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Comtech Telecommunications

Nasdaq:CMTL
Snowflake Description

Excellent balance sheet with moderate growth potential.

The Snowflake is generated from 30 checks in 5 different areas, read more below.
CMTL
Nasdaq
$857M
Market Cap
  1. Home
  2. US
  3. Tech
Company description

Comtech Telecommunications Corp. designs, develops, produces, and markets products, systems, and services for communications solutions in the United States and internationally. The last earnings update was 47 days ago. More info.


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CMTL Share Price and Events
7 Day Returns
-0.4%
NasdaqGS:CMTL
4.7%
US Communications
0.9%
US Market
1 Year Returns
25.3%
NasdaqGS:CMTL
1.1%
US Communications
10.5%
US Market
CMTL Shareholder Return
  7 Day 30 Day 90 Day 1 Year 3 Year 5 Year
Comtech Telecommunications (CMTL) -0.4% 13.2% 25.6% 25.3% 224.7% -10%
US Communications 4.7% 5.9% -3.8% 1.1% 42.8% 65.8%
US Market 0.9% 5.2% 5.4% 10.5% 40.1% 45%
1 Year Return vs Industry and Market
  • CMTL outperformed the Communications industry which returned 1.1% over the past year.
  • CMTL outperformed the Market in United States of America which returned 10.5% over the past year.
Price Volatility
CMTL
Industry
5yr Volatility vs Market

Value

 Is Comtech Telecommunications undervalued based on future cash flows and its price relative to the stock market?

Value is all about what a company is worth versus what price it is available for. If you went into a grocery store and all the bananas were on sale at half price, they could be considered undervalued.
INTRINSIC VALUE BASED ON FUTURE CASH FLOWS
Here we compare the current share price of Comtech Telecommunications to its discounted cash flow analysis.value.

The discounted cash flow value is simply looking at what the company is worth today, based on estimates of how much money it is expected to make in the future.
Raw Data

Below are the data sources, inputs and calculation used to determine the intrinsic value for Comtech Telecommunications.

NasdaqGS:CMTL Discounted Cash Flow Data Sources
Data Point Source Value
Valuation Model 2 Stage Free Cash Flow to Equity
Levered Free Cash Flow Average of 4 Analyst Estimates (S&P Global) See below
Discount Rate (Cost of Equity) See below 9.9%
Perpetual Growth Rate 10-Year US Government Bond Rate 2.7%

An important part of a discounted cash flow is the discount rate, below we explain how it has been calculated.

Calculation of Discount Rate/ Cost of Equity for NasdaqGS:CMTL
Data Point Calculation/ Source Result
Risk-Free Rate 10-Year US Govt Bond Rate 2.7%
Equity Risk Premium S&P Global 6%
Communications Unlevered Beta Simply Wall St/ S&P Global 1.13
Re-levered Beta = Unlevered beta (1 + (1- tax rate) (Debt/Equity))
= 1.131 (1 + (1- 21%) (19.33%))
1.204
Levered Beta Levered Beta limited to 0.8 to 2.0
(practical range for a stable firm)
1.2
Discount Rate/ Cost of Equity = Cost of Equity = Risk Free Rate + (Levered Beta * Equity Risk Premium)
= 2.73% + (1.204 * 5.96%)
9.9%

Discounted Cash Flow Calculation for NasdaqGS:CMTL using 2 Stage Free Cash Flow to Equity Model

The calculations below outline how an intrinsic value for Comtech Telecommunications is arrived at by discounting future cash flows to their present value using the 2 stage method. We try to start with analysts estimates of free cash flow, however if these are not available we use the most recent financial results. In the 1st stage we continue to grow the free cash flow over a 10 year period, with the growth rate trending towards the perpetual growth rate used in the 2nd stage. The 2nd stage assumes the company grows at a stable rate into perpetuity.

Note: Free cash flow to equity valuations ignore the company's cash or debt.

NasdaqGS:CMTL DCF 1st Stage: Next 10 year cash flow forecast
Levered FCF (USD, Millions) Source Present Value
Discounted (@ 9.9%)
2020 44.73 Analyst x2 40.70
2021 69.48 Analyst x2 57.52
2022 76.20 Est @ 9.68% 57.40
2023 81.99 Est @ 7.6% 56.20
2024 87.02 Est @ 6.14% 54.27
2025 91.47 Est @ 5.11% 51.91
2026 95.50 Est @ 4.4% 49.31
2027 99.22 Est @ 3.9% 46.61
2028 102.74 Est @ 3.55% 43.92
2029 106.13 Est @ 3.3% 41.28
Present value of next 10 years cash flows $499.00
NasdaqGS:CMTL DCF 2nd Stage: Terminal Value
Calculation Result
Terminal Value = FCF2029 × (1 + g) ÷ (Discount Rate – g)
= $106.13 × (1 + 2.73%) ÷ (9.9% – 2.73%)
$1,519.87
Present Value of Terminal Value = Terminal Value ÷ (1 + r)10
= $1,519.87 ÷ (1 + 9.9%)10
$591.13
NasdaqGS:CMTL Total Equity Value
Calculation Result
Total Equity Value = Present value of next 10 years cash flows + Terminal Value
= $499.00 + $591.13
$1,090.13
Equity Value per Share
(USD)
= Total value / Shares Outstanding
= $1,090.13 / 24.27
$44.92
NasdaqGS:CMTL Discount to Share Price
Calculation Result
Value per share (USD) From above. $44.92
Current discount Discount to share price of $35.33
= -1 x ($35.33 - $44.92) / $44.92
21.4%

Learn more about our DCF calculations in Simply Wall St’s analysis model .

