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Fundamental analysis: Comtech Telecommunications Corp. (CMTL)

Awarener score: 4.2

Conclusion

Note: All scores range from 1 (worst) to 10 (best). Conclusions are updated daily with closing stock prices and new reported quarterly financial statements.

Revenue score: 4.5

• Business has been shrinking at a very fast pace. It's been substantially worse when measured against peer companies.
• Comtech Telecommunications Corp. business trend stability is very good. The higher the stability, the lower the risk. It looks well ranked against rivals.

Margins score: 5.3

• CMTL profit margins -on goods and services sold- are usually sufficient. They stand slightly worse than rival companies.
• Business profit on sales tends to be meagre. It's almost average when measured against competitors.
• Profits on sales made -available to repay debt and purchase properties- are usually huge. They remain impressive in relation to peers.
• Earnings -before income taxes and interests on loans taken- tend to be meagre in relation to total revenues. They're still somewhat worse than similar companies.
• Profits -before income taxes- are usually meagre considering total sales, and remain almost average when measured against rivals.
• Total net profit tends to be meagre when confronted to sales. Company stands almost average when measured against comparable firms.

Growth score: 1.1

• Comtech Telecommunications Corp. profit -on goods and services sold- has been shrinking. It's been in a very weak position compared to competitors.
• In recent years, the firm hasn't always been able to profit from operations, which has been bottom tier against comparable firms.
• In past years, the company couldn't always turn a profit -available to repay debt and purchase properties-, which compares last-in-rank when measured against peer enterprises.
• In the previous years, the firm couldn't always make a profit -before income taxes and interests on loans taken-. It turns to be a disappointment compared to similar stocks.
• In past years, at least once the company lost money -before income taxes-. It was bottom tier against rivals.
• In the previous years, the firm had at least a total net loss, and last-in-rank when measured against peer companies.
• The company lost money at least once in the past years. It's been a disappointment compared to industry peers.

Miscellaneous score: 3.0

• CMTL had still to pay income taxes, even though in recent past years mostly lost money. It's been bottom tier against peers.
• Research and development expenses consume a low portion of revenues. It's encouraging in relation to competitors.
• Business has seen substantial shrinking, despite research and development efforts. It stands a disappointment compared to rival companies.

Profitability score: 4.5

• Comtech Telecommunications Corp. usually gets hardly sufficient returns on the resources it controls. It proves almost average when measured against peer firms.
• The company normally gets low proceeds -on the resources directly invested in the business-. They remain lacking compared to similar companies.
• Profitability -in relation to owned resources- is usually lacking. It ranks almost average when measured against competitors.
• In the past, got barely sufficient returns -on the tangible resources it controls-. This metric is usually related to the industry in which operates and combines profitability versus reinvestment needs. It's almost average when measured against comparable enterprises.

Usage of Funds score: 4.6

• CMTL usually uses almost all genuine funds generated to buy or replace property, plant, or equipment. The need for reinvestments is huge. It stands almost average when measured against rival firms.
• The company is usually replacing part of the property, plant, and equipment that gets old, keeping some funds for something else. It can't keep forever, which is weak when measured against industry peers.
• In the past twelve months it paid outstanding dividends, considering the current stock price. It came top-notch against competitors.
• Has greatly increased dividend payments in the past years. Business prospects are most likely good. The company has behaved excellent in relation to similar firms.
• The company generates very few genuine funds. Dividend payments are usually on borrowed money, which isn't sustainable in the long run. Unless business prospects improve greatly, future payments could be at risk. Sustainability looks bottom tier against comparable companies.
• The company usually enlarges quite a bit the pool of investors, resulting in more mouths feeding on the pie of profits. It remains close to average when compared to peer enterprises.
• Repurchase effectiveness metric is very complex. Run again in analytical mode if you're interested in a technical explanation. It stands in a very weak position compared to rivals.
• We do not have sufficient data to comment on buybacks and their sustainability. It still looks dubious against competitors.

