Cadre Holdings (CDRE) AI Stock Analysis

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Cadre Holdings

(NYSE:CDRE)

71Outperform

Cadre Holdings demonstrates strong financial performance with a solid growth trajectory, despite some areas for improvement in cash flow and debt management. The technical analysis indicates a bullish trend, although the stock's overbought conditions warrant caution. Valuation metrics suggest the stock may be overvalued, but earnings call insights reflect a positive outlook with strategic initiatives supporting long-term growth.

Positive Factors

Acquisitions

Cadre completed the acquisition of Carr’s Engineering Limited and its US subsidiaries, potentially boosting future performance.

Earnings

Cadre reported earnings per share of $0.23, significantly surpassing consensus estimates of $0.13.

Negative Factors

Revenue Guidance

2025 revenue guidance is below consensus expectations due to government procurement and tariff disruptions.

Cadre Holdings (CDRE) vs. S&P 500 (SPY)

Market Cap

$1.20B

Dividend Yield1.01%

Average Volume (3M)276.39K

Price to Earnings (P/E)33.2

Beta (1Y)0.87

Revenue Growth10.06%

EPS Growth-7.56%

CountryUS

Employees2,284

SectorIndustrials

Sector Strength82

IndustryAerospace & Defense

Share Statistics

EPS (TTM)0.23

Shares Outstanding40,659,584

10 Day Avg. Volume323,779

30 Day Avg. Volume276,395

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)0.00

Price to Cash Flow (P/CF)0.00

P/FCF Ratio0.00

Enterprise Value/Market Cap1.19

Enterprise Value/RevenueN/A

Enterprise Value/Gross Profit6.16

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$43.60

Price Target Upside23.23% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

Cadre Holdings Business Overview & Revenue Model

Company DescriptionCadre Holdings, Inc. manufactures and distributes safety and survivability equipment that provides protection to users in hazardous or life-threatening situations in the United States and internationally. The company operates in two segments, Products and Distribution. It primarily provides body armor product, such as concealable, corrections, and tactical armor under the Safariland and Protech Tactical brands; survival suits, remotely operated vehicles, specialty tools, blast sensors, accessories, and vehicle blast attenuation seats for bomb safety technicians; bomb suits; duty gear, including belts and accessories; and other protective and law enforcement equipment comprising communications gear, forensic and investigation products, firearms cleaning solutions, and crowd control products. The company also offers third-party products, such as uniforms, optics, boots, firearms, and ammunition. It serves first responders, such as state and local law enforcement, fire and rescue, explosive ordnance disposal technicians, emergency medical technicians, fishing, and wildlife enforcement and departments of corrections, as well as federal agencies including the U.S. Department of State, U.S. Department of Defense, U.S. Department of Interior, U.S. Department of Justice, U.S. Department of Homeland Security, U.S. Department of Corrections, and various foreign government agencies. The company was founded in 1964 and is headquartered in Jacksonville, Florida.

How the Company Makes MoneyCadre Holdings generates revenue primarily through the sale of its safety and survivability products to government entities, law enforcement agencies, and commercial customers. The company's key revenue streams include direct sales of body armor, tactical gear, and other protective equipment. Significant partnerships with governmental organizations and defense contractors contribute to its earnings, as these collaborations often involve large-scale contracts and long-term agreements. Additionally, Cadre Holdings benefits from an established distribution network that extends its market reach both domestically and internationally, further driving its sales and revenue growth.

Cadre Holdings Financial Statement Overview

Summary

Cadre Holdings shows strong revenue growth and healthy profit margins, with a robust balance sheet. While cash flow is solid, there are areas that need attention, such as debt levels and free cash flow growth.

Income Statement

Very Positive

Cadre Holdings has shown strong growth in revenue, with a notable increase of 17.63% from 2023 to 2024. The company maintains solid profitability with a gross profit margin of 41.13% and a net profit margin of 12.74% in 2024. However, the net profit margin has room for improvement. The EBIT and EBITDA margins are also healthy at 11.76% and 11.76% respectively, indicating efficient operations.

Balance Sheet

Positive

The company's balance sheet reveals a relatively high debt-to-equity ratio of 0.75 in 2024, which is reasonable for the industry but signals a need for cautious leverage management. The return on equity has improved significantly to 23.21%, showing effective use of shareholder funds. The equity ratio stands at 47.72%, indicating a stable financial structure with ample equity to support its assets.

