Download PDF

1. Company Snapshot

1.a. Company Description

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.It operates in two segments, Commercial Solutions and Government Solutions.The Commercial Solutions segment offers satellite ground station technologies, including single channel per carrier and time division multiple access modems, amplifiers, frequency converters, and network software to modulate, demodulate, and amplify signals, as well as to carry voice, video, and/or data over networks; and public safety and location technologies, such as 911 call handling and mapping solutions that allow cellular carriers and voice over the Internet carriers to deliver emergency calls to public safety emergency call centers.


The Government Solutions segment provides tactical satellite-based networks, such as satellite modems, ruggedized routers, and solid-state drives; sustainment services for the secret Internet Protocol router and non-classified Internet Protocol router access point; and small aperture terminals.This segment also offers high-performance transmission technologies that are used in communication systems comprising electronic warfare, radar, and identification friend or foe (IFF); troposcatter technologies for satellite communication; and high-power radio frequency microwave amplifiers and related switching control technologies that are used in electronic warfare, communications, radar, IFF, and medical applications.The company serves satellite systems integrators, wireless and other communication service providers, satellite broadcasters, prime contractors and system suppliers, medical equipment companies, aviation industry system integrators, oil companies, and domestic and international defense and government customers, as well as end-customers.


Comtech Telecommunications Corp.was founded in 1967 and is headquartered in Melville, New York.

Show Full description

1.b. Last Insights on CMTL

Here is a 90-word analysis of the negative drivers behind Comtech Telecommunications Corp.'s recent stock performance: Comtech's Q1 loss of $1.27 per share, missing revenue estimates, and failure to file its Quarterly Report on Form 10-Q in a timely manner, led to a Nasdaq non-compliance notice. The company's former CEO, Ken Peterman, was also charged with insider trading, adding to the negative sentiment. Despite introducing a new Multipath Radio system and appointing a new independent director, David B. Kagan, to its Board, these positive developments were overshadowed by the company's poor earnings and regulatory issues.

1.c. Company Highlights

2. Comtech Telecommunications Corp's Strong Q1 FY2026 Earnings Show Transformation Progress

Comtech Telecommunications Corp reported a net sales figure of $111 million for the first quarter of fiscal 2026, with a gross profit of $36.8 million or 33.1% of net sales. This represents a significant increase of 153.3% from the first quarter of fiscal 2025. The company's operating loss narrowed to $2.8 million, compared to an operating loss of $129.2 million in the same period last year. Adjusted EBITDA was $9.6 million, and cash flows provided by operations were $8.1 million. The actual EPS loss came out at -$0.25, beating estimates of -$0.33.

Publication Date: Dec -25

📋 Highlights
  • Gross Profit Surge: Q1 GAAP gross profit of $36.8M (33.1% margin), up 153.3% YoY from $14.5M.
  • Operating Loss Reduction: Operating loss narrowed to $2.8M vs. $129.2M in Q1 FY2025.
  • Satellite Segment Turnaround: Generated $3M GAAP operating profit vs. $119M loss in the same period last year.
  • Allerium Segment Performance: Delivered $11.3M adjusted EBITDA and secured a $130M multiyear contract extension.
  • Liquidity and Cash Flow: $8.1M operating cash flow and $51M liquidity as of Q1, with $135M in credit facility borrowings.

Segment Performance

The Satellite and Space Communications segment contributed over $3 million of GAAP operating profit, a significant turnaround from the $119 million GAAP operating loss in the same period last year. The Allerium segment reported adjusted EBITDA of $11.3 million. The company's successful transformation is evident in the segmental performance, with the Satellite and Space Communications segment showing a notable improvement.

Contract Wins and Liquidity

The company secured several new contracts, including a $130 million multiyear contract extension with its largest customer. Comtech's liquidity stands at $51 million, and total outstanding borrowings under its credit facility were $135 million. The liquidation preference on its outstanding convertible preferred stock was $208.7 million.

Valuation and Outlook

With a P/S Ratio of 0.27 and an EV/EBITDA of 6.25, the market seems to be pricing in a moderate growth outlook for Comtech Telecommunications Corp. Analysts estimate next year's revenue growth at -4.9%. The company's focus on optimizing for cash flow and its successful transformation program are positive indicators. CEO Kenneth Traub's statement that the company is focused on "optimizing for cash flow" reinforces this analysis.

Return Metrics and Debt

The company's return metrics, such as ROIC (%) at -1.81 and ROE (%) at -8.21, indicate that Comtech is still in a challenging phase. However, the Net Debt / EBITDA ratio of 3.88 suggests that the company's debt burden is manageable. The Free Cash Flow Yield (%) of 9.26 is a positive indicator, suggesting that the company's cash flow generation is improving.

3. NewsRoom

Card image cap

Comtech Delivers First DCG-7000 High Speed / Small Form Factor Modems to Lite Coms for Industry Testing

14:00

Source: businesswire.com

Card image cap

Comtech Telecommunications (NASDAQ:CMTL) Shares Cross Above 200-Day Moving Average – Time to Sell?

