Comtech Telecommunications Corp. — financial distress indicators
Financial-health summary
Comtech Telecommunications Corp.'s reported numbers place it in the 'Watch' financial-health band (distress score 40/100). The main indicators are losses in each of the last 3 years, operations consume cash and share price down >80% from 52-week high.
Stress by dimension
Share price — last 12 months
Indicators behind the score
Each red flag shows the evidence from the company’s own filings and the financial or legal principle behind it. Points add to the 0–100 score.
Net income negative in 3 of 3 fiscal years.
Persistent losses erode equity and the capacity to absorb shocks.
Operating cash flow negative in 3 of the last 3 years.
A business that cannot fund itself from operations depends on external capital to survive.
Price is -80% from its 52-week high.
Equity markets price distress early; collapses of this size usually reflect fear of wipe-out in a restructuring.
Cash covers ~20 months of free-cash-flow burn.
Funding needs within two years make the company dependent on capital-market access.
Revenue vs net income
Cash generation
Debt vs cash vs equity
✅ Mitigating factors
- No material mitigating factors found in the available data.
📰 Recent news scan
- Comtech Appoints Christopher D. Maloney to its Board of DirectorsYahoo Finance · 2026-10-05
- Down 37.8% in 4 Weeks, Here's Why Comtech (CMTL) Looks Ripe for a TurnaroundYahoo Finance · 2026-07-15
- Jeff Robertson Appointed to the Board of the First Responder Network Authority by Secretary of CommerceYahoo Finance · 2026-07-07
- Zacks Industry Outlook Highlights Ubiquiti, Comtech Telecommunications and InterDigitalYahoo Finance · 2026-06-30
- Comtech Telecom (CMTL) to Sell S&S Segment to Gilat Satellite Networks for $157.5MYahoo Finance · 2026-06-30
- After Plunging 64.4% in 4 Weeks, Here's Why the Trend Might Reverse for Comtech (CMTL)Yahoo Finance · 2026-06-26
⚖️ U.S. legal pathway — Title 11, U.S. Code
Which chapter would apply?
- Chapter 11 — reorganisation. Management usually stays in control as debtor-in-possession; the automatic stay (§362) halts collection; a plan must meet the best-interests test (§1129(a)(7)) and the absolute priority rule (§1129(b)) — creditors are paid before shareholders, who are frequently wiped out.
- Chapter 7 — liquidation. A trustee sells assets and distributes proceeds by statutory priority (§§507, 726).
- Subchapter V (“Chapter 5”) is a fast track for small-business debtors under a statutory debt cap, but SEC-reporting companies are excluded (§101(51D)) — so it rarely applies to listed companies.
What typically triggers a filing
- Payment default or covenant breach lenders will not waive; a debt maturity that cannot be refinanced.
- Auditor going-concern doubt (ASC 205-40 / PCAOB AS 2415) — often itself a default trigger in loan agreements.
- Creditors can force a case with an involuntary petition (§303) if debts are not paid as they come due.
- Delisting after sustained sub-$1 prices or equity deficits cuts off equity funding.
Transactions shortly before filing can be clawed back (preferences — 90 days, §547; fraudulent transfers — 2 years, §548).
Frequently asked questions
What do Comtech Telecommunications Corp.'s financial-health indicators show?
As of 2026-10-08, Comtech Telecommunications Corp.'s public financial data places it in the 'Watch' band with a distress score of 40/100, driven by losses in each of the last 3 years, operations consume cash and share price down >80% from 52-week high. This is a statistical screen of reported numbers — it does not mean the company is insolvent, has defaulted or will enter insolvency proceedings.
What is Comtech Telecommunications Corp.'s financial distress score?
40/100 ('Watch').
What works in Comtech Telecommunications Corp.'s favour?
No material mitigating factors were found in the available data.
How are shareholders treated if a company enters insolvency?
In a Chapter 11 reorganisation the absolute priority rule pays secured lenders, then unsecured creditors, before shareholders — so existing shares are usually cancelled or heavily diluted. In Chapter 7 the company is liquidated and shareholders rarely recover anything.
Other Hardware & Electronics companies with distress indicators
- Foxx Development Holdings Inc. (FOXX)Very weak 100/100
- Algorhythm Holdings, Inc. (RIME)Very weak 100/100
- USBC, Inc. (USBC)Very weak 100/100
- Telesat Corporation (TSAT)Very weak 79/100
- Q/C Technologies, Inc. (QCLS)Very weak 77/100
- Boxlight Corporation (BOXL)Very weak 76/100
All Hardware & Electronics companies with distress indicators →
Methodology
Score = capped sum of rule-based red flags across seven dimensions (liquidity, solvency, profitability, cash flow, sales trend, market signal, news). Ohlson O-score (1980) gives an accounting-based 1-year failure probability; Merton distance-to-default (Bharath & Shumway 2008) gives a market-implied probability. Financial institutions use a capital-based rule set. Recalculated every trading day from the latest filings, prices and news.