Comtech Beneish M Score

Stocks . USA . 
Stock . Comtech Telecommunications Corp
CMTL Stock  USD 12.19  0.33  2.64%   
This module uses fundamental data of Comtech Telecommunicatio to approximate the value of its Beneish M Score. Comtech Telecommunicatio M Score tells investors if the company management is likely to be manipulating earnings. The score is calculated using eight financial indicators that are adjusted by a specific multiplier. Please note, the M Score is a probabilistic model and cannot detect companies that manipulate their earnings with 100% accuracy. Check out Comtech Telecommunicatio Piotroski F Score and Comtech Telecommunicatio Altman Z Score analysis. For more information on how to buy Comtech Stock please use our How to buy in Comtech Stock guide.
  
Comtech Telecommunicatio Total Debt is quite stable at the moment as compared to the past year. The company's current value of Total Debt is estimated at 171.06 Million. Debt Current is expected to rise to about 8 M this year, although the value of Issuance Repayment of Debt Securities will most likely fall to (84 M). Comtech Telecommunicatio Inventory Turnover is quite stable at the moment as compared to the past year. The company's current value of Inventory Turnover is estimated at 3.43. Accounts Payable Turnover is expected to rise to 13.04 this year, although the value of Return on Investment will most likely fall to (5.67) .
At this time, it appears that Comtech Telecommunicatio is an unlikely manipulator. The earnings manipulation may begin if Comtech Telecommunicatio's top management creates an artificial sense of financial success, forcing the stock price to be traded at a high price-earnings multiple than it should be. In general, excessive earnings management by Comtech Telecommunicatio executives may lead to removing some of the operating profits from subsequent periods to inflate earnings in the following periods. This way, the manipulation of Comtech Telecommunicatio's earnings can lead to misrepresentations of actual financial condition, taking the otherwise loyal stakeholders on to the path of questionable ethical practices and plain fraud.
-3.03
Beneish M Score - Unlikely Manipulator
Elasticity of Receivables0.95Focus
Asset QualityN/AFocus
Expense Coverage0.93Focus
Gross Margin Strengs1.03Focus
Accruals Factor0.93Focus
Depreciation Resistance1.05Focus
Net Sales Growth1.02Focus
Financial Leverage Condition1.02Focus

Comtech Telecommunicatio Beneish M-Score Indicator Trends

The cure to earnings manipulation is the transparency of financial reporting. It will typically remove the temptation of the top executives to inflate earnings (i.e., to promote the idea of 'winning at any cost'). Because a healthy internal audit department can enhance transparency, the board should promote the auditors' access to all the record-keeping systems across the enterprise. For example, if Comtech Telecommunicatio's auditors report directly to the board (not management), the managers will be reluctant to manipulate simply due to the fear of punishment. On the other hand, the auditors will be free to investigate the ledgers properly because they know that the board has their back.
Current ValueLast YearChange From Last Year 10 Year Trend
Selling General and Administrative Expense126.2 M132.1 M
Sufficiently Down
Up
Slightly volatile
Revenues572.6 M559.2 M
Fairly Up
Up
Slightly volatile
Trade and Non Trade Receivables138.4 M142.3 M
Fairly Down
Up
Slightly volatile
Property Plant and Equipment Net124.2 M115.1 M
Significantly Up
Up
Slightly volatile
Operating Income(31.2 M)(30.4 M)
Fairly Down
Down
Slightly volatile
Net Cash Flow from Operations1.8 M1.8 M
Fairly Up
Down
Slightly volatile
Liabilities Non Current221.8 M240.4 M
Significantly Down
Up
Slightly volatile
Current Liabilities205.4 M222.5 M
Significantly Down
Up
Slightly volatile
Total Liabilities427.2 M462.9 M
Significantly Down
Up
Slightly volatile
Gross Margin0.340.33
Fairly Up
Down
Slightly volatile
Depreciation Amortization and Accretion12.1 M11.9 M
Fairly Up
Up
Slightly volatile
Debt Non Current162.9 M157 M
Sufficiently Up
Down
Slightly volatile
Debt Current8 M7.8 M
Fairly Up
Down
Slightly volatile
Total Debt171.1 M164.8 M
Sufficiently Up
Down
Slightly volatile
Assets Non Current704.1 M817.6 M
Fairly Down
Up
Slightly volatile
Current Assets259.9 M237 M
Significantly Up
Down
Slightly volatile
Total Assets1 B1.1 B
Notably Down
Up
Slightly volatile

