Cliff Note #69 - Comtech Telecommunications | $CMTL
$700m contract awards provides long-term growth tailwinds
Themes
BigCapMicro; Restructuring; Strong Earning Power Ranking;
Major Caveats: Debt; Dilution
Select Data
Price: $8.21
Market Cap: $223m
Revenue: $550M
LT Debt: ca. $160m
Current Portion: N/A (restructured credit line)
Cash: $19M
P/E 2024 est: 9.5x
P/E trailing 12 months: 19.1x
EV/S on 2024 revenue est: 0.95x
EV/S trailing 12 months: 1.1x
Outstanding shares: 28.3m
Preferred shares: 100k (convertible)
What CMTL Does
CMTL is Global provider of next-generation 911 emergency systems ("NG-911") and secure wireless and satellite communications technologies. This includes the critical communications infrastructure that people, businesses, and governments rely on when durable, trusted connectivity is required, no matter where they are – on land, at sea, or in the air – and no matter what the circumstances – from armed conflict to a natural disaster.
Our solutions are designed to fulfill our customers’ needs for secure wireless communications in the most demanding environments, including those where traditional communications are unavailable or cost-prohibitive, and in mission-critical and other scenarios where performance is crucial. (Connection and amplification of signal solutions, public safety communication and location technologies used for routing 911 calls.) (Fundamentally, we offer advanced secure wireless communication technologies with expertise in the satellite communications and cellular markets).
A Little History
CMTL had an amazing multi-bagger run from 2002 to 2007. The stock rose from the $3.00 area to hit a high of $55.00 on the heels of sales and earnings per share growing in a straight line ( sales $119M to $145M; EPS from $0.53 to $2.42). Since then, sales have been range bound, between $500M and $700M and EPS has exhibited volatility, although most positive.