Comtech Story

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CMTL -- USA Stock  

USD 16.22  0.09  0.55%

Today we may see the proof that Knowles would recover much slower from the latest slide as its shares went up 4.05% to Comtech Telecommunicatio's 9.6847%. As many rational traders are trying to avoid technology space, it makes sense to summarize Comtech Telecommunications Corp a little further and understand how it stands against Knowles and other similar entities. We are going to summarize some of the competitive aspects of both Comtech and Knowles.
Published over three weeks ago
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Is Knowles more volatile than Comtech Telecommunications Corp (NASDAQ:CMTL)?
By analyzing existing technical and fundamental indicators between Comtech Telecommunicatio and Knowles, you can compare the effects of market volatilities on both companies' prices and check if they can diversify away market risk if combined in one of your portfolios. You can also utilize pair trading strategies for matching a long position in Knowles with a short position in Comtech Telecommunicatio. Check out our pair correlation module for more information.

Let's begin by analyzing the assets. The asset utilization indicator refers to the revenue earned for every dollar of assets a company currently reports. Comtech Telecommunicatio has an asset utilization ratio of 69.85 percent. This denotes that the company is making $0.7 for each dollar of assets. An increasing asset utilization means that Comtech Telecommunications Corp is more efficient with each dollar of assets it utilizes for everyday operations.
Out of tens of thousands of stocks, funds, and ETFs that trade on global exchanges each represent an individual company which you can analyze using comparative analysis. To determine which one of the two companies, such as Comtech or Knowles is a better fit for your portfolio, analyzing a few basic fundamental indicators is a good first step.

UNDERSTANDING Comtech Telecommunicatio dividends

A dividend is the distribution of a portion of Comtech Telecommunicatio earnings, decided and managed by the company's board of directors and paid to a class of its shareholders. Note, announcements of dividend payouts are generally accompanied by a proportional increase or decrease in a company's stock price. Comtech Telecommunicatio dividend payments follow a chronological order of events, and the associated dates are important to determine the shareholders who qualify for receiving the dividend payment. Comtech one year expected dividend income is about $0.23 per share.
Comtech Telecommunicatio Dividend Yield is relatively stable at the moment as compared to the past year. The company's current value of Dividend Yield is estimated at 0.0282. Dividends per Basic Common Share is expected to hike to 0.55 this year, although the value of Payment of Dividends and Other Cash Distributions will most likely fall to (10.8 M).
Last ReportedProjected for 2020
Payment of Dividends and Other Cash Distributions-10 M-10.8 M
Dividend Yield 0.024  0.0282 
Dividends per Basic Common Share 0.36  0.55 
Investing in dividend-paying stocks, such as Comtech Telecommunications Corp is one of the few strategies that are good for long-term investment. Ex-dividend dates are significant because investors in Comtech Telecommunicatio must own a stock before its ex-dividend date to receive its next dividend. This type of analysis is very useful when you want to generate a past dividend schedule and payout information for Comtech Telecommunicatio. Then that information in the form of graph and calendar can be used to fully explain how Du Pont dividends can provide a real clue to its valuation.

How important is Comtech Telecommunicatio's Liquidity

Comtech Telecommunicatio financial leverage refers to using borrowed capital as a funding source to finance Comtech Telecommunications Corp ongoing operations. It is usually used to expand the firm's asset base and generate returns on borrowed capital. Comtech Telecommunicatio financial leverage is typically calculated by taking the company's all interest-bearing debt and dividing it by total capital. So the higher the debt-to-capital ratio (i.e., financial leverage), the riskier the company. Please check the breakdown between Comtech Telecommunicatio's total debt and its cash.

Correlation Between Comtech and Knowles

In general, stock analysis is a method for investors and traders to make individual buying and selling decisions. Stock correlation analysis is also essential because it can help investors realize that they may not be as diversified as they think. Risk management strategies are usually required to make sure all portfolios are properly aligned against their risk tolerance level. You can consider holding Comtech Telecommunicatio together with similar or unrelated positions with a negative correlation. For example, you can also add Knowles to your portfolio. If Knowles is not perfectly correlated to Comtech Telecommunicatio it will diversify some of the market risks out of the positively correlated stocks in your portfolio. However, the disadvantage of this sort of hedging is that it can potentially affect your investment returns throughout market cycles. When Comtech Telecommunicatio for example, for example, performs excellent and delivers stable returns, the negatively correlated position you locked in as a hedge may drag your returns down. Please check pair correlation details between CMTL and KN for more information.

What is driving Comtech Telecommunicatio Investor Appetite?

Revenue is income that a firm generates from business activities such us rendering services or selling goods to customers. It is a crucial part of a business and an essential item when evaluating a company's financial statements. Revenues from a firm's primary business operations can be reported on the income statement as sales revenue, net sales, or simply sales, depending on the industry in which a given company operates.
Revenue is typically recorded when cash or cash equivalents are exchanged for services or goods and can include product or services discounts, promotions, as well as early payments on invoices or services rendered in advance.

Revenue Breakdown

Let me now analyze Comtech Telecommunicatio revenue. Based on the latest financial disclosure, Comtech Telecommunications Corp reported 643.41 M of revenue. This is 84.21% lower than that of the Technology sector and 86.86% lower than that of the Communication Equipment industry. The revenue for all United States stocks is 93.18% higher than that of Comtech Telecommunicatio. As for Knowles we see revenue of 785.1 M, which is 83.97% lower than that of the Communication Equipment

Sector
4.1 B
CMTL643.41 Million11.69
Sector4.08 Billion74.05
KN785.1 Million14.26

Another 3 percent hike for Comtech Telecommunicatio

New skewness is at 0.6. As of the 25th of September, Comtech Telecommunicatio shows the mean deviation of 2.03, and Risk Adjusted Performance of (0.07). Comtech Telecommunicatio technical analysis gives you the methodology to make use of historical prices and volume patterns to determine a pattern that approximates the direction of the firm's future prices. Put another way, you can use this information to find out if the firm will indeed mirror its model of historical prices and volume momentum, or the prices will eventually revert. We were able to analyze and collect data for nineteen technical drivers for Comtech Telecommunications Corp, which can be compared to its rivals. Please confirm Comtech Telecommunicatio downside deviation, jensen alpha, as well as the relationship between the Jensen Alpha and downside variance to decide if Comtech Telecommunicatio is priced correctly, providing market reflects its regular price of 14.61 per share. Given that Comtech Telecommunicatio has jensen alpha of (0.17), we suggest you to validate Comtech Telecommunications Corp's prevailing market performance to make sure the company can sustain itself at a future point.

Our Bottom Line On Comtech Telecommunicatio

While some firms in the communication equipment industry are either recovering or due for a correction, Comtech may not be as strong as the others in terms of longer-term growth potentials. To sum up, as of the 25th of September 2020, we believe that at this point, Comtech Telecommunicatio is undervalued with below average chance of bankruptcy within the next 2 years. However, our latest buy-or-sell advice on the company is Strong Sell.

About Contributor

This story should be regarded as informational only and should not be considered a solicitation to sell or buy any financial products. Macroaxis does not express any opinion as to the present or future value of any investments referred to in this post. This post may not be reproduced without the consent of Macroaxis LLC. Macroaxis LLC and Raphi Shpitalnik do not own shares of Comtech Telecommunications Corp. Please refer to our Terms of Use for any information regarding our disclosure principles.

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