CommScope Holding Company, Inc. Fundamental Analysis (NASDAQ: COMM)
CommScope Holding Company, Inc. Fundamental Analysis (NASDAQ: COMM)
CommScope Holding Company, Inc. (NASDAQ: COMM) shows moderate financial fundamentals with a PE ratio of 0.55, profit margin of 32.59%, and ROE of 4.60%. The company generates $0.2B in annual revenue with N/A year-over-year growth of N/A.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 62.5/100 based on profitability, valuation, growth, and balance sheet metrics. The C+ grade reflects average fundamentals, with notable risks in certain areas.
Fundamental Health Score
We analyze COMM's fundamental strength across five key dimensions:
Efficiency Score
WeakCOMM struggles to generate sufficient returns from assets.
Valuation Score
ExcellentCOMM trades at attractive valuation levels.
Growth Score
ModerateCOMM shows steady but slowing expansion.
Financial Health Score
ExcellentCOMM maintains a strong and stable balance sheet.
Profitability Score
ModerateCOMM maintains healthy but balanced margins.
Key Financial Metrics
Is COMM Expensive or Cheap?
P/E Ratio
COMM trades at 0.55 times earnings. This suggests potential undervaluation.
PEG Ratio
When adjusting for growth, COMM's PEG of 0.00 indicates potential undervaluation.
Price to Book
The market values CommScope Holding Company, Inc. at 1.61 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -23.60 times EBITDA. This is generally considered low.
How Well Does COMM Make Money?
Net Profit Margin
For every $100 in sales, CommScope Holding Company, Inc. keeps $32.59 as profit after all expenses.
Operating Margin
Core operations generate -1.32 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $4.60 in profit for every $100 of shareholder equity.
ROA
CommScope Holding Company, Inc. generates $2.08 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CommScope Holding Company, Inc. generates strong operating cash flow of $130.10M, reflecting robust business health.
Free Cash Flow
CommScope Holding Company, Inc. generates strong free cash flow of $84.81M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $0.38 in free cash annually.
FCF Yield
COMM converts 2.20% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.55
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.00
vs 25 benchmark
P/B Ratio
Price to book value ratio
1.61
vs 25 benchmark
P/S Ratio
Price to sales ratio
17.73
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.02
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.57
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
4.60
vs 25 benchmark
ROA
Return on assets percentage
2.08
vs 25 benchmark
ROCE
Return on capital employed
-0.11
vs 25 benchmark
How COMM Stacks Against Its Sector Peers
| Metric | COMM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.55 | 34.20 | Better (Cheaper) |
| ROE | 460.16% | 715.00% | Weak |
| Net Margin | 3258.96% | -3125.00% (disorted) | Strong |
| Debt/Equity | 0.02 | 0.22 | Strong (Low Leverage) |
| Current Ratio | 2.57 | 5.99 | Strong Liquidity |
| ROA | 207.55% | 246.00% | Neutral |
COMM outperforms its industry in 4 out of 6 key metrics, particularly excelling in Net Margin, but lagging in ROE.
Historical Growth Performance
5-Year Growth Trajectory
This section reviews CommScope Holding Company, Inc.'s 5-year compound annual growth rate (CAGR) and compares its performance against the typical investment style of its industry.
Revenue CAGR
N/A
Industry Style: Growth, Innovation, High Beta
EPS CAGR
N/A
Industry Style: Growth, Innovation, High Beta
FCF CAGR
N/A
Industry Style: Growth, Innovation, High Beta