COMMSCOPE HOLDING CO INC (COMM) Stock Fundamental Analysis
USA - NASDAQ:COMM - US20337X1090 - Common Stock
16.54 USD
+0.24 (+1.47%)
16.55 USD
+0.01 (+0.06%)
We assign a fundamental rating of 5 out of 10 to COMM. COMM was compared to 48 industry peers in the Communications Equipment industry. COMM has a medium profitability rating, but doesn't score so well on its financial health evaluation. 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.
In the past 5 years COMM always reported negative net income.
In the past 5 years COMM always reported a positive cash flow from operatings.
1.2 Ratios
With an excellent Return On Assets value of 9.66%, COMM belongs to the best of the industry, outperforming 87.50% of the companies in the same industry.
COMM has a better Return On Invested Capital (7.73%) than 75.00% 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 13.71%.
The last Return On Invested Capital (7.73%) for COMM is above the 3 year average (3.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | N/A | ||
| ROIC | 7.73% |
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 15.74%. This is amongst the best in the industry. COMM outperforms 87.50% of its industry peers.
COMM has a better Operating Margin (13.56%) than 85.42% of its industry peers.
In the last couple of years the Operating Margin of COMM has grown nicely.
Looking at the Gross Margin, with a value of 40.94%, 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 | 13.56% | ||
| PM (TTM) | 15.74% | ||
| GM | 40.94% |
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 below the Cost of Capital (WACC), so COMM is destroying 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.
Compared to 1 year ago, COMM has a worse debt to assets ratio.
2.2 Solvency
COMM has an Altman-Z score of 0.53. This is a bad value and indicates that COMM is not financially healthy and even has some risk of bankruptcy.
COMM's Altman-Z score of 0.53 is in line compared to the rest of the industry. COMM outperforms 41.67% of its industry peers.
COMM has a debt to FCF ratio of 29.22. This is a negative value and a sign of low solvency as COMM would need 29.22 years to pay back of all of its debts.
With a Debt to FCF ratio value of 29.22, COMM perfoms like the industry average, outperforming 43.75% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 29.22 | ||
| Altman-Z | 0.53 |
ROIC/WACC0.92
WACC8.41%
2.3 Liquidity
COMM has a Current Ratio of 2.18. This indicates that COMM is financially healthy and has no problem in meeting its short term obligations.
COMM's Current ratio of 2.18 is fine compared to the rest of the industry. COMM outperforms 60.42% of its industry peers.
A Quick Ratio of 1.47 indicates that COMM should not have too much problems paying its short term obligations.
COMM has a Quick ratio (1.47) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.47 |
3. Growth
3.1 Past
COMM shows a strong growth in Earnings Per Share. In the last year, the EPS has been growing by 91.89%, which is quite impressive.
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.
The Revenue has been growing slightly by 7.39% in the past year.
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)91.89%
EPS 3Y-34.53%
EPS 5Y-28.92%
EPS Q2Q%29.41%
Revenue 1Y (TTM)7.39%
Revenue growth 3Y-21.17%
Revenue growth 5Y-12.81%
Sales Q2Q%0.09%
3.2 Future
COMM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 68.52% yearly.
COMM is expected to show quite a strong growth in Revenue. In the coming years, the Revenue will grow by 10.22% yearly.
EPS Next Y222.74%
EPS Next 2Y98.89%
EPS Next 3Y68.52%
EPS Next 5YN/A
Revenue Next Year11.84%
Revenue Next 2Y10.36%
Revenue Next 3Y10.22%
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.
When comparing the Revenue growth rate of the last years to the growth rate of the upcoming years, we see that the growth is accelerating.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 23.30, the valuation of COMM can be described as rather expensive.
70.83% of the companies in the same industry are more expensive than COMM, based on the Price/Earnings ratio.
COMM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 27.41.
COMM is valuated reasonably with a Price/Forward Earnings ratio of 10.72.
Based on the Price/Forward Earnings ratio, COMM is valued cheaply inside the industry as 93.75% of the companies are valued more expensively.
COMM's Price/Forward Earnings ratio indicates a rather cheap valuation when compared to the S&P500 average which is at 22.88.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.3 | ||
| Fwd PE | 10.72 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COMM is valued a bit cheaper than the industry average as 77.08% of the companies are valued more expensively.
COMM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. COMM is cheaper than 77.08% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 14.77 | ||
| EV/EBITDA | 10.66 |
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.
