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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.

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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's Resilient Growth Amid Satellite Shift

Comtech Telecommunications Corp. delivered a mixed yet strategically positive Q2 fiscal 2026, with net sales falling to $106.8 million from $126.6 million year‑ago, while gross margin climbed to 33.9 % versus 26.7 % last year. Adjusted EBITDA surged to $9.1 million from $2.9 million, and EPS dipped to –$0.23 versus the consensus of –$0.30, reflecting a solid operational turnaround that supports a current P/E of 9.84 and a P/S of 0.25.

Publication Date: Apr -21

📋 Highlights
  • Book-to-Bill Ratio:: 1.64x, indicating strong order inflow versus sales in Q2 2026.
  • Gross Margin Expansion:: 33.9% of net sales ($36.2M), up from 26.7% ($33.7M) YoY, driven by margin discipline.
  • Adjusted EBITDA Surge:: $9.1M in Q2 2026, a 214% increase from $2.9M in the same period last year.
  • Allerium Performance:: Sales grew 6.2% to $56.2M with $5.5M operating income, outperforming other segments.
  • Liquidity Position:: $50M in total liquidity, with $49.9M in available sources, reflecting improved financial health.

Cash Flow & Liquidity

The company maintained a robust cash generation profile, recording fourth straight quarters of positive operating cash flow. Total liquidity topped $50 million, with $49.9 million in readily available sources and only $125 million of outstanding credit facility drawdown, underscoring a healthy net debt/EBITDA of –345,486.91 and a free‑cash‑flow yield near 12 %. This liquidity cushion positions Comtech to weather the U.S. government shutdown and invest in AI initiatives.

Book‑to‑Bill & Net Bookings

Book‑to‑bill reached 1.64x, evidencing strong demand. Net bookings hit $175.4 million, largely driven by a multi‑year extension from a major Tier 1 mobile operator through Allerium. Staff noted the “strategic shift away from low‑margin satellite revenue” helped concentrate high‑margin opportunities, reinforcing the company’s focus on scalable, cloud‑native services.

AI & Cloud Transition

Comtech is three‑quarters through its cloud migration, launching the Mira 9‑1‑1 platform and moving core services to a private cloud. AI is embedded across PSAPs and dispatch centers, aggregating disparate data to deliver real‑time situational awareness and boost dispatcher productivity. The company’s AI roadmap also targets internal coding and administrative workflows, promising incremental efficiency gains.

Outlook & Valuation

Analysts project a modest 4.6 % revenue lift next year, buoyed by the new Mira rollout and the continued momentum in the Allerium segment. Despite a current negative ROIC of –0.08, the company’s low book value (P/B 0.46) and strong cash generation suggest upside potential, particularly as the cloud‑centric strategy matures and margins improve further.

3. NewsRoom

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Comtech (CMTL) Up 1.9% Since Last Earnings Report: Can It Continue?

Apr -15

Source: zacks.com

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Allerium's Statewide Next Generation 9-1-1 Service Live in Kentucky

Apr -08

Source: businesswire.com

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What Comtech Does and Why Its Mix Shift Matters to Investors

Mar -27

Source: zacks.com

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Comtech 2026 Watchlist for Investors: EDIM, Modems, and NG911 Cloud

Mar -27

Source: zacks.com

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Is CMTL Stock a Buy at 0.2x Sales? A Deep Dive at Catalysts and Risks

Mar -27

Source: zacks.com

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911 Association of Central Oklahoma Governments Selects Allerium to Deliver Next Generation 9-1-1 Call Routing Network

Mar -25

Source: businesswire.com

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Comtech Telecommunications: Higher-Margin Business Is Paying Off, But Profitability Still Eludes Them

Mar -19

Source: seekingalpha.com

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Comtech Telecommunications Corp. Shareholders Are Encouraged to Reach Out to Johnson Fistel for More Information About Potentially Recovering Their Losses

Mar -19

Source: globenewswire.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

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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

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Harmonic

A-Score: 4.3/10

Value: 5.7

Growth: 5.9

Quality: 7.2

Yield: 0.0

Momentum: 2.0

Volatility: 5.0

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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 ->

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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 ->

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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 ->

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Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

394006.8$

Current Price

3.5$

Potential

11252735.94%

Expected Cash-Flows