One-glance verdict
Undervalued
$20.27 our estimate vs market $1.27
Wall Street consensus: $3.62 (-82.1% lower than our fair-value estimate)
94% below our estimate, below the bear case
Fundamentals snapshot
Comtech Telecommunications Corp.
CMTL · NMS · Technology · Communication Equipment
Current price
$1.27
52-week range
$1.14 - $6.21
Market cap
$38.27M
Balance sheet
Distressed
-0.80x Concerning
Net debt $182.99M. Interest coverage shows how many times profit covers the interest bill.
What stands out
1 Reward
3 Risks
1 rewards · 3 risks
- Reward Free cash flow was positive in 5/10 years.
- Risk Insider ownership is only 2.7% (peer median: 12.8%).
- Risk Return on equity was -6.6% last year — the company lost money on shareholders' equity.
- Risk Operating margin compressed from -1.0% to -5.8% over 3 years.
What this company does
Comtech Telecommunications Corp.
Comtech Telecommunications Corp. sells technology that helps governments and phone companies with important communications, like the systems behind 9-1-1 calls and emergency alerts, and their money mostly comes from selling these services to those organizations. This matters because their work ensures people can get help quickly during emergencies and that phone networks can handle important public safety messages reliably.
How the company got here
Comtech Telecommunications Corp. was founded in 1967 and has evolved over decades to become a provider of critical communication technologies. The company has a history of adapting to changing technological landscapes, particularly in the realm of emergency and public safety communications. Its journey has involved developing and acquiring capabilities to serve government agencies and mobile network operators with essential communication infrastructure and software solutions.
What it actually does
Comtech Telecommunications Corp. develops and supplies advanced communication technologies, primarily focused on public safety and mobile network services. Think of them as building the behind-the-scenes technology that helps emergency services communicate effectively and allows mobile phone companies to offer reliable services, especially during critical situations. Their solutions are designed to ensure that when people need help, the right information gets to the right responders quickly and accurately.
Allerion (Public Safety Technology)
This segment, called Allerion, is focused on providing technology that helps governments and emergency communication agencies manage critical situations. It includes systems for next-generation 9-1-1 (NG9-1-1), which is an upgrade to the current 9-1-1 system that allows for more types of emergency data, like text messages or photos, to be sent. Allerion also offers software to improve coordination among emergency responders and provides cybersecurity training to protect these vital systems.
Mobile Network Solutions
Comtech's mobile network solutions provide essential technologies for mobile network operators, the companies that run our cell phone services. These solutions include carrier-grade location services, which help pinpoint where a call is coming from, and messaging and public alerting technologies. These are crucial for enabling mobile operators to support emergency services, comply with regulations, and ensure trusted communications across their wireless networks, especially during emergencies.
What management is betting on now
Management is focused on expanding their offerings in the public safety and emergency communications space, particularly with their next-generation 9-1-1 solutions. They are also emphasizing their role in supporting mobile network operators with advanced location and messaging capabilities. The strategy appears to be centered on leveraging their expertise in critical communications to capture a larger share of government and telecommunications infrastructure spending, aiming for growth in these essential technology areas.
Price history
How the share price has moved
—
Loading price history…
Earnings history
Last 8 quarters — what happened
Click any quarter to read the call summary and what the numbers say.
FY2025 Q1
$-24.22M
FY2025 Q2
$-1.89M
FY2025 Q3
$-160.00K
FY2025 Q4
$9.41M
FY2026 Q1
$4.82M
FY2026 Q2
$442.00K
FY2026 Q3
$673.00K
FY2026 Q4
$16.25M
Revenue
$-74.18M
Net income
$-3.20M
Diluted EPS
-0.49
Operating cash flow
$18.36M
Free cash flow
$16.25M
Fetching…
Sources
Revenue
$106.00M
Net income
$-3.45M
Diluted EPS
-0.47
Operating cash flow
$6.11M
Free cash flow
$673.00K
Fetching…
Sources
Revenue
$106.76M
Net income
$-13.63M
Diluted EPS
-0.68
Operating cash flow
$4.87M
Free cash flow
$442.00K
Fetching…
Sources
Revenue
$111.03M
Net income
$-15.88M
Diluted EPS
-0.67
Operating cash flow
$8.08M
Free cash flow
$4.82M
Fetching…
Sources
Revenue
$130.37M
Net income
$7.91M
Diluted EPS
-0.41
Operating cash flow
$11.45M
Free cash flow
$9.41M
Fetching…
Sources
Revenue
$126.79M
Net income
$33.93M
Diluted EPS
-0.49
Operating cash flow
$2.30M
Free cash flow
$-160.00K
Fetching…
Sources
Revenue
$126.57M
Net income
$-48.74M
Diluted EPS
-0.76
Operating cash flow
$-234.00K
Free cash flow
$-1.89M
Fetching…
Sources
Revenue
$115.80M
Net income
$-148.41M
Diluted EPS
-5.29
Operating cash flow
$-21.81M
Free cash flow
$-24.22M
Fetching…
Sources
Is it cheap or expensive?
Fair value $20.27 vs current price $1.27
Wall Street consensus is the average analyst price target: $3.62 (-82.1% lower than our fair-value estimate).
Our most-likely fair value is $20.27 a share — about 1,496.2% above today's price of $1.27, so the stock currently looks cheap (undervalued).
Is it drowning in debt?
Distressed
Net debt $183.0M. Interest coverage -0.8x.
Net debt
$182.99M
Interest coverage
-0.80x
Comtech Telecommunications Corp.'s profit covers its interest bill about 0.0 times over. which is weaker than most peers shown here and 1 peers sit below 1x, which is the danger zone where profit does not fully cover the interest bill.
Distressed
Worse cushion
Baseline
Better cushion
CMTL
BASELINE
Comtech Telecommunications Corp.
Total debt $217.97M Interest coverage -0.80x This is the baseline the peer rows are being compared against.
Total debt $9.62M Interest coverage 2.89x This peer still has a real interest-payment cushion, while CMTL does not.
Total debt $1.30M Interest coverage 60.10x This peer still has a real interest-payment cushion, while CMTL does not.
Total debt $21.69M Interest coverage -10.67x Neither company has much profit cushion over interest right now.
What you should know
The case for and against CMTL
1 Reward
3 Risks
Rewards
-
Free cash flow was positive in 5/10 years.
Risks
-
Insider ownership is only 2.7% (peer median: 12.8%).
-
Return on equity was -6.6% last year — the company lost money on shareholders' equity.
-
Operating margin compressed from -1.0% to -5.8% over 3 years.
The numbers
All the key metrics, grouped by purpose
Tap any ? icon to learn what it means.
Valuation
How expensive the stock looks
P/E (TTM)
—
Forward P/E
-3.63x
P/B
0.98x
P/S
0.15x
EV/EBITDA
25.30x
PEG ratio
1.79x
Profitability
How much profit each dollar creates
Gross margin
38.9%
Operating margin
-5.8%
Net margin
-14.5%
ROE
-6.6%
ROA
-0.6%
Health
Liquidity and balance-sheet strength
Debt / equity
0.84x
Current ratio
0.84x
Quick ratio
0.35x
Total debt
$217.97M
Total cash
$34.98M
Growth
How the business has been compounding
Revenue TTM
$249.61M
Revenue 5Y CAGR
-15.4%
EPS TTM
-1.71
EPS 5Y CAGR
—
Cash flow
How much cash the business throws off
Operating CF TTM
$37.41M
Free CF TTM
$22.19M
FCF margin
8.9%
Dividend
Shareholder payout
Yield
0.0%
Payout ratio
1,333.3%
Last ex-div date
2023-01-17