COMTECH TELECOMMUNICATIONS CORP /DE/

Where It Passes

Where It Falls Short

• Valuation0% pass✓ 9✗ 19▾

  No clean pass — all 13 investors flag at least one valuation criterion

  Price / 3-yr avg EPS

  ✗Graham<= 15x

  Price-to-Book Ratio0.3x

  ✓Graham<= 1.5x

  P/E x P/B

  ✗Graham<= 22.5

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  EBIT / Enterprise Value-121.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-121.4%, ROC=-120.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Price / EPS

  ✗Dreman< 12x✗Templeton< 12x (fixed ceiling; proxy for the market's cheapest 40%)

  Price / (CFO / Shares)N/A (negative CFPS)

  ✗Dreman< 8x

  Price / Book Value per Share0.3x

  ✓Dreman< 1.2x✓Templeton< 1.5x✓SchlossP/B <= 0.80x (app cutoff)

  Valuation ReasonablenessOE Yield=-429.4%

  ✗MungerP/E < 25 or Owner Earnings Yield > 5%

  P/E or FCF YieldFCF Yield=-46.6%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  P/B or P/E vs. Historical AverageP/B=0.3x

  ✓MarksP/E < 15 or P/B < 2.0

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Price vs. Trailing Low100% of trailing low ($1.20)

  ✓Templeton<= 120% of trailing low (certified split-adjusted live window)

  Net income / market capitalization-100.01%; #5391/6340 (top 85.0%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Positive book equity / market capitalization+1.0757; #1354/6449 (top 21.0%)

  ✓AsnessTop 30% of eligible cross-section

  Price / Diluted EPS

  ✗NeffP/E <= 15x (app proxy for a P/E 40%-60% below the market)

  (EPS CAGR % + Dividend Yield %) / P/E

  ✗Neff> 0.7 (Neff's published traditional edge)

  Price / Tangible Book Value per ShareN/A (non-positive TBVPS)

  ✗SchlossP/TBV <= 1.00x (app cutoff)

  Book Value per Share Change-83.9%

  ✗SchlossLatest BVPS >= earliest BVPS over >= 3 years (app rule)

  Revenue / market capitalization+6.9021; #422/5247 (top 8.0%)

  ✓OshaughnessyTop 10% of eligible cross-section

  (Operating cash flow - capex) / market capitalization+61.35%; #81/4519 (top 1.8%)

  ✓OshaughnessyTop 10% of eligible cross-section

  Trailing six-month price return through the evaluation date-67.48%; #5602/6202 (top 90.3%)

  ✗OshaughnessyTop 10% of eligible cross-section
• Efficiency0% pass✓ 1✗ 10▾

  No clean pass — all 8 investors flag at least one efficiency criterion

  Current Ratio0.84

  ✗Graham>= 2.0

  ROIC (3-5 yr avg)-18.5%

  ✗Buffett> 10%

  ROIC - WACC-28.5%

  ✗BuffettPositive (WACC = 10%)

  EBIT / (NWC + Net Fixed Assets)-120.6%

  ✗Greenblatt> 25%

  Current Ratio Change YoY1.83 -> 1.71

  ✗PiotroskiIncreased YoY

  Revenue / Total Assets Change YoY0.59x -> 0.67x

  ✓PiotroskiImproved YoY

  Current Assets / Current Liabilities0.84

  ✗Dreman> 1.5

  Return on Invested Capital-49.3%

  ✗Munger> 15%

  ROIC (high and growing)FY2023: ROIC=-1.9%; FY2024: ROIC=-13.1%; FY2025: ROIC=-49.3%

  ✗AkreLatest 3 consecutive FYs: ROIC > 15% in each

  Reinvestment Rate x ROICN/A (non-positive net income)

  ✗AkreReinvestment Rate * ROIC > 10%

  ROIC (5-year)0/5 years above 12% (latest -49.3%)

  ✗SleepROIC > 12% in a majority of years
• Profitability6% pass✓ 3✗ 32▾

  15 of 16 flag CMTL's profitability — Graham, Buffett, Lynch +12 more

  Positive EPS (10 years)11/18 years positive

  ✗GrahamPositive EPS every year for 10 years

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Net Income Positive (10+ years)11/18 years positive

