CommScope Holding Company, Inc. Fundamental Analysis
CommScope Holding Company, Inc. (COMM) shows moderate financial fundamentals with a PE ratio of 0.57, profit margin of 5.43%, and ROE of 10.68%. The company generates $1.3B in annual revenue with weak year-over-year growth of -27.35%.
Key Strengths
Areas of Concern
The stock receives a Fundamental Health Score of 18.9/100 based on profitability, valuation, growth, and balance sheet metrics. The F grade reflects weak fundamentals and significant financial concerns.
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
WeakCOMM struggles to sustain strong margins.
Key Financial Metrics
Is COMM Expensive or Cheap?
P/E Ratio
COMM trades at 0.57 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 0.87 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at 51.58 times EBITDA. This signals the market has high growth expectations.
How Well Does COMM Make Money?
Net Profit Margin
For every $100 in sales, CommScope Holding Company, Inc. keeps $5.43 as profit after all expenses.
Operating Margin
Core operations generate -2.84 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $10.68 in profit for every $100 of shareholder equity.
ROA
CommScope Holding Company, Inc. generates $1.29 in profit for every $100 in assets, demonstrating efficient asset deployment.
Following the Money - Real Cash Generation
Operating Cash Flow
CommScope Holding Company, Inc. produces operating cash flow of $278.61M, showing steady but balanced cash generation.
Free Cash Flow
CommScope Holding Company, Inc. generates strong free cash flow of $222.53M, providing ample flexibility for dividends, buybacks, or growth.
FCF Per Share
Each share generates $1.00 in free cash annually.
FCF Yield
COMM converts 5.73% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
0.57
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
0.001
vs 25 benchmark
P/B Ratio
Price to book value ratio
0.87
vs 25 benchmark
P/S Ratio
Price to sales ratio
3.06
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
0.00
vs 25 benchmark
Current Ratio
Current assets to current liabilities
6.67
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
10.68
vs 25 benchmark
ROA
Return on assets percentage
1.29
vs 25 benchmark
ROCE
Return on capital employed
-0.01
vs 25 benchmark
How COMM Stacks Against Its Sector Peers
| Metric | COMM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 0.57 | 36.36 | Better (Cheaper) |
| ROE | 1068.19% | 980.00% | Neutral |
| Net Margin | 542.66% | 5969454259.00% | Weak |
| Debt/Equity | 0.00 | 0.36 | Strong (Low Leverage) |
| Current Ratio | 6.67 | 5.04 | Strong Liquidity |
| ROA | 128.73% | -298400.00% (disorted) | Strong |
COMM outperforms its industry in 4 out of 6 key metrics, particularly excelling in ROA, but lagging in Net Margin.
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
-54.47%
Industry Style: Growth, Innovation, High Beta
DecliningEPS CAGR
69.33%
Industry Style: Growth, Innovation, High Beta
High GrowthFCF CAGR
-58.63%
Industry Style: Growth, Innovation, High Beta
Declining