Current Discount
Amount off the current price Comtech Telecommunications is available for.
Intrinsic value
21%
Share price is $35.33 vs Future cash flow value of $44.92
Current Discount Checks
For Comtech Telecommunications to be considered undervalued it must be available for at least 20% below the current price. Less than 40% is even better.
  • Comtech Telecommunications's share price is below the future cash flow value, and at a moderate discount (> 20%).
  • Comtech Telecommunications's share price is below the future cash flow value, but not at a substantial discount (< 40%).
PRICE RELATIVE TO MARKET
We can also value a company based on what the stock market is willing to pay for it. This is similar to the price of fruit (e.g. Mangoes or Avocados) increasing when they are out of season, or how much your home is worth.

The amount the stock market is willing to pay for Comtech Telecommunications's earnings, growth and assets is considered below, and whether this is a fair price.
Price based on past earnings
Are Comtech Telecommunications's earnings available for a low price, and how does this compare to other companies in the same industry?
Raw Data
NasdaqGS:CMTL PE (Price to Earnings) Ratio Data Sources
Data Point Source Value
Earnings Per Share * Company Filings (2019-07-31) in USD $1.04
NasdaqGS:CMTL Share Price ** NasdaqGS (2019-11-08) in USD $35.33
United States of America Communications Industry PE Ratio Median Figure of 30 Publicly-Listed Communications Companies 24.34x
United States of America Market PE Ratio Median Figure of 2,915 Publicly-Listed Companies 18.21x

* Trailing twelve months (TTM) annual GAAP earnings per share excluding extraordinary items.

** Primary Listing of Comtech Telecommunications.

NasdaqGS:CMTL PE (Price to Earnings) Ratio Calculation
Calculation Outcome
PE Ratio

= NasdaqGS:CMTL Share Price ÷ EPS (both in USD)

= 35.33 ÷ 1.04

34.04x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Comtech Telecommunications is overvalued based on earnings compared to the US Communications industry average.
  • Comtech Telecommunications is overvalued based on earnings compared to the United States of America market.
Price based on expected Growth
Does Comtech Telecommunications's expected growth come at a high price?
Raw Data
NasdaqGS:CMTL PEG (Price to Earnings to Growth) Ratio Data Sources
Data Point Source Value
PE Ratio See PE Ratio Section 34.04x
Net Income Annual Growth Rate See Future Growth Section.
Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts
22.1%per year
United States of America Communications Industry PEG Ratio Median Figure of 19 Publicly-Listed Communications Companies 1.44x
United States of America Market PEG Ratio Median Figure of 2,014 Publicly-Listed Companies 1.47x

*Line of best fit is calculated by linear regression .

NasdaqGS:CMTL PEG (Price to Earnings to Growth) Ratio Calculation
Calculation Outcome
PEG Ratio

= PE Ratio ÷ Net Income Annual Growth Rate

= 34.04x ÷ 22.1%

1.54x

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Comtech Telecommunications is poor value based on expected growth next year.
Price based on value of assets
What value do investors place on Comtech Telecommunications's assets?
Raw Data
NasdaqGS:CMTL PB (Price to Book) Ratio Data Sources
Data Point Source Value
Book Value per Share Company Filings (2019-07-31) in USD $22.07
NasdaqGS:CMTL Share Price * NasdaqGS (2019-11-08) in USD $35.33
United States of America Communications Industry PB Ratio Median Figure of 61 Publicly-Listed Communications Companies 1.85x
United States of America Market PB Ratio Median Figure of 5,041 Publicly-Listed Companies 1.74x
NasdaqGS:CMTL PB (Price to Book) Ratio Calculation
Calculation Outcome
PB Ratio

= NasdaqGS:CMTL Share Price ÷ Book Value per Share (both in USD)

= 35.33 ÷ 22.07

1.6x

* Primary Listing of Comtech Telecommunications.

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Comtech Telecommunications is good value based on assets compared to the US Communications industry average.
X
Value checks
We assess Comtech Telecommunications's value by looking at:
  1. Is the discounted cash flow value less than 20%, or 40% of the share price? (2 checks) ( Click here or on bar chart for details of DCF calculation. )
  2. Is the PE ratio less than the market average, and/ or less than the Communications industry average (and greater than 0)? (2 checks)
  3. Is the PEG ratio within a reasonable range (0 to 1)? (1 check)
  4. Is the PB ratio less than the Communications industry average (and greater than 0)? (1 check)
  5. Comtech Telecommunications has a total score of 2/6, see the detailed checks below.

    Note: We use GAAP Earnings per Share in all our calculations including PE and PEG Ratio.

    Full details on the Value part of the Simply Wall St company analysis model.

Future Performance

 How is Comtech Telecommunications expected to perform in the next 1 to 3 years based on estimates from 4 analysts?

The future performance of a company is measured in the same way as past performance, by looking at estimated growth and how much profit it is expected to make.

Future estimates come from professional analysts. Just like forecasting the weather, they don’t always get it right!
Annual Growth Rate
22.1%
Expected annual growth in earnings.
Earnings growth vs Low Risk Savings
Is Comtech Telecommunications expected to grow at an attractive rate?
  • Comtech Telecommunications's earnings growth is expected to exceed the low risk savings rate of 2.7%.
Growth vs Market Checks
  • Comtech Telecommunications's earnings growth is expected to exceed the United States of America market average.
  • Comtech Telecommunications's revenue growth is positive but not above the United States of America market average.
Annual Growth Rates Comparison
Raw Data
NasdaqGS:CMTL Future Growth Rates Data Sources
Data Point Source Value (per year)
NasdaqGS:CMTL Future Earnings Growth Rate Line of Best Fit* through Consensus Estimate Earnings of 4 Analysts 22.1%
NasdaqGS:CMTL Future Revenue Growth Rate Line of Best Fit* through Consensus Estimate Revenue of 4 Analysts 6%
United States of America Communications Industry Earnings Growth Rate Market Cap Weighted Average 12%
United States of America Communications Industry Revenue Growth Rate Market Cap Weighted Average 3.8%
United States of America Market Earnings Growth Rate Market Cap Weighted Average 14.2%
United States of America Market Revenue Growth Rate Market Cap Weighted Average 7.2%

*Line of best fit is calculated by linear regression .

