CommScope Holding (COMM) AI Stock Analysis

• Market Cap: $1.05B
• Dividend Yield: N/A
• Average Volume (3M): 6.25M
• Price to Earnings (P/E): ―
• Beta (1Y): 1.32
• Revenue Growth: -19.10%
• EPS Growth: 93.30%
• Country: US
• Employees: 20,000
• Sector: Technology
• Sector Strength: 65
• Industry: Communication Equipment
• EPS (TTM): 0.14
• Shares Outstanding: 216,597,030
• 10 Day Avg. Volume: 5,722,505
• 30 Day Avg. Volume: 6,248,366
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): 0.00
• Price to Cash Flow (P/CF): 0.00
• P/FCF Ratio: 0.00
• Enterprise Value/Market Cap: 8.88
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: 5.89
• Enterprise Value/Ebitda: N/A
• 1Y Price Target: $4.82
• Price Target Upside: 0.00%
• Rating Consensus: Moderate Sell
• Number of Analyst Covering: 5

CommScope's overall score reflects a balance between strong revenue growth and profitability, against the backdrop of high leverage and financial risk. Positive developments from the earnings call and corporate events provide a boost, but valuation concerns and technical indicators suggest a cautious approach. The company's ability to manage its debt and leverage will be crucial for future stock performance.

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

The refinancing plan effectively shifts CommScope's debt maturities from 2025 and 2026 to 2029 and 2031, reducing near-term concerns around its ability to address upcoming maturities.

Revenue Growth

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

Negative Factors

Equity Upside Limitations

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

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

High leverage burdens the valuation, with a 2025 EV/EBITDA of 11.5x above the historic range of 9-10x.

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 the sale of its comprehensive portfolio of network infrastructure products and solutions. The company's revenue streams are primarily derived from its four business segments: Broadband Networks, Home Networks, Outdoor Wireless Networks, and Venue and Campus Networks. It earns money by providing products such as fiber optic cables, copper cables, antennas, and network management software. CommScope also benefits from strategic partnerships with telecom and broadband service providers, enterprises, and government entities, which contribute to its sales. The company's ability to innovate and adapt to emerging technology trends, such as 5G, further enhances its revenue potential.

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
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
	EBIT
256.50M	-112.90M	471.40M	132.30M	218.40M
	EBITDA
648.10M	519.10M	85.30M	813.00M	746.60M
	Net Income Common Stockholders
-315.50M	-1.45B	-1.29B	-462.60M	-573.40M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
564.90M	543.80M	398.10M	360.30M	521.90M
	Total Assets
8.75B	9.37B	11.69B	13.26B	13.58B
	Total Debt
9.27B	9.32B	9.50B	9.51B	9.52B
	Net Debt
8.71B	8.77B	9.10B	9.15B	9.00B
	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: 4.82
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• 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 4.82 is above the 20-day moving average (MA) of 4.00, above the 50-day MA of 4.66, and below the 200-day MA of 4.93, indicating a neutral trend. The MACD of 0.12 indicates Negative momentum. The RSI at 59.61 is Neutral, neither overbought nor oversold. The STOCH value of 87.14 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
DGII	75 Outperform	$1.03B	29.20	7.30%	―	-4.47%	195.28%
HLIT	72 Outperform	$1.01B	19.79	12.45%	―	20.53%	-27.75%
GILT	71 Outperform	$363.20M	14.62	8.58%	―	14.79%	5.04%
EXTR	61 Neutral	$1.89B	―	-78.83%	―	-11.00%	-792.47%
Sector *	60 Neutral	$10.96B	10.28	-6.73%	2.97%	7.74%	-12.45%
COMM	58 Neutral	$1.05B	―	17.08%	―	-19.10%	93.30%
ADTN	43 Neutral	$619.71M	―	-66.50%	―	-10.18%	75.45%

CommScope Holding Corporate Events

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.

Spark’s Take on COMM Stock

According to Spark, TipRanks’ AI Analyst, COMM is a Neutral.

CommScope’s overall score reflects a balance between strong revenue growth and profitability, against the backdrop of high leverage and financial risk. Positive developments from the earnings call and corporate events provide a boost, but valuation concerns and technical indicators suggest a cautious approach. The company’s ability to manage its debt and leverage will be crucial for future stock performance.

To see Spark’s full report on COMM stock, click here.

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.