  ✗BuffettPositive every year for 10+ years

  ROE (up to 5-year arithmetic mean)-41.9%

  ✗Buffett> 15% arithmetic mean (app rule)

  Operating Margin (10-yr trend)-27.8% (latest)

  ✗BuffettStable or rising over 10 years

  Free Cash Flow Proxy$-152.1M

  ✗BuffettPositive and growing

  Earnings Variance (10-yr CoV)

  ✗BuffettCoV < 0.3

  Retained Earnings Effectiveness

  ✗Buffett$1 retained -> > $1 market value created

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  ROE-93.0%

  ✗Lynch> 15%

  EBIT / Enterprise Value-121.4%

  ✗Greenblatt> 10%

  Earnings Yield + ROC AssessmentEY=-121.4%, ROC=-120.6%

  ✗GreenblattBoth EY > 10% and ROC > 25%

  Net Income / Total Assets-20.96%

  ✗PiotroskiROA > 0

  ROA Change YoY-10.96% -> -20.96% (delta: -10.01%)

  ✗PiotroskiCurrent ROA > Prior ROA

  (CFO / Total Assets) vs ROACFO/Assets=-1.12%, ROA=-20.96%

  ✓PiotroskiCFO/Assets > ROA

  Gross Margin Change YoY29.1% -> 25.6%

  ✗PiotroskiImproved YoY

  Pre-Tax Income / Revenue-7.0%

  ✗Dreman>= 8%

  Net Income / Shareholders' Equity-93.0%

  ✗Dreman> 12%

  Margin of SafetyP/B=0.3x

  ✓PabraiP/B < 1.5 or P/E < 15

  Return on Equity-62.5% (3-yr avg)

  ✗AkreROE > 20% (3-year avg)

  Discount to Intrinsic ValueN/A (negative normalized EPS)

  ✗Marks>= 20% below intrinsic value

  Positive Net Income Frequency11/17 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  Operating Income / Revenue-7.3%

  ✗Ackman>= 15%

  Net Income / Shareholders Equity-93.0%

  ✗Ackman>= 15%

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Operating Margin Trend-2.7% (2023) -> -27.8% (2025)

  ✗TempletonNon-negative operating-margin trend over 3 years

  Revenue growth vs. gross and operating margin trendgross margin 33.5% -> 25.6%, operating margin -2.7% -> -27.8%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  Net income / market capitalization-100.01%; #5391/6340 (top 85.0%)

  ✗AsnessTop 30% of eligible cross-section✗OshaughnessyTop 10% of eligible cross-section

  Gross profit / total assets+13.97%; #2492/3702 (top 67.3%)

  ✗AsnessTop 30% of eligible cross-section

  Net income / positive book equity-92.97%; #4560/5226 (top 87.3%)

  ✗AsnessTop 30% of eligible cross-section

  Negative 5-year standard deviation of ROA-0.0664; #2937/5884 (top 49.9%)

  ✗AsnessTop 30% of eligible cross-section

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized

  Positive Diluted-EPS Years4/10 years positive

  ✗Schloss>= 70% positive over 5-10 observed years (app rule)
• Verdicts6% pass✓ 1✗ 16▾

  Split decision: 15 FAIL · 1 PASS

  Overall verdict

  ✗GrahamFAIL (3/9)✗BuffettFAIL (0/9)✗LynchFAIL (2/7)✗GreenblattRank #2889✗PiotroskiFAIL (F-Score 3)✗DremanFAIL (1/11)✗MungerFAIL (1/4)✗PabraiFAIL (1/3)✗AkreFAIL (1/6)✗MarksFAIL (3/5)✗AckmanFAIL (2/9)✓TempletonPASS (4/8)✗SleepFAIL (2/6)✗AsnessFAIL (Rank #2180/2370 (Top 92.0%))✗NeffFAIL (2/6)✗SchlossFAIL (2/7)✗OshaughnessyFAIL (Rank #948/963 (Top 98.4%))
• Debt & Leverage8% pass✓ 1✗ 14▾