Industry and Market average data is calculated daily.

Learn more about our growth rate calculations in Simply Wall St’s analysis model.

Analysts growth expectations
Raw Data
NasdaqGS:CMTL Analysts Growth Expectations Data Sources
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
All numbers in USD Millions and using Trailing twelve months (TTM) annual period rather than quarterly.
NasdaqGS:CMTL Future Estimates Data
Date (Data in USD Millions) Revenue Cash Flow Net Income * Avg. No. Analysts
2022-07-31
2021-07-31 757 80 40 3
2020-07-31 719 56 34 4
2019-11-10
NasdaqGS:CMTL Past Financials Data
Date (Data in USD Millions) Revenue Cash Flow Net Income *
2019-07-31 672 68 25
2019-04-30 663 74 26
2019-01-31 640 54 27
2018-10-31 610 30 35
2018-07-31 571 50 30
2018-04-30 551 54 30
2018-01-31 531 50 26
2017-10-31 536 66 17
2017-07-31 550 67 16
2017-04-30 555 47 11
2017-01-31 551 17 -8
2016-10-31 483 18 -12

*GAAP earnings excluding extraordinary items.

Super high growth metrics
High Growth Checks
  • Comtech Telecommunications's earnings are expected to grow significantly at over 20% yearly.
  • Comtech Telecommunications's revenue is expected to grow by 6% yearly, however this is not considered high growth (20% yearly).
Past and Future Earnings per Share
The accuracy of the analysts who estimate the future performance data can be gauged below. We look back 3 years and see if they were any good at predicting what actually occurred. We also show the highest and lowest estimates looking forward to see if there is a wide range.
Raw Data
NasdaqGS:CMTL Past and Future Earnings per Share
Data Point Source Value
Past Financials Company Filings (3 months ago) See Below
Future Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below

All data from Comtech Telecommunications Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CMTL Future Estimates Data
Date (Data in USD Millions) EPS * EPS High Estimate EPS Low Estimate Avg. No. Analysts
2022-07-31 1.72 1.72 1.72 1.00
2021-07-31 1.54 1.61 1.48 3.00
2020-07-31 1.36 1.38 1.32 4.00
2019-11-10
NasdaqGS:CMTL Past Financials Data
Date (Data in USD Millions) EPS *
2019-07-31 1.04
2019-04-30 1.10
2019-01-31 1.13
2018-10-31 1.46
2018-07-31 1.25
2018-04-30 1.25
2018-01-31 1.09
2017-10-31 0.71
2017-07-31 0.68
2017-04-30 0.50
2017-01-31 -0.37
2016-10-31 -0.62

*GAAP earnings excluding extraordinary items.

Performance in 3 years
In the same way as past performance we look at the future estimated return (profit) compared to the available funds. We do this looking forward 3 years.
  • Unable to establish if Comtech Telecommunications will efficiently use shareholders’ funds in the future without estimates of Return on Equity.
X
Future performance checks
We assess Comtech Telecommunications's future performance by looking at:
  1. Is the annual earnings growth rate expected to beat the low risk savings rate, plus a premium to keep pace with inflation?
  2. Is the annual earnings growth rate expected to beat the average growth rate in earnings of the United States of America market? (1 check)
  3. Is the annual revenue growth rate expected to beat the average growth rate in revenue of the United States of America market? (1 check)
  4. Is the annual earnings growth rate expected to be above 20%? (1 check)
  5. Is the annual revenue growth rate expected to be above 20%? (1 check)
  6. Is the Return on Equity in 3 years expected to be over 20%? (1 check)
Some of the above checks will fail if the company is expected to be loss making in the relevant year.
Comtech Telecommunications has a total score of 3/6, see the detailed checks below.

Note 1: We use GAAP Net Income Excluding Exceptional Items for our Earnings in all our calculations.

Full details on the Future part of the Simply Wall St company analysis model.

Past Performance

  How has Comtech Telecommunications performed over the past 5 years?

The past performance of a company can be measured by how much growth it has experienced and how much profit it makes relative to the funds and assets it has available.
Past earnings growth
Below we compare Comtech Telecommunications's growth in the last year to its industry (Communications).
Past Earnings growth analysis
We also check if the company has grown in the past 5 years, and whether it has maintained that growth in the year.
  • Comtech Telecommunications's year on year earnings growth rate has been positive over the past 5 years.
  • Comtech Telecommunications's 1-year earnings growth is negative, it can't be compared to the 5-year average.
  • Comtech Telecommunications's 1-year earnings growth is negative, it can't be compared to the US Communications industry average.
Earnings and Revenue History
Comtech Telecommunications's revenue and profit over the past 5 years is shown below, any years where they have experienced a loss will show up in red.
Raw Data

All data from Comtech Telecommunications Company Filings, last reported 3 months ago, and in Trailing twelve months (TTM) annual period rather than quarterly.