Cash Flow

Positive

Cadre Holdings experienced a decline in operating cash flow from 2023 to 2024, but maintains a strong free cash flow to net income ratio of 0.36, indicating effective cash conversion. The free cash flow growth rate is negative, which could be a concern if not addressed. Overall, the cash flow position is solid but requires attention to ensure future growth and sustainability.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
567.56M	482.53M	457.84M	427.29M	404.64M
	Gross Profit
233.48M	200.73M	175.68M	170.69M	152.94M
	EBIT
66.76M	56.52M	16.72M	51.72M	49.80M
	EBITDA
78.46M	73.19M	41.98M	68.87M	59.39M
	Net Income Common Stockholders
36.13M	38.64M	5.82M	12.66M	38.45M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
124.93M	87.69M	45.29M	33.86M	2.87M
	Total Assets
652.71M	431.18M	391.95M	311.80M	283.28M
	Total Debt
233.94M	146.83M	154.65M	159.69M	212.81M
	Net Debt
109.00M	59.14M	109.37M	125.83M	209.93M
	Total Liabilities
341.20M	234.02M	226.06M	223.16M	274.43M
	Stockholders Equity
311.51M	197.16M	165.89M	88.64M	8.85M
Cash Flow		Free Cash Flow
26.11M	66.48M	41.91M	37.26M	40.71M
	Operating Cash Flow
31.78M	73.21M	46.41M	40.09M	45.42M
	Investing Cash Flow
-147.43M	-6.52M	-59.63M	-2.83M	19.78M
	Financing Cash Flow
152.67M	-24.72M	24.46M	-6.60M	-64.90M

Cadre Holdings Technical Analysis

Technical Analysis Sentiment

Positive

Last Price35.38

Price Trends

50DMA

31.26

Positive

100DMA

33.20

Positive

200DMA

34.39

Positive

Market Momentum

MACD

0.81

Negative

RSI

68.21

Neutral

STOCH

85.70

Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDRE, the sentiment is Positive. The current price of 35.38 is above the 20-day moving average (MA) of 30.83, above the 50-day MA of 31.26, and above the 200-day MA of 34.39, indicating a bullish trend. The MACD of 0.81 indicates Negative momentum. The RSI at 68.21 is Neutral, neither overbought nor oversold. The STOCH value of 85.70 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CDRE.

Cadre Holdings Risk Analysis

Cadre Holdings disclosed 51 risk factors in its most recent earnings report. Cadre Holdings reported the most risks in the “Finance & Corporate” category.

Finance & Corporate - Financial and accounting risks. Risks related to the execution of corporate activity and strategy

Latest Risks Added 0 New Risks

Cadre Holdings Peers Comparison

Overall Rating

UnderperformOutperform

Sector (64)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
BYRN	74 Outperform	$539.03M	37.20	28.88%	―	87.26%	―
DCO	72 Outperform	$904.58M	26.09	5.25%	―	3.02%	95.76%
CDRE	71 Outperform	$1.20B	33.24	13.07%	1.01%	10.06%	-7.56%
RGR	67 Neutral	$551.78M	18.73	9.56%	2.00%	0.65%	-20.28%
Sector *	64 Neutral	$4.30B	11.84	5.23%	249.82%	4.10%	-10.59%
SWBI	62 Neutral	$402.62M	14.12	8.05%	5.51%	-5.77%	14.45%
PL	53 Neutral	$1.06B	―	-25.68%	―	10.72%	16.19%

* Industrials Sector Average

Performance Comparison

CDRE

Cadre Holdings

35.38

5.62

18.88%

DCO

Ducommun

65.24

8.61

15.20%

SWBI

Smith & Wesson Brands

9.43

-6.10

-39.28%

RGR

Sturm Ruger & Company

35.00

-7.26

-17.18%

Planet Labs PBC

3.56

1.59

80.71%

BYRN

Byrna Technologies

21.49

8.29

62.80%

Cadre Holdings Earnings Call Summary

Earnings Call Date:May 06, 2025

(Q1-2025)

% Change Since: 19.49%|

Next Earnings Date:Aug 07, 2025

Earnings Call Sentiment Positive

Cadre Holdings demonstrated strong financial performance and strategic expansion in the nuclear sector. Despite challenges in product mix and tariff uncertainty, the company remains resilient, supported by its entrenched market positions and growth opportunities. The positive achievements slightly outweigh the challenges faced.

