Comtech Telecommunications Corp

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CMTL : NASDAQ : Technology
$11.08 | %
Today's Range: 10.424 - 11.16
Avg. Daily Volume: 344000.0
12/09/16 - 4:00 PM ET

Financial Analysis


COMTECH TELECOMMUN's gross profit margin for the fourth quarter of its fiscal year 2016 is essentially unchanged when compared to the same period a year ago. Even though sales increased, the net income has decreased, representing a decrease to the bottom line. COMTECH TELECOMMUN has average liquidity. Currently, the Quick Ratio is 1.18 which shows that technically this company has the ability to cover short-term cash needs. The company's liquidity has decreased from the same period last year, indicating deteriorating cash flow.

During the same period, stockholders' equity ("net worth") has increased by 17.18% from the same quarter last year. Together, the key liquidity measurements indicate that it is relatively unlikely that the company will face financial difficulties in the near future.

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Income Statement Q4 FY16 Q4 FY15
Net Sales ($mil)152.3877.46
EBITDA ($mil)17.4711.23
EBIT ($mil)7.698.08
Net Income ($mil)2.75.48


Balance Sheet Q4 FY16 Q4 FY15
Cash & Equiv. ($mil)66.81150.95
Total Assets ($mil)921.2473.88
Total Debt ($mil)258.650.0
Equity ($mil)470.4401.41


Profitability Q4 FY16 Q4 FY15
Gross Profit Margin43.2945.19
EBITDA Margin11.4614.5
Operating Margin5.0510.42
Sales Turnover0.450.65
Return on Assets-0.834.9
Return on Equity-1.645.79
Debt Q4 FY16 Q4 FY15
Current Ratio1.654.67
Debt/Capital0.350.0
Interest Expense4.130.07
Interest Coverage1.86110.62


Share Data Q4 FY16 Q4 FY15
Shares outstanding (mil)23.3416.13
Div / share0.30.3
EPS0.140.34
Book value / share20.1624.88
Institutional Own % n/a n/a
Avg Daily Volume294888.0490650.0

Valuation


HOLD. This stock’s P/E ratio is negative, making its value useless in the assessment of premium or discount valuation, only displaying that the company has negative earnings per share. For additional comparison, its price-to-book ratio of 0.57 indicates a significant discount versus the S&P 500 average of 2.79 and a significant discount versus the industry average of 3.15. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount. After reviewing these and other key valuation criteria, COMTECH TELECOMMUN proves to trade at a discount to investment alternatives within the industry.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CMTL NM Peers 30.97   CMTL 18.00 Peers 13.81

Neutral. The absence of a valid P/E ratio happens when a stock can not be valued on the basis of a negative stream of earnings.

CMTL's P/E is negative making this valuation measure meaningless.

 

Premium. The P/CF ratio, a stock’s price divided by the company's cash flow from operations, is useful for comparing companies with different capital requirements or financing structures.

CMTL is trading at a significant premium to its peers.

 
Price/Projected
Earnings
1 2 3 4 5
premium   discount
  Price to
Earnings/Growth
1 2 3 4 5
premium   discount
CMTL 28.88 Peers 19.78   CMTL NA Peers 1.01

Premium. A higher price-to-projected earnings ratio than its peers can signify a more expensive stock or higher future growth expectations.

CMTL is trading at a significant premium to its peers.

 

Neutral. The PEG ratio is the stock’s P/E divided by the consensus estimate of long-term earnings growth. Faster growth can justify higher price multiples.

Ratio not available.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CMTL 0.57 Peers 3.15   CMTL -135.91 Peers 76.74

Discount. A lower price-to-book ratio makes a stock more attractive to investors seeking stocks with lower market values per dollar of equity on the balance sheet.

CMTL is trading at a significant discount to its peers.

 

Lower. Elevated earnings growth rates can lead to capital appreciation and justify higher price-to-earnings ratios.

However, CMTL is expected to significantly trail its peers on the basis of its earnings growth rate.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CMTL 0.66 Peers 2.88   CMTL 33.75 Peers 12.11

Discount. In the absence of P/E and P/B multiples, the price-to-sales ratio can display the value investors are placing on each dollar of sales.

CMTL is trading at a significant discount to its industry on this measurement.

 

Higher. A sales growth rate that exceeds the industry implies that a company is gaining market share.

CMTL has a sales growth rate that significantly exceeds its peers.

 

 

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