NasdaqGS:CMTL Past Revenue, Cash Flow and Net Income Data
Date (Data in USD Millions) Revenue Net Income * G+A Expenses R&D Expenses
2019-07-31 671.80 25.04 127.27 56.41
2019-04-30 662.86 26.36 123.69 54.57
2019-01-31 640.27 26.96 120.69 53.88
2018-10-31 609.86 34.90 115.92 53.33
2018-07-31 570.59 29.77 113.92 53.87
2018-04-30 550.92 29.63 112.58 53.85
2018-01-31 530.85 25.83 108.10 54.04
2017-10-31 536.15 16.66 111.87 53.91
2017-07-31 550.37 15.83 116.08 54.26
2017-04-30 554.98 11.22 123.71 54.35
2017-01-31 551.38 -7.56 128.23 54.00
2016-10-31 482.67 -11.67 112.29 48.35
2016-07-31 411.00 -7.74 94.93 42.19
2016-04-30 336.09 -4.97 76.94 35.87
2016-01-31 283.54 14.35 61.51 31.83
2015-10-31 295.02 19.46 62.48 33.84
2015-07-31 307.29 23.25 62.68 35.92
2015-04-30 319.20 25.76 64.08 36.71
2015-01-31 336.48 26.67 66.39 37.03
2014-10-31 340.17 25.07 66.48 35.63
2014-07-31 347.15 25.15 67.15 34.11
2014-04-30 342.18 22.32 65.06 34.01
2014-01-31 323.13 19.30 63.68 34.19
2013-10-31 312.21 15.68 64.15 35.20
2013-07-31 319.80 17.81 66.07 36.75
2013-04-30 348.16 20.58 73.01 38.29
2013-01-31 378.10 23.79 77.91 38.69

*GAAP earnings excluding extraordinary items.

Performance last year
We want to ensure a company is making the most of what it has available. This is done by comparing the return (profit) to a company's available funds, assets and capital.
  • Comtech Telecommunications has not efficiently used shareholders’ funds last year (Return on Equity less than 20%).
  • Comtech Telecommunications used its assets less efficiently than the US Communications industry average last year based on Return on Assets.
  • Comtech Telecommunications has significantly improved its use of capital last year versus 3 years ago (Return on Capital Employed).
X
Past performance checks
We assess Comtech Telecommunications's performance over the past 5 years by checking for:
  1. Has earnings increased in past 5 years? (1 check)
  2. Has the earnings growth in the last year exceeded that of the Communications industry? (1 check)
  3. Is the recent earnings growth over the last year higher than the average annual growth over the past 5 years? (1 check)
  4. Is the Return on Equity (ROE) higher than 20%? (1 check)
  5. Is the Return on Assets (ROA) above industry average? (1 check)
  6. Has the Return on Capital Employed (ROCE) increased from 3 years ago? (1 check)
The above checks will fail if the company has reported a loss in the most recent earnings report. Some checks require at least 3 or 5 years worth of data.
Comtech Telecommunications has a total score of 2/6, see the detailed checks below.

Note: We use GAAP Net Income excluding extraordinary items in all our calculations.

Full details on the Past part of the Simply Wall St company analysis model.

Health

 How is Comtech Telecommunications's financial health and their level of debt?

A company's financial position is much like your own financial position, it includes everything you own (assets) and owe (liabilities).

The boxes below represent the relative size of what makes up Comtech Telecommunications's finances.

The net worth of a company is the difference between its assets and liabilities.
Net Worth
  • Comtech Telecommunications is able to meet its short term (1 year) commitments with its holdings of cash and other short term assets.
  • Comtech Telecommunications's cash and other short term assets cover its long term commitments.
Balance sheet
This treemap shows a more detailed breakdown of Comtech Telecommunications's finances. If any of them are yellow this indicates they may be out of proportion and red means they relate to one of the checks below.
Assets
Liabilities and shares
The 'shares' portion represents any funds contributed by the owners (shareholders) and any profits.
  • Low level of unsold assets.
  • Debt is covered by short term assets, assets are 1.7x debt.
Historical Debt
Nearly all companies have debt. Debt in itself isn’t bad, however if the debt is too high, or the company can’t afford to pay the interest on its debts this may have impacts in the future.

The graphic below shows equity (available funds) and debt, we ideally want to see the red area (debt) decreasing.

If there is any debt we look at the companies capability to repay it, and whether the level has increased over the past 5 years.
Raw Data

All data from Comtech Telecommunications Company Filings, last reported 3 months ago.

NasdaqGS:CMTL Past Debt and Equity Data
Date (Data in USD Millions) Total Equity Total Debt Cash & Short Term Investments
2019-07-31 535.08 165.00 45.58
2019-04-30 524.95 173.50 45.15
2019-01-31 512.88 174.50 46.00
2018-10-31 506.10 193.40 42.94
2018-07-31 505.68 165.30 43.48
2018-04-30 497.78 179.07 44.17
2018-01-31 490.62 191.44 40.47
2017-10-31 476.02 191.33 42.51
2017-07-31 480.15 191.72 41.84
2017-04-30 469.66 225.90 58.82
2017-01-31 466.46 243.12 63.14
2016-10-31 461.29 250.13 62.71
2016-07-31 470.40 251.04 66.81
2016-04-30 379.80 342.55 69.11
2016-01-31 397.87 0.00 163.47
2015-10-31 399.11 0.00 150.73
2015-07-31 401.41 0.00 150.95
2015-04-30 400.00 0.00 142.04
2015-01-31 402.34 0.00 135.14
2014-10-31 398.63 0.00 144.54
2014-07-31 396.93 0.00 154.50
2014-04-30 362.65 191.50 295.03
2014-01-31 379.95 200.00 317.99
2013-10-31 400.67 200.00 346.55
2013-07-31 404.06 200.00 356.64
2013-04-30 404.23 200.00 342.20
2013-01-31 418.68 200.00 352.93
  • Comtech Telecommunications's level of debt (30.8%) compared to net worth is satisfactory (less than 40%).
  • Unable to establish if Comtech Telecommunications's debt level has increased without past 5-year debt data.
  • Debt is well covered by operating cash flow (41.3%, greater than 20% of total debt).
  • Interest payments on debt are well covered by earnings (EBIT is 3.6x coverage).
X
Financial health checks
We assess Comtech Telecommunications's financial health by checking for:
  1. Are short term assets greater than short term liabilities? (1 check)
  2. Are short term assets greater than long term liabilities? (1 check)
  3. Has the debt to equity ratio increased in the past 5 years? (1 check)
  4. Is the debt to equity ratio over 40%? (1 check)
  5. Is the debt covered by operating cash flow? (1 check)
  6. Are earnings greater than 5x the interest on debt (if company pays interest at all)? (1 check)
  7. Comtech Telecommunications has a total score of 5/6, see the detailed checks below.
For companies that are loss making and have been so on average in the past we replace the last 2 checks with:
  1. Does cash and short term investments cover stable operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)
  2. Does cash and short term investments cover growing operating expenses (recurring G&A and R&D) for more than 3 years? (1 check)


