COMM
Commscope Holding Co Inc
TMT
11/04/2015
Presented
| Date | 10/29/2015 |
| Price | $32.43 |
| Market Cap | $6.29B |
| Ent Value | $10.49B |
| P/E Ratio | 27.25x |
| Book Value | $7.42 |
| Div Yield | 0% |
| Shares O/S | 194.00M |
| Ave Daily Vol | 1,087,001 |
| Short Int | 2.22% |
Current
| Price | $5.83 |
| Market Cap | $1.26B |
| CommScope Holding Co., Inc. operates as a holding company which provides connectivity and essential infrastructure solutions for wireless, business enterprise and residential broadband networks through its subsidiary, CommScope, Inc. The company also provides critical radio frequency solutions, intelligent connectivity and cabling platforms, data center and intelligent building infrastructure and broadband access solutions. It operates in three segments: Wireless, Enterprise and Broadband. The Wireless segment provides merchant radio frequency wireless network connectivity solutions and small cell DAS solutions. Its solutions are marketed primarily under the Andrew brand, enable wireless operators to deploy both macro cell sites and small cell DAS solutions to meet 2G, 3G and 4G cellular coverage and capacity requirements. The Enterprise segment provides connectivity and network intelligence for data centers and commercial buildings. These solutions include optical fiber and twisted pair structured cabling applications, intelligent infrastructure software, network rack and cabinet enclosures, intelligent building sensors, advanced LED lighting control systems and network design services. The Broadband segment consists of cable and communications equipment that support the multi-channel video, voice and high-speed data services provided by cable operators. CommScope Holding was founded on October 22, 2010 and is headquartered in Hickory, NC. |
Publicly traded companies mentioned herein: CommScope (COMM), TE Connectivity (TEL), Ericsson (ERIC), Nokia (NOK), Sprint (S), Verizon (VZ), AT&T (T) and China Mobile’s (CHL).
Highlights
A lower end comm equipment company with meaningful exposure to wireless in the US, as well as some exposure in China and Europe, CommScope recently acquired a division from broadband concern TE Connectivity (TEL) in an approximate $3 billion deal. The company emerged from the deal fairly levered at about 4-4.5 times. At the same time, the wireless infrastructure market continues to get worse, particularly in the US. With synergy targets likely to take longer to realize than currently projected by the company, the presenter believes that the scenario sets up well for a short.
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