  11 of 12 flag CMTL's debt & leverage — Graham, Buffett, Lynch +8 more

  LT Debt vs Net Current Assets

  ✗GrahamLT Debt <= Net Current Assets

  Debt/Equity & Interest CoverageD/E: 1.13, IC: -3.0x

  ✗BuffettD/E < 0.5 AND Interest Coverage > 5x

  Total Debt / Equity1.13

  ✗Lynch< 0.33

  Cash - Long-term Debt

  ✗LynchPositive preferred

  LT Debt / Total Assets Change18.68% -> 0.00%

  ✓PiotroskiDecreased YoY

  Current Assets / Current Liabilities0.84

  ✗Dreman> 1.5✗SchlossCurrent ratio >= 1.50x (app cutoff)

  Total Debt / Shareholders' Equity1.13

  ✗Dreman< 0.8✗Templeton< 1.0 (fixed cap; proxy for below-sector-median leverage)✗SchlossD/E < 1.00x

  Debt Levels1.13

  ✗MungerDebt/Equity < 0.5✗AkreDebt/Equity < 0.3

  Interest Coverage & Debt/EBITDAIC=-3.0x, D/EBITDA=N/A

  ✗MarksInterest Coverage > 3x; Debt/EBITDA < 4x

  Total Debt / Shareholders Equity1.13

  ✗Ackman<= 1.0

  Negative debt-to-equity (higher means less debt)-1.1345; #3350/4210 (top 79.6%)

  ✗AsnessTop 30% of eligible cross-section
• Growth13% pass✓ 2✗ 11▾

  7 of 8 flag CMTL's growth — Graham, Lynch, Dreman +4 more

  EPS Growth (3-yr avg, 10-yr window)

  ✗Graham>= 33% growth

  Basic earnings-growth PEG (dividends excluded)

  ✗Lynch< 1.0 (ideally < 0.5)

  3-5 Year EPS CAGR

  ✗Lynch15-30% (Fast Grower); > 0% to pass

  Inventory Growth vs Revenue GrowthInv: -84.8% vs Rev: -50.0%

  ✓LynchInventory growth < Revenue growth

  EPS Growth Direction

  ✗DremanPositive over recent years

  EPS CAGR

  ✗Dreman> 5% annualized

  Positive Net Income Frequency11/17 years positive

  ✓MarksPositive net income in >= 7 of last 10 years

  3yr Median Revenue Growth-1.7%

  ✗Ackman>= 5%

  Positive EPS Growth Frequency2/5 years with positive EPS growth

  ✗AckmanPositive EPS growth in >= 3 of last 5 years

  5-Year EPS CAGR

  ✗Templeton> 0% (5-year EPS CAGR)

  Revenue growth vs. gross and operating margin trendgross margin 33.5% -> 25.6%, operating margin -2.7% -> -27.8%

  ✗SleepRevenue rising; gross margin flat or falling; operating margin holding

  5-year Revenue CAGR-4.1%

  ✗SleepCAGR > 7%

  3-5 Year Diluted EPS CAGR

  ✗Neff7%-20% annualized
• Cash Flow50% pass✓ 7✗ 5▾

  5 of 10 pass — Buffett, Piotroski, Dreman +2 more object

  Free Cash Flow Proxy$-152.1M

  ✗BuffettPositive and growing

  FCF Positive and Growing$22.2M

  ✓LynchPositive and growing

  Operating Cash Flow$-8.3M

  ✗PiotroskiCFO > 0

  (CFO / Total Assets) vs ROACFO/Assets=-1.12%, ROA=-20.96%

  ✓PiotroskiCFO/Assets > ROA

  Price / (CFO / Shares)N/A (negative CFPS)

  ✗Dreman< 8x

  P/E or FCF YieldFCF Yield=-46.6%

  ✗PabraiP/E < 15 or FCF Yield > 10%

  FCF Positive12/17 years FCF positive

  ✓MarksPositive FCF in majority of recent years

  (OCF - CapEx) / Market Cap62.7%

  ✓Ackman>= 4%

  Price / FCF per ShareN/A (negative FCF)

  ✗Ackman<= 25

  Positive Operating Cash Flow frequency13/17 years positive

  ✓SleepPositive OCF in >= 70% of available years

  Operating Cash Flow - Capital Expenditures$22.2M

  ✓Neff> $0 (app proxy for a strong fundamental case)

  (Operating cash flow - capex) / market capitalization+61.35%; #81/4519 (top 1.8%)

  ✓OshaughnessyTop 10% of eligible cross-section