Full details on the Health part of the Simply Wall St company analysis model.

Dividends

 What is Comtech Telecommunications's current dividend yield, its reliability and sustainability?

Dividends are regular cash payments to you from the company, similar to a bank paying you interest on a savings account.
Annual Dividend Income
Dividend payments
1.13%
Current annual income from Comtech Telecommunications dividends. Estimated to be 1.13% next year.
If you bought $2,000 of Comtech Telecommunications shares you are expected to receive $23 in your first year as a dividend.
Dividend Amount
Here we look how much dividend is being paid, if any. Is it above what you can get in a savings account? It is up there with the best dividend paying companies?
  • Comtech Telecommunications's pays a lower dividend yield than the bottom 25% of dividend payers in United States of America (1.43%).
  • Comtech Telecommunications's dividend is below the markets top 25% of dividend payers in United States of America (3.66%).
Annualized Historical and Future Dividends
It is important to see if the dividend for a company is stable, and not wildly increasing/decreasing each year. This graph shows you the historical rate to count toward your assessment of the stock.

We also check to see if the dividend has increased in the past 10 years.
Raw Data
NasdaqGS:CMTL Annualized Past and Future Dividends
Data Point Source Value
Past Annualized Dividend Yield S&P Global Market Data See Below
Past Dividends per Share Company Filings/ Annualized Dividend Payments See Below
Future Dividends per Share Estimates Average of up to 4 Analyst Estimates (S&P Global) See Below
United States of America Communications Industry Average Dividend Yield Market Cap Weighted Average of 15 Stocks 2.8%
United States of America Market Average Dividend Yield Market Cap Weighted Average of 1944 Stocks 2.4%
United States of America Minimum Threshold Dividend Yield 10th Percentile 0.8%
United States of America Bottom 25% Dividend Yield 25th Percentile 1.4%
United States of America Top 25% Dividend Yield 75th Percentile 3.7%

Industry and Market average data is calculated daily.

Note all dividend per share amounts are annualized and not quarterly or other period.

NasdaqGS:CMTL Future Dividends Estimate Data
Date (Data in $) Dividend per Share (annual) Avg. No. Analysts
2022-07-31 0.40 1.00
2021-07-31 0.40 1.00
2020-07-31 0.40 1.00
2019-11-10
NasdaqGS:CMTL Past Annualized Dividends Data
Date (Data in $) Dividend per share (annual) Avg. Yield (%)
2019-06-05 0.400 1.373
2019-03-06 0.400 1.752
2018-12-06 0.400 1.570
2018-09-26 0.400 1.379
2018-06-06 0.400 1.186
2018-03-07 0.400 1.311
2017-09-27 0.400 1.859
2017-06-07 0.400 2.101
2017-03-08 0.400 2.815
2016-12-07 0.400 3.527
2016-10-06 1.200 11.026
2016-06-08 1.200 8.980
2015-12-09 1.200 5.649
2015-06-04 1.200 4.642
2015-03-11 1.200 4.013
2014-12-10 1.200 3.605
2014-10-09 1.200 3.176
2014-06-05 1.200 3.263
2014-03-06 1.200 3.779
2013-12-09 1.200 3.806
2013-10-03 1.100 3.727
2013-06-06 1.100 4.236
2013-03-07 1.100 4.406
2012-12-06 1.100 4.190
2012-09-26 1.100 4.255
2012-06-07 1.100 3.887
2012-03-08 1.100 3.523
2011-12-08 1.100 3.585
2011-09-27 1.100 3.502
2011-06-07 1.000 3.708
2011-03-10 1.000 3.608
2010-12-08 1.000 3.589
2010-09-23 1.000 3.369

Learn more about our ratios and growth rates in Simply Wall St’s analysis model >

  • Comtech Telecommunications has been paying a dividend for less than 10 years and during this time payments have been volatile (annual drop of over 20%).
  • Comtech Telecommunications has only been paying a dividend for 9 years, and since then dividends per share have fallen.
Current Payout to shareholders
What portion of Comtech Telecommunications's earnings are paid to the shareholders as a dividend.
  • Dividends paid are well covered by earnings (2.6x coverage).
Future Payout to shareholders
  • Dividends after 3 years are expected to be well covered by earnings (4x coverage).
X
Income/ dividend checks
We assess Comtech Telecommunications's dividend by checking for:
  1. Firstly is the company paying a notable dividend (greater than 0.8%) - if not then the rest of the checks are ignored.
  2. Is current dividend yield above the bottom 25% of dividend payers? (1 check)
  3. Is current dividend yield above the top 25% of dividend payers? (1 check)
  4. Have they paid a dividend for 10 years, and during this period has the dividend been volatile (drop of more than 25%)? (1 check)
  5. If they have paid a dividend for 10 years has it increased in this time? (1 check)
  6. How sustainable is the dividend, can Comtech Telecommunications afford to pay it from its earnings today and in 3 years (Payout ratio less than 90%)? (2 checks)
  7. Comtech Telecommunications has a total score of 2/6, see the detailed checks below.


