COMMSCOPE HOLDING CO INC (COMM) Stock Fundamental Analysis
USA - NASDAQ:COMM - US20337X1090 - Common Stock
17.75 USD
+0.25 (+1.43%)
17.5101 USD
-0.24 (-1.35%)
Taking everything into account, COMM scores 5 out of 10 in our fundamental rating. COMM was compared to 48 industry peers in the Communications Equipment industry. While COMM is still in line with the averages on profitability rating, there are concerns on its financial health. COMM is valued quite cheap, while showing a decent growth score. This is a good combination!
1. Profitability
1.1 Basic Checks
In the past year COMM was profitable.
COMM had a positive operating cash flow in the past year.
COMM had negative earnings in each of the past 5 years.
In the past 5 years COMM always reported a positive cash flow from operatings.
1.2 Ratios
COMM has a Return On Assets of 11.19%. This is amongst the best in the industry. COMM outperforms 89.58% of its industry peers.
The Return On Invested Capital of COMM (9.69%) is better than 77.08% of its industry peers.
COMM had an Average Return On Invested Capital over the past 3 years of 3.31%. This is significantly below the industry average of 13.05%.
The last Return On Invested Capital (9.69%) for COMM is above the 3 year average (3.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.19% | ||
| ROE | N/A | ||
| ROIC | 9.69% |
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
With an excellent Profit Margin value of 16.77%, COMM belongs to the best of the industry, outperforming 89.58% of the companies in the same industry.
COMM has a Operating Margin of 15.50%. This is amongst the best in the industry. COMM outperforms 87.50% of its industry peers.
COMM's Operating Margin has improved in the last couple of years.
Looking at the Gross Margin, with a value of 41.11%, COMM is in line with its industry, outperforming 50.00% of the companies in the same industry.
COMM's Gross Margin has improved in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 15.5% | ||
| PM (TTM) | 16.77% | ||
| GM | 41.11% |
OM growth 3Y40.69%
OM growth 5Y34.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.25%
GM growth 5Y5.41%
2. Health
2.1 Basic Checks
The Return on Invested Capital (ROIC) is just above the Cost of Capital (WACC), so COMM is still creating some value.
The number of shares outstanding for COMM has been increased compared to 1 year ago.
Compared to 5 years ago, COMM has more shares outstanding
Compared to 1 year ago, COMM has a worse debt to assets ratio.
2.2 Solvency
COMM has an Altman-Z score of 0.73. This is a bad value and indicates that COMM is not financially healthy and even has some risk of bankruptcy.
COMM has a Altman-Z score (0.73) which is comparable to the rest of the industry.
The Debt to FCF ratio of COMM is 27.10, which is on the high side as it means it would take COMM, 27.10 years of fcf income to pay off all of its debts.
Looking at the Debt to FCF ratio, with a value of 27.10, COMM is in line with its industry, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 27.1 | ||
| Altman-Z | 0.73 |
ROIC/WACC1.13
WACC8.58%
2.3 Liquidity
A Current Ratio of 2.25 indicates that COMM has no problem at all paying its short term obligations.
Looking at the Current ratio, with a value of 2.25, COMM is in the better half of the industry, outperforming 66.67% of the companies in the same industry.
A Quick Ratio of 1.61 indicates that COMM should not have too much problems paying its short term obligations.
COMM has a Quick ratio of 1.61. This is comparable to the rest of the industry: COMM outperforms 54.17% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.61 |
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.
The Revenue has grown by 35.62% in the past year. This is a very strong growth!
Measured over the past years, COMM shows a very negative growth in Revenue. The Revenue has been decreasing by -12.81% on average per year.
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
Based on estimates for the next years, COMM will show a very strong growth in Earnings Per Share. The EPS will grow by 77.55% on average per year.
The Revenue is expected to grow by 12.25% on average over the next years. This is quite good.
EPS Next Y304.51%
EPS Next 2Y104.99%
EPS Next 3Y77.55%
EPS Next 5YN/A
Revenue Next Year19.02%
Revenue Next 2Y13.04%
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.
4. Valuation
4.1 Price/Earnings Ratio
A Price/Earnings ratio of 12.86 indicates a correct valuation of COMM.
Compared to the rest of the industry, the Price/Earnings ratio of COMM indicates a rather cheap valuation: COMM is cheaper than 87.50% of the companies listed in the same industry.
COMM's Price/Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 26.34.
A Price/Forward Earnings ratio of 10.83 indicates a reasonable valuation of COMM.
COMM's Price/Forward Earnings ratio is rather cheap when compared to the industry. COMM is cheaper than 95.83% of the companies in the same industry.
The average S&P500 Price/Forward Earnings ratio is at 34.43. COMM is valued rather cheaply when compared to this.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 10.83 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COMM is valued cheaper than 81.25% of the companies in the same industry.
81.25% of the companies in the same industry are more expensive than COMM, based on the Price/Free Cash Flow ratio.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.69 | ||
| EV/EBITDA | 9.21 |
4.3 Compensation for Growth
COMM's 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.
