COMMSCOPE HOLDING CO INC (COMM)
US20337X1090 - Common Stock
COMM gets a fundamental rating of 3 out of 10. The analysis compared the fundamentals against 51 industry peers in the Communications Equipment industry. There are concerns on the financial health of COMM while its profitability can be described as average. COMM has a valuation in line with the averages, but it does not seem to be growing.
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.
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
COMM's Return On Assets of -10.64% is on the low side compared to the rest of the industry. COMM is outperformed by 60.78% of its industry peers.
With an excellent Return On Invested Capital value of 6.23%, COMM belongs to the best of the industry, outperforming 80.39% of the companies in the same industry.
COMM had an Average Return On Invested Capital over the past 3 years of 3.68%. This is significantly below the industry average of 11.02%.
The 3 year average ROIC (3.68%) for COMM is below the current ROIC(6.23%), indicating increased profibility in the last year.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.64% | ||
| ROE | N/A | ||
| ROIC | 6.23% |
ROA(3y)-10.53%
ROA(5y)-8.59%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.68%
ROIC(5y)2.76%
1.3 Margins
COMM has a Operating Margin of 12.84%. This is amongst the best in the industry. COMM outperforms 88.24% of its industry peers.
In the last couple of years the Operating Margin of COMM has declined.
With a Gross Margin value of 42.95%, COMM perfoms like the industry average, outperforming 56.86% of the companies in the same industry.
COMM's Gross Margin has been stable in the last couple of years.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| OM | 12.84% | ||
| PM (TTM) | N/A | ||
| GM | 42.95% |
OM growth 3Y40.94%
OM growth 5Y-5.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.44%
GM growth 5Y0.75%
2. Health
2.1 Basic Checks
With a Return on Invested Capital (ROIC) below the Cost of Capital (WACC), COMM is destroying value.
Compared to 1 year ago, COMM has more shares outstanding
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 -0.01. This is a bad value and indicates that COMM is not financially healthy and even has some risk of bankruptcy.
With a Altman-Z score value of -0.01, COMM is not doing good in the industry: 66.67% of the companies in the same industry are doing better.
The Debt to FCF ratio of COMM is 328.83, which is on the high side as it means it would take COMM, 328.83 years of fcf income to pay off all of its debts.
COMM has a Debt to FCF ratio of 328.83. This is comparable to the rest of the industry: COMM outperforms 43.14% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 328.83 | ||
| Altman-Z | -0.01 |
ROIC/WACC0.93
WACC6.71%
2.3 Liquidity
COMM has a Current Ratio of 1.40. This is a normal value and indicates that COMM is financially healthy and should not expect problems in meeting its short term obligations.
COMM has a worse Current ratio (1.40) than 78.43% of its industry peers.
A Quick Ratio of 1.05 indicates that COMM should not have too much problems paying its short term obligations.
The Quick ratio of COMM (1.05) is worse than 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.05 |
3. Growth
3.1 Past
COMM shows a strong negative growth in Earnings Per Share. In the last year the EPS decreased by -83.62%.
COMM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.13% yearly.
The Revenue for COMM has decreased by -50.14% in the past year. This is quite bad
COMM shows a small growth in Revenue. Measured over the last years, the Revenue has been growing by 4.85% yearly.
EPS 1Y (TTM)-83.62%
EPS 3Y-24.99%
EPS 5Y-22.13%
EPS Q2Q%-138.46%
Revenue 1Y (TTM)-50.14%
Revenue growth 3Y-11.79%
Revenue growth 5Y4.85%
Sales Q2Q%-32.34%
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 21.28% on average per year.
COMM is expected to show a very negative growth in Revenue. In the coming years, the Revenue will decrease by -11.21% yearly.
EPS Next Y-75.68%
EPS Next 2Y-10.76%
EPS Next 3Y21.28%
EPS Next 5YN/A
Revenue Next Year-32.51%
Revenue Next 2Y-19.74%
Revenue Next 3Y-11.21%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
Based on the Price/Earnings ratio of 29.37, the valuation of COMM can be described as expensive.
Based on the Price/Earnings ratio, COMM is valued a bit cheaper than 66.67% of the companies in the same industry.
The average S&P500 Price/Earnings ratio is at 27.73. COMM is around the same levels.
COMM is valuated reasonably with a Price/Forward Earnings ratio of 10.78.
90.20% of the companies in the same industry are more expensive than COMM, based on the Price/Forward Earnings ratio.
Compared to an average S&P500 Price/Forward Earnings ratio of 22.83, COMM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.37 | ||
| Fwd PE | 10.78 |
4.2 Price Multiples
80.39% of the companies in the same industry are more expensive than COMM, based on the Enterprise Value to EBITDA ratio.
