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COMMSCOPE HOLDING CO INC (COMM) Stock Fundamental Analysis

NASDAQ:COMM - Nasdaq - US20337X1090 - Common Stock

5.59  +0.23 (+4.29%)

Premarket: 5.63 +0.04 (+0.72%)

Fundamental Rating

3

Overall COMM gets a fundamental rating of 3 out of 10. We evaluated COMM 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 is valued correctly, but it does not seem to be growing.


Dividend Valuation Growth Profitability Health

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4

1. Profitability

1.1 Basic Checks

In the past year COMM was profitable.
In the past year COMM had a positive cash flow from operations.
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.
COMM Yearly Net Income VS EBIT VS OCF VS FCFCOMM Yearly Net Income VS EBIT VS OCF VS FCFYearly Net Income VS EBIT VS OCF VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 500M -500M -1B -1.5B

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 62.75% of its industry peers.
Looking at the Return On Invested Capital, with a value of 6.23%, COMM belongs to the top of the industry, outperforming 80.39% of the companies in the same industry.
The Average Return On Invested Capital over the past 3 years for COMM is significantly below the industry average of 11.02%.
The last Return On Invested Capital (6.23%) for COMM is above the 3 year average (3.68%), which is a sign of increasing profitability.
Industry RankSector 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%
COMM Yearly ROA, ROE, ROICCOMM Yearly ROA, ROE, ROICYearly ROA, ROE, ROIC 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 100 200 300

1.3 Margins

COMM's Operating Margin of 12.84% is amongst the best of the industry. COMM outperforms 88.24% of its industry peers.
In the last couple of years the Operating Margin of COMM has declined.
COMM has a Gross Margin of 42.95%. This is comparable to the rest of the industry: COMM outperforms 56.86% of its industry peers.
In the last couple of years the Gross Margin of COMM has remained more or less at the same level.
Industry RankSector 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%
COMM Yearly Profit, Operating, Gross MarginsCOMM Yearly Profit, Operating, Gross MarginsYearly Profit, Operating, Gross Margins 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 20 -20 40

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1

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.
Compared to 1 year ago, COMM has a worse debt to assets ratio.
COMM Yearly Shares OutstandingCOMM Yearly Shares OutstandingYearly Shares Outstanding 2015 2016 2017 2018 2019 2020 2021 2022 2023 50M 100M 150M 200M
COMM Yearly Total Debt VS Total AssetsCOMM Yearly Total Debt VS Total AssetsYearly Total Debt VS Total Assets 2015 2016 2017 2018 2019 2020 2021 2022 2023 5B 10B

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.
COMM has a worse Altman-Z score (-0.01) than 66.67% of its industry peers.
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 (328.83) which is in line with its industry peers.
Industry RankSector Rank
Debt/Equity N/A
Debt/FCF 328.83
Altman-Z -0.01
ROIC/WACC0.93
WACC6.72%
COMM Yearly LT Debt VS Equity VS FCFCOMM Yearly LT Debt VS Equity VS FCFYearly LT Debt VS Equity VS FCF 2015 2016 2017 2018 2019 2020 2021 2022 2023 0 2B 4B 6B 8B

2.3 Liquidity

A Current Ratio of 1.40 indicates that COMM should not have too much problems paying its short term obligations.
With a Current ratio value of 1.40, COMM is not doing good in the industry: 78.43% of the companies in the same industry are doing better.
A Quick Ratio of 1.05 indicates that COMM should not have too much problems paying its short term obligations.
Looking at the Quick ratio, with a value of 1.05, COMM is doing worse than 74.51% of the companies in the same industry.
Industry RankSector Rank
Current Ratio 1.4
Quick Ratio 1.05
COMM Yearly Current Assets VS Current LiabilitesCOMM Yearly Current Assets VS Current LiabilitesYearly Current Assets VS Current Liabilites 2015 2016 2017 2018 2019 2020 2021 2022 2023 1B 2B 3B

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3

3. Growth

3.1 Past

The earnings per share for COMM have decreased strongly by -83.62% in the last year.
COMM shows a very negative growth in Earnings Per Share. Measured over the last years, the EPS has been decreasing by -22.13% yearly.
Looking at the last year, COMM shows a very negative growth in Revenue. The Revenue has decreased by -50.14% in the last year.
The Revenue has been growing slightly by 4.85% on average over the past years.
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

