COMM gets a fundamental rating of 5 out of 10. The analysis compared the fundamentals against 48 industry peers in the Communications Equipment industry. There are concerns on the financial health of COMM while its profitability can be described as average. A decent growth rate in combination with a cheap valuation! Better keep an eye on COMM.

Quickly go to:

1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

In the past year COMM was profitable.
In the past year COMM had a positive cash flow from operations.
COMM had negative earnings in each of the past 5 years.
COMM had a positive operating cash flow in each of the past 5 years.

1.2 Ratios

Looking at the Return On Assets, with a value of 11.20%, COMM belongs to the top of the industry, outperforming 87.76% of the companies in the same industry.
The Return On Invested Capital of COMM (9.70%) is better than 77.55% of its industry peers.
The Average Return On Invested Capital over the past 3 years for COMM is significantly below the industry average of 12.17%.
The last Return On Invested Capital (9.70%) for COMM is above the 3 year average (3.31%), which is a sign of increasing profitability.

		Industry Rank	Sector Rank
ROA	11.2%
ROE	N/A
ROIC	9.7%

ROA(3y)-10.89%

ROA(5y)-8.25%

ROE(3y)N/A

ROE(5y)N/A

ROIC(3y)3.31%

ROIC(5y)2.7%

1.3 Margins

Looking at the Profit Margin, with a value of 16.78%, COMM belongs to the top of the industry, outperforming 87.76% of the companies in the same industry.
COMM has a Operating Margin of 15.51%. This is amongst the best in the industry. COMM outperforms 85.71% of its industry peers.
COMM's Operating Margin has improved in the last couple of years.
COMM has a Gross Margin (41.11%) which is comparable to the rest of the industry.
COMM's Gross Margin has improved in the last couple of years.

		Industry Rank	Sector Rank
OM	15.51%
PM (TTM)	16.78%
GM	41.11%

OM growth 3Y40.76%

OM growth 5Y34.49%

PM growth 3YN/A

PM growth 5YN/A

GM growth 3Y6.25%

GM growth 5Y5.41%

More info and screens

ROA

ROE

ROIC

Operating and Profit Margin

Show most profitable peers

2. Health

2.1 Basic Checks

With a Return on Invested Capital (ROIC) just above the Cost of Capital (WACC), COMM is creating some value.
The number of shares outstanding for COMM has been increased compared to 1 year ago.
The number of shares outstanding for COMM has been increased compared to 5 years ago.
COMM has a worse debt/assets ratio than last year.

2.2 Solvency

Based on the Altman-Z score of 0.76, we must say that COMM is in the distress zone and has some risk of bankruptcy.
COMM's Altman-Z score of 0.76 is in line compared to the rest of the industry. COMM outperforms 44.90% of its industry peers.
The Debt to FCF ratio of COMM is 27.09, which is on the high side as it means it would take COMM, 27.09 years of fcf income to pay off all of its debts.
The Debt to FCF ratio of COMM (27.09) is worse than 61.22% of its industry peers.

		Industry Rank	Sector Rank
Debt/Equity	N/A
Debt/FCF	27.09
Altman-Z	0.76

ROIC/WACC1.1

WACC8.83%

2.3 Liquidity

COMM has a Current Ratio of 2.25. This indicates that COMM is financially healthy and has no problem in meeting its short term obligations.
COMM has a Current ratio of 2.25. This is in the better half of the industry: COMM outperforms 63.27% of its industry peers.
COMM has a Quick Ratio of 1.61. This is a normal value and indicates that COMM is financially healthy and should not expect problems in meeting its short term obligations.
COMM has a Quick ratio (1.61) which is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.25
Quick Ratio	1.61

More info and screens

WACC

Debt/Equity

How to determine the health of a company

Altman-Z score

Show peers with great health

3. Growth

3.1 Past

COMM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 626.32%, which is quite impressive.
COMM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -28.92% yearly.
COMM shows a strong growth in Revenue. In the last year, the Revenue has grown by 35.62%.
COMM shows a very negative growth in Revenue. Measured over the last years, the Revenue has been decreasing by -12.81% yearly.

EPS 1Y (TTM)626.32%

EPS 3Y-34.53%

EPS 5Y-28.92%

EPS Q2Q%1340%

Revenue 1Y (TTM)35.62%

Revenue growth 3Y-21.17%

Revenue growth 5Y-12.81%

Sales Q2Q%50.59%

3.2 Future

The Earnings Per Share is expected to grow by 77.55% on average over the next years. This is a very strong growth
COMM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 12.25% yearly.

EPS Next Y331.54%

EPS Next 2Y99.38%

EPS Next 3Y77.55%

EPS Next 5YN/A

Revenue Next Year19.13%

Revenue Next 2Y14.26%

Revenue Next 3Y12.25%

Revenue Next 5YN/A

3.3 Evolution

When comparing the EPS growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
The Revenue growth rate is accelerating: in the next years the growth will be better than in the last years.

More info and screens

Find the best growth stocks

Show best growing peers

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 14.19 indicates a correct valuation of COMM.
COMM's Price/Earnings ratio is rather cheap when compared to the industry. COMM is cheaper than 81.63% of the companies in the same industry.
Compared to an average S&P500 Price/Earnings ratio of 28.60, COMM is valued rather cheaply.
COMM is valuated correctly with a Price/Forward Earnings ratio of 12.63.
87.76% of the companies in the same industry are more expensive than COMM, based on the Price/Forward Earnings ratio.
COMM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.83, which is the current average of the S&P500 Index.

		Industry Rank	Sector Rank
PE	14.19
Fwd PE	12.63

4.2 Price Multiples

Based on the Enterprise Value to EBITDA ratio, COMM is valued a bit cheaper than the industry average as 77.55% of the companies are valued more expensively.
Based on the Price/Free Cash Flow ratio, COMM is valued a bit cheaper than the industry average as 79.59% of the companies are valued more expensively.

		Industry Rank	Sector Rank
P/FCF	16.2
EV/EBITDA	9.61

4.3 Compensation for Growth

The low PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates a rather cheap valuation of the company.
The decent profitability rating of COMM may justify a higher PE ratio.
COMM's earnings are expected to grow with 77.55% in the coming years. This may justify a more expensive valuation.