Jan -21

Source: defenseworld.net

Card image cap

Comtech Receives Space Components Award Exceeding $5 Million to Support Critical Civil Space Program

Jan -20

Source: businesswire.com

Card image cap

Comtech Telecommunications (CMTL) Projected to Post Earnings on Monday

Jan -05

Source: defenseworld.net

Card image cap

Comtech Telecommunications: A Small-Cap Turnaround Ready To Launch

Dec -18

Source: seekingalpha.com

Card image cap

Comtech Telecommunications Corp. (CMTL) Q1 2026 Earnings Call Transcript

Dec -11

Source: seekingalpha.com

Card image cap

Comtech Appoints Mary Jane Raymond to its Board of Directors

Dec -11

Source: businesswire.com

Card image cap

Comtech Announces Financial Results for First Quarter of Fiscal 2026

Dec -11

Source: businesswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (4.62%)

6. Segments

Satellite and Space Communications

Expected Growth: 4.5%

Comtech Telecommunications Corp.'s Satellite and Space Communications segment growth is driven by increasing demand for secure and reliable satellite-based communication solutions, government investments in space-based technologies, and expansion into new markets such as satellite-enabled 5G networks and IoT applications.

Terrestrial and Wireless Networks

Expected Growth: 4.8%

Comtech Telecommunications Corp.'s Terrestrial and Wireless Networks segment growth of 4.8% is driven by increasing demand for satellite-based communication solutions, expansion in government and defense contracts, and growing adoption of 5G and IoT technologies. Additionally, strategic acquisitions and investments in network infrastructure have enhanced the company's capabilities, contributing to its growth momentum.

7. Detailed Products

Satellite Modems

Comtech's satellite modems provide high-speed data transmission and are designed for use in a variety of applications, including government, defense, and commercial satellite networks.

Radar and Troposcatter Systems

Comtech's radar and troposcatter systems provide advanced radar and communication systems for military and government applications.

Public Safety and Location Technologies

Comtech's public safety and location technologies provide emergency response systems, 911 call handling, and location-based services.

Cyber Security Solutions

Comtech's cyber security solutions provide advanced threat detection, incident response, and penetration testing services.

Network and Communication Systems

Comtech's network and communication systems provide advanced communication networks and infrastructure for government and commercial applications.

Troposcatter Systems

Comtech's troposcatter systems provide high-capacity, long-distance communication systems for military and government applications.

Satellite Earth Station Equipment

Comtech's satellite earth station equipment provides advanced satellite communication systems for government and commercial applications.

8. Comtech Telecommunications Corp.'s Porter Forces

Forces Ranking

Threat Of Substitutes

Comtech Telecommunications Corp. faces moderate threat from substitutes due to the availability of alternative communication technologies.

Bargaining Power Of Customers

Comtech Telecommunications Corp. has a diverse customer base, which reduces the bargaining power of individual customers.

Bargaining Power Of Suppliers

Comtech Telecommunications Corp. relies on a few key suppliers for critical components, giving them moderate bargaining power.

Threat Of New Entrants

The telecommunications industry has high barriers to entry, making it difficult for new entrants to compete with Comtech Telecommunications Corp.

Intensity Of Rivalry

The telecommunications industry is highly competitive, with many established players competing for market share, leading to a high intensity of rivalry.

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

Value
Debt Weight 28.07%
Debt Cost 8.64%
Equity Weight 71.93%
Equity Cost 11.72%
WACC 10.85%
Leverage 39.02%

11. Quality Control: Comtech Telecommunications Corp. passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Stock-Card
Sonim Technologies

A-Score: 5.0/10

Value: 10.0

Growth: 4.7

Quality: 5.1

Yield: 0.0

Momentum: 10.0

Volatility: 0.0

1-Year Total Return ->

View Full Report
Stock-Card
Akoustis Technologies

A-Score: 4.6/10

Value: 9.8

Growth: 4.8

Quality: 5.1

Yield: 0.0

Momentum: 1.0

Volatility: 6.7

1-Year Total Return ->

View Full Report
Stock-Card
Harmonic

A-Score: 4.3/10

Value: 5.7

Growth: 5.9

Quality: 7.2

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

1-Year Total Return ->

View Full Report
Stock-Card
Ondas

A-Score: 4.1/10

Value: 6.4

Growth: 4.8

Quality: 2.9

Yield: 0.0

Momentum: 10.0

Volatility: 0.3

1-Year Total Return ->

View Full Report
Stock-Card
Viasat

A-Score: 3.6/10

Value: 6.5

Growth: 2.0

Quality: 2.4

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

View Full Report
Stock-Card
Comtech

A-Score: 3.1/10

Value: 9.5

Growth: 0.8

Quality: 2.5

Yield: 1.0

Momentum: 4.0

Volatility: 1.0

1-Year Total Return ->

View Full Report

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

5.28$

Current Price

5.28$

Potential

-0.00%

Expected Cash-Flows