Comtech Stock Story

CMTL
 Stock
  

USD 11.86  0.16  1.37%   

As many baby boomers are still indifferent towards technology space, it makes sense to summarize Comtech Telecom. We will check why this entity may not get much respect from stakeholders given the current market uncertainty. Is the firm current valuation justified? We will cover Comtech Telecom valuation to give you a better outlook on taking a position in the stock.
Published over a month ago
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Is Comtech Telecom outlook positive for July 2022?

Comtech Telecom currently holds 172.93 M in liabilities with Debt to Equity (D/E) ratio of 0.3, which may suggest Comtech Telecom is not taking enough advantage from borrowing. The entity has a current ratio of 1.25, suggesting that it is in a questionable position to pay out its financial obligations when due. Debt can assist Comtech Telecom until it has trouble settling it off, either with new capital or with free cash flow. So, Comtech Telecom's shareholders could walk away with nothing if the company can't fulfill its legal obligations to repay debt. However, a more frequent occurrence is when companies like Comtech Telecom sell additional shares at bargain prices, diluting existing shareholders. Debt, in this case, can be an excellent and much better tool for Comtech to invest in growth at high rates of return. When we think about Comtech Telecom's use of debt, we should always consider it together with cash and equity.
The firm shows a Beta (market volatility) of 0.9361, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Comtech's beta means in this case. Comtech Telecom returns are very sensitive to returns on the market. As the market goes up or down, Comtech Telecom is expected to follow. Even though it is essential to pay attention to Comtech Telecom historical returns, it is always good to be careful when utilizing equity current trending patterns. Our philosophy towards foreseeing any stock's future performance is to check both, its past performance charts as well as the business as a whole, including all available technical indicators. Comtech Telecom exposes twenty-eight different technical indicators, which can help you to evaluate its performance. Comtech Telecom has an expected return of -0.3%. Please be advised to confirm Comtech Telecom downside variance, and the relationship between the sortino ratio and accumulation distribution to decide if Comtech Telecom performance from the past will be repeated at some point in the near future.
We determine the current worth of Comtech Telecom using both absolute as well as relative valuation methodologies to arrive at its intrinsic value. In general, an absolute valuation paradigm, as applied to this company, attempts to find the value of Comtech Telecom based exclusively on its fundamental and basic technical indicators. By analyzing Comtech Telecom's financials, quarterly and monthly indicators, and related drivers such as dividends, operating cash flow, and various types of growth rates, we attempt to find the most accurate representation of Comtech Telecom's intrinsic value. In some cases, mostly for established, large-cap companies, we also incorporate more traditional valuation methods such as dividend discount, discounted cash flow, or asset-based models. As compared to an absolute model, our relative valuation model uses a comparative analysis of Comtech Telecom. We calculate exposure to Comtech Telecom's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Comtech Telecom's related companies.

Comtech Telecom Investment Alerts

Comtech investment alerts and warnings help investors to get more proficient at understanding not only critical technical and fundamental signals but also the significant portfolio-centered indicators. These indicators include beta, alpha, and other risk-related measures that will help you in monitoring Comtech Telecom performance across your portfolios.Please check all investment alerts for Comtech

Comtech Telecom Valuation Ratios as Compared to Competition

Our valuation model uses many indicators to compare Comtech value to that of its competitors to determine the firm's financial worth. You can analyze the relationship between different fundamental ratios across Comtech Telecom competition to find correlations between indicators driving the intrinsic value of Comtech.

How does Comtech utilize its cash?

To perform a cash flow analysis of Comtech Telecom, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Comtech Telecom is receiving and how much cash it distributes out in a given period. The Comtech Telecom cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Comtech Telecom Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. The company's current value of Net Cash Flow from Operations is estimated at (37.54 Million)

Detailed Perspective On Comtech Telecom

The firm reported the previous year's revenue of 522.32 M. Net Loss for the year was (26.58 M) with profit before overhead, payroll, taxes, and interest of 215 M.

Margins Breakdown

Comtech profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Comtech Telecom itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Comtech Telecom profit margins.
Operating Margin(13.86)
EBITDA Margin(0.0933)
Gross Margin0.37
Profit Margin(0.12)


Comtech Telecom Earnings Before Interest Taxes and Depreciation Amortization EBITDA is relatively stable at the moment. Further, Comtech Telecom Average Assets is increasing over the last 8 years.

Will Comtech Telecom continue to go bonkers?

New market risk adjusted performance is at -0.61. Comtech Telecom exhibits very low volatility with skewness of -2.09 and kurtosis of 9.2. However, we advise investors to further study Comtech Telecom technical indicators to make sure all market info is available and is reliable. Understanding different market volatility trends often help investors to time the market. Properly using volatility indicators enable traders to measure Comtech Telecom's stock risk against market volatility during both bullying and bearish trends. The higher level of volatility that comes with bear markets can directly impact Comtech Telecom'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 stocks as prices fall.

Comtech Telecom Implied Volatility

Comtech Telecom's implied volatility exposes the market's sentiment of Comtech Telecom stock's possible movements over time. However, it does not forecast the overall direction of its price. In a nutshell, if Comtech Telecom'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 Telecom stock will not fluctuate a lot when Comtech Telecom's options are near their expiration.

Our Bottom Line On Comtech Telecom

While other entities 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. With a somewhat neutral outlook on your 90 days horizon, it may be better to hold off any trading activity and neither take up new shares of Comtech nor sell your existing holdings in the Stock. It seems the expected volatility has not yet been fully factored into the current price. Please use our equity advice module to run different scenarios to ensure your current risk level and investment horizon are fully reflective of your current investing preferences in regards to Comtech Telecom.

Editorial Staff

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 Gabriel Shpitalnik do not own shares of Comtech Telecom. Please refer to our Terms of Use for any information regarding our disclosure principles.

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