CommScope Holding (COMM) AI Stock Analysis

• Market Cap: $3.53B
• Dividend Yield: N/A
• Average Volume (3M): 4.63M
• Price to Earnings (P/E): ―
• Beta (1Y): 2.01
• Revenue Growth: 9.86%
• EPS Growth: 99.11%
• Country: US
• Employees: 20,000
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.62
• Shares Outstanding: 221,548,700
• 10 Day Avg. Volume: 4,850,183
• 30 Day Avg. Volume: 4,629,694
• PEG Ratio: 0.06
• Price to Book (P/B): -0.50
• Price to Sales (P/S): 0.27
• P/FCF Ratio: 4.51
• Enterprise Value/Market Cap: 3.48
• Enterprise Value/Revenue: 2.32
• Enterprise Value/Gross Profit: 6.24
• Enterprise Value/Ebitda: 11.13
• 1Y Price Target: $22.50
• Price Target Upside: 41.24% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 61 Neutral
• Price Target: $18.00 ▲(12.99% Upside)

CommScope's overall stock score reflects a mixed financial performance with strong recent earnings growth but historical volatility and high leverage. Technical analysis shows positive momentum, while valuation metrics are concerning due to a negative P/E ratio. The earnings call provided a positive outlook with significant growth and technological achievements, despite some challenges.

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 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 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.

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.

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.

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	398.10M	360.30M	521.90M
Total Debt	7.40B	9.39B	9.32B	9.50B	9.51B	9.52B
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	289.90M	190.00M	122.30M	436.20M
Investing Cash Flow	2.00B	-57.20M	38.30M	-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

• Technical Analysis Sentiment: Positive
• Last Price: 15.93
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• 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 15.93 is above the 20-day moving average (MA) of 15.75, above the 50-day MA of 15.92, and above the 200-day MA of 9.05, indicating a bullish trend. The MACD of 0.23 indicates Negative momentum. The RSI at 51.08 is Neutral, neither overbought nor oversold. The STOCH value of 45.54 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	76 Outperform	$1.32B	31.19	7.21%	―	-2.37%	147.46%
BDC	70 Outperform	$4.63B	20.91	18.41%	0.17%	13.42%	31.28%
VIAV	68 Neutral	$3.74B	255.10	2.13%	―	15.60%	―
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
COMM	61 Neutral	$3.53B	―	―	―	9.86%	99.11%
EXTR	58 Neutral	$2.38B	280.31	17.08%	―	14.31%	―
PI	56 Neutral	$5.29B	―	-7.49%	―	4.24%	-141.83%

CommScope Holding Corporate Events

Commscope’s Special Dividend: Uncertainty Looms Over Payout Details

Commscope Holding Company Inc. faces uncertainty regarding the anticipated special dividend following the closing of a significant transaction. While the company expects to distribute a substantial portion of excess cash to stockholders, the exact amount and timing remain uncertain. The board of directors will determine the dividend details after considering all relevant factors, and there is no guarantee of the distribution’s specifics. This uncertainty poses a risk to stockholders who may anticipate a particular dividend payout.

CommScope Reports Robust Q3 2025 Financial Growth

CommScope Holding Company, Inc. is a global leader in network connectivity solutions, providing advanced wired and wireless network technologies across various sectors. The company is recognized for its innovative approach to enhancing network infrastructure.

CommScope Approves Sale of Connectivity Segment

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.

The most recent analyst rating on (COMM) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on CommScope Holding stock, see the COMM Stock Forecast page.

CommScope Holding Announces Dividend for Preferred Stock

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.

The most recent analyst rating on (COMM) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on CommScope Holding stock, see the COMM Stock Forecast page.

CommScope Announces Success Bonus for Senior VP

On September 2, 2025, CommScope, LLC entered into a Success Bonus Agreement with Koen ter Linde, its Senior Vice President and President of Connectivity and Cable Solutions, in connection with the sale of its CCS segment to Amphenol Corporation. The agreement stipulates a $1,980,000 cash award for Mr. ter Linde if he remains employed through the transaction’s closing, impacting his severance benefits.

The most recent analyst rating on (COMM) stock is a Hold with a $16.50 price target. To see the full list of analyst forecasts on CommScope Holding stock, see the COMM Stock Forecast page.

CommScope’s Earnings Call: Strong Growth and Strategic Moves

CommScope Holding Company Inc recently held an earnings call that conveyed a strong positive sentiment, underscored by significant transaction announcements, record revenue, and EBITDA growth across key segments. Despite potential challenges related to volatility in the ANS business and tariff impacts, the company’s strategic actions and robust performance in the second quarter have positioned it well for continued success.

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 Reports Strong Q2 2025 Growth and Strategic Moves

CommScope Holding Company, Inc., a prominent player in the network connectivity solutions industry, has reported its second quarter 2025 financial results, showcasing significant growth and strategic moves. The company, known for its advanced wired and wireless network technologies, continues to expand its influence in the global market.

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.