/
Communications equipment, nec company · DE · FY ends Jun · Revenue $197M · 19.92% margin · $56M FCF
Margins and capital returns are both well above average: 25.47% operating margin, ROIC at 22.11%. Consistent with durable pricing power, though that alone doesn't make it a buy.
Revenue declined 3.8% YoY. Margins deteriorated 3.0pp alongside, both lines moving the wrong way.
ROIC dropped from 28.62% to 22.11%, capital efficiency is deteriorating. Operating margin contracted 3.0pp YoY, cost discipline may be slipping.
Profitability & Returns
Revenue (TTM)
$197M
▼ -3.8% YoY
Net Income (TTM)
$37M
▼ -12.9% YoY
Op. Margin
19.92%
▼ -3.0pp YoY
ROIC
18.17%
▼ -6.5pp YoY
Cash Flow & Balance Sheet
FCF (TTM)
$56M
▲ +17.4% YoY
Op. Cash Flow (TTM)
$58M
▲ +18.0% YoY
Net Debt
-$120M
Net Cash Position
Cash & Equiv.
$125M
5Y CAGR: +12.4%
5Y CAGR: +42.7%
Continue Research