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CommScope Holding (COMM)
NASDAQ:COMM
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CommScope Holding
(NASDAQ:COMM)
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Rating:60Neutral
Price Target:
$20.50
▲(15.36% Upside)
CommScope's overall stock score is driven by strong earnings call performance and positive technical analysis, indicating potential growth and momentum. However, financial performance concerns, particularly high leverage and historical volatility, along with unattractive valuation metrics, weigh down the score.
Positive Factors
Segment Growth
The significant growth in ANS and RUCKUS segments indicates strong demand and effective market positioning, enhancing long-term revenue potential.
Strategic Divestiture
The sale of the CCS business will provide substantial cash inflow, allowing debt reduction and potential shareholder returns, strengthening financial stability.
Improved Financial Guidance
Raising EBITDA guidance reflects confidence in operational performance and market conditions, indicating robust future profitability and business health.
Negative Factors
High Leverage
High leverage and negative equity pose risks to financial flexibility and long-term sustainability, potentially impacting investment and growth capabilities.
Cyclical Segment Risks
Cyclical nature of certain segments can lead to revenue volatility, affecting consistent cash flow and profitability, challenging long-term financial planning.
Tariff Impact
Potential tariff impacts could increase costs and reduce margins, posing a threat to competitive pricing and profitability in affected markets.
CommScope Holding (COMM) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$4.07B
Dividend YieldN/A
Average Volume (3M)4.52M
Price to Earnings (P/E)―
Beta (1Y)2.55
Revenue Growth9.86%
EPS Growth99.11%
CountryUS
Employees20,000
SectorTechnology
Sector Strength88
IndustryCommunication Equipment
Share Statistics
EPS (TTM)0.62
Shares Outstanding221,548,700
10 Day Avg. Volume4,009,103
30 Day Avg. Volume4,515,093
Financial Highlights & Ratios
PEG Ratio0.06
Price to Book (P/B)-0.50
Price to Sales (P/S)0.27
P/FCF Ratio4.51
Enterprise Value/Market Cap3.02
Enterprise Value/Revenue2.32
Enterprise Value/Gross Profit6.24
Enterprise Value/Ebitda11.13
Forecast
1Y Price Target
$24.25Price Target Upside36.47% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering2
EPS Forecast (FY)1.64
Revenue Forecast (FY)$5.44B
CommScope Holding Business Overview & Revenue Model
Company DescriptionCommScope Holding Company, Inc. is a global leader in communication infrastructure solutions, specializing in the design and manufacture of advanced connectivity products for various sectors including telecommunications, data centers, enterprise networks, and wireless applications. The company offers a wide range of core products and services, including fiber optic and copper cabling, wireless access points, network management software, and infrastructure solutions that enable high-performance networks. With a strong focus on innovation, CommScope plays a pivotal role in the evolution of technology platforms, supporting the increasing demand for bandwidth and connectivity.
How the Company Makes MoneyCommScope generates revenue through multiple streams, primarily by selling its products and services to telecommunications service providers, enterprises, and data centers. The company's revenue model includes the sale of hardware such as cables, antennas, and network equipment, as well as software solutions for network management and optimization. Significant partnerships with major telecommunications companies and collaborations on large-scale projects contribute to its earnings. Additionally, CommScope benefits from the ongoing demand for network upgrades and expansions, driven by the growth of data consumption and the rollout of next-generation wireless technologies like 5G.
CommScope Holding Earnings Call Summary
Earnings Call Date:Oct 30, 2025
(Q3-2025)
| % Change Since: |
Next Earnings Date:Feb 19, 2026
Earnings Call Sentiment Positive
The earnings call presented a strong overall performance with significant growth in revenue and EBITDA across all business segments, particularly in the ANS and RUCKUS divisions. The company achieved record-breaking technological advancements and improved its cash and liquidity position. However, there were some challenges, such as a sequential decline in order rates and ongoing declines in the legacy CMTS business. Despite these issues, the transformational CCS transaction positions CommScope for future success.Q3-2025 Updates
Positive Updates
Significant Revenue and EBITDA Growth
CommScope reported net sales of $1.63 billion, a year-over-year increase of 51%, and adjusted EBITDA of $402 million, a year-over-year increase of 97%. This marks the sixth consecutive quarter of sequential EBITDA improvement.
