Is COMTECH TELECOMMUNICATIONS CORP /DE/ (CMTL) Halal?

NASDAQ Technology United States $92M
✗ NOT HALAL
Confidence: 90/100
COMTECH TELECOMMUNICATIONS CORP /DE/ (CMTL) is Not Halal under AAOIFI Standard 21. The company's debt ratio of 168.8% exceeds the 30% threshold, indicating excessive interest-bearing debt relative to market capitalization. COMTECH TELECOMMUNICATIONS CORP /DE/ operates in the Technology sector.

Shariah Screening — 5 Standards

Based on financial data from July 2025

Standard Debt Ratio Cash Ratio Receivables Income Status
AAOIFI 168.8%
/ 30%
26.9%
/ 30%
97.5%
/ 30%
10.98%
/ 5%
✗ NOT HALAL
DJIM 168.8%
/ 33%
26.9%
/ 33%
97.5%
/ 33%
10.98%
/ 5%
✗ NOT HALAL
MSCI 33.8%
/ 33%
5.4%
/ 33%
19.6%
/ 33%
10.98%
/ 5%
✗ NOT HALAL
S&P 168.8%
/ 33%
26.9%
/ 33%
97.5%
/ 33%
10.98%
/ 5%
✗ NOT HALAL
FTSE 33.8%
/ 33%
5.4%
/ 33%
19.6%
/ 50%
10.98%
/ 5%
✗ NOT HALAL

Financial Highlights

EPS
$-2.23
P/B Ratio
1.4
EV/EBITDA
11.6
EV: $512M
Revenue
$500M
Growth: -15.7%
Beta
1.1
Average volatility
Current Ratio
1.7

Profitability

Gross Margin 32.1%
Operating Margin -0.0%
Net Margin 2.6%
Return on Equity (ROE) 4.8%
Return on Assets (ROA) 1.0%

Cash Flow & Balance Sheet

Operating Cash Flow-$8M
Free Cash Flow-$17M
Total Debt$251M
Debt-to-Equity95.1
Current Ratio1.7
Total Assets$741M

Price & Trading

Last Close$3.36
50-Day MA$5.13
200-Day MA$3.46
Avg Volume365K
Beta1.1
52-Week Range
$1.19
$6.21

About COMTECH TELECOMMUNICATIONS CORP /DE/ (CMTL)

CEO
Mr. Kenneth H. Traub B.A., M.B.A.
Employees
1,340
Sector
Technology
Industry
Communication Equipment
Country
United States
Exchange
NASDAQ
Market Cap
$92M
Currency
USD

Comtech Telecommunications Corp., together with its subsidiaries, provides critical communications technology and solutions in the United States and internationally. It operates through Satellite and Space Communications; and Allerium segments. The Satellite and Space Communications segment offers satellite ground infrastructure technologies, services, and system integration that facilitates the transmission of voice, video, and data over GEO, MEO and LEO satellite constellations, including traveling wave tube power amplifiers, satellite modems, VSAT platforms, and frequency converters; and advanced cybersecurity training services. This segment also provides over-the-horizon microwave troposcatter equipment that can transmit digitized voice, video, and data over distances up to 200 miles using the troposphere and diffraction, as well as engages in the procurement and supply chain management of electrical, electronic, and electromechanical parts for satellite, launch vehicle, and manned space applications. Its Allerium segment offers 911 solutions, which includes emergency call routing, location validation, policy-based routing rules, logging, and security functionality; emergency services IP network transport infrastructure for emergency services communications and support; call handling applications for public safety answering points; wireless emergency alerts solutions for network operators; and software and equipment for location-based and text messaging services for various applications, including public safety, commercial, and government services. The company serves defense contractors, governments, and telecommunications companies. Comtech Telecommunications Corp. was founded in 1967 and is headquartered in Chandler, Arizona.

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Frequently Asked Questions

Is COMTECH TELECOMMUNICATIONS CORP /DE/ (CMTL) halal to invest in?

Based on our screening using AAOIFI Standard 21 (the strictest methodology), COMTECH TELECOMMUNICATIONS CORP /DE/ is Not Halal. The company fails one or more screening criteria. We screen against all 5 major standards: AAOIFI, DJIM, MSCI, S&P, and FTSE.

What is COMTECH TELECOMMUNICATIONS CORP /DE/'s debt ratio?

COMTECH TELECOMMUNICATIONS CORP /DE/'s debt ratio is 168.8% under the AAOIFI standard (which uses market capitalization as the denominator). The AAOIFI threshold is 30%. Under MSCI and FTSE (which use total assets as the denominator), the debt ratio is 33.8%.

What are COMTECH TELECOMMUNICATIONS CORP /DE/'s key financial metrics?

COMTECH TELECOMMUNICATIONS CORP /DE/ has a market capitalization of $92M, and revenue of $500M. The company maintains a gross margin of 32.1% and a net margin of 2.6%. Return on equity stands at 4.8%.

How often is the screening data updated?

Our screening data is updated regularly using the latest available financial statements and market data. Stock prices and market caps are refreshed frequently, while financial statements are updated quarterly when companies report earnings.

Disclaimer: HalalStockGuide.com provides Shariah compliance screening for educational and informational purposes only. This is not a fatwa, financial advice, or a recommendation to buy or sell any security. Screening results are based on publicly available financial data and established methodologies. Always consult a qualified Islamic scholar and a licensed financial advisor before making investment decisions.