Comtech Telecommunications Corp

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CMTL : NASDAQ : Technology
$13.20 up 0.16 | 1.20%
Today's Range: 12.95 - 13.29
Avg. Daily Volume: 279,900
09/28/16 - 3:59 PM ET

Financial Analysis


COMTECH TELECOMMUN's gross profit margin for the third quarter of its fiscal year 2016 has decreased 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 1.34 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 decreased by 5.05% 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 FY16 Q3 FY15
Net Sales ($mil)124.1971.63
EBITDA ($mil)11.4210.39
EBIT ($mil)3.567.16
Net Income ($mil)-14.364.96


Balance Sheet Q3 FY16 Q3 FY15
Cash & Equiv. ($mil)69.11142.04
Total Assets ($mil)903.33473.8
Total Debt ($mil)351.20.0
Equity ($mil)379.8400.0


Profitability Q3 FY16 Q3 FY15
Gross Profit Margin43.8647.43
EBITDA Margin9.1914.5
Operating Margin2.8710.0
Sales Turnover0.370.67
Return on Assets-0.545.43
Return on Equity-1.36.43
Debt Q3 FY16 Q3 FY15
Current Ratio1.964.6
Debt/Capital0.480.0
Interest Expense3.470.07
Interest Coverage1.0399.44


Share Data Q3 FY16 Q3 FY15
Shares outstanding (mil)16.1716.12
Div / share0.30.3
EPS-0.890.3
Book value / share23.4924.82
Institutional Own % n/a n/a
Avg Daily Volume333673.0286775.0

Valuation


HOLD. The current P/E ratio is negative, which has no meaningful value in the assessment of premium or discount valuation, it simply displays that the company has negative earnings. For additional comparison, its price-to-book ratio of 0.57 indicates a significant discount versus the S&P 500 average of 2.82 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. 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 27.29   CMTL 8.29 Peers 13.71

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.

 

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 45.76 Peers 18.80   CMTL NA Peers 1.05

Neutral. The absence of a valid price-to-projected earnings ratio happens when a stock can not be valued on the basis of a negative expected future earnings.

CMTL's ratio is negative making this valuation measure meaningless.

 

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 3.37   CMTL -119.87 Peers 65.68

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 0.65 Peers 3.20   CMTL 5.29 Peers 12.32

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.

 

Lower. A sales growth rate that trails the industry implies that a company is losing market share.

CMTL significantly trails its peers on the basis of sales growth

 

 

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