Comtech Telecommunications Corp

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CMTL : NASDAQ : Technology
$14.01 -0.21 | -1.48%
Today's Range: 13.79 - 14.44
Avg. Daily Volume: 330300.0
04/28/17 - 4:00 PM ET

Financial Analysis

COMTECH TELECOMMUN's gross profit margin for the second quarter of its fiscal year 2017 has decreased when compared to the same period a year ago. The company has grown sales and net income significantly, outpacing the average growth rates of competitors within its industry. COMTECH TELECOMMUN has average liquidity. Currently, the Quick Ratio is 1.20 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 17.23% 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 Q2 FY17 Q2 FY16
Net Sales ($mil)139.0370.32
EBITDA ($mil)12.478.19
EBIT ($mil)2.875.53
Net Income ($mil)6.592.48

Balance Sheet Q2 FY17 Q2 FY16
Cash & Equiv. ($mil)63.14163.47
Total Assets ($mil)883.51462.17
Total Debt ($mil)248.880.0
Equity ($mil)466.46397.87

Profitability Q2 FY17 Q2 FY16
Gross Profit Margin40.8343.95
EBITDA Margin8.9611.64
Operating Margin2.067.86
Sales Turnover0.620.61
Return on Assets-0.853.1
Return on Equity-1.623.6
Debt Q2 FY17 Q2 FY16
Current Ratio1.784.7
Interest Expense2.850.07
Interest Coverage1.0175.7

Share Data Q2 FY17 Q2 FY16
Shares outstanding (mil)23.5516.16
Div / share0.10.3
Book value / share19.824.62
Institutional Own % n/a n/a
Avg Daily Volume324018.0330267.0


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 0.70 indicates a significant discount versus the S&P 500 average of 2.99 and a significant discount versus the industry average of 3.38. 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.

1 2 3 4 5
premium   discount
  Price/Cash Flow
1 2 3 4 5
premium   discount
CMTL NM Peers 39.04   CMTL 51.06 Peers 17.26

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.

1 2 3 4 5
premium   discount
  Price to
1 2 3 4 5
premium   discount
CMTL 33.76 Peers 19.00   CMTL NA Peers 0.97

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 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.

1 2 3 4 5
premium   discount
  Earnings Growth
1 2 3 4 5
lower   higher
CMTL 0.70 Peers 3.38   CMTL -165.90 Peers 7.61

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.

1 2 3 4 5
premium   discount
  Sales Growth
1 2 3 4 5
premium   discount
CMTL 0.59 Peers 3.24   CMTL 94.46 Peers 25.06

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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