―	-16.44%	―	2.05%	91.37%
COMM	59 Neutral	$3.38B	―	17.08%	―	-11.03%	91.98%
Sector *	57 Neutral	HK$14.25B	9.67	-0.60%	4.59%	7.04%	-42.47%
ADTN	52 Neutral	$685.25M	―	-53.68%	―	3.52%	81.33%

CommScope Holding Corporate Events

CommScope Sells Connectivity Segment to Amphenol

On August 3, 2025, CommScope Holding Company, Inc. entered into a Purchase Agreement with Amphenol Corporation to sell its Connectivity and Cable Solutions segment for approximately $10.5 billion. The transaction, expected to close in the first half of 2026, is subject to various conditions, including regulatory approvals and stockholder consent. This strategic move will result in a change of control for CommScope, impacting its financial structure and market positioning. The agreement includes provisions for employee retention and intellectual property rights, ensuring a smooth transition for stakeholders.

The most recent analyst rating on (COMM) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on CommScope Holding stock, see the COMM Stock Forecast page.

CommScope Sells Connectivity Business to Amphenol

On August 4, 2025, CommScope announced its agreement to sell its Connectivity and Cable Solutions business to Amphenol Corporation for $10.5 billion in an all-cash transaction, expected to close in the first half of 2026. This strategic move aims to unlock equity value, repay debt, and distribute excess cash to shareholders, while focusing on the growth potential of its ANS and RUCKUS businesses, which have shown strong performance in the second quarter of 2025 with significant increases in sales and adjusted EBITDA.

The most recent analyst rating on (COMM) stock is a Buy with a $19.00 price target. To see the full list of analyst forecasts on CommScope Holding stock, see the COMM Stock Forecast page.

CommScope Sells Connectivity Segment for $10.5 Billion

On August 4, 2025, CommScope announced an agreement to sell its Connectivity and Cable Solutions segment to Amphenol Corporation for $10.5 billion in cash. The transaction is expected to close in the first half of 2026, pending regulatory approvals and shareholder votes. CommScope plans to use the net proceeds of approximately $10 billion to repay debt, redeem preferred equity, and distribute excess cash as dividends to shareholders. This strategic move is aimed at unlocking equity value, strengthening remaining businesses, and focusing on the development of next-generation network connectivity.

The most recent analyst rating on (COMM) stock is a Sell with a $1.20 price target. To see the full list of analyst forecasts on CommScope Holding stock, see the COMM Stock Forecast page.

CommScope Declares Dividend on Series A Preferred Stock

On June 18, 2025, CommScope’s Board of Directors declared a dividend on its Series A Preferred Stock, which will be paid on June 30, 2025, in the form of additional shares and cash. This decision reflects the company’s ongoing financial strategies and its relationship with Carlyle Partners, highlighting its commitment to shareholder value and investment growth.

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 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.