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 68.52% in the coming years.
PEG (NY)0.1
PEG (5Y)N/A
EPS Next 2Y98.89%
EPS Next 3Y68.52%
5. Dividend
5.1 Amount
No dividends for COMM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
16.54
+0.24 (+1.47%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners90.11%
Inst Owner Change6.16%
Ins Owners2.32%
Ins Owner Change-1.12%
Market Cap3.66B
Analysts82
Price Target20.06 (21.28%)
Short Float %6.74%
Short Ratio1.95
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)97%
Min EPS beat(2)90.66%
Max EPS beat(2)103.34%
EPS beat(4)3
Avg EPS beat(4)162.59%
Min EPS beat(4)-115.91%
Max EPS beat(4)572.27%
EPS beat(8)5
Avg EPS beat(8)359.54%
EPS beat(12)7
Avg EPS beat(12)236.13%
EPS beat(16)10
Avg EPS beat(16)182.92%
Revenue beat(2)1
Avg Revenue beat(2)3.3%
Min Revenue beat(2)-2.01%
Max Revenue beat(2)8.62%
Revenue beat(4)2
Avg Revenue beat(4)-3.84%
Min Revenue beat(4)-25.42%
Max Revenue beat(4)8.62%
Revenue beat(8)4
Avg Revenue beat(8)-3.64%
Revenue beat(12)5
Avg Revenue beat(12)-3.92%
Revenue beat(16)8
Avg Revenue beat(16)-2.68%
PT rev (1m)153.76%
PT rev (3m)309.72%
EPS NQ rev (1m)5.36%
EPS NQ rev (3m)122.22%
EPS NY rev (1m)43.91%
EPS NY rev (3m)39.04%
Revenue NQ rev (1m)1.43%
Revenue NQ rev (3m)10.4%
Revenue NY rev (1m)6.26%
Revenue NY rev (3m)5.95%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.3 | ||
| Fwd PE | 10.72 | ||
| P/S | 0.77 | ||
| P/FCF | 14.77 | ||
| P/OCF | 12.63 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.66 |
EPS(TTM)0.71
EY4.29%
EPS(NY)1.54
Fwd EY9.33%
FCF(TTM)1.12
FCFY6.77%
OCF(TTM)1.31
OCFY7.92%
SpS21.45
BVpS-5.32
TBVpS-23.56
PEG (NY)0.1
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | 9.66% | ||
| ROE | N/A | ||
| ROCE | 9.78% | ||
| ROIC | 7.73% | ||
| ROICexc | 8.46% | ||
| ROICexgc | 25.79% | ||
| OM | 13.56% | ||
| PM (TTM) | 15.74% | ||
| GM | 40.94% | ||
| FCFM | 5.22% |
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%
ROICexcg growth 3Y5.33%
ROICexcg 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-Score6
Asset Turnover0.61
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 29.22 | ||
| Debt/EBITDA | 7.51 | ||
| Cap/Depr | 13.11% | ||
| Cap/Sales | 0.89% | ||
| Interest Coverage | 0.96 | ||
| Cash Conversion | 30.06% | ||
| Profit Quality | 33.16% | ||
| Current Ratio | 2.18 | ||
| Quick Ratio | 1.47 | ||
| Altman-Z | 0.53 |
F-Score6
WACC8.41%
ROIC/WACC0.92
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)91.89%
EPS 3Y-34.53%
EPS 5Y-28.92%
EPS Q2Q%29.41%
EPS Next Y222.74%
EPS Next 2Y98.89%
EPS Next 3Y68.52%
EPS Next 5YN/A
Revenue 1Y (TTM)7.39%
Revenue growth 3Y-21.17%
Revenue growth 5Y-12.81%
Sales Q2Q%0.09%
Revenue Next Year11.84%
Revenue Next 2Y10.36%
Revenue Next 3Y10.22%
Revenue Next 5YN/A
EBIT growth 1Y35.76%
EBIT growth 3Y10.9%
EBIT growth 5Y17.23%
EBIT Next Year52.07%
EBIT Next 3Y14.44%
EBIT Next 5YN/A
FCF growth 1Y-19.55%
FCF growth 3YN/A
FCF growth 5Y-12.83%
OCF growth 1Y-25.55%
OCF growth 3Y30.71%
OCF growth 5Y-14.46%