PEG (NY)0.04
PEG (5Y)N/A
EPS Next 2Y104.99%
EPS Next 3Y77.55%
5. Dividend
5.1 Amount
No dividends for COMM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
17.75
+0.25 (+1.43%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners91.91%
Inst Owner Change0.93%
Ins Owners3.19%
Ins Owner Change-1.21%
Market Cap3.93B
Revenue(TTM)5.30B
Net Income(TTM)888.60M
Analysts82
Price Target20.06 (13.01%)
Short Float %6.68%
Short Ratio2.76
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Yearly Dividend0
Dividend Growth(5Y)N/A
DP0%
Div Incr Years0
Div Non Decr Years0
Ex-DateN/A
Surprises & Revisions
EPS beat(2)2
Avg EPS beat(2)78.22%
Min EPS beat(2)65.77%
Max EPS beat(2)90.66%
EPS beat(4)4
Avg EPS beat(4)208.01%
Min EPS beat(4)65.77%
Max EPS beat(4)572.27%
EPS beat(8)6
Avg EPS beat(8)371.1%
EPS beat(12)7
Avg EPS beat(12)241.16%
EPS beat(16)11
Avg EPS beat(16)188.92%
Revenue beat(2)2
Avg Revenue beat(2)11.57%
Min Revenue beat(2)8.62%
Max Revenue beat(2)14.53%
Revenue beat(4)3
Avg Revenue beat(4)6.15%
Min Revenue beat(4)-2.01%
Max Revenue beat(4)14.53%
Revenue beat(8)5
Avg Revenue beat(8)-0.65%
Revenue beat(12)5
Avg Revenue beat(12)-2.85%
Revenue beat(16)9
Avg Revenue beat(16)-1.35%
PT rev (1m)0%
PT rev (3m)153.76%
EPS NQ rev (1m)25%
EPS NQ rev (3m)104.01%
EPS NY rev (1m)19.9%
EPS NY rev (3m)80.37%
Revenue NQ rev (1m)7.64%
Revenue NQ rev (3m)14.73%
Revenue NY rev (1m)6.43%
Revenue NY rev (3m)13.09%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 12.86 | ||
| Fwd PE | 10.83 | ||
| P/S | 0.74 | ||
| P/FCF | 14.69 | ||
| P/OCF | 12.31 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 9.21 |
EPS(TTM)1.38
EY7.77%
EPS(NY)1.64
Fwd EY9.23%
FCF(TTM)1.21
FCFY6.81%
OCF(TTM)1.44
OCFY8.13%
SpS23.92
BVpS-4.81
TBVpS-22.8
PEG (NY)0.04
PEG (5Y)N/A
Graham NumberN/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 11.19% | ||
| ROE | N/A | ||
| ROCE | 12.27% | ||
| ROIC | 9.69% | ||
| ROICexc | 10.83% | ||
| ROICexgc | 32.38% | ||
| OM | 15.5% | ||
| PM (TTM) | 16.77% | ||
| GM | 41.11% | ||
| FCFM | 5.05% |
ROA(3y)-10.89%
ROA(5y)-8.25%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.31%
ROIC(5y)2.7%
ROICexc(3y)3.52%
ROICexc(5y)2.85%
ROICexgc(3y)10.08%
ROICexgc(5y)9.58%
ROCE(3y)4.18%
ROCE(5y)3.41%
ROICexgc growth 3Y5.33%
ROICexgc growth 5Y9.67%
ROICexc growth 3Y28.11%
ROICexc growth 5Y30.3%
OM growth 3Y40.69%
OM growth 5Y34.45%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y6.25%
GM growth 5Y5.41%
F-Score5
Asset Turnover0.67
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 27.1 | ||
| Debt/EBITDA | 6.41 | ||
| Cap/Depr | 16.67% | ||
| Cap/Sales | 0.98% | ||
| Interest Coverage | 1.31 | ||
| Cash Conversion | 28.22% | ||
| Profit Quality | 30.13% | ||
| Current Ratio | 2.25 | ||
| Quick Ratio | 1.61 | ||
| Altman-Z | 0.73 |
F-Score5
WACC8.58%
ROIC/WACC1.13
Cap/Depr(3y)10.29%
Cap/Depr(5y)12.46%
Cap/Sales(3y)0.96%
Cap/Sales(5y)1.17%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)626.32%
EPS 3Y-34.53%
EPS 5Y-28.92%
EPS Q2Q%1340%
EPS Next Y304.51%
EPS Next 2Y104.99%
EPS Next 3Y77.55%
EPS Next 5YN/A
Revenue 1Y (TTM)35.62%
Revenue growth 3Y-21.17%
Revenue growth 5Y-12.81%
Sales Q2Q%50.59%
Revenue Next Year19.02%
Revenue Next 2Y13.04%
Revenue Next 3Y12.25%
Revenue Next 5YN/A
EBIT growth 1Y63.76%
EBIT growth 3Y10.9%
EBIT growth 5Y17.23%
EBIT Next Year64.79%
EBIT Next 3Y26.41%
EBIT Next 5YN/A
FCF growth 1Y-51.3%
FCF growth 3YN/A
FCF growth 5Y-12.83%
OCF growth 1Y-48.15%
OCF growth 3Y30.71%
OCF growth 5Y-14.46%
COMMSCOPE HOLDING CO INC / COMM FAQ
What is the ChartMill fundamental rating of COMMSCOPE HOLDING CO INC (COMM) stock?
ChartMill assigns a fundamental rating of 5 / 10 to COMM.
What is the valuation status for COMM stock?
ChartMill assigns a valuation rating of 9 / 10 to COMMSCOPE HOLDING CO INC (COMM). This can be considered as Undervalued.
What is the profitability of COMM stock?
COMMSCOPE HOLDING CO INC (COMM) has a profitability rating of 6 / 10.
What is the financial health of COMMSCOPE HOLDING CO INC (COMM) stock?
The financial health rating of COMMSCOPE HOLDING CO INC (COMM) is 3 / 10.
How sustainable is the dividend of COMMSCOPE HOLDING CO INC (COMM) stock?
The dividend rating of COMMSCOPE HOLDING CO INC (COMM) is 0 / 10 and the dividend payout ratio is 0%.