COMMSCOPE HOLDING CO INC (COMM) Stock Fundamental Analysis
NASDAQ:COMM - Nasdaq - US20337X1090 - Common Stock - Currency: USD
Overall COMM gets a fundamental rating of 4 out of 10. We evaluated COMM against 49 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 has a bad growth rate and is valued cheaply.
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.
Each year in the past 5 years COMM had a positive operating cash flow.
1.2 Ratios
COMM has a Return On Assets of -4.35%. This is comparable to the rest of the industry: COMM outperforms 42.86% of its industry peers.
The Return On Invested Capital of COMM (5.26%) is better than 73.47% of its industry peers.
The Average Return On Invested Capital over the past 3 years for COMM is significantly below the industry average of 11.12%.
The last Return On Invested Capital (5.26%) for COMM is above the 3 year average (3.31%), which is a sign of increasing profitability.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.35% | ||
| ROE | N/A | ||
| ROIC | 5.26% |
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 Operating Margin of 10.42%. This is in the better half of the industry: COMM outperforms 79.59% 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 38.18%, COMM is in line with its industry, outperforming 46.94% 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 | 10.42% | ||
| PM (TTM) | N/A | ||
| GM | 38.18% |
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.
COMM has more shares outstanding than it did 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
COMM has an Altman-Z score of 0.24. This is a bad value and indicates that COMM is not financially healthy and even has some risk of bankruptcy.
COMM has a worse Altman-Z score (0.24) than 61.22% of its industry peers.
COMM has a debt to FCF ratio of 37.28. This is a negative value and a sign of low solvency as COMM would need 37.28 years to pay back of all of its debts.
Looking at the Debt to FCF ratio, with a value of 37.28, COMM is in line with its industry, outperforming 40.82% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 37.28 | ||
| Altman-Z | 0.24 |
ROIC/WACC0.82
WACC6.41%
2.3 Liquidity
COMM has a Current Ratio of 2.83. This indicates that COMM is financially healthy and has no problem in meeting its short term obligations.
COMM's Current ratio of 2.83 is fine compared to the rest of the industry. COMM outperforms 73.47% of its industry peers.
A Quick Ratio of 2.23 indicates that COMM has no problem at all paying its short term obligations.
Looking at the Quick ratio, with a value of 2.23, COMM is in the better half of the industry, outperforming 75.51% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.23 |
3. Growth
3.1 Past
COMM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -40.00%.
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 for COMM has decreased by -16.97% in the past year. This is quite bad
The Revenue for COMM have been decreasing by -12.81% on average. This is quite bad
EPS 1Y (TTM)-40%
EPS 3Y-34.53%
EPS 5Y-28.92%
EPS Q2Q%1000%
Revenue 1Y (TTM)-16.97%
Revenue growth 3Y-21.17%
Revenue growth 5Y-12.81%
Sales Q2Q%-1.42%
3.2 Future
COMM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 46.41% yearly.
Based on estimates for the next years, COMM will show a small growth in Revenue. The Revenue will grow by 5.39% on average per year.
EPS Next Y111.52%
EPS Next 2Y71.02%
EPS Next 3Y46.41%
EPS Next 5YN/A
Revenue Next Year5.66%
Revenue Next 2Y6.92%
Revenue Next 3Y5.39%
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
With a Price/Earnings ratio of 10.03, the valuation of COMM can be described as very reasonable.
Compared to the rest of the industry, the Price/Earnings ratio of COMM indicates a rather cheap valuation: COMM is cheaper than 91.84% 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 28.79.
Based on the Price/Forward Earnings ratio of 4.74, the valuation of COMM can be described as very cheap.
COMM's Price/Forward Earnings ratio is rather cheap when compared to the industry. COMM is cheaper than 100.00% of the companies in the same industry.
When comparing the Price/Forward Earnings ratio of COMM to the average of the S&P500 Index (21.38), we can say COMM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.03 | ||
| Fwd PE | 4.74 |
4.2 Price Multiples
Based on the Enterprise Value to EBITDA ratio, COMM is valued a bit cheaper than 73.47% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, COMM is valued cheaply inside the industry as 100.00% of the companies are valued more expensively.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 3.42 | ||
| EV/EBITDA | 10.93 |
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's earnings are expected to grow with 46.41% in the coming years. This may justify a more expensive valuation.
