COMMSCOPE HOLDING CO INC (COMM)
US20337X1090 - Common Stock
We assign a fundamental rating of 3 out of 10 to COMM. COMM was compared to 51 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 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.
In the past year COMM had a positive cash flow from operations.
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
Looking at the Return On Assets, with a value of -10.64%, COMM is doing worse than 62.75% of the companies in the same industry.
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.
Measured over the past 3 years, the Average Return On Invested Capital for COMM is significantly below the industry average of 10.16%.
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 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.
COMM's Operating Margin has declined in the last couple of years.
The Gross Margin of COMM (42.95%) is comparable to the rest of the industry.
In the last couple of years the Gross Margin of COMM has remained more or less at the same level.
| 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
COMM has a Return on Invested Capital (ROIC), which is below the Cost of Capital (WACC), which means it is destroying value.
Compared to 1 year ago, COMM has more shares outstanding
COMM has more shares outstanding than it did 5 years ago.
COMM has a worse debt/assets ratio than last year.
2.2 Solvency
COMM has an Altman-Z score of -0.03. This is a bad value and indicates that COMM is not financially healthy and even has some risk of bankruptcy.
Looking at the Altman-Z score, with a value of -0.03, COMM is doing worse than 64.71% of the companies in the same industry.
COMM has a debt to FCF ratio of 328.83. This is a negative value and a sign of low solvency as COMM would need 328.83 years to pay back of all of its debts.
COMM has a Debt to FCF ratio (328.83) which is comparable to the rest of the industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | 328.83 | ||
| Altman-Z | -0.03 |
ROIC/WACC0.96
WACC6.46%
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's Current ratio of 1.40 is on the low side compared to the rest of the industry. COMM is outperformed by 78.43% of its industry peers.
COMM has a Quick Ratio of 1.05. 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 Quick ratio of 1.05. This is in the lower half of the industry: COMM underperforms 76.47% of its industry peers.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.05 |
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.
The Revenue for COMM has decreased by -50.14% in the past year. This is quite bad
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
Based on estimates for the next years, COMM will show a very strong growth in Earnings Per Share. The EPS will grow by 23.19% on average per year.
Based on estimates for the next years, COMM will show a decrease in Revenue. The Revenue will decrease by -8.24% on average per year.
EPS Next Y7.24%
EPS Next 2Y29.38%
EPS Next 3Y23.19%
EPS Next 5YN/A
Revenue Next Year-31.22%
Revenue Next 2Y-15.85%
Revenue Next 3Y-8.24%
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 decreasing.
4. Valuation
4.1 Price/Earnings Ratio
The Price/Earnings ratio is 23.05, which indicates a rather expensive current valuation of COMM.
Based on the Price/Earnings ratio, COMM is valued a bit cheaper than 72.55% of the companies in the same industry.
COMM's Price/Earnings ratio indicates a valuation a bit cheaper than the S&P500 average which is at 28.96.
A Price/Forward Earnings ratio of 4.03 indicates a rather cheap valuation of COMM.
98.04% of the companies in the same industry are more expensive than COMM, based on the Price/Forward Earnings ratio.
When comparing the Price/Forward Earnings ratio of COMM to the average of the S&P500 Index (23.82), we can say COMM is valued rather cheaply.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.05 | ||
| Fwd PE | 4.03 |
4.2 Price Multiples
COMM's Enterprise Value to EBITDA ratio is rather cheap when compared to the industry. COMM is cheaper than 80.39% of the companies in the same industry.
Based on the Price/Free Cash Flow ratio, COMM is valued a bit cheaper than 68.63% of the companies in the same industry.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| P/FCF | 33.53 | ||
| EV/EBITDA | 10.82 |
4.3 Compensation for Growth
The high PEG Ratio(NY), which compensates the Price/Earnings for growth, indicates COMM does not grow enough to justify the current Price/Earnings ratio.
COMM's earnings are expected to grow with 23.19% in the coming years. This may justify a more expensive valuation.
PEG (NY)3.18
PEG (5Y)N/A
EPS Next 2Y29.38%
EPS Next 3Y23.19%
5. Dividend
5.1 Amount
No dividends for COMM!.
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
COMMSCOPE HOLDING CO INC
NASDAQ:COMM (11/21/2024, 8:20:36 PM)
After market: 4.38 0 (0%)4.38
+0.04 (+0.92%)
Chartmill FA Rating
GICS SectorInformation Technology
GICS IndustryGroupTechnology Hardware & Equipment
GICS IndustryCommunications Equipment
Earnings (Last)
Earnings (Next)
Inst Owners
Inst Owner Change
Ins Owners
Ins Owner Change
Market Cap945.55M
Analysts
Price Target
Dividend
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Dividend Yield | N/A |
Dividend Growth(5Y)
DP
Div Incr Years
Div Non Decr Years
Ex-Date
Surprises & Revisions
EPS beat(2)
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EPS beat(16)
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Valuation
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| PE | 23.05 | ||
| Fwd PE | 4.03 | ||
| P/S | |||
| P/FCF | |||
| P/OCF | |||
| P/B | |||
| P/tB | |||
| EV/EBITDA |
EPS(TTM)
EY
EPS(NY)
Fwd EY
FCF(TTM)
FCFY
OCF(TTM)
OCFY
SpS
BVpS
TBVpS
PEG (NY)3.18
PEG (5Y)N/A
Profitability
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| ROA | -10.64% | ||
| ROE | N/A | ||
| ROCE | |||
| ROIC | |||
| ROICexc | |||
| ROICexgc | |||
| OM | 12.84% | ||
| PM (TTM) | N/A | ||
| GM | 42.95% | ||
| FCFM |
ROA(3y)
ROA(5y)
ROE(3y)
ROE(5y)
ROIC(3y)
ROIC(5y)
ROICexc(3y)
ROICexc(5y)
ROICexgc(3y)
ROICexgc(5y)
ROCE(3y)
ROCE(5y)
ROICexcg growth 3Y
ROICexcg growth 5Y
ROICexc growth 3Y
ROICexc growth 5Y
OM growth 3Y
OM growth 5Y
PM growth 3Y
PM growth 5Y
GM growth 3Y
GM growth 5Y
F-Score
Asset Turnover0.44
Health
| Industry Rank | Sector Rank | ||
|---|---|---|---|
| Debt/Equity | N/A | ||
| Debt/FCF | |||
| Debt/EBITDA | |||
| Cap/Depr | |||
| Cap/Sales | |||
| Interest Coverage | |||
| Cash Conversion | |||
| Profit Quality | |||
| Current Ratio | 1.4 | ||
| Quick Ratio | 1.05 | ||
| Altman-Z |
F-Score
WACC
ROIC/WACC
Cap/Depr(3y)
Cap/Depr(5y)
Cap/Sales(3y)
Cap/Sales(5y)
Profit Quality(3y)
Profit Quality(5y)
High Growth Momentum
Growth
EPS 1Y (TTM)-83.62%
EPS 3Y-24.99%
EPS 5Y
EPS Q2Q%
EPS Next Y7.24%
EPS Next 2Y
EPS Next 3Y
EPS Next 5Y
Revenue 1Y (TTM)-50.14%
Revenue growth 3Y-11.79%
Revenue growth 5Y
Sales Q2Q%
Revenue Next Year
Revenue Next 2Y
Revenue Next 3Y
Revenue Next 5Y
EBIT growth 1Y
EBIT growth 3Y
EBIT growth 5Y
EBIT Next Year
EBIT Next 3Y
EBIT Next 5Y
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FCF growth 3Y
FCF growth 5Y
OCF growth 1Y
OCF growth 3Y
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