Cambium Networks Corporation (CMBM) | Investment Case

1. Company Snapshot

1.a. Company Description

Cambium Networks Corporation, through its subsidiaries, provides wireless broadband networking infrastructure products and solutions for commercial and government network operators.Its wireless fabric includes intelligent radios, smart antennas, radio frequency (RF) algorithms, wireless-aware switches, and cloud-based network management software.The company offers point-to-point backhaul, point-to-multipoint distribution, Wi-Fi access, cnMatrix ethernet enterprise switching, cnReach IIoT, cnVision video surveillance transport, and cnMaestro and network management tools and solutions.

It also offers point-to-point solutions that are connected to high-speed, high-bandwidth wireline networks; and wireless broadband backhaul to facilities or point-to-multipoint access points deployed throughout a network over distances of approximately 100 kilometers and at 2 gigabytes per second.The company also offers cnPilot and Xirrus Wi-Fi solution provides distributed access to individual users in indoor settings, such as office complexes, and outdoor settings, such as athletic stadiums and outdoor public Wi-Fi spots; cnReach solutions offer narrow-band connectivity for sensors and devices; embedded proprietary RF technology and software enables automated optimization of data flow at the outermost points in the network; cnMatrix cloud-managed wireless-aware switching solution provides the interface between wireless and wired networks; and cnVision solutions for video surveillance and CCTV deployments.It serves medium-sized wireless Internet service providers, mobile network operators, enterprises, and government agencies in North America, Europe, the Middle East, Africa, Caribbean and Latin America, and the Asia Pacific.

The company was formerly known as Vector Cambium Holdings (Cayman), Ltd.and changed its name to Cambium Networks Corporation in 2018.The was founded in 2011 and is headquartered in Rolling Meadows, Illinois.

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1.b. Last Insights on CMBM

The recent 3-month performance of Cambium Networks Corporation was negatively impacted by a delay in its 10K filing for fiscal 2024, due to material weaknesses in its internal control over financial reporting. This regulatory issue has raised concerns about the company's financial transparency and governance. Additionally, the delay in filing its annual report has likely led to a temporary halt in the company's ability to provide updated financial guidance, creating uncertainty among investors. Furthermore, the company's announcement of a Notification of Late Filing on Form 12b-25 has added to the regulatory scrutiny.

1.c. Company Highlights

Last Price	1.9
Change Percentage	9.83%
Open	1.8
Previous Close	1.73
Market Cap ( Millions)	54
Volume	5156111
Year High	6.8
Year Low	0.23
M A 50	1.66
M A 200	0.87

FCF Yield	6.46%
Dividend Yield	0.00%
ROE	-39.79%
Debt / Equity	176.28%
Net Debt / EBIDTA	-191.24%
Price To Book	1.22
Price Earnings Ratio	-2.82
Price To FCF	15.48
Price To sales	0.6
EV / EBITDA	-5.29

2. Transcript Summary

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3. NewsRoom

Cambium Networks receives additional Nasdaq Staff Determination Letter

Dec -01

Source: prnewswire.com

Cambium (CMBM) Shows Fast-paced Momentum But Is Still a Bargain Stock

Nov -25

Source: zacks.com

3 Wireless Stocks Likely to Thrive Against Industry Shortcomings

Nov -20

Source: zacks.com

Comparing Cambium Networks (NASDAQ:CMBM) & Old Market Capital (NASDAQ:OMCC)

Oct -31

Source: defenseworld.net

Why Cambium Networks Stock Is Skyrocketing Today

Oct -30

Source: fool.com

Cambium Networks Integrates with Starlink for Enterprise-Grade Service Delivery

Oct -29

Source: prnewswire.com

Cambium Networks receives Nasdaq Staff Determination Letter; Will Seek Hearing & Continued Listing

Oct -16

Source: prnewswire.com

Cambium Networks Introduces New Low-Cost, High-Performance Force 4518 and Force 4616 Subscriber Modules

Oct -14

Source: prnewswire.com

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.88%)

6. Segments

Point-to-Multi-Point

Expected Growth: 14.0%

Cambium Networks' Point-to-Multi-Point solution growth is driven by increasing demand for wireless broadband connectivity, particularly in rural and underserved areas. The 14.0% growth rate is also fueled by the need for reliable, high-speed internet access for IoT devices, smart cities, and industrial applications, as well as the company's expanding global presence and strategic partnerships.

Point-to-Point

Expected Growth: 15.0%

Cambium Networks' Point-to-Point solution growth is driven by increasing demand for high-speed, low-latency wireless connectivity in rural and underserved areas, coupled with the need for reliable and secure backhaul infrastructure. The 15.0% growth rate is also fueled by the adoption of 5G and IoT technologies, which require high-capacity wireless links.

Enterprise

Expected Growth: 17.0%

Cambium Networks Corporation's Enterprise segment growth of 17.0% is driven by increasing demand for wireless broadband solutions, expansion into new markets, and growing adoption of IoT devices. Additionally, the company's focus on providing cost-effective and reliable connectivity solutions, as well as its strong partnerships with service providers, contribute to its growth momentum.

Other

Expected Growth: 13.0%

Cambium Networks Corporation's 13.0% growth is driven by increasing demand for wireless broadband solutions, expansion into new markets, and growing adoption of IoT devices. Additionally, the company's focus on providing cost-effective and reliable connectivity solutions has led to increased market share and revenue growth.