PEG (NY)0.09
PEG (5Y)N/A
EPS Next 2Y71.02%
EPS Next 3Y46.41%
5. Dividend
5.1 Amount
COMM does not give a dividend.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
3.91
+0.11 (+2.89%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners87.46%
Inst Owner Change-60.38%
Ins Owners3.41%
Ins Owner Change10.9%
Market Cap846.75M
Analysts47.69
Price Target5.57 (42.46%)
Short Float %6.67%
Short Ratio2.33
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)1
Avg EPS beat(2)228.18%
Min EPS beat(2)-115.91%
Max EPS beat(2)572.27%
EPS beat(4)3
Avg EPS beat(4)711.16%
Min EPS beat(4)-115.91%
Max EPS beat(4)2322.22%
EPS beat(8)4
Avg EPS beat(8)329.57%
EPS beat(12)7
Avg EPS beat(12)224.78%
EPS beat(16)9
Avg EPS beat(16)171.8%
Revenue beat(2)1
Avg Revenue beat(2)-10.98%
Min Revenue beat(2)-25.42%
Max Revenue beat(2)3.46%
Revenue beat(4)3
Avg Revenue beat(4)-0.97%
Min Revenue beat(4)-25.42%
Max Revenue beat(4)10.69%
Revenue beat(8)3
Avg Revenue beat(8)-6.45%
Revenue beat(12)6
Avg Revenue beat(12)-4.03%
Revenue beat(16)8
Avg Revenue beat(16)-3.11%
PT rev (1m)0%
PT rev (3m)35.37%
EPS NQ rev (1m)0%
EPS NQ rev (3m)304.92%
EPS NY rev (1m)-1.52%
EPS NY rev (3m)59.36%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)5.48%
Revenue NY rev (1m)0%
Revenue NY rev (3m)10.64%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 10.03 | ||
| Fwd PE | 4.74 | ||
| P/S | 0.18 | ||
| P/FCF | 3.42 | ||
| P/OCF | 3.1 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 10.93 |
EPS(TTM)0.39
EY9.97%
EPS(NY)0.82
Fwd EY21.1%
FCF(TTM)1.14
FCFY29.26%
OCF(TTM)1.26
OCFY32.25%
SpS22.2
BVpS-10.29
TBVpS-29.15
PEG (NY)0.09
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -4.35% | ||
| ROE | N/A | ||
| ROCE | 6.66% | ||
| ROIC | 5.26% | ||
| ROICexc | 5.69% | ||
| ROICexgc | 13.79% | ||
| OM | 10.42% | ||
| PM (TTM) | N/A | ||
| GM | 38.18% | ||
| FCFM | 5.16% |
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-Score5
Asset Turnover0.55
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 37.28 | ||
| Debt/EBITDA | 10.6 | ||
| Cap/Depr | 6.83% | ||
| Cap/Sales | 0.53% | ||
| Interest Coverage | 0.77 | ||
| Cash Conversion | 31.34% | ||
| Profit Quality | N/A | ||
| Current Ratio | 2.83 | ||
| Quick Ratio | 2.23 | ||
| Altman-Z | 0.24 |
F-Score5
WACC6.41%
ROIC/WACC0.82
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)-40%
EPS 3Y-34.53%
EPS 5Y-28.92%
EPS Q2Q%1000%
EPS Next Y111.52%
EPS Next 2Y71.02%
EPS Next 3Y46.41%
EPS Next 5YN/A
Revenue 1Y (TTM)-16.97%
Revenue growth 3Y-21.17%
Revenue growth 5Y-12.81%
Sales Q2Q%-1.42%
Revenue Next Year5.66%
Revenue Next 2Y6.92%
Revenue Next 3Y5.39%
Revenue Next 5YN/A
EBIT growth 1Y2.58%
EBIT growth 3Y10.9%
EBIT growth 5Y17.23%
EBIT Next Year41.13%
EBIT Next 3Y16.83%
EBIT Next 5YN/A
FCF growth 1Y4.73%
FCF growth 3YN/A
FCF growth 5Y-12.83%
OCF growth 1Y-5.8%
OCF growth 3Y30.71%
OCF growth 5Y-14.46%