CommScope Holding Company, Inc.
CommScope Holding Company, Inc. Fundamental Analysis
CommScope Holding Company, Inc. (COMM) shows weak financial fundamentals with a PE ratio of 66.56, profit margin of 1.16%, and ROE of -4.27%. The company generates $5.3B 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 70.4/100 based on profitability, valuation, growth, and balance sheet metrics. The B grade reflects solid fundamentals with room for improvement in valuation or growth.
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
WeakCOMM trades at a premium to fair value.
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 66.56 times earnings. This suggests a premium valuation.
PEG Ratio
When adjusting for growth, COMM's PEG of 3.47 indicates potential overvaluation.
Price to Book
The market values CommScope Holding Company, Inc. at -3.85 times its book value. This may indicate undervaluation.
EV/EBITDA
Enterprise value stands at -2.34 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 $1.16 as profit after all expenses.
Operating Margin
Core operations generate 16.15 in profit for every $100 in revenue, before interest and taxes.
ROE
Management delivers $-4.27 in profit for every $100 of shareholder equity.
ROA
CommScope Holding Company, Inc. generates $0.78 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 limited operating cash flow of $319.57M, signaling weaker underlying cash strength.
Free Cash Flow
CommScope Holding Company, Inc. produces free cash flow of $267.76M, offering steady but limited capital for shareholder returns and expansion.
FCF Per Share
Each share generates $1.21 in free cash annually.
FCF Yield
COMM converts 6.52% of its market value into free cash.
Financial Ratios Analysis
Valuation Ratios
P/E Ratio
Price to earnings ratio
66.56
vs 25 benchmark
PEG Ratio
Price/earnings to growth ratio
3.47
vs 25 benchmark
P/B Ratio
Price to book value ratio
-3.85
vs 25 benchmark
P/S Ratio
Price to sales ratio
0.78
vs 25 benchmark
Financial Health
Debt/Equity
Total debt to shareholders' equity
-6.94
vs 25 benchmark
Current Ratio
Current assets to current liabilities
2.25
vs 25 benchmark
Efficiency Ratios
ROE
Return on equity percentage
-0.04
vs 25 benchmark
ROA
Return on assets percentage
0.008
vs 25 benchmark
ROCE
Return on capital employed
0.13
vs 25 benchmark
How COMM Stacks Against Its Sector Peers
| Metric | COMM Value | Sector Average | Performance |
|---|---|---|---|
| P/E Ratio | 66.56 | 35.19 | Worse (Expensive) |
| ROE | -4.27% | 1155.00% | Weak |
| Net Margin | 1.16% | -127067.00% (disorted) | Weak |
| Debt/Equity | -6.94 | 0.41 | Strong (Low Leverage) |
| Current Ratio | 2.25 | 4.71 | Strong Liquidity |
| ROA | 0.78% | -314918.00% (disorted) | Weak |
COMM outperforms its industry in 2 out of 6 key metrics, but lagging in P/E Ratio.
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