Full details on the Dividends part of the Simply Wall St company analysis model.

Management

 What is the CEO of Comtech Telecommunications's salary, the management and board of directors tenure and is there insider trading?

Management is one of the most important areas of a company. We look at unreasonable CEO compensation, how long the team and board of directors have been around for and insider trading.
CEO
Fred Kornberg
COMPENSATION $3,434,946
AGE 83
TENURE AS CEO 3.2 years
CEO Bio

Mr. Fred Kornberg has been the Chief Executive Officer and President of Comtech Telecommunications Corp. since September 29, 2016 and previously served as its Chief Executive Officer and President from 1976 to January 2015. Mr. Kornberg served as Executive Vice President of Comtech Telecommunications Corp. from 1971 to 1976 and served as its General Manager of the telecommunications transmission segment. He has been the Chairman of Comtech Telecommunications Corp. since September 27, 2011. He serves as the Chairman of Comtech PST Corp. He served as an Executive Chairman at Comtech Telecommunications from January 2015 to January 2016 and served as its Chairman since January 2016 until September 2016. Mr. Kornberg has knowledge of the Comtech’s history, strategies, technologies and culture. Mr. Kornberg has been a Director of Comtech Telecommunications Corp. since 1971.

CEO Compensation
  • Fred's compensation has been consistent with company performance over the past year, both up more than 20%.
  • Fred's remuneration is higher than average for companies of similar size in United States of America.
Management Team Tenure

Average tenure and age of the Comtech Telecommunications management team in years:

3.8
Average Tenure
60
Average Age
  • The tenure for the Comtech Telecommunications management team is about average.
Management Team

Fred Kornberg

TITLE
Chairman
COMPENSATION
$3M
AGE
83
TENURE
3.2 yrs

Mike Porcelain

TITLE
Senior VP & COO
COMPENSATION
$1M
AGE
50
TENURE
1.1 yrs

Nancy Stallone

TITLE
VP of Finance & Corporate Secretary
COMPENSATION
$529K
AGE
59
TENURE
3.8 yrs

John Branscum

TITLE
Senior VP and President of Comtech EF Data Corp. & Xicom Technology Inc.
COMPENSATION
$1M
AGE
60
TENURE
4.8 yrs

Michael Bondi

TITLE
Senior VP & CFO
AGE
46
TENURE
1.1 yrs

Brian Duggan

TITLE
Vice President of International Marketing
AGE
77
TENURE
10.1 yrs

Jay Whitehurst

TITLE
President of Location Technologies
AGE
59
TENURE
3.8 yrs

Mike Atcheson

TITLE
President of Mission-Critical Technologies
TENURE
2.7 yrs

Kent Hellebust

TITLE
President of Safety and Security Technologies
AGE
60
TENURE
6.6 yrs

Gail Segui

TITLE
Treasurer
COMPENSATION
$120K
AGE
73
TENURE
21.8 yrs
Board of Directors Tenure

Average tenure and age of the Comtech Telecommunications board of directors in years:

8.2
Average Tenure
80
Average Age
  • The tenure for the Comtech Telecommunications board of directors is about average.
Board of Directors

Fred Kornberg

TITLE
Chairman
COMPENSATION
$3M
AGE
83
TENURE
8.2 yrs

Ira Kaplan

TITLE
Independent Director
COMPENSATION
$190K
AGE
83
TENURE
17.4 yrs

Robert Paul

TITLE
Independent Director
COMPENSATION
$188K
AGE
77
TENURE
12.7 yrs

Larry Waldman

TITLE
Independent Director
COMPENSATION
$200K
AGE
73
TENURE
4.3 yrs

Yacov Shamash

TITLE
Independent Director
COMPENSATION
$188K
AGE
69
TENURE
3.1 yrs

Edwin Kantor

TITLE
Lead Independent Director
COMPENSATION
$208K
AGE
87
TENURE
8.2 yrs
Who owns this company?
Recent Insider Trading
  • Comtech Telecommunications individual insiders have only sold shares in the past 3 months.
Recent Insider Transactions
Announced Type Name Entity Role Start End Shares Max Price ($) Value ($)
30. Sep 19 Sell Richard Burt Individual 26. Sep 19 27. Sep 19 -43,590 $34.33 $-1,496,041
17. Jul 19 Sell John Branscum Individual 15. Jul 19 15. Jul 19 -463 $27.87 $-12,904
17. Apr 19 Sell John Branscum Individual 15. Apr 19 15. Apr 19 -477 $23.71 $-11,312
22. Jan 19 Sell John Branscum Individual 18. Jan 19 18. Jan 19 -1,158 $25.16 $-29,129
19. Dec 18 Sell Edwin Kantor Individual 17. Dec 18 18. Dec 18 -1,000 $25.50 $-25,500
X
Management checks
We assess Comtech Telecommunications's management by checking for:
  1. Is the CEO's compensation unreasonable compared to market cap? (1 check)
  2. Has the CEO's compensation increased more than 20% whilst the EPS is down more then 20%? (1 check)
  3. Is the average tenure of the management team less than 2 years? (1 check)
  4. Is the average tenure of the board of directors team less than 3 years? (1 check)
  5. Comtech Telecommunications has a total score of 0/6, this is not included on the snowflake, see the detailed checks below.


Note: We use the top 6 management executives and board members in our calculations.

Note 2: Insider trading include any internal stakeholders and these transactions .

