SPCB:NASDAQSuperCom, Ltd. Analysis
Data as of 2026-05-26 - not real-time
$11.15
Latest Price
8/10Risk
Risk Level: High
Executive Summary
SuperCom Ltd. posted a striking record profit and revenue growth of 18% in the latest quarter, driven by new U.S. contracts and a major European win, yet its operating margin remains deeply negative at –44% and cash generation is weak, with operating cash flow at –$5.5 M and free cash flow at –$1.2 M.
The stock trades at a forward P/E of ~19.6×, well below the industry average of 30×, but the company carries a heavy debt load (D/E ≈47) and a beta of roughly 1.1, exposing investors to heightened systematic and liquidity risk, as reflected in a 30‑day volatility of 66% and a historical max drawdown of –45%.
Market sentiment is in the “Extreme Greed” zone, supported by a fear‑greed index of 91.5, while volume trends are decreasing and the technical MACD signals a bearish crossover, suggesting caution despite the headline‑grabbing earnings beat.
The stock trades at a forward P/E of ~19.6×, well below the industry average of 30×, but the company carries a heavy debt load (D/E ≈47) and a beta of roughly 1.1, exposing investors to heightened systematic and liquidity risk, as reflected in a 30‑day volatility of 66% and a historical max drawdown of –45%.
Market sentiment is in the “Extreme Greed” zone, supported by a fear‑greed index of 91.5, while volume trends are decreasing and the technical MACD signals a bearish crossover, suggesting caution despite the headline‑grabbing earnings beat.
Market Outlook
Short Term
< 1 yearNeutral
Model confidence: 6/10
Key Factors
- high 30‑day volatility and decreasing volume
- negative operating margin and weak cash flow
- bearish MACD histogram signal
Medium Term
1–3 yearsPositive
Model confidence: 7/10
Key Factors
- robust 18% revenue growth and record quarterly profit
- strategic contract wins expanding U.S. and European exposure
- PE multiples well below industry average indicating pricing upside
Long Term
> 3 yearsNeutral
Model confidence: 5/10
Key Factors
- elevated debt‑to‑equity ratio and historic max drawdown of –45%
- beta above 1 signaling higher systematic risk
- absence of dividend and unsustainable payout profile
Key Metrics & Analysis
Financial Health
Revenue Growth18.30%
Profit Margin13.44%
P/E Ratio14.9
ROE13.58%
ROA-0.35%
Debt/Equity47.30
P/B Ratio1.3
Op. Cash Flow$-5490000
Free Cash Flow$-1222750
Industry P/E30.1
Technical Analysis
TrendNeutral
RSI61.9
Support$8.23
Resistance$12.18
MA 20$10.48
MA 50$9.22
MA 200$9.53
MACDBearish
VolumeDecreasing
Fear & Greed Index91.45
Valuation
Target Price$15.00
Upside/Downside34.53%
GradeUndervalued
TypeBlend
Risk Assessment
Beta1.87
Volatility66.61%
Sector RiskMedium
Reg. RiskMedium
Geo RiskMedium
Currency RiskLow
Liquidity RiskHigh
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This analysis may contain inaccuracies and is provided for informational and research purposes only. It is not personal investment advice, a recommendation, or an instruction to buy, sell, or hold any asset.