Record-Breaking DOCSIS 4.0 Achievements
CommScope achieved record-breaking speeds of 16.25 gigabits per second at the CableLabs DOCSIS 4.0 event, highlighting the competitive nature of their technology against fiber-to-the-home speeds.
Strong Performance in ANS and RUCKUS Segments
The RemainCo business, consisting of ANS and RUCKUS, delivered net sales of $516 million, up 49% from the previous year, with $91 million in adjusted EBITDA, a 95% increase year-over-year.
Positive Cash Flow and Liquidity Position
CommScope ended the quarter with $705 million in cash, an increase of $134 million, and expects to generate additional cash in the fourth quarter.
Increase in Full-Year EBITDA Guidance
CommScope raised its full-year adjusted EBITDA guidance to $1.30 billion to $1.35 billion, reflecting strong performance across its business segments.
Transformational CCS Transaction
The divestiture of the CCS business to Amphenol, expected to close in the first quarter of 2026, will allow CommScope to return significant capital to shareholders and improve leverage.
Negative Updates
Sequential Decline in Order Rates
Order rates were down 8% sequentially in the third quarter of 2025, driven by seasonality and project timing, resulting in a backlog decrease to $1.32 billion.
Decline in Legacy CMTS Business
The legacy CMTS business is experiencing a decline, which is expected to continue over time.
Seasonal Decline Expected in RUCKUS EBITDA
Fourth-quarter adjusted EBITDA in the RUCKUS segment is expected to decline due to the elimination of one-time benefits in the third quarter and seasonality.
Company Guidance
During CommScope's third quarter 2025 earnings call, the company reported net sales of $1.63 billion, marking a 51% year-over-year increase, and adjusted EBITDA of $402 million, up 97% from the previous year. Notably, the RemainCo businesses, ANS and RUCKUS, saw net sales of $516 million, up 49% year-over-year, with adjusted EBITDA reaching $91 million, a 95% increase. ANS achieved net sales of $338 million, a 77% increase, driven by the deployment of new DOCSIS 4.0 products, while RUCKUS experienced a 15% revenue increase, supported by Wi-Fi 7 products and subscriptions. CommScope ended the quarter with $705 million in cash, reflecting a $134 million increase, and raised its full-year adjusted EBITDA guidance to $1.30 billion to $1.35 billion. The CCS segment also showed strong performance, with net sales up 51% to $1.1 billion, and adjusted EBITDA increasing by 79% to $312 million. The company's liquidity position remains robust, with total available cash and liquidity at $1.28 billion.CommScope Holding Financial Statement Overview
Summary
CommScope Holding shows a mixed financial performance. The income statement indicates strong recovery and profitability in the TTM period, but historical volatility raises concerns. The balance sheet reflects high leverage and financial instability, while cash flow shows improvement but with potential volatility. Overall, the company faces challenges in maintaining consistent financial health.Income Statement
CommScope Holding's income statement shows a strong recovery in the TTM period with a significant revenue growth rate of 11.52% and a net profit margin of 19.63%. The gross profit margin improved to 41.11%, indicating efficient cost management. However, historical data reveals volatility with negative net income in previous years, highlighting potential risks in maintaining profitability.65
Positive
Balance Sheet
The balance sheet reflects high leverage with a negative stockholders' equity, resulting in an unfavorable debt-to-equity ratio of -6.81 in the TTM period. This indicates financial instability and potential risk in meeting long-term obligations. The return on equity is negative, further emphasizing the challenges in generating returns for shareholders.40
Negative
Cash Flow
Cash flow analysis shows a positive trend with a 7.9% growth in free cash flow in the TTM period. The operating cash flow to net income ratio is 0.26, indicating moderate cash generation relative to net income. However, historical fluctuations in free cash flow growth suggest potential volatility in cash flow management.55
Neutral
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 5.30B | 4.21B | 4.57B | 7.52B | 8.59B | 8.44B |
