📊 CMTL Key Takeaways
Is Comtech Telecommunications Corp. /DE/ (CMTL) a Good Investment?
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.
Comtech Telecommunications shows weak fundamentals driven by declining revenue, negative operating income, and a sizable net loss, indicating that profitability remains under meaningful pressure. Financial health is strained by high leverage relative to equity and negative interest coverage, although positive operating cash flow and modest free cash flow provide some near-term support. Overall, the business appears operationally challenged, with limited balance-sheet flexibility if earnings do not improve.
Why Buy Comtech Telecommunications Corp. /DE/ Stock? CMTL 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
- Gross margin of 33.5% indicates reasonable product/service pricing power despite operational challenges
- Positive operating cash flow and free cash flow despite net losses
- Adequate near-term liquidity with a 1.69x current ratio and 1.23x quick ratio
- Gross margin of 33.5% suggests the core product base still retains some underlying economic value
CMTL Stock Risks: Comtech Telecommunications Corp. /DE/ Investment 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
- Revenue declined 7.6% year over year, signaling weak top-line momentum
- Negative operating margin, net margin, and ROE indicate poor profitability and weak capital efficiency
- High leverage and negative interest coverage raise refinancing and solvency risk if cash generation deteriorates
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
- Operating margin and interest coverage
- Revenue growth and free cash flow consistency
Comtech Telecommunications Corp. /DE/ (CMTL) Financial Metrics & Key Ratios
💡 AI Analyst Insight
The relatively thin 2.4% FCF margin may limit capital allocation flexibility.
CMTL Profit Margin, ROE & Profitability Analysis
CMTL vs Telecom Sector: How Comtech Telecommunications Corp. /DE/ Compares
How Comtech Telecommunications Corp. /DE/ compares to Telecom sector averages
Sector benchmarks are approximate industry averages. Actual sector performance may vary.
Is Comtech Telecommunications Corp. /DE/ Stock Overvalued? CMTL Valuation Analysis 2026
Based on fundamental analysis, Comtech Telecommunications Corp. /DE/ shows some fundamental concerns relative to the Telecom sector in 2026.
Note: This is a fundamental analysis based on SEC filings. For P/E ratio, price targets, and market-based valuation, consult financial data providers. This is not investment advice.
Comtech Telecommunications Corp. /DE/ Balance Sheet: CMTL Debt, Cash & Liquidity
CMTL Revenue & Earnings Growth: 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 Revenue Growth, EPS Growth & YoY Performance
CMTL Quarterly Earnings & 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.
Comtech Telecommunications Corp. /DE/ Dividends, Buybacks & Capital Allocation
CMTL SEC Filings: Latest 10-K & 10-Q Analysis
Access official SEC EDGAR filings for Comtech Telecommunications Corp. /DE/ (CIK: 0000023197)
📋 Recent SEC Filings
| Date | Form | Document | Action |
|---|---|---|---|
| Mar 26, 2026 | 4 | xslF345X06/wk-form4_1774558796.xml | View → |
| Mar 26, 2026 | 4 | xslF345X06/wk-form4_1774558770.xml | View → |
| Mar 26, 2026 | 4 | xslF345X06/wk-form4_1774558740.xml | View → |
| Mar 26, 2026 | 4 | xslF345X06/wk-form4_1774558715.xml | View → |
| Mar 26, 2026 | 4 | xslF345X06/wk-form4_1774558690.xml | View → |
❓ Frequently Asked Questions about CMTL
What is the AI rating for CMTL?
Comtech Telecommunications Corp. /DE/ (CMTL) has a Combined AI Rating of SELL from Claude (SELL) and ChatGPT (SELL) with 84% combined confidence, based on fundamental analysis of SEC EDGAR filings.
What are CMTL's key strengths?
Claude: 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. ChatGPT: Positive operating cash flow and free cash flow despite net losses. Adequate near-term liquidity with a 1.69x current ratio and 1.23x quick ratio.
What are the risks of investing in CMTL?
Claude: 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. ChatGPT: Revenue declined 7.6% year over year, signaling weak top-line momentum. Negative operating margin, net margin, and ROE indicate poor profitability and weak capital efficiency.
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?
Two independent AI systems — Claude (Anthropic) and ChatGPT (OpenAI) — analyze SEC EDGAR filings including 10-K annual reports and 10-Q quarterly reports. Each AI evaluates financial health, profitability ratios, balance sheet strength, and growth metrics. The combined rating reflects both perspectives for balanced insights.
Is CMTL a good stock to buy right now?
Based on our AI fundamental analysis in April 2026, Comtech Telecommunications Corp. /DE/ has a SELL rating with 84% confidence. Review the strengths and risks sections above before making a decision. This is not investment advice.
Is CMTL stock overvalued or undervalued?
Valuation metrics for CMTL: ROE of -45.0% (sector avg: 15%), net margin of -13.6% (sector avg: 14%). Compare these metrics with sector averages to assess valuation.
Should I buy CMTL stock in 2026?
Our dual AI analysis gives Comtech Telecommunications Corp. /DE/ a combined SELL rating for 2026. Revenue is data pending, with profitability at or below sector average. Always conduct your own research.
What is CMTL's free cash flow?
Comtech Telecommunications Corp. /DE/'s operating cash flow is $12.9M, with capital expenditures of $7.7M. FCF margin is 2.4%.
How does CMTL compare to other Telecom stocks?
Vs Telecom sector averages: Net margin -13.6% (avg: 14%), ROE -45.0% (avg: 15%), current ratio 1.69 (avg: 1).
Is Comtech Telecommunications Corp. /DE/ carrying too much debt?
CMTL has a debt-to-equity ratio of 1.64x, which is above the Telecom sector average of 1.2x. However, the current ratio of 1.69 suggests adequate short-term liquidity.