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Cadre Holdings (CDRE)
NYSE:CDRE
US Market

Cadre Holdings (CDRE) AI Stock Analysis

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Cadre Holdings

(NYSE:CDRE)

Rating:71Outperform
Price Target:
$36.00
▲(11.56%Upside)
Cadre Holdings' strong financial performance and strategic guidance from the earnings call are significant positives. However, the high valuation and mixed technical indicators temper the overall score.
Positive Factors
Earnings
Cadre (CDRE) reported 1Q2025 earnings with EPS of $0.23 well above consensus estimates of $0.13.
Financial Performance
Q4 revenues increased by 41%, outperforming estimates by 3%.
Negative Factors
Demand
The fervent demand for nuclear energy powered datacenters has cooled significantly in recent months.
Inorganic Growth
Inorganic growth is a major part of the CDRE story and valuation, and in the current environment deals are likely to be delayed, slowed, and the cost of borrowing to increase.

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

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 through the manufacturing and sale of its specialized safety and survivability equipment. Its key revenue streams include the direct sale of body armor, duty gear, holsters, and related personal protective equipment to government agencies, law enforcement departments, and military organizations. The company benefits from long-term contracts and procurement agreements with these entities, which provide a stable source of income. Additionally, Cadre Holdings may engage in strategic partnerships and collaborations to expand its market reach and product offerings. The company's earnings are significantly influenced by government defense and law enforcement budgets, as well as its ability to maintain and secure contracts with key clients.

Cadre Holdings Earnings Call Summary

Earnings Call Date:May 06, 2025
(Q1-2025)
|
% Change Since: 8.98%|
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 Financial Statement Overview

Summary
Cadre Holdings demonstrates strong financial health with substantial revenue and profit growth, efficient cash flow management, and a balanced capital structure. The company has effectively reduced leverage while maintaining profitability, positioning itself well for future growth. Continued focus on managing debt and sustaining cash flow generation will be key to maintaining this positive trajectory.
Income Statement
82
Very Positive
Cadre Holdings shows strong revenue growth with a TTM revenue of $559.8M, reflecting a 17.4% increase from 2023. The gross profit margin remains robust at 41.1%, and the net profit margin improved to 6.9%. EBIT margin is stable at 12.2%, while the EBITDA margin is healthy at 15.2%. Overall, the company displays solid profitability and growth trajectory.
Balance Sheet
75
Positive
The balance sheet indicates moderate leverage with a debt-to-equity ratio of 0.73, showing a decrease from prior periods, which is a positive sign. The equity ratio is reasonable at 48.4%, demonstrating a balanced capital structure. Return on equity has improved to 12.1%, suggesting effective use of equity to generate profits. The company's financial stability is improving, but there is still some leverage risk.
Cash Flow
78
Positive
Operating cash flow to net income ratio is strong at 1.22, indicating efficient conversion of income into cash. Free cash flow grew by 58.6% from 2023, with a free cash flow to net income ratio of 1.08, reflecting solid cash generation. The company exhibits healthy cash flow management, supporting its operations and growth.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue559.81M567.56M482.53M457.84M427.29M404.64M
Gross Profit230.23M233.48M200.73M175.68M170.69M152.94M
EBITDA84.93M81.11M73.19M41.98M68.87M59.39M
Net Income38.45M36.13M38.64M5.82M12.66M38.45M
Balance Sheet
Total Assets656.29M652.71M431.18M391.95M311.80M283.28M
Cash, Cash Equivalents and Short-Term Investments133.43M124.93M87.69M45.29M33.86M2.87M
Total Debt231.50M238.76M146.83M154.65M159.69M212.81M
Total Liabilities338.73M341.20M234.02M226.06M223.16M274.43M
Stockholders Equity317.56M311.51M197.16M165.89M88.64M8.85M
Cash Flow
Free Cash Flow41.40M26.11M66.48M41.91M37.26M40.71M
Operating Cash Flow47.03M31.78M73.21M46.41M40.09M45.42M
Investing Cash Flow-6.10M-147.43M-6.52M-59.63M-2.83M19.78M
Financing Cash Flow5.07M152.67M-24.72M24.46M-6.60M-64.90M

Cadre Holdings Technical Analysis

Technical Analysis Sentiment
Negative
Last Price32.27
Price Trends
50DMA
32.88
Negative
100DMA
32.86
Negative
200DMA
34.25
Negative
Market Momentum
MACD
-0.20
Positive
RSI
41.82
Neutral
STOCH
14.12
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CDRE, the sentiment is Negative. The current price of 32.27 is below the 20-day moving average (MA) of 33.81, below the 50-day MA of 32.88, and below the 200-day MA of 34.25, indicating a bearish trend. The MACD of -0.20 indicates Positive momentum. The RSI at 41.82 is Neutral, neither overbought nor oversold. The STOCH value of 14.12 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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 (58)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
75
Outperform
$694.64M50.9128.88%87.26%
71
Outperform
$1.29B33.6513.07%1.20%10.06%-7.56%
DCDCO
68
Neutral
$1.22B36.355.25%3.02%95.76%
RGRGR
64
Neutral
$588.53M19.429.56%2.02%0.65%-20.28%
PLPL
62
Neutral
$1.64B-22.54%9.52%24.27%
58
Neutral
$1.34B4.08-2.93%10.79%3.41%-51.76%
54
Neutral
$386.38M28.753.48%5.96%-11.73%-64.84%
* Industrials Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CDRE
Cadre Holdings
32.03
-1.28
-3.84%
DCO
Ducommun
84.77
26.71
46.00%
SWBI
Smith & Wesson Brands
8.66
-5.05
-36.83%
RGR
Sturm Ruger & Company
35.73
-5.17
-12.64%
PL
Planet Labs PBC
6.07
4.21
226.34%
BYRN
Byrna Technologies
31.57
21.59
216.33%

Cadre Holdings Corporate Events

Shareholder Meetings
Cadre Holdings Approves Employee Stock Purchase Plan
Neutral
Jun 5, 2025

On May 30, 2025, Cadre Holdings, Inc. held its 2025 Annual Meeting of Stockholders, where stockholders approved the Employee Stock Purchase Plan, allowing for the issuance of 1,000,000 shares of common stock. The plan had been previously approved by the Board of Directors on April 16, 2025. Additionally, stockholders elected five directors, ratified KPMG LLP as the independent auditor for 2025, and approved the stock purchase plan, with approximately 95.1% of eligible shares represented at the meeting.

The most recent analyst rating on (CDRE) stock is a Buy with a $40.00 price target. To see the full list of analyst forecasts on Cadre Holdings stock, see the CDRE Stock Forecast page.

Glossary
BuyA stock rated as a "Buy" is expected to perform better than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock is likely to deliver higher returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
HoldA stock rated as a "Hold" is expected to perform in line with the overall market or a specific benchmark. This rating indicates that the stock is neither particularly compelling nor unfavorable for investment. Note: This is not investment advice; please consult a financial advisor before making investment decisions.
SellA stock rated as a "Sell" is expected to perform worse than the overall market or a specific benchmark over the near-to-medium term. This rating suggests the stock may deliver lower returns compared to other stocks in the same sector or market index. Note: This is not investment advice; please consult a financial advisor before making investment decisions.

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.Date of analysis: Jun 21, 2025