Comtech Telecommunications Corp.

Comtech Telecommunications Corp.

CMTLยทNASDAQ

$5.64

-2.4%
TechnologyCommunication Equipment

Comtech Telecommunications Corp., together with its subsidiaries, designs, develops, produces, and markets products, systems, and services for communications solutions in the United States and internationally. It operates in two segments, Commercial Solutions and Government Solutions. The Commercial Solutions segment offers satellite ground station technologies, including single channel per carrier and time division multiple access modems, amplifiers, frequency 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, such as 911 call handling and mapping solutions that allow cellular carriers and voice over the Internet carriers to deliver emergency calls to public safety emergency call centers. The Government Solutions segment provides tactical satellite-based networks, such as satellite modems, ruggedized routers, and solid-state drives; sustainment services for the secret Internet Protocol router and non-classified Internet Protocol router access point; and small aperture terminals. 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 radio frequency microwave amplifiers and related switching control technologies that are used in electronic warfare, communications, radar, IFF, and medical applications. The company serves satellite systems integrators, wireless and other communication service providers, satellite broadcasters, prime contractors and system suppliers, medical equipment companies, aviation industry system integrators, oil companies, and domestic and international defense and government customers, as well as end-customers. Comtech Telecommunications Corp. was founded in 1967 and is headquartered in Melville, New York.

At a Glance

Live Snapshot
Market Cap$167.70M
EPS-6.9500
P/E Ratio-0.81
Earnings Date06/04/2026

Intrinsic Alpha Methodology

Thesis Lenses

Signal ยท Driver ยท Risk

Signal

Medium confidence

Valuation multiple is compressed (P/E -0.8).

Valuation inputs: P/E -0.8, earnings yield N/A, momentum -2.4%.

If multiples stay elevated while momentum fades, downside repricing risk rises.

Driver

High confidence

Return profile is soft (ROE -52.8%, ROIC -23.4%).

Profitability stack: net margin -31.1%, ROE -52.8%, ROIC -23.4%.

Quality deterioration often appears in margins before it shows up in headline EPS.

Risk

High confidence

Risk profile is balanced but has notable pressure points to monitor.

Risk factors: liabilities/assets +60.3%, momentum -2.4%, net margin -31.1%.

Higher leverage with weak momentum and thin margins can amplify drawdown severity.

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Comtech Telecommunications Corp. Market vs Earnings Trajectory

CMTL ยท NASDAQ

Loading price and EPS data...

Comtech Telecommunications Corp.

Comtech Telecommunications Corp. Fair Value Envelope

CMTL ยท NASDAQ

Our analysis suggests that CMTL has a fair value of HIDDEN per share in the Base Case projection. With shares currently trading at $5.64, this represents a potential HIDDEN relative to our calculated worth for Comtech Telecommunications Corp..

Intrinsic Value
Current Price: $5.64
3Y+456.0%
5Y-2582.0%
10Y+1411.0%
3Y+3.0%
5Y-19.0%
10Y+22.0%
3Y+370.0%
5Y-2312.0%
10Y+1907.0%
3Y-515.0%
5Y-116.0%
10Y-155.0%
3Y-4.0%
5Y-137.0%
10Y-281.0%
3Y-24.0%
5Y-20.0%
10Y-20.0%
Comtech Telecommunications Corp.

Comtech Telecommunications Corp. Profit Bridge

CMTL ยท NASDAQ
Revenue499.53M
Cost of Goods Sold (371.65M)
Gross Profit127.87M
Operating Expenses (266.97M)
Operating Income-139.10M
Interest Expense (45650.00B)
Other Income/Expense-16.28M
Pretax Income-155.38M
Income Tax (-80.00K)
Net Income-155.30M
Net Income
-155.30M

Profitability Analysis

Gross Margin

25.6%

Moderate margins typical of competitive industries. Monitor for pricing pressure or rising costs.

Operating Margin

-27.8%

Operating losses indicate the core business is unprofitable. Requires restructuring or revenue growth.

Net Profit Margin

-31.1%

Net losses indicate the company is burning cash. Sustainability depends on path to profitability.

Profitability Insight

High margin compression: Large gap between gross and net margins suggests operational inefficiencies or heavy debt burden. Focus on expense management and deleveraging.

25.60%
Gross Profit Margin
-12%
3Y-31.0%
5Y-30.0%
10Y-39.0%
-27.85%
Operating Profit Margin
88%
3Y+301.0%
5Y-575.0%
10Y-649.0%
-31.09%
Net Profit Margin
68%
3Y+357.0%
5Y-2831.0%
10Y+1551.0%
-52.83%
Return on Equity
157%
3Y+814.0%
5Y-4234.0%
10Y+3112.0%
-20.96%
Return on Assets
91%
3Y+518.0%
5Y-2876.0%
10Y+2396.0%
-23.41%
Return on Invested Capital
118%
3Y+514.0%
5Y-769.0%
10Y-994.0%
CMTL

Comtech Telecommunications Corp. Cash Conversion Engine

CMTL ยท NASDAQ
Net Income-155.30M
Depreciation & Amortization33.52M
Stock-Based Compensation3.12M
Change in Working Capital8.70M
Others103.37M
Capital Expenditures-8.56M
Free Cash Flow-16.86M

Cash Flow Quality Analysis

FCF Conversion Rate

10.9%

Weak cash conversion. Significant portion of earnings not converting to cashโ€”review working capital trends and capital intensity.

