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. 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.
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

The Return On Assets of COMM (11.20%) is better than 87.76% of its industry peers.
COMM's Return On Invested Capital of 9.70% is fine compared to the rest of the industry. COMM outperforms 77.55% 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 12.15%.
The 3 year average ROIC (3.31%) for COMM is below the current ROIC(9.70%), indicating increased profibility in the last year.

		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

COMM has a Profit Margin of 16.78%. This is amongst the best in the industry. COMM outperforms 87.76% of its industry peers.
COMM has a better Operating Margin (15.51%) than 85.71% of its industry peers.
In the last couple of years the Operating Margin of COMM has grown nicely.
With a Gross Margin value of 41.11%, COMM perfoms like the industry average, outperforming 44.90% of the companies in the same industry.
In the last couple of years the Gross Margin of COMM has grown nicely.

		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%

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ROA

ROE

ROIC

Operating and Profit Margin

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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.
COMM has more shares outstanding than it did 5 years ago.
The debt/assets ratio for COMM is higher compared to a year ago.

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 has a Altman-Z score (0.76) which is in line with 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.
With a Debt to FCF ratio value of 27.09, COMM is not doing good in the industry: 61.22% of the companies in the same industry are doing better.

		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.
The Current ratio of COMM (2.25) is better than 63.27% of its industry peers.
A Quick Ratio of 1.61 indicates that COMM should not have too much problems paying its short term obligations.
The Quick ratio of COMM (1.61) is comparable to the rest of the industry.

		Industry Rank	Sector Rank
Current Ratio	2.25
Quick Ratio	1.61

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WACC

Debt/Equity

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Altman-Z score

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3. Growth

3.1 Past

The Earnings Per Share has grown by an impressive 626.32% over the past year.
Measured over the past years, COMM shows a very negative growth in Earnings Per Share. The EPS has been decreasing by -28.92% on average per year.
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

COMM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 77.55% yearly.
Based on estimates for the next years, COMM will show a quite strong growth in Revenue. The Revenue will grow by 12.25% on average per year.

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.

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4. Valuation

4.1 Price/Earnings Ratio

Based on the Price/Earnings ratio of 14.19, the valuation of COMM can be described as correct.
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.
COMM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 27.21.
Based on the Price/Forward Earnings ratio of 12.63, the valuation of COMM can be described as correct.
87.76% of the companies in the same industry are more expensive than COMM, based on the Price/Forward Earnings ratio.
The average S&P500 Price/Forward Earnings ratio is at 25.98. COMM is valued rather cheaply when compared to this.

		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.
Compared to the rest of the industry, the Price/Free Cash Flow ratio of COMM indicates a somewhat cheap valuation: COMM is cheaper than 79.59% of the companies listed in the same industry.

		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.
COMM has a very decent profitability rating, which may justify a higher PE ratio.
A more expensive valuation may be justified as COMM's earnings are expected to grow with 77.55% in the coming years.