Q: 2025 is meant to be a big year for C-COM Satellite Systems? What are your thoughts on CMI, thanks.
5i Research Answer:
CMI is down 6% year-to-date and continues to pay a high yield at 3.97%. It has no debt and has returned to positive revenue growth over the last four quarters. Revenue has been quite small historically and has returned very small profits or losses historically. While the small positive cash flows are a good sign, it is overall to small fo us right now at $53M in market cap. We do not like the general downward momentum it has had since 2021 and is trading at 26.7x trailing earnings which is quite expensive.