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 scores decently on growth, while it is valued quite cheap. This could make an interesting combination.

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1. Profitability

2. Health

3. Growth

4. Valuation

5. Dividend

1. Profitability

1.1 Basic Checks

COMM had positive earnings in the past year.
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 11.20%. This is amongst the best in the industry. COMM outperforms 87.76% of its industry peers.
With a decent Return On Invested Capital value of 9.70%, COMM is doing good in the industry, outperforming 77.55% of the companies in the same industry.
COMM had an Average Return On Invested Capital over the past 3 years of 3.31%. This is significantly below the industry average of 12.17%.
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

COMM has a Profit Margin of 16.78%. This is amongst the best in the industry. COMM outperforms 87.76% of its industry peers.
With an excellent Operating Margin value of 15.51%, COMM belongs to the best of the industry, outperforming 85.71% of the companies in the same industry.
In the last couple of years the Operating Margin of COMM has grown nicely.
The Gross Margin of COMM (41.11%) is comparable to the rest of the 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.
COMM has more shares outstanding than it did 1 year ago.
Compared to 5 years ago, COMM has more shares outstanding
COMM has a worse debt/assets ratio than last year.

2.2 Solvency

COMM has an Altman-Z score of 0.76. 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 0.76 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 better Current ratio (2.25) 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.
COMM has a Quick ratio (1.61) which is in line with its industry peers.

		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.
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

The EPS growth rate is accelerating: in the next years the growth will be better than in the last years.
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.

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4. Valuation

4.1 Price/Earnings Ratio

COMM is valuated correctly with a Price/Earnings ratio of 14.19.
Based on the Price/Earnings ratio, COMM is valued cheaply inside the industry as 81.63% of the companies are valued more expensively.
COMM is valuated rather cheaply when we compare the Price/Earnings ratio to 27.25, which is the current average of the S&P500 Index.
With a Price/Forward Earnings ratio of 12.63, COMM is valued correctly.
Compared to the rest of the industry, the Price/Forward Earnings ratio of COMM indicates a rather cheap valuation: COMM is cheaper than 87.76% of the companies listed in the same industry.
COMM is valuated cheaply when we compare the Price/Forward Earnings ratio to 25.98, 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

COMM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. COMM is cheaper than 77.55% of the companies in the same industry.
COMM's Price/Free Cash Flow ratio is a bit cheaper when compared to the industry. COMM is cheaper than 79.59% of the companies in the same industry.

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

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 77.55% in the coming years.