Full details on the Management part of the Simply Wall St company analysis model.

News

Simply Wall St News

Does Comtech Telecommunications Corp.’s (NASDAQ:CMTL) ROCE Reflect Well On The Business?

Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Comtech Telecommunications: 0.067 = US$50m ÷ (US$903m - US$162m) (Based on the trailing twelve months to April 2019.) So, Comtech Telecommunications has an ROCE of 6.7%. … What Are Current Liabilities, And How Do They Affect Comtech Telecommunications's ROCE? … Due to the way ROCE is calculated, a high level of current liabilities makes a company look as though it has less capital employed, and thus can (sometimes unfairly) boost the ROCE.

Simply Wall St -

Before You Buy Comtech Telecommunications Corp. (NASDAQ:CMTL), Consider Its Volatility

Some investors use beta as a measure of how much a certain stock is impacted by market risk (volatility). … A stock with a beta below one is either less volatile than the market, or more volatile but not corellated with the overall market. … What this means for you: Since Comtech Telecommunications has a reasonably high beta, it's worth considering why it is so heavily influenced by broader market sentiment.

Simply Wall St -

Comtech Telecommunications Corp. (NASDAQ:CMTL) Is Yielding 1.4% - But Is It A Buy?

(NASDAQ:CMTL) from a dividend investor's perspective. Owning a strong business and reinvesting the dividends is widely seen as an attractive way of growing your wealth. If you are hoping to live on the income from dividends, it's important to be a lot more stringent with your investments than the average punter. Investors might not know much about Comtech Telecommunications's dividend prospects, even though it has been paying dividends for the last nine years and offers a 1.4% yield. A 1.4% yield is not inspiring, but the longer payment history has some appeal. The company also bought back stock during the year, equivalent to approximately 0.6% of the company's market capitalisation at the time. Some simple analysis can offer a lot of insights when buying a company for its dividend, and we'll go through this below. Explore this interactive chart for our latest analysis on Comtech Telecommunications! NasdaqGS:CMTL Historical Dividend Yield, August 8th 2019 Payout ratios Dividends are typically paid from company earnings. If a company pays more in dividends than it earned, then the dividend might become unsustainable - hardly an ideal situation. Comparing dividend payments to a company's net profit after tax is a simple way of reality-checking whether a dividend is sustainable. Looking at the data, we can see that 36% of Comtech Telecommunications's profits were paid out as dividends in the last 12 months. A medium payout ratio strikes a good balance between paying dividends, and keeping enough back to invest in the business. Besides, if reinvestment opportunities dry up, the company has room to increase the dividend. In addition to comparing dividends against profits, we should inspect whether the company generated enough cash to pay its dividend. Comtech Telecommunications's cash payout ratio last year was 15%, which is quite low and suggests that the dividend was thoroughly covered by cash flow. It's positive to see that Comtech Telecommunications's dividend is covered by both profits and cash flow, since this is generally a sign that the dividend is sustainable, and a lower payout ratio usually suggests a greater margin of safety before the dividend gets cut. Is Comtech Telecommunications's Balance Sheet Risky? As Comtech Telecommunications has a meaningful amount of debt, we need to check its balance sheet to see if the company might have debt risks. A rough way to check this is with these two simple ratios: a) net debt divided by EBITDA (earnings before interest, tax, depreciation and amortisation), and b) net interest cover. … Looking at the last decade of data, we can see that Comtech Telecommunications paid its first dividend at least nine years ago. … Comtech Telecommunications is paying out less than half of its earnings, which we like.

Simply Wall St -

A Look At The Intrinsic Value Of Comtech Telecommunications Corp. (NASDAQ:CMTL)

Today, we will estimate the stock's intrinsic value by taking the expected future cash flows and discounting them to their present value. … Generally we assume that a dollar today is more valuable than a dollar in the future, so we discount the value of these future cash flows to their estimated value in today's dollars: 10-year free cash flow (FCF) forecast 2020 2021 2022 2023 2024 2025 2026 2027 2028 2029 Levered FCF ($, Millions) $46.4m $46.3m $46.7m $47.3m $48.2m $49.2m $50.3m $51.5m $52.8m $54.1m Growth Rate Estimate Source Analyst x2 Est @ -0.08% Est @ 0.77% Est @ 1.36% Est @ 1.77% Est @ 2.06% Est @ 2.26% Est @ 2.4% Est @ 2.5% Est @ 2.57% Present Value ($, Millions) Discounted @ 9.86% $42.2 $38.4 $35.2 $32.5 $30.1 $28.0 $26.0 $24.3 $22.6 $21.1 ("Est" = FCF growth rate estimated by Simply Wall St) Present Value of 10-year Cash Flow (PVCF)= $300.5m After calculating the present value of future cash flows in the intial 10-year period, we need to calculate the Terminal Value, which accounts for all future cash flows beyond the first stage. … NasdaqGS:CMTL Intrinsic value, July 30th 2019 Important assumptions We would point out that the most important inputs to a discounted cash flow are the discount rate and of course the actual cash flows.

Simply Wall St -

Be Sure To Check Out Comtech Telecommunications Corp. (NASDAQ:CMTL) Before It Goes Ex-Dividend

Comtech Telecommunications's next dividend payment will be US$0.10 per share, and in the last 12 months, the company paid a total of US$0.40 per share. … Earnings per share have been flat over this time, but we're intrigued to see that Comtech Telecommunications is paying out less than half its earnings and cash flow as dividends. … We would prefer to see earnings growing faster, but the best dividend stocks over the long term typically combine strong earnings per share growth with a low payout ratio, and Comtech Telecommunications is halfway there.

