Comtech Telecommunications Corp Stock Buy Hold or Sell Recommendation

CMTL Stock  USD 3.06  0.08  2.55%   
Given the investment horizon of 90 days and complete risk avoidance on your part, our recommendation regarding Comtech Telecommunications Corp is 'Strong Sell'. The recommendation algorithm takes into account all of Comtech Telecommunicatio's available fundamental, technical, and predictive indicators you will find on this site.
  
Check out Comtech Telecommunicatio Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
Note, we conduct extensive research on individual companies such as Comtech and provide practical buy, sell, or hold advice based on investors' constraints. Comtech Telecommunications Corp. Also, note that the market value of any company could be closely tied with the direction of predictive economic indicators such as signals in estimate.

Execute Comtech Telecommunicatio Buy or Sell Advice

The Comtech recommendation should be used to complement the buy-or-sell advice compiled from the current analysts' consensus on Comtech Telecommunications Corp. Macroaxis does not own or have any residual interests in Comtech Telecommunications Corp or other equities on which the buy-or-sell advice is provided. Please provide your input below to execute Comtech Telecommunicatio's advice using the current market data and latest reported fundamentals.

Time Horizon

Risk Tolerance

Execute Advice
Sell Comtech TelecommunicatioBuy Comtech Telecommunicatio
Strong Sell

Market Performance

OKDetails

Volatility

Very riskyDetails

Hype Condition

Over hypedDetails

Current Valuation

UndervaluedDetails

Odds Of Distress

Below AverageDetails

Economic Sensitivity

Follows the market closelyDetails

Investor Sentiment

ImpartialDetails

Analyst Consensus

BuyDetails

Financial Strenth (F Score)

HealthyDetails

Financial Leverage

Not RatedDetails

Reporting Quality (M-Score)

Possible ManipulatorDetails
For the selected time horizon Comtech Telecommunications Corp has a Mean Deviation of 6.57, Semi Deviation of 5.46, Standard Deviation of 12.66, Variance of 160.22, Downside Variance of 34.78 and Semi Variance of 29.77
We provide trade advice to complement the prevailing expert consensus on Comtech Telecommunicatio. Our dynamic recommendation engine uses a multidimensional algorithm to analyze the company's potential to grow using all technical and fundamental data available at the time. To make sure Comtech Telecommunicatio is not overpriced, please confirm all Comtech Telecommunicatio fundamentals, including its debt to equity, market capitalization, and the relationship between the ebitda and earnings per share . Given that Comtech Telecommunicatio has a price to earning of 328.11 X, we suggest you to validate Comtech Telecommunications Corp market performance and probability of bankruptcy to ensure the company can sustain itself in the current economic cycle given your prevailing risk tolerance and investing horizon.

Comtech Telecommunicatio Trading Alerts and Improvement Suggestions

Comtech Telecommunicatio is way too risky over 90 days horizon
Comtech Telecommunicatio appears to be risky and price may revert if volatility continues
The company reported the previous year's revenue of 549.99 M. Net Loss for the year was (26.9 M) with profit before overhead, payroll, taxes, and interest of 184.46 M.
Comtech Telecommunications Corp currently holds about 21.65 M in cash with (4.43 M) of positive cash flow from operations. This results in cash-per-share (CPS) ratio of 0.78.
Roughly 71.0% of the company shares are held by institutions such as insurance companies
Latest headline from benzinga.com: Comtech Telecommunications Delays Filings Again, Deepening Financial Uncertainty Hagens Berman

Comtech Telecommunicatio Returns Distribution Density

The distribution of Comtech Telecommunicatio's historical returns is an attempt to chart the uncertainty of Comtech Telecommunicatio's future price movements. The chart of the probability distribution of Comtech Telecommunicatio daily returns describes the distribution of returns around its average expected value. We use Comtech Telecommunications Corp price's Value At Risk and its Upside Potential as a relative measure of the distribution. The graph of the distribution of Comtech Telecommunicatio returns is essential to provide solid investment advice for Comtech Telecommunicatio.
Mean Return
1.35
Value At Risk
-10.23
Potential Upside
12.92
Standard Deviation
12.66
   Return Density   
       Distribution  
Investment risk management requires an estimate of the probability of extreme price changes. Therefore, the correct representation of the distribution of Comtech Telecommunicatio historical returns presented in an easy-to-digest graphical form helps investors and money managers understand the risk-reward trade-off of different investement strategies.