Balance Sheet score: 4.5

• Comtech Telecommunications Corp. intangible assets (like brands and goodwill) represent a very large portion of resources controlled, according to accounting books. There could be major difficulties in liquidating them if the company ever gets in financial distress. It happens to be substantially worse when measured against peer companies.
• The company has more short-term resources than short-term obligations. Liquidity concerns shouldn't be an issue. It turns to be in a weak position compared to similar firms.
• Roughly a quarter of resources controlled were provided for with financial debt. Creditors have some claims on the company. It remains somewhat worse than rival firms.
• Most controlled resources might be only slowly turned into cash and equivalents, which is risky. It looks last-in-rank when measured against rivals.
• For every dollar of short-term obligations, the company has few cents of cash and short-term receivables. It's a disappointment compared to peer firms.
• For every dollar of short-term obligations, the company has very few cents of cash and equivalents, which is worse than most similar enterprises.
• Usually, sales are on cash. It still ranks top tier when measured against peers.
• Normally has approximately four months of sales worth in inventory. It comes up as close to average when compared to competitors.
• On average, it takes higher than four months from the purchase to charging customers. It happens to be better than most peers.
• On average pays suppliers after a month and a half from the purchase. It ranks weak when measured against industry peers.
• The company pays its suppliers roughly two months before charging its customers, so there's some money invested in working capital. It's a slight improvement compared to similar companies.
• Has usually been losing money on the business, so net interest expenses must be paid by increasing borrowings, which is unsustainable in the long run. The situation is very risky for both creditors and shareholders, profitability must increase. It stands bottom tier against rival firms.
• Business earnings have usually been great when measured against loans taken. Debt might be repaid almost as soon as desired. It ranks top tier when measured against comparable enterprises.
• Revenues are reasonable in relation to property, plant, and equipment required to operate. This metric is likely dependent on the industry the company operates in. The more property, plant, and equipment used, the more the company must reinvest to fight obsolescence, which usually means less available funds for the shareholders in the long run. It looks in a weak position compared to similar firms.
• Resource exploitation is reasonable when yearly sales are considered. This metric is normally tied to the industry where the firm belongs. It's still mediocre against peer companies.

Valuation score: 3.8

• Comtech Telecommunications Corp. reported losses, so valuating it in relation to earnings is meaningless. It happens to be last-in-rank when measured against competitors.
• Price-to-Tangible-Book-Value is a fairly complex metric. Run again in analytical mode if you're interested in a technical explanation. It remains a disappointment compared to peers.
• In the past twelve months, the company consumed lots of funds. Either it reinvested heavily in the business or genuine fund generation might be struggling, which stands bottom tier against similar companies.
• The company usually consumes plenty more funds than can genuinely generate. Business needs are meet by borrowing money or consuming preexistent cash, which can only keep up until a certain limit. Unless the company is driving outstanding business growth, genuine profitability may be brought into question. It's still last-in-rank when measured against industry firms.
• In the past twelve months, the company has significantly rewarded investors, considering both dividends and share on the pie of earnings. It came up impressive in relation to peer ventures.
• The company is largely indebted. It should focus on loan repayment before rewarding stockholders. It looks worse than most similar enterprises.
• Considering the past twelve months, traditional Price-to-Earnings relation has been negative, as the company lost money. It ranks last-in-rank when measured against peer companies.
• Comparing the current stock price with the past twelve-months revenues gives a not far from one-to-one relationship. This is an important metric to check its evolution through time, and to compare to industry peers. It looks a slight improvement compared to rival firms.
• The stock price is at or below the accounting book value. Unless profitability is really low, the stock may be selling a t a discount. Pay attention to the other key indicators for hints. The company remains better than most peer firms.
• In the past twelve months, the operating business lost some money. It happens to be below average when measured against industry peers.
• In an alternate metric of bang for the buck, the company has usually shown a somewhat low earnings power ability when measured against the current stock price and financial position. It's still lacking compared to peer companies.

Total score: 3.9

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Awarener score: 4.2

Conclusion

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