7. Detailed Products

ePMP

A fixed wireless broadband solution that provides high-speed internet access to underserved and unserved communities.

cnPilot

A line of Wi-Fi access points and routers designed for outdoor and indoor use cases.

cnReach

A line of narrowband wireless radios for industrial IoT and SCADA applications.

cnMaestro

A cloud-based or on-premises network management system for wireless networks.

ptP

A line of point-to-point wireless backhaul solutions for high-capacity and long-distance links.

ptMP

A line of point-to-multipoint wireless distribution solutions for last-mile access.

8. Cambium Networks Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Cambium Networks Corporation operates in a niche market, providing wireless broadband and Wi-Fi solutions. While there are substitutes available, they are not as effective or efficient as Cambium's products, reducing the threat of substitutes.

Bargaining Power Of Customers

Cambium Networks Corporation's customers are largely dependent on the company's products and services, giving them limited bargaining power. The company's strong relationships with its customers also reduce the bargaining power of customers.

Bargaining Power Of Suppliers

Cambium Networks Corporation relies on a few key suppliers for its components and materials. While the company has some bargaining power, the suppliers also have some leverage, making the bargaining power of suppliers medium.

Threat Of New Entrants

The wireless broadband and Wi-Fi solutions market has high barriers to entry, including significant capital expenditures and regulatory hurdles, making it difficult for new entrants to enter the market.

Intensity Of Rivalry

The wireless broadband and Wi-Fi solutions market is highly competitive, with several established players competing for market share. Cambium Networks Corporation faces intense competition from companies like Ubiquiti Networks, MikroTik, and others.

9. SWOT Analysis

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

	Value
Debt Weight	24.77%
Debt Cost	6.24%
Equity Weight	75.23%
Equity Cost	8.93%
WACC	8.27%
Leverage	32.92%

11. Quality Control: Cambium Networks Corporation passed 2 out of 9 key points

Strong Liquidity

Low Deb

Strong Interest Coverage

Healthy Cash Flow

Operating Efficiency

Strong Return On Equity

Consistent Revenue Growth

Consistent Operating Cash Flow Growth

Margin Improvement

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

CommScope

A-Score: 4.4/10

Value: 7.7

Growth: 3.0

Quality: 5.8

Yield: 0.0

Momentum: 9.5

Volatility: 0.3

1-Year Total Return ->

Harmonic

A-Score: 4.3/10

Value: 5.1

Growth: 6.0

Quality: 7.4

Yield: 0.0

Momentum: 2.0

Volatility: 5.3

1-Year Total Return ->

Viasat

A-Score: 3.5/10

Value: 6.0

Growth: 1.9

Quality: 1.9

Yield: 0.0

Momentum: 10.0

Volatility: 1.0

1-Year Total Return ->

Comtech

A-Score: 2.9/10

Value: 9.8

Growth: 1.2

Quality: 3.5

Yield: 1.0

Momentum: 1.0

Volatility: 0.7

1-Year Total Return ->

Cambium Networks

A-Score: 2.3/10

Value: 9.5

Growth: 0.8

Quality: 2.5

Yield: 0.0

Momentum: 1.0

Volatility: 0.0

1-Year Total Return ->

DZS

A-Score: 2.2/10

Value: 10.0

Growth: 0.1

Quality: 3.0

Yield: 0.0

Momentum: 0.0

Volatility: 0.0

1-Year Total Return ->

Peers Metrics

12.e Scoring ^Insights

12.f DCF ^BETA

Parameters

Short Term Growth

16.03%

Short term Time

10.0

Long-Term Growth

2.00%

WACC

8.27%

Cambium Networks Corporation - KYG177661090

1. Company Snapshot

1.a. Company Description

1.b. Last Insights on CMBM

1.c. Company Highlights

Lower Growth

Weak Momentum

Cheaper

Earnings Miss

Revenues Miss

Lower Quality

Earnings Beats

Revenues Beats

More Volatile

2. Transcript Summary

3. NewsRoom

4. Business Breakdown

4.a. Revenues by Country

4.b. Revenues by Segment

5. Expected revenues mid-term growth (14.88%)

6. Segments

Point-to-Multi-Point

Expected Growth: 14.0%

Point-to-Point

Expected Growth: 15.0%

Enterprise

Expected Growth: 17.0%

Other

Expected Growth: 13.0%

7. Detailed Products

ePMP

cnPilot

cnReach

cnMaestro

ptP

ptMP

8. Cambium Networks Corporation's Porter Forces

Forces Ranking

Threat Of Substitutes

Bargaining Power Of Customers

Bargaining Power Of Suppliers

Threat Of New Entrants

Intensity Of Rivalry

9. SWOT Analysis

Strength

Weaknesses

Opportunities

Threats

10. Capital Structure

10.a. Balance Sheet

10.b. Weighted Average Cost of capital

11. Quality Control: Cambium Networks Corporation passed 2 out of 9 key points

12.a Historical Valuation

12.b Price/Earnings Ratio

12.c Margin Valuation

12.d Peers Valuation

Peers Group Analysis

Peers Metrics

12.e Scoring Insights

12.f DCF BETA

Parameters

Short Term Growth

Short term Time

Long-Term Growth

WACC

Target Price

1.9$

Current Price

1.9$

Potential

-0.00%

Expected Cash-Flows

12.e Scoring ^Insights

12.f DCF ^BETA