Comtech Stock Institutional Investors

Shares
Charles Schwab Investment Management Inc2024-03-31
560.7 K
State Street Corporation2024-03-31
560.1 K
Kennedy Capital Management Inc2024-03-31
549.1 K
Pacific Ridge Capital Partners, Llc2024-03-31
461.7 K
Marshall Wace Asset Management Ltd2024-03-31
364.6 K
Huber Capital Management Llc2024-03-31
278.1 K
Bridgeway Capital Management, Llc2024-03-31
256.6 K
Northern Trust Corp2024-03-31
253.6 K
Two Sigma Investments Llc2024-03-31
216.6 K
Blackrock Inc2024-03-31
1.8 M
Archon Capital Management Llc2024-03-31
1.7 M
Note, although Comtech Telecommunicatio's institutional investors appear to be way more sophisticated than retail investors, it remains unclear if professional active investment managers can reliably enhance risk-adjusted returns by an amount that exceeds fees and expenses.

Comtech Telecommunicatio Cash Flow Accounts

201920202021202220232024 (projected)
Change To Inventory(9.1M)(2.3M)(20.4M)(14.9M)(13.4M)(12.7M)
Change In Cash2.3M(17.0M)(9.2M)(2.7M)(2.4M)(2.3M)
Free Cash Flow45.5M(56.7M)(17.6M)(22.7M)(26.2M)(24.8M)
Depreciation32.2M30.4M31.7M33.3M38.3M40.2M
Other Non Cash Items(1.7M)(1.6M)1.1M3.9M4.4M6.0M
Capital Expenditures7.2M16.0M19.6M18.3M21.1M22.1M
Net Income7.0M(73.5M)(33.1M)(26.9M)(30.9M)(29.4M)
End Period Cash Flow47.9M30.9M21.7M19.0M21.8M20.7M
Change To Netincome11.4M4.4M7.4M8.9M10.2M8.5M
Change Receivables6.3M20.9M(31.2M)33.6M30.2M31.7M
Net Borrowings(16.3M)51.5M(71.2M)35.0M40.3M42.3M
Dividends Paid10.0M10.3M11.0M8.7M7.8M12.1M
Investments(20.2M)(15.5M)(19.6M)(18.3M)(21.1M)(22.1M)

Comtech Telecommunicatio Greeks

Most traded equities are subject to two types of risk - systematic (i.e., market) and unsystematic (i.e., nonmarket or company-specific) risk. Unsystematic risk is the risk that events specific to Comtech Telecommunicatio or Communications Equipment sector will adversely affect the stock's price. This type of risk can be diversified away by owning several different stocks in different industries whose stock prices have shown a small correlation to each other. On the other hand, systematic risk is the risk that Comtech Telecommunicatio's price will be affected by overall stock market movements and cannot be diversified away. So, no matter how many positions you have, you cannot eliminate market risk. However, you can measure a Comtech stock's historical response to market movements and buy it if you are comfortable with its volatility direction. Beta and standard deviation are two commonly used measures to help you make the right decision.
α
Alpha over Dow Jones
1.28
β
Beta against Dow Jones0.82
σ
Overall volatility
12.88
Ir
Information ratio 0.10

Comtech Telecommunicatio Volatility Alert

Comtech Telecommunications Corp is displaying above-average volatility over the selected time horizon. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Comtech Telecommunicatio's stock risk against market volatility during both bullish and bearish trends. The higher level of volatility that comes with bear markets can directly impact Comtech Telecommunicatio's stock price while adding stress to investors as they watch their shares' value plummet. This usually forces investors to rebalance their portfolios by buying different financial instruments as prices fall.

Comtech Telecommunicatio Fundamentals Vs Peers

Comparing Comtech Telecommunicatio's fundamentals to the average values of its peers is one of the most widely used and accepted methods of equity analyses. It helps to analyze Comtech Telecommunicatio's direct or indirect competition across all of the common fundamentals between Comtech Telecommunicatio and the related equities. This way, we can detect undervalued stocks with similar characteristics as Comtech Telecommunicatio or determine the stocks which would be an excellent addition to an existing portfolio. Peer analysis of Comtech Telecommunicatio's fundamental indicators could also be used in its relative valuation, which is a method of valuing Comtech Telecommunicatio by comparing valuation metrics with those of similar companies.
    