Simply Wall St -

Here's What Comtech Telecommunications Corp.'s (NASDAQ:CMTL) P/E Ratio Is Telling Us

The formula for P/E is: Price to Earnings Ratio = Share Price ÷ Earnings per Share (EPS) Or for Comtech Telecommunications: P/E of 25.52 = $28.01 ÷ $1.1 (Based on the trailing twelve months to April 2019.) Is A High Price-to-Earnings Ratio Good? … Comtech Telecommunications saw earnings per share decrease by 12% last year. … NasdaqGS:CMTL Price Estimation Relative to Market, June 27th 2019 Its relatively low P/E ratio indicates that Comtech Telecommunications shareholders think it will struggle to do as well as other companies in its industry classification.

Simply Wall St -

Introducing Comtech Telecommunications (NASDAQ:CMTL), A Stock That Climbed 95% In The Last Three Years

(NASDAQ:CMTL) shareholders have seen the share price rise 95% over three years, well in excess of the market return (37%, not including dividends). … During three years of share price growth, Comtech Telecommunications moved from a loss to profitability. … We note that for Comtech Telecommunications the TSR over the last 3 years was 115%, which is better than the share price return mentioned above.

Simply Wall St -

With A 5.0% Return On Equity, Is Comtech Telecommunications Corp. (NASDAQ:CMTL) A Quality Stock?

The formula for ROE is: Return on Equity = Net Profit ÷ Shareholders' Equity Or for Comtech Telecommunications: 5.0% = US$26m ÷ US$525m (Based on the trailing twelve months to April 2019.) It's easy to understand the 'net profit' part of that equation, but 'shareholders' equity' requires further explanation. … One simple way to determine if a company has a good return on equity is to compare it to the average for its industry. … Combining Comtech Telecommunications's Debt And Its 5.0% Return On Equity Although Comtech Telecommunications does use debt, its debt to equity ratio of 0.33 is still low.

Simply Wall St -

Are Insiders Selling Comtech Telecommunications Corp. (NASDAQ:CMTL) Stock?

So shareholders might well want to know whether insiders have been buying or selling shares in Comtech Telecommunications Corp. … See our latest analysis for Comtech Telecommunications Comtech Telecommunications Insider Transactions Over The Last Year In the last twelve months, the biggest single sale by an insider was when the Lead Independent Director, Edwin Kantor, sold US$51k worth of shares at a price of US$34.55 per share. … Insider Ownership For a common shareholder, it is worth checking how many shares are held by company insiders.

Simply Wall St -

Is Comtech Telecommunications Corp. (NASDAQ:CMTL) Better Than Average At Deploying Capital?

Specifically, we're going to calculate its Return On Capital Employed (ROCE), in the hopes of getting some insight into the business. … Analysts use this formula to calculate return on capital employed: Return on Capital Employed = Earnings Before Interest and Tax (EBIT) ÷ (Total Assets - Current Liabilities) Or for Comtech Telecommunications: 0.071 = US$51m ÷ (US$843m - US$130m) (Based on the trailing twelve months to January 2019.) Therefore, Comtech Telecommunications has an ROCE of 7.1%. … Do Comtech Telecommunications's Current Liabilities Skew Its ROCE?

Simply Wall St -

Company Info

Description

Comtech Telecommunications Corp. designs, develops, produces, and markets products, systems, and services for communications solutions in the United States and internationally. It operates through Commercial Solutions and Government Solutions segments. The Commercial Solutions segment offers satellite ground station technologies, including modems, amplifiers, converters, and network software to modulate, demodulate, and amplify signals, as well as to carry voice, video, and/or data over networks; and public safety and location technologies that enable 911 call routing via cellular and over the Internet. The Government Solutions segment offers mission-critical technologies tactical satellite-based networks, such as satellite modems, ruggedized routers, and solid-state drives; very small aperture terminals; and sustainment services for the secret Internet protocol router and non-classified Internet protocol router access point. This segment also offers high-performance transmission technologies that are used in communication systems comprising electronic warfare, radar, and identification friend or foe (IFF); troposcatter technologies for satellite communication; and high-power amplifiers and related switching technologies used in electronic warfare, communications, radar, IFF, and medical applications consisting of oncology cancer treatment systems. The company serves satellite systems integrators, wireless and other communication service providers, broadcasters, prime contractors and system suppliers, Medical equipment companies, aviation industry system integrators, oil companies, and domestic and international defense and government customers. Comtech Telecommunications Corp. was founded in 1967 and is headquartered in Melville, New York.

Details
Name: Comtech Telecommunications Corp.
CMTL
Exchange: NasdaqGS
Founded: 1967
$857,387,733
24,267,980
Website: http://www.comtechtel.com
Address: Comtech Telecommunications Corp.
68 South Service Road,
Suite 230,
Melville,
New York, 11747,
United States
Listings
Exchange Symbol Ticker Symbol Security Exchange Country Currency Listed on
NasdaqGS CMTL Common Stock Nasdaq Global Select US USD 14. Dec 1972
DB CC6 Common Stock Deutsche Boerse AG DE EUR 14. Dec 1972
Number of employees
Current staff
Staff numbers
2,013
Comtech Telecommunications employees.
Industry
Communications Equipment
Tech
Company Analysis and Financial Data Status
Area Date (UTC time)
Company Analysis updated: 2019/11/10 23:34
End of day share price update: 2019/11/08 00:00
Last estimates confirmation: 2019/10/30
Last earnings filing: 2019/09/24
Last earnings reported: 2019/07/31
Last annual earnings reported: 2019/07/31


All dates and times in UTC. All financial data provided by Standard & Poor’s Capital IQ.

Unless specified all financial data is based on a yearly period but updated quarterly. This is known as Trailing Twelve Month (TTM) or Last Twelve Month (LTM) Data. Learn more here.