JCS Commun stock Story

JCS -  USA Stock  

USD 6.71  0.16  2.33%

Whilst many millenniums are getting more into technology space, it makes sense to sum up Communications Systems. Why are we still confident in anticipation of a complete recovery. What is the firm valuation so far in 2020? We are going to cover Communications Systems perspective on valuation to give investors a better transparency on taking a position in it.
Published over six months ago
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Our prognosis on Communications Systems (NASDAQ:JCS) to bounce back in December
The company has 494.3 K in debt with debt to equity (D/E) ratio of 0.01, which may show that Communications Systems is not taking advantage of profits from borrowing. The firm shows a Beta (market volatility) of -0.4227, which signifies possible diversification benefits within a given portfolio. Let's try to break down what Communications's beta means in this case. As returns on the market increase, returns on owning Communications Systems are expected to decrease at a much lower rate. During the bear market, Communications Systems is likely to outperform the market. Even though it is essential to pay attention to Communications Systems 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. Communications Systems exposes twenty-one different technical indicators, which can help you to evaluate its performance. Communications Systems has an expected return of -0.29%. Please be advised to confirm Communications Systems coefficient of variation, treynor ratio, as well as the relationship between the Treynor Ratio and semi variance to decide if Communications Systems stock performance from the past will be repeated at some point in the near future.
We determine the current worth of Commun Systems 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 Commun Systems based exclusively on its fundamental and basic technical indicators. By analyzing Commun Systems'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 Commun Systems'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 Commun Systems. We calculate exposure to Commun Systems's market risk, different technical and fundamental indicators, relevant financial multiples and ratios, and then comparing them to Commun Systems's related companies.

Commun Systems Investment Alerts

JCS Commun 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 Commun Systems performance across your portfolios.Please check all investment alerts for JCS Commun

Commun Systems Valuation Ratios as Compared to Competition

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

How JCS Commun utilizes its cash?

To perform a cash flow analysis of Commun Systems, investors first need to understand how to read the cash flow statement. A cash flow statement shows the amount of cash Commun Systems is receiving and how much cash it distributes out in a given period. The Commun Systems cash flow statement breaks down these inflows and outflows into different buckets, including operating activities, investing activities, and financing activities.
Commun Systems Net Cash Flow from Operations is relatively stable at the moment as compared to the past year. Commun Systems reported last year Net Cash Flow from Operations of (4.68 Million)

Is Commun Systems valued sensibly by the market?

Communications Systems reported the last year's revenue of 47.78 M. Reported Net Loss for the year was (82.67 K) with profit before taxes, overhead, and interest of 22.19 M.
 2013 2014 2019 2020 (projected)
Long Term Debt to Equity0.0070840.0012040.0013850.001421
Interest Coverage10.941.2447.4353.23

Margins Breakdown

Communications profit margins show the degree to which it makes money. Margin indicators are used not only by investors but also by creditors or Communications Systems itself as indicators of financial health and management effectiveness. Please look more closely at the different varieties of Communications Systems profit margins.
Profit Margin
Operating Margin(5.29)
EBITDA Margin0.16
Gross Margin0.38
Profit Margin0.14

Communications Systems Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. The previous year's value of Communications Systems Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 8,119,097. Further, Communications Systems Revenue Per Employee is increasing over the last 8 years. The latest value of Communications Systems Revenue Per Employee is 287,905. Communications Systems Earnings Before Interest Taxes and Depreciation Amortization EBITDA is decreasing over the last 8 years. The previous year's value of Communications Systems Earnings Before Interest Taxes and Depreciation Amortization EBITDA was 8,119,097. Further, Communications Systems Revenue Per Employee is increasing over the last 8 years.

Will Communications price fall impact its balance sheet?

Latest variance is at 8.4. Communications Systems exhibits very low volatility with skewness of 0.02 and kurtosis of 0.03. However, we advise investors to further study Communications Systems technical indicators to make sure all market info is available and is reliable.

The Bottom Line

While some firms in the communication equipment industry are either recovering or due for a correction, Communications may not be as strong as the others in terms of longer-term growth potentials. With an impartial outlook on the current market volatility, it may be better to hold off any inventment activity and neither buy nor quit any shares of Communications Systems at this time. The Communications Systems risk-reward trade off is not appealing enough to do any trading. 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 Communications Systems.

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 Vlad Skutelnik do not own shares of Commun Systems. Please refer to our Terms of Use for any information regarding our disclosure principles.

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