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Looking At C-Com Satellite Systems Inc. (CVE:CMI) From All Angles

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C-Com Satellite Systems Inc. (CVE:CMI) is a company with exceptional fundamental characteristics. Upon building up an investment case for a stock, we should look at various aspects. In the case of CMI, it is a company with great financial health as well as a a strong track record of performance. In the following section, I expand a bit more on these key aspects. For those interested in digging a bit deeper into my commentary, take a look at the report on C-Com Satellite Systems here.

Flawless balance sheet with proven track record

Over the past few years, CMI has more than doubled its earnings, with its most recent figure exceeding its annual average over the past five years. Not only did CMI outperformed its past performance, its growth also exceeded the Communications industry expansion, which generated a -22% earnings growth. This is an optimistic signal for the future. CMI is financially robust, with ample cash on hand and short-term investments to meet upcoming liabilities. This indicates that CMI has sufficient cash flows and proper cash management in place, which is a key determinant of the company’s health. CMI currently has no debt on its balance sheet. This implies that the company is running its operations purely on off equity funding. which is typically normal for a small-cap company. Therefore the company has plenty of headroom to grow, and the ability to raise debt should it need to in the future.

TSXV:CMI Income Statement, July 16th 2019
TSXV:CMI Income Statement, July 16th 2019

Next Steps:

For C-Com Satellite Systems, I've put together three pertinent factors you should further examine:

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  1. Future Outlook: What are well-informed industry analysts predicting for CMI’s future growth? Take a look at our free research report of analyst consensus for CMI’s outlook.

  2. Valuation: What is CMI worth today? Is the stock undervalued, even when its growth outlook is factored into its intrinsic value? The intrinsic value infographic in our free research report helps visualize whether CMI is currently mispriced by the market.

  3. Other Attractive Alternatives : Are there other well-rounded stocks you could be holding instead of CMI? Explore our interactive list of stocks with large potential to get an idea of what else is out there you may be missing!

We aim to bring you long-term focused research analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material.

If you spot an error that warrants correction, please contact the editor at editorial-team@simplywallst.com. This article by Simply Wall St is general in nature. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Simply Wall St has no position in the stocks mentioned. Thank you for reading.