COMM is expected to show a strong growth in Earnings Per Share. In the coming years, the EPS will grow by 21.28% yearly.
The Revenue is expected to decrease by -11.48% on average over the next years. This is quite bad
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-19.7%
Revenue Next 3Y-11.48%
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.
The Revenue growth rate is decreasing: in the next years the growth will be less than in the last years.
COMM Yearly Revenue VS EstimatesCOMM Yearly Revenue VS EstimatesYearly Revenue VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 2B 4B 6B 8B
COMM Yearly EPS VS EstimatesCOMM Yearly EPS VS EstimatesYearly EPS VS Estimates 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023 2024 2025 2026 0.5 1 1.5 2 2.5

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5

4. Valuation

4.1 Price/Earnings Ratio

A Price/Earnings ratio of 29.42 indicates a quite expensive valuation of COMM.
Based on the Price/Earnings ratio, COMM is valued a bit cheaper than the industry average as 68.63% of the companies are valued more expensively.
COMM's Price/Earnings ratio indicates a similar valuation than the S&P500 average which is at 28.29.
A Price/Forward Earnings ratio of 10.80 indicates a reasonable valuation of COMM.
Compared to the rest of the industry, the Price/Forward Earnings ratio of COMM indicates a rather cheap valuation: COMM is cheaper than 90.20% of the companies listed in the same industry.
COMM is valuated cheaply when we compare the Price/Forward Earnings ratio to 24.44, which is the current average of the S&P500 Index.
Industry RankSector Rank
PE 29.42
Fwd PE 10.8
COMM Price Earnings VS Forward Price EarningsCOMM Price Earnings VS Forward Price Earnings ChartPrice Earnings - Forward Price Earnings PE FPE 10 20 30

4.2 Price Multiples

COMM's Enterprise Value to EBITDA ratio is a bit cheaper when compared to the industry. COMM is cheaper than 78.43% of the companies in the same industry.
COMM's Price/Free Cash Flow is on the same level as the industry average.
Industry RankSector Rank
P/FCF 42.79
EV/EBITDA 11.11
COMM Per share dataCOMM EPS, Sales, OCF, FCF, BookValue per sharePer Share Data Per Share 0 10 -10 -20

4.3 Compensation for Growth

A more expensive valuation may be justified as COMM's earnings are expected to grow with 21.28% in the coming years.
PEG (NY)N/A
PEG (5Y)N/A
EPS Next 2Y-10.76%
EPS Next 3Y21.28%

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0

5. Dividend

5.1 Amount

No dividends for COMM!.
Industry RankSector Rank
Dividend Yield N/A

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COMMSCOPE HOLDING CO INC

NASDAQ:COMM (1/21/2025, 8:00:00 PM)

Premarket: 5.63 +0.04 (+0.72%)

5.59

+0.23 (+4.29%)

Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)11-07 2024-11-07/bmo
Earnings (Next)N/A N/A
Inst Owners79.7%
Inst Owner Change-0.36%
Ins Owners3.42%
Ins Owner Change0%
Market Cap1.21B
Analysts49.33
Price Target4.11 (-26.48%)
Short Float %4.59%
Short Ratio2.11
Dividend
Industry RankSector 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)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)9.01%
PT rev (3m)68.05%
EPS NQ rev (1m)0%
EPS NQ rev (3m)-78.66%
EPS NY rev (1m)0%
EPS NY rev (3m)-82.15%
Revenue NQ rev (1m)0%
Revenue NQ rev (3m)-15.53%
Revenue NY rev (1m)0%
Revenue NY rev (3m)-12.04%
Valuation
Industry RankSector Rank
PE 29.42
Fwd PE 10.8
P/S 0.31
P/FCF 42.79
P/OCF 21.7
P/B N/A
P/tB N/A
EV/EBITDA 11.11
EPS(TTM)0.19
EY3.4%
EPS(NY)0.52
Fwd EY9.26%
FCF(TTM)0.13
FCFY2.34%
OCF(TTM)0.26
OCFY4.61%
SpS18.1
BVpS-9.78
TBVpS-29.16
PEG (NY)N/A
PEG (5Y)N/A
Profitability
Industry RankSector 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 RankSector 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
WACC6.72%
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-19.7%
Revenue Next 3Y-11.48%
Revenue Next 5YN/A
EBIT growth 1Y-9.47%
EBIT growth 3Y24.32%
EBIT growth 5Y-0.5%
EBIT Next Year24.12%
EBIT Next 3Y13.41%
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%