CommScope Holding (COMM) AI Stock Analysis

• Market Cap: $1.70B
• Dividend Yield: N/A
• Average Volume (3M): 5.09M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.64
• Revenue Growth: -19.10%
• EPS Growth: 93.30%
• Country: US
• Employees: 20,000
• Sector: Technology
• Sector Strength: 93
• Industry: Communication Equipment
• EPS (TTM): 0.14
• Shares Outstanding: 216,597,030
• 10 Day Avg. Volume: 4,302,222
• 30 Day Avg. Volume: 5,085,711
• PEG Ratio: <0.01
• Price to Book (P/B): -1.22
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 6.97
• Enterprise Value/Market Cap: 4.92
• Enterprise Value/Revenue: 0.42
• Enterprise Value/Gross Profit: 4.54
• Enterprise Value/Ebitda: 3.57
• 1Y Price Target: $5.17
• Price Target Upside: -34.14% Downside
• Rating Consensus: Hold
• Number of Analyst Covering: 4

• Rating: 63 Neutral
• Price Target: $8.00 ▲(1.91%Upside)

CommScope's overall stock score reflects a mix of strong technical indicators and positive earnings call insights, counterbalanced by financial risks and valuation concerns. The company's growth potential is evident, but high leverage and negative equity remain significant challenges.

Positive Factors

Earnings 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.

Market Growth

CCS (cables and connectivity) grew 19.7% as enterprise fiber saw strong demand attributed to data center and genAI initiatives by hyperscalers.

Product Demand

NICS (Ruckus) grew 50.7% driven by demand attributed to new Wifi 7 products and subscription services.

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 Valuation

Limited upside potential to the equity is seen given the high debt level, limited FCF generation, and valuation considerations.

Financial Constraints

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.

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 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 picture. Revenue growth and improved profitability are noteworthy, but high leverage and negative equity pose risks. Positive cash flows offer some stability, but the balance sheet's weaknesses require urgent 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	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	4.21B	5.79B	9.23B	8.59B	8.44B
Gross Profit	1.58B	2.15B	2.80B	2.68B	2.75B
EBITDA	648.10M	519.10M	85.30M	813.00M	746.60M
Net Income	-315.50M	-1.45B	-1.29B	-462.60M	-573.40M
Balance Sheet
Total Assets	8.75B	9.37B	11.69B	13.26B	13.58B
Cash, Cash Equivalents and Short-Term Investments	564.90M	543.80M	398.10M	360.30M	521.90M
Total Debt	9.27B	9.32B	9.50B	9.51B	9.52B
Total Liabilities	10.98B	11.18B	12.13B	12.36B	12.18B
Stockholders Equity	-2.23B	-1.81B	-445.70M	899.50M	1.40B
Cash Flow
Free Cash Flow	247.80M	236.60M	88.70M	-9.10M	315.00M
Operating Cash Flow	273.10M	289.90M	190.00M	122.30M	436.20M
Investing Cash Flow	-57.20M	38.30M	-82.10M	-136.80M	-120.20M
Financing Cash Flow	-83.00M	-181.70M	-65.00M	-139.50M	-383.80M

CommScope Holding Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 7.85
• 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 7.85 is above the 20-day moving average (MA) of 7.84, above the 50-day MA of 6.64, and above the 200-day MA of 5.56, indicating a bullish trend. The MACD of 0.34 indicates Positive momentum. The RSI at 58.41 is Neutral, neither overbought nor oversold. The STOCH value of 57.08 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	$1.23B	29.39	7.30%	―	-4.47%	195.28%
HLIT	75 Outperform	$1.05B	20.47	12.45%	―	20.53%	-27.75%
GILT	69 Neutral	$449.86M	32.55	4.79%	―	13.49%	-39.61%
ADTN	66 Neutral	$753.11M	―	-66.95%	―	-10.18%	75.30%
EXTR	65 Neutral	$2.33B	―	-78.83%	―	-11.00%	-792.47%
COMM	63 Neutral	$1.70B	―	17.08%	―	-19.10%	93.30%
Sector *	51 Neutral	AU$1.60B	2.83	-31.50%	3.83%	16.21%	-7.40%

CommScope Holding Corporate Events

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.

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.