| Gross Profit | 1.96B | 1.34B | 1.36B | 2.16B | 2.12B | 2.12B |
| EBITDA | 1.10B | 648.10M | 238.60M | 85.30M | 813.00M | 746.60M |
| Net Income | 61.70M | -287.60M | -1.51B | -1.29B | -462.60M | -573.40M |
Balance Sheet | ||||||
| Total Assets | 7.94B | 8.75B | 9.37B | 11.69B | 13.26B | 13.58B |
| Cash, Cash Equivalents and Short-Term Investments | 705.30M | 564.90M | 543.80M | 373.00M | 360.30M | 521.90M |
| Total Debt | 7.40B | 9.39B | 9.32B | 9.67B | 9.70B | 9.70B |
| Total Liabilities | 9.01B | 10.98B | 11.18B | 12.13B | 12.36B | 12.18B |
| Stockholders Equity | -1.07B | -2.23B | -1.81B | -445.70M | 899.50M | 1.40B |
Cash Flow | ||||||
| Free Cash Flow | 267.70M | 247.80M | 236.60M | 88.70M | -9.10M | 315.00M |
| Operating Cash Flow | 319.50M | 273.10M | 297.30M | 190.00M | 122.30M | 436.20M |
| Investing Cash Flow | 2.00B | -57.20M | 30.90M | -82.10M | -136.80M | -120.20M |
| Financing Cash Flow | -2.07B | -83.00M | -181.70M | -65.00M | -139.50M | -383.80M |
CommScope Holding Technical Analysis
Neutral
17.77
Price Trends
17.25
Positive
16.21
Positive
10.99
Positive
Market Momentum
0.47
Positive
44.01
Neutral
11.57
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For COMM, the sentiment is Neutral. The current price of 17.77 is below the 20-day moving average (MA) of 18.98, above the 50-day MA of 17.25, and above the 200-day MA of 10.99, indicating a neutral trend. The MACD of 0.47 indicates Positive momentum. The RSI at 44.01 is Neutral, neither overbought nor oversold. The STOCH value of 11.57 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral sentiment for COMM.
CommScope Holding Risk Analysis
CommScope Holding disclosed 46 risk factors in its most recent earnings report. CommScope Holding 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
CommScope Holding Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $1.64B | 40.19 | 6.71% | ― | 1.46% | 78.77% | |
71 Outperform | $3.86B | 260.88 | 2.13% | ― | 15.60% | ― | |
70 Outperform | $4.74B | 21.43 | 18.41% | 0.17% | 13.42% | 31.28% | |
61 Neutral | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
60 Neutral | $4.07B | -141.59 | ― | ― | 9.86% | 99.11% | |
59 Neutral | $2.25B | 262.20 | 17.08% | ― | 14.31% | ― | |
56 Neutral | $4.85B | -381.07 | -7.49% | ― | 4.24% | -141.83% |
* Technology Sector Average
COMM
CommScope Holding
17.77
12.07
211.75%
BDC
Belden
116.17
1.76
1.54%
DGII
Digi International
43.56
11.31
35.07%
EXTR
Extreme Networks
16.65
-1.07
-6.04%
VIAV
Viavi Solutions
17.14
6.90
67.38%
PI
IMPINJ
166.49
23.86
16.73%
CommScope Holding Corporate Events
Business Operations and Strategy
CommScope Holding Relocates Headquarters to Texas
Neutral
Nov 3, 2025
On November 1, 2025, CommScope Holding Company, Inc. relocated its corporate headquarters to Richardson, Texas. This move signifies a strategic operational change for the company, potentially impacting its logistical and business operations.
M&A TransactionsShareholder Meetings
CommScope Approves Sale of Connectivity Segment
Neutral
Oct 16, 2025
On October 16, 2025, CommScope Holding Company, Inc. announced that its stockholders approved the sale of its Connectivity and Cable Solutions segment to Amphenol Corporation. This decision was made during a special stockholders meeting, where the majority of the company’s stockholders voted in favor of the transaction. Additionally, stockholders approved advisory compensation related to the sale and deemed it unnecessary to adjourn the meeting for further votes. This transaction marks a significant shift in CommScope’s operations, potentially impacting its market positioning and stakeholder interests.
M&A TransactionsDividends
CommScope Holding Announces Dividend for Preferred Stock
Neutral
Sep 26, 2025
CommScope Holding Company, Inc. announced a dividend in kind for its Series A Convertible Preferred Stock, with the dividend declared on September 25, 2025, and expected to be paid on September 30, 2025. Additionally, CommScope has entered into a Purchase Agreement with Amphenol Corporation to sell its Connectivity and Cable Solutions segment, with amendments made to stock options for a senior executive in light of the transaction.
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.