Comtech Telecommunications Corp

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CMTL : NASDAQ : Technology
$18.78 -0.09 | -0.48%
Today's Range: 18.73 - 19.035
Avg. Daily Volume: 274900.0
06/22/17 - 3:57 PM ET

Financial Analysis


COMTECH TELECOMMUN's gross profit margin for the third quarter of its fiscal year 2017 is essentially unchanged when compared to the same period a year ago. Sales and net income have grown, and although the growth in revenues has outpaced the average competitor within the industry, the net income growth has not. 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.

During the same period, stockholders' equity ("net worth") has increased by 23.65% 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 Q3 FY17 Q3 FY16
Net Sales ($mil)127.79124.19
EBITDA ($mil)17.1111.42
EBIT ($mil)8.113.56
Net Income ($mil)4.42-14.36


Balance Sheet Q3 FY17 Q3 FY16
Cash & Equiv. ($mil)58.8269.11
Total Assets ($mil)863.76903.33
Total Debt ($mil)230.77351.2
Equity ($mil)469.66379.8


Profitability Q3 FY17 Q3 FY16
Gross Profit Margin43.8243.86
EBITDA Margin13.389.19
Operating Margin6.352.87
Sales Turnover0.640.37
Return on Assets1.29-0.54
Return on Equity2.38-1.3
Debt Q3 FY17 Q3 FY16
Current Ratio1.751.96
Debt/Capital0.330.48
Interest Expense2.763.47
Interest Coverage2.941.03


Share Data Q3 FY17 Q3 FY16
Shares outstanding (mil)23.5716.17
Div / share0.10.3
EPS0.19-0.89
Book value / share19.9323.49
Institutional Own % n/a n/a
Avg Daily Volume281900.0302937.0

Valuation


HOLD. COMTECH TELECOMMUN's P/E ratio indicates a significant premium compared to an average of 24.49 for the Communications Equipment industry and a significant premium compared to the S&P 500 average of 25.73. For additional comparison, its price-to-book ratio of 0.97 indicates a significant discount versus the S&P 500 average of 3.08 and a significant discount versus the industry average of 3.37. The price-to-sales ratio is well below both the S&P 500 average and the industry average, indicating a discount.


Price/Earnings
1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CMTL 38.68 Peers 24.49   CMTL 11.14 Peers 14.87

Premium. A higher P/E ratio than its peers can signify a more expensive stock or higher growth expectations.

CMTL is trading at a significant premium to its peers.

 

Discount. 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 discount 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 47.17 Peers 21.58   CMTL NM Peers 1.06

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.

CMTL's negative PEG ratio makes this valuation measure meaningless.

 
Price/Book
1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CMTL 0.97 Peers 3.37   CMTL 261.29 Peers 8.29

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.

 

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

CMTL is expected to have an earnings growth rate that significantly exceeds its peers.

 
Price/Sales
1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CMTL 0.82 Peers 2.99   CMTL 65.12 Peers 10.74

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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