 Better Than Average     
    
 Worse Than Average Compare Comtech Telecommunicatio to competition
FundamentalsComtech TelecommunicatioPeer Average
Return On Equity-0.0226-0.31
Return On Asset0.0103-0.14
Profit Margin(0.02) %(1.27) %
Operating Margin0.02 %(5.51) %
Current Valuation430.94 M16.62 B
Shares Outstanding28.49 M571.82 M
Shares Owned By Insiders4.68 %10.09 %
Shares Owned By Institutions71.39 %39.21 %
Number Of Shares Shorted2.99 M4.71 M
Price To Earning328.11 X28.72 X
Price To Book0.16 X9.51 X
Price To Sales0.12 X11.42 X
Revenue549.99 M9.43 B
Gross Profit184.46 M27.38 B
EBITDA27.75 M3.9 B
Net Income(26.9 M)570.98 M
Cash And Equivalents21.65 M2.7 B
Cash Per Share0.78 X5.01 X
Total Debt214.81 M5.32 B
Debt To Equity0.32 %48.70 %
Current Ratio1.36 X2.16 X
Book Value Per Share14.26 X1.93 K
Cash Flow From Operations(4.43 M)971.22 M
Short Ratio0.56 X4.00 X
Earnings Per Share(1.40) X3.12 X
Price To Earnings To Growth0.34 X4.89 X
Target Price9.25
Number Of Employees1.72 K18.84 K
Beta1.57-0.15
Market Capitalization87.19 M19.03 B
Total Asset996.24 M29.47 B
Retained Earnings238.91 M9.33 B
Working Capital93.52 M1.48 B
Note: Disposition of 904 shares by Donald Walther of Comtech Telecommunicatio at 2.05 subject to Rule 16b-3 [view details]

Comtech Telecommunicatio Market Momentum

Traders often use several daily momentume indicators to supplement a more traditional technical analysis when analyzing securities such as Comtech . With many different options, investors must choose the best indicators for them and familiarize themselves with how they work. We suggest combining traditional momentum indicators with more near-term forms of technical analysis such as Accumulation Distribution or Daily Balance Of Power. With their quantitative nature, daily value technical indicators can also be incorporated into your automated trading systems.

About Comtech Telecommunicatio Buy or Sell Advice

When is the right time to buy or sell Comtech Telecommunications Corp? Buying financial instruments such as Comtech Stock isn't very hard. However, what challenging for most investors is doing it at the right time to beat the market. Proper market timing is something most people cannot do without sophisticated tools, which help to isolate the right opportunities. Macroaxis provides hands-on modules to deliver winning trades and diversify your portfolios on a daily basis. Most of our advising modules are very easy to use and apply.
Please read more on our stock advisor page.
 2021 2022 2023 2024 (projected)
Interest Expense5.0M16.2M18.6M19.5M
Depreciation And Amortization21.4M33.3M38.3M40.2M

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Additional Information and Resources on Investing in Comtech Stock

When determining whether Comtech Telecommunicatio is a strong investment it is important to analyze Comtech Telecommunicatio's competitive position within its industry, examining market share, product or service uniqueness, and competitive advantages. Beyond financials and market position, potential investors should also consider broader economic conditions, industry trends, and any regulatory or geopolitical factors that may impact Comtech Telecommunicatio's future performance. For an informed investment choice regarding Comtech Stock, refer to the following important reports:
Check out Comtech Telecommunicatio Analyst Recommendation to compare Macroaxis Buy or Sell Recommendation with the current analyst consensus. To check ratings for multiple equity instruments, please use the Instant Ratings tool.
You can also try the Watchlist Optimization module to optimize watchlists to build efficient portfolios or rebalance existing positions based on the mean-variance optimization algorithm.
Is Communications Equipment space expected to grow? Or is there an opportunity to expand the business' product line in the future? Factors like these will boost the valuation of Comtech Telecommunicatio. If investors know Comtech will grow in the future, the company's valuation will be higher. The financial industry is built on trying to define current growth potential and future valuation accurately. All the valuation information about Comtech Telecommunicatio listed above have to be considered, but the key to understanding future value is determining which factors weigh more heavily than others.
Quarterly Earnings Growth
5.87
Earnings Share
(1.40)
Revenue Per Share
19.683
Quarterly Revenue Growth
(0.06)
Return On Assets
0.0103
The market value of Comtech Telecommunicatio is measured differently than its book value, which is the value of Comtech that is recorded on the company's balance sheet. Investors also form their own opinion of Comtech Telecommunicatio's value that differs from its market value or its book value, called intrinsic value, which is Comtech Telecommunicatio's true underlying value. Investors use various methods to calculate intrinsic value and buy a stock when its market value falls below its intrinsic value. Because Comtech Telecommunicatio's market value can be influenced by many factors that don't directly affect Comtech Telecommunicatio's underlying business (such as a pandemic or basic market pessimism), market value can vary widely from intrinsic value.
Please note, there is a significant difference between Comtech Telecommunicatio's value and its price as these two are different measures arrived at by different means. Investors typically determine if Comtech Telecommunicatio is a good investment by looking at such factors as earnings, sales, fundamental and technical indicators, competition as well as analyst projections. However, Comtech Telecommunicatio's price is the amount at which it trades on the open market and represents the number that a seller and buyer find agreeable to each party.