Communication equipment

15 companies · $150B combined revenue · $37.9B operating profit

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The typical US-listed communication equipment company grew revenue 13.7% and earnings 34.9% in its latest year, at a 16.3% operating margin, and 8 of 15 earn a return on capital above 15%. Figures from each company's latest annual filing with the SEC, refreshed daily.

13.7%Median revenue growth
34.9%Median earnings growth
8.5%Median revenue growth, 3 yrs
16.5%Median earnings growth, 3 yrs
16.3%Median operating margin
16.3%Median ROCE
Fastest revenue growthOndas ONDS605%Fastest earnings growthEricsson LM Telephone ERIC7578%Highest ROCEUbiquiti UI75.4%Biggest margin gainOndas ONDS+366.1 pts

Growth engines: the 4 Cylinders

All four working: 22% of companies

A company's earnings per share can grow in only four ways: more sales, profits growing faster than sales (operating leverage), wider margins, and less debt. Each bar is the share of companies where that engine worked in their latest year.

  • Sales growth · Revenue up 10% or more67%
  • Operating leverage · Operating income growing faster than a growing revenue69%
  • Margin expansion · Operating margin up 1 point or more60%
  • Debt reduction · Debt down 5% or more, or net cash50%

Combined revenue · 13 companies reporting in US dollars

Revenue
$0$50B$100B$150BFY22FY23FY24FY25

Combined operating margin

Operating margin
0%10%20%30%FY22FY23FY24FY25

All 15 companies

Median–13.7%34.9%16.3%16.3%0.40x
CSCOCisco Systems$63.3B11.8%▼30.3%▼24.3%▲17.4%▲0.45x▼
ANETArista Networks$9.0B28.6%▲23.1%▼42.8%▲27.4%▲–
QCOMQualcomm$44.3B13.7%-45.4%▼27.9%▲30.1%▲0.70x▼
LITELumentum$3.0B83.2%▲-26876%▼17.4%▲10.9%▼0.35x▲
MSIMotorola Solutions$11.7B8%▼36.6%▲25.6%▲22.4%▲3.49x▼
NOKNOKIAEUR 19.9B3.5%▼-48.6%▼4.4%▼3.2%▼0.16x▲
CIENCIENA$4.8B18.8%▲46.9%▲4.1%▼4.3%▼0.56x▼
UIUbiquiti$3.3B27.2%▲34.9%36.2%▲75.4%▲–
ERICEricsson LM TelephoneSEK 237B-4.5%▼7578%▲16.3%23%▲0.30x▲
FFIVF5$3.1B9.7%▼22.2%▼24.8%▲16.3%–
FNFabrinet$4.6B35.7%▲42.3%▲10%▼18.5%▲–
ESEEsco Technologies$1.1B19.2%▲194%▲15.6%▼9%▼0.12x▲
ONDSOndas$51M605%▲–-115%▼-5.9%▼–
EXTRExtreme Networks$1.3B12.6%▼–4.9%▼10.7%▼1.85x▼
DGIIDigi International$430M1.5%▼81.3%▲13.1%▼6.9%▼0.25x▲

▲ better than the median, ▼ worse. n/a: the ratio doesn't apply to that kind of business (e.g. a bank's operating margin). Sort by any column. Figures from each company's latest 10-K (or 20-F/40-F).