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Cemtrex Inc (CETX)
NASDAQ:CETX
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Cemtrex
(NASDAQ:CETX)
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Rating:52Neutral
Price Target:
$1.00
▼(-79.67% Downside)
Cemtrex's overall stock score is primarily impacted by its poor financial performance, characterized by high leverage and negative profitability. The technical analysis shows a bearish trend, and while the valuation appears low, it is due to negative earnings. The positive corporate event of regaining Nasdaq compliance provides some support to the score.
Cemtrex (CETX) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$3.36M
Dividend YieldN/A
Average Volume (3M)160.87K
Price to Earnings (P/E)<0.1
Beta (1Y)1.67
Revenue Growth16.50%
EPS GrowthN/A
CountryUS
Employees264
SectorTechnology
Sector Strength88
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)-26.70
Shares Outstanding682,020
10 Day Avg. Volume225,253
30 Day Avg. Volume160,870
Financial Highlights & Ratios
PEG Ratio0.75
Price to Book (P/B)36.34
Price to Sales (P/S)2.56
P/FCF Ratio-32.62
Enterprise Value/Market Cap5.20
Enterprise Value/Revenue0.23
Enterprise Value/Gross Profit0.53
Enterprise Value/Ebitda-1.03
Forecast
1Y Price TargetN/A
Price Target UpsideN/A
Rating ConsensusHold
Number of Analyst Covering0
Cemtrex Business Overview & Revenue Model
Company DescriptionCemtrex Inc. is a diversified technology company that operates in two primary sectors: Industrial Services and Consumer Electronics. The company provides a wide range of products and services, including advanced manufacturing solutions, environmental monitoring, and IoT-based smart devices. Cemtrex's core offerings include industrial automation solutions, control systems, and proprietary electronics designed for various applications across industries such as manufacturing, telecommunications, and healthcare.
How the Company Makes MoneyCemtrex generates revenue through multiple key streams. Primarily, the company earns from the sale of industrial automation products and systems, which are utilized by manufacturing and industrial clients to enhance productivity and efficiency. Additionally, Cemtrex generates income from its environmental monitoring solutions, which are essential for businesses looking to comply with regulations and maintain sustainable operations. The consumer electronics segment contributes to revenue through the sale of smart devices and related technologies. Furthermore, Cemtrex often engages in partnerships with other technology firms and industrial clients to develop tailored solutions, which can lead to additional revenue opportunities through joint ventures or collaborative projects.
Cemtrex Earnings Call Summary
Earnings Call Date:Aug 14, 2025
(Q3-2024)
| % Change Since: |
Next Earnings Date:Dec 18, 2025
Earnings Call Sentiment Neutral
The earnings call indicated a mixed performance for Cemtrex, with strong growth in the Industrial Services segment and balance sheet improvements offