📊 CMTL Key Takeaways
Investment Thesis
Comtech Telecommunications faces significant operational challenges with negative operating income and net losses despite maintaining adequate liquidity. Revenue decline of 7.6% YoY combined with negative profitability metrics and deteriorating ROE/ROA indicate fundamental business stress, though positive free cash flow and reasonable current ratio suggest the company is not in immediate distress.
CMTL Strengths
- Positive operating cash flow of $12.9M demonstrates underlying cash generation capability
- Adequate liquidity with current ratio of 1.69x and $32.8M cash position
- Gross margin of 33.5% indicates reasonable product/service pricing power despite operational challenges
CMTL Risks
- Operating losses (-$4.0M, -1.8% margin) with negative net income of -$29.5M and deteriorating EPS (-47.9% YoY)
- High leverage with Debt/Equity ratio of 1.64x and negative interest coverage ratio suggesting debt service concerns
- Revenue contraction of 7.6% YoY combined with negative ROE (-45.0%) and ROA (-4.2%) indicating shareholder value destruction
Key Metrics to Watch
- Operating income trend - critical to achieving profitability and positive ROIC
- Revenue stabilization - current 7.6% decline must reverse to demonstrate business viability
- Debt/Equity reduction progress - current 1.64x leverage limits financial flexibility
CMTL Financial Metrics
💡 AI Analyst Insight
The relatively thin 2.4% FCF margin may limit capital allocation flexibility.
CMTL Profitability Ratios
CMTL vs Default Sector
How COMTECH TELECOMMUNICATIONS CORP /DE/ compares to Default sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
CMTL Balance Sheet & Liquidity
CMTL 5-Year Financial Trend
5-Year Trend Summary: COMTECH TELECOMMUNICATIONS CORP /DE/'s revenue has declined by 18% over the 5-year period, indicating business contraction. The most recent EPS of $-1.21 indicates the company is currently unprofitable.
CMTL Growth Metrics (YoY)
CMTL Quarterly Performance
| Quarter | Revenue | Net Income | EPS |
|---|---|---|---|
| Q2 2026 | $106.8M | -$13.6M | $-0.68 |
| Q1 2026 | $111.0M | -$15.9M | $-0.67 |
| Q3 2025 | $126.8M | $2.8M | $-0.04 |
| Q2 2025 | $126.6M | -$10.6M | $-0.76 |
| Q1 2025 | $115.8M | -$1.4M | $-0.11 |
| Q3 2024 | $128.1M | $2.8M | $-0.04 |
| Q1 2024 | $131.1M | -$1.4M | $-0.11 |
| Q3 2023 | $122.1M | -$25.0K | $-0.06 |
Data sourced from SEC EDGAR 10-Q quarterly filings. Figures may represent quarterly or cumulative values.
CMTL Capital Allocation
CMTL SEC Filings
Access official SEC EDGAR filings for COMTECH TELECOMMUNICATIONS CORP /DE/ (CIK: 0000023197)
📋 Recent SEC Filings
❓ Frequently Asked Questions about CMTL
What is the AI rating for CMTL?
COMTECH TELECOMMUNICATIONS CORP /DE/ (CMTL) has an AI rating of SELL with 85% confidence, based on fundamental analysis of SEC EDGAR filings.
What are CMTL's key strengths?
Positive operating cash flow of $12.9M demonstrates underlying cash generation capability. Adequate liquidity with current ratio of 1.69x and $32.8M cash position.
What are the risks of investing in CMTL?
Operating losses (-$4.0M, -1.8% margin) with negative net income of -$29.5M and deteriorating EPS (-47.9% YoY). High leverage with Debt/Equity ratio of 1.64x and negative interest coverage ratio suggesting debt service concerns.
What is CMTL's revenue and growth?
COMTECH TELECOMMUNICATIONS CORP /DE/ reported revenue of $217.8M.
Does CMTL pay dividends?
COMTECH TELECOMMUNICATIONS CORP /DE/ pays dividends, with $0.0M distributed to shareholders in the trailing twelve months.
Where can I find CMTL SEC filings?
Official SEC filings for COMTECH TELECOMMUNICATIONS CORP /DE/ (CIK: 0000023197) including 10-K, 10-Q, and 8-K reports are available on SEC EDGAR.
What is CMTL's EPS?
COMTECH TELECOMMUNICATIONS CORP /DE/ has a diluted EPS of $-1.34.
How is the AI analysis conducted?
Our AI (Claude) analyzes publicly available SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports to evaluate financial health, profitability ratios, balance sheet strength, and growth metrics.