Q1-2025 Updates

Positive Updates

Acquisition and Expansion in Nuclear Sector

Cadre successfully completed the acquisition of the engineering division from Cars, enhancing its nuclear vertical. The acquisition is expected to contribute approximately $46 million in net sales and $6.5 million of EBITDA.

Strong Financial Performance

First-quarter net sales were $130.1 million and adjusted EBITDA was $20.5 million, exceeding expectations. Gross margin improved by 130 basis points year over year.

Increased Orders Backlog

Orders backlog increased by $22.4 million during the quarter, driven primarily by EOD and silo demand.

Dividend Increase

Cadre increased its dividend payments by 9% this year, marking the 14th consecutive dividend increase, reflecting confidence in the business's strength and consistency.

Resilience in Law Enforcement and Nuclear Markets

Despite economic turbulence, Cadre has delivered consistent and stable growth, supported by entrenched positions in favorable industry trends.

Negative Updates

Product Mix Challenges

The product mix in the first quarter was less favorable than expected, driven by Alpha Safety and EOD volume.

Tariff Uncertainty

The ongoing uncertainty around tariffs continues to pose a challenge. Although mitigating actions are in place, the evolving tariff policy remains a concern.

Consumer Channel Weakness

The consumer channel, representing 7% of contract sales, is experiencing broader market weakening trends.

Company Guidance

During Cadre Holdings' first quarter 2025 conference call, the company provided guidance that highlighted a positive outlook driven by strong demand for its mission-critical safety products. The company's net sales for the year are projected to be between $618 million and $648 million, with adjusted EBITDA expected to range from $112 million to $122 million, maintaining an EBITDA margin of approximately 18.5%. This guidance incorporates the recent acquisition of the engineering division from Cars Group, anticipated to contribute around $46 million in net sales and $6.5 million in EBITDA. The company emphasized its robust M&A pipeline, targeting both nuclear and law enforcement markets, while noting the potential impact of tariffs, which they expect to fully offset through mitigating actions. Despite economic uncertainty, Cadre remains confident in its long-term growth prospects, supported by favorable industry trends and strategic initiatives.

Cadre Holdings Corporate Events

Executive/Board Changes

Cadre Holdings Solidifies Executive Leadership with New Agreements

Neutral

Jan 27, 2025

On January 24, 2025, Cadre Holdings, Inc. formalized employment agreements with Brad Williams as President and Blaine Browers as Chief Financial Officer, each for a three-year term. These agreements outline salaries, performance bonuses, and stock incentives, alongside confidentiality, non-competition, and other employment terms. The agreements also specify conditions for termination and associated compensations, aiming to secure leadership continuity and align executive incentives with company performance.

Glossary

OutperformA stock rated as "Outperform" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock is likely to deliver higher returns compared to the average returns of other stocks in the same sector or market index. Investors might consider this stock a good buying opportunity.

NeutralA stock rated as "Neutral" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly attractive nor unattractive for investment. Investors may consider holding onto the stock, as it is not expected to either significantly outperform or underperform the market.

UnderperformA stock rated as "Underperform" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests that the stock may deliver lower returns compared to the average returns of other stocks in the same sector or market index. Investors might consider selling the stock or avoiding it as an investment.

Disclaimer

This AI Analyst Stock Report is automatically generated by our AI systems using advanced algorithms and publicly available financial, technical, and market data. While the information provided aims to be accurate and insightful, it is intended for informational purposes only and should not be considered financial advice. Any content created by an AI (Artificial Intelligence) system may contain inaccuracies and/or contain errors. Investing in stocks carries inherent risks, and past performance is not indicative of future results. This report does not account for your personal financial circumstances, objectives, or risk tolerance. Always conduct your own research or consult with a qualified financial advisor before making investment decisions. The analysis and recommendations provided are based on historical and current data and may not fully reflect future market conditions or unexpected developments. Neither the creators of this report nor its affiliated entities guarantee the accuracy, completeness, or reliability of the information presented. Use this report at your own discretion and risk.