CapEx Intensity

-103.3%

Asset-light business model. Low capital requirements leave more cash available for shareholders and growth investments.

FCF Growth Trend

+75.1%

Strong FCF growth demonstrates improving cash generation and business momentum. Positive signal for sustainability.

Working Capital Impact

+$8.70M

Working capital inflow boosted cash flow. Efficient management of receivables, inventory, and payables contributing positively.

cmtl

Comtech Telecommunications Corp. Funding & Solvency Profile

CMTL ยท NASDAQ
Cash & Cash Equivalents32826.00B
Net Receivables127871.00B
Inventory66005.00B
Other Current Assets-226701.76B
Total Current Assets242 M
Property, Plant & Equipment76482.00B
Goodwill & Intangible Assets367643.00B
Long-Term Investments0.00
Other Non-Current Assets-444124.54B
Total Non-Current Assets-367642537796000
Total Assets
703.83M

Financial Health Analysis

Current Ratio

1.69x

Strong liquidity. The company has adequate resources to meet short-term liabilities.

Debt-to-Equity Ratio

1.65x

Elevated leverage. Debt exceeds equity, which amplifies both gains and risks. Monitor debt servicing ability.

Working Capital

98 M

Strong working capital position provides significant operational flexibility and financial cushion.

Asset Composition

34% Current

Capital-intensive business with significant long-term investments in property, equipment, or intangibles.

cmtl

Comtech Telecommunications Corp. Street Expectations Map

CMTL ยท NASDAQ

Wall Street analysts project that CMTL stock may rise significantly over the coming 12 months. The consensus 1-year price target stands at 9.00, with estimates ranging from a low of 3.50 to a high of 14.50.

Lowest Target
3.50
-37.94%
Consensus Target
9.00
59.57%
Highest Target
14.50
157.09%

The consensus 1-year price target stands at 9.00, with estimates ranging from a low of 3.50 to a high of 14.50.

Analyst Consensus Analysis

Upside Potential

+59.6%

Substantial upside potential. Analysts see significant value gap, suggesting the stock may be materially undervalued at current levels.

Analyst Agreement

122.2% spread

High uncertainty. Very wide target spread indicates significant disagreement among analystsโ€”major valuation uncertainty or transformation underway.

Risk-Reward Profile

4.14x

Favorable risk-reward. Potential upside significantly exceeds downside risk, offering asymmetric return profile attractive for risk-tolerant investors.

Analyst Conviction

Low

High uncertainty: Wide dispersion indicates analysts struggle to agree on valuationโ€”proceed with caution and independent analysis.

Market Sentiment Insight

High risk, high reward: Substantial upside potential exists, but wide analyst disagreement signals execution risk or unclear catalysts. Thorough due diligence essential before committing capital.

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Comtech Telecommunications Corp. Insider Positioning

CMTL ยท NASDAQ

During the last 12 months, insiders have sold $32K worth of CMTL shares, with no buying activity reported.

3 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

3-6 Months

Bought

0

0.00

Sold

0

0.00

Net Activity

+0

+$0

6-9 Months

Bought

0

0.00

Sold

7.8K

20.13K

Net Activity

-20K

-$20K

9-12 Months

Bought

0

0.00

Sold

5.6K

11.48K

Net Activity

-11K

-$11K

Top Buyers

No buying activity

Top Sellers

1
WDE

Walther Donald E.

Officer: Chief Legal Officer

7.3K sharesโ€ข2 transactions

$18K

2
GD

Gizinski Daniel

Officer: President, S&S Comm. Segment

3.6K sharesโ€ข6 transactions

$8K

3
RJP

Robertson Jeffery Paul

Officer: President, T&W Segment

2.5K sharesโ€ข1 transactions

$6K

Insider Activity Analysis

Net Insider Sentiment

Bearish

Strong bearish signal with $32K net selling. Heavy insider selling may indicate concerns about valuation or near-term prospects.

Buy/Sell Ratio

0.00:1

Very poor ratio. Heavy selling with minimal buying suggests insiders may be concerned about valuation or outlook.

Insider Participation

High Selling

3 insider sellers vs. 0 buyers. Widespread selling across multiple insiders may signal concerns.

0.00%
Dividend Yield
-92%
3Y-100.0%
5Y+1100.0%
10Y-100.0%
ย 

cmtl Dividend History

CMTL
10Y CAGR 10%
Latest $0.1
Annual $0.5
Stable dividend payments
Last Period: +0%