COMM's Price/Free Cash Flow ratio is in line with the industry average.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 42.72 | ||
| EV/EBITDA | 11.1 |
4.3 Compensation for Growth
COMM's earnings are expected to grow with 21.28% in the coming years. This may justify a more expensive valuation.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.76%
EPS Next 3Y21.28%
5. Dividend
5.1 Amount
No dividends for COMM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
COMMSCOPE HOLDING CO INC
NASDAQ:COMM (12/20/2024, 8:03:35 PM)
After market: 5.5 -0.08 (-1.43%)5.58
-0.12 (-2.11%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners79.7%
Inst Owner Change-0.89%
Ins Owners3.42%
Ins Owner Change0%
Market Cap1.20B
Analysts50.67
Price Target3.77 (-32.44%)
Short Float %4.07%
Short Ratio2.01
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
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)1103.15%
Min EPS beat(2)-115.91%
Max EPS beat(2)2322.22%
EPS beat(4)2
Avg EPS beat(4)534.18%
Min EPS beat(4)-135.65%
Max EPS beat(4)2322.22%
EPS beat(8)3
Avg EPS beat(8)257.73%
EPS beat(12)7
Avg EPS beat(12)182.56%
EPS beat(16)9
Avg EPS beat(16)138.05%
Revenue beat(2)1
Avg Revenue beat(2)-7.37%
Min Revenue beat(2)-25.42%
Max Revenue beat(2)10.69%
Revenue beat(4)2
Avg Revenue beat(4)-7.45%
Min Revenue beat(4)-25.42%
Max Revenue beat(4)10.69%
Revenue beat(8)2
Avg Revenue beat(8)-7.35%
Revenue beat(12)6
Avg Revenue beat(12)-3.85%
Revenue beat(16)7
Avg Revenue beat(16)-3.56%
PT rev (1m)54.17%
PT rev (3m)54.17%
EPS NQ rev (1m)-77.55%
EPS NQ rev (3m)-78.66%
EPS NY rev (1m)-77.32%
EPS NY rev (3m)-82.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.53%
Revenue NY rev (1m)-1.89%
Revenue NY rev (3m)-12.04%
Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 29.37 | ||
| Fwd PE | 10.78 | ||
| P/S | 0.31 | ||
| P/FCF | 42.72 | ||
| P/OCF | 21.67 | ||
| P/B | N/A | ||
| P/tB | N/A | ||
| EV/EBITDA | 11.1 |
EPS(TTM)0.19
EY3.41%
EPS(NY)0.52
Fwd EY9.28%
FCF(TTM)0.13
FCFY2.34%
OCF(TTM)0.26
OCFY4.62%
SpS18.1
BVpS-9.78
TBVpS-29.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.64% | ||
| ROE | N/A | ||
| ROCE | 7.89% | ||
| ROIC | 6.23% | ||
| ROICexc | 6.64% | ||
| ROICexgc | 22.2% | ||
| OM | 12.84% | ||
| PM (TTM) | N/A | ||
| GM | 42.95% | ||
| FCFM | 0.72% |
ROA(3y)-10.53%
ROA(5y)-8.59%
ROE(3y)N/A
ROE(5y)N/A
ROIC(3y)3.68%
ROIC(5y)2.76%
ROICexc(3y)3.88%
ROICexc(5y)2.91%
ROICexgc(3y)13.53%
ROICexgc(5y)11.24%
ROCE(3y)4.66%
ROCE(5y)3.5%
ROICexcg growth 3Y21.46%
ROICexcg growth 5Y-11.7%
ROICexc growth 3Y42.2%
ROICexc growth 5Y-6.35%
OM growth 3Y40.94%
OM growth 5Y-5.11%
PM growth 3YN/A
PM growth 5YN/A
GM growth 3Y4.44%
GM growth 5Y0.75%
F-Score5
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 328.83 | ||
| Debt/EBITDA | 8.77 | ||
| Cap/Depr | 6.74% | ||
| Cap/Sales | 0.7% | ||
| Interest Coverage | 0.77 | ||
| Cash Conversion | 6.12% | ||
| Profit Quality | N/A | ||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z | -0.01 |
F-Score5
WACC6.71%
ROIC/WACC0.93
Cap/Depr(3y)13.59%
Cap/Depr(5y)13.8%
Cap/Sales(3y)1.18%
Cap/Sales(5y)1.25%
Profit Quality(3y)N/A
Profit Quality(5y)N/A
High Growth Momentum
Growth
EPS 1Y (TTM)-83.62%
EPS 3Y-24.99%
EPS 5Y-22.13%
EPS Q2Q%-138.46%
EPS Next Y-75.68%
EPS Next 2Y-10.76%
EPS Next 3Y21.28%
EPS Next 5YN/A
Revenue 1Y (TTM)-50.14%
Revenue growth 3Y-11.79%
Revenue growth 5Y4.85%
Sales Q2Q%-32.34%
Revenue Next Year-32.51%
Revenue Next 2Y-19.74%
Revenue Next 3Y-11.21%
Revenue Next 5YN/A
EBIT growth 1Y-9.47%
EBIT growth 3Y24.32%
EBIT growth 5Y-0.5%
EBIT Next Year23.75%
EBIT Next 3Y11.63%
EBIT Next 5YN/A
FCF growth 1Y108.73%
FCF growth 3Y-9.1%
FCF growth 5Y-10.49%
OCF growth 1Y126.59%
OCF growth 3Y-12.73%
OCF growth 5Y-10.12%