Comtech Telecommunicatio Beneish M-Score Driver Matrix

One of the toughest challenges investors face today is learning how to quickly synthesize historical financial statements and information provided by the company, SEC reporting, and various external parties in order to detect the potential manipulation of earnings. Understanding the correlation between Comtech Telecommunicatio's different financial indicators related to revenue, expenses, operating profit, and net earnings helps investors identify and prioritize their investing strategies towards Comtech Telecommunicatio in a much-optimized way. Analyzing correlations between earnings drivers directly associated with dollar figures is the most effective way to find Comtech Telecommunicatio's degree of accounting gimmicks and manipulations.
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About Comtech Telecommunicatio Beneish M Score

M-Score is one of many grading techniques for value stocks. It was developed by Professor M. Daniel Beneish of the Kelley School of Business at Indiana University and published in 1999 under the paper titled The Detection of Earnings Manipulation. The Beneish score is a multi-factor model that utilizes financial identifiers to compile eight variables used to classify whether a company has manipulated its reported earnings. The variables are built from the officially filed financial statements to create a final score call 'M Score.' The score helps to identify companies that are likely to manipulate their profits if they show deteriorating gross margins, operating expenses, and leverage against growing revenue.

Depreciation Amortization and Accretion

12.1 Million

Comtech Telecommunicatio Depreciation Amortization and Accretion is quite stable at the moment as compared to the past year. The company's current value of Depreciation Amortization and Accretion is estimated at 12.1 Million

Comtech Telecommunicatio Earnings Manipulation Drivers

Although earnings manipulation is typically not the result of intentional misconduct by the c-level executives, it is still a widespread practice by the senior management of public companies such as Comtech Telecommunicatio. It is usually done by a series of misrepresentations of various accounting rules and operating activities across multiple financial cycles. The best way to spot the manipulation is to examine the historical financial statement to find inconsistencies in earning reports to find trends in assets or liabilities that are not sustainable in the future.
201820192020202120222023 (projected)
Revenues671.8 M616.72 M581.7 M486.24 M559.17 M572.6 M
Total Assets887.71 M929.65 M993.11 M974.3 M1.12 B1.05 B
Current Assets280.31 M277.1 M287.5 M263.33 M237 M259.89 M
Assets Non Current607.4 M652.55 M705.62 M710.97 M817.61 M704.09 M
Total Liabilities352.63 M380.35 M492.39 M402.51 M462.88 M427.18 M
Current Liabilities145.35 M159.71 M203.56 M193.46 M222.48 M205.41 M
Total Debt165.76 M181.86 M249.41 M183.11 M164.8 M171.06 M
Debt Current757 K8.25 M8.84 M8.69 M7.82 M8.02 M
Debt Non Current165 M173.61 M240.57 M174.42 M156.98 M162.86 M
Operating Income41.41 M15.17 M(68.3 M)(33.75 M)(30.38 M)(31.18 M)

About Comtech Telecommunicatio Fundamental Analysis

The Macroaxis Fundamental Analysis modules help investors analyze Comtech Telecommunications Corp's financials across various querterly and yearly statements, indicators and fundamental ratios. We help investors to determine the real value of Comtech Telecommunicatio using virtually all public information available. We use both quantitative as well as qualitative analysis to arrive at the intrinsic value of Comtech Telecommunications Corp based on its fundamental data. In general, a quantitative approach, as applied to this company, focuses on analyzing financial statements comparatively, whereas a qaualitative method uses data that is important to a company's growth but cannot be measured and presented in a numerical way.
Please read more on our fundamental analysis page.
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. Comtech Telecommunications Corp. was founded in 1967 and is headquartered in Melville, New York. Comtech Telecom operates under Communication Equipment classification in the United States and is traded on NASDAQ Exchange. It employs 1993 people.

Comtech Telecommunicatio Investors Sentiment

The influence of Comtech Telecommunicatio's investor sentiment on the probability of its price appreciation or decline could be a good factor in your decision-making process regarding taking a position in Comtech. The overall investor sentiment generally increases the direction of a stock movement in a one-year investment horizon. However, the impact of investor sentiment on the entire stock markets does not have a solid backing from leading economists and market statisticians.
Investor biases related to Comtech Telecommunicatio's public news can be used to forecast risks associated with investment in Comtech. The trend in average sentiment can be used to explain how an investor holding Comtech can time the market purely based on public headlines and social activities around Comtech Telecommunications Corp. Please note that most equiteis that are difficult to arbitrage are affected by market sentiment the most.
Comtech Telecommunicatio's market sentiment shows the aggregated news analyzed to detect positive and negative mentions from the text and comments. The data is normalized to provide daily scores for Comtech Telecommunicatio's and other traded tickers. The bigger the bubble, the more accurate is the estimated score. Higher bars for a given day show more participation in the average Comtech Telecommunicatio's news discussions. The higher the estimated score, the more favorable is the investor's outlook on Comtech Telecommunicatio.

Comtech Telecommunicatio Implied Volatility

    
  52.34  
Comtech Telecommunicatio's implied volatility exposes the market's sentiment of Comtech Telecommunications Corp stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Comtech Telecommunicatio's implied volatility is high, the market thinks the stock has potential for high price swings in either direction. On the other hand, the low implied volatility suggests that Comtech Telecommunicatio stock will not fluctuate a lot when Comtech Telecommunicatio's options are near their expiration.
Some investors attempt to determine whether the market's mood is bullish or bearish by monitoring changes in market sentiment. Unlike more traditional methods such as technical analysis, investor sentiment usually refers to the aggregate attitude towards Comtech Telecommunicatio in the overall investment community. So, suppose investors can accurately measure the market's sentiment. In that case, they can use it for their benefit. For example, some tools to gauge market sentiment could be utilized using contrarian indexes, Comtech Telecommunicatio's short interest history, or implied volatility extrapolated from Comtech Telecommunicatio options trading.

Pair Trading with Comtech Telecommunicatio

One of the main advantages of trading using pair correlations is that every trade hedges away some risk. Because there are two separate transactions required, even if Comtech Telecommunicatio position performs unexpectedly, the other equity can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Comtech Telecommunicatio will appreciate offsetting losses from the drop in the long position's value.

Moving together with Comtech Telecommunicatio

+0.72FKWLFranklin Wireless Corp Fiscal Quarter End 31st of March 2023 PairCorr
The ability to find closely correlated positions to Comtech Telecommunicatio could be a great tool in your tax-loss harvesting strategies, allowing investors a quick way to find a similar-enough asset to replace Comtech Telecommunicatio when you sell it. If you don't do this, your portfolio allocation will be skewed against your target asset allocation. So, investors can't just sell and buy back Comtech Telecommunicatio - that would be a violation of the tax code under the "wash sale" rule, and this is why you need to find a similar enough asset and use the proceeds from selling Comtech Telecommunications Corp to buy it.
The correlation of Comtech Telecommunicatio is a statistical measure of how it moves in relation to other equities. This measure is expressed in what is known as the correlation coefficient, which ranges between -1 and +1. A perfect positive correlation (i.e., a correlation coefficient of +1) implies that as Comtech Telecommunicatio moves, either up or down, the other security will move in the same direction. Alternatively, perfect negative correlation means that if Comtech Telecommunicatio moves in either direction, the perfectly negatively correlated security will move in the opposite direction. If the correlation is 0, the equities are not correlated; they are entirely random. A correlation greater than 0.8 is generally described as strong, whereas a correlation less than 0.5 is generally considered weak.
Correlation analysis and pair trading evaluation for Comtech Telecommunicatio can also be used as hedging techniques within a particular sector or industry or even over random equities to generate a better risk-adjusted return on your portfolios.
Pair CorrelationCorrelation Matching
Check out Comtech Telecommunicatio Piotroski F Score and Comtech Telecommunicatio Altman Z Score analysis. For more information on how to buy Comtech Stock please use our How to buy in Comtech Stock guide. You can also try Portfolio Holdings module to check your current holdings and cash postion to detemine if your portfolio needs rebalancing.

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Is Comtech Telecommunicatio's industry 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
Dividend Share
0.4
Earnings Share
(1.01) 
Revenue Per Share
18.877
Quarterly Revenue Growth
0.111
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.
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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 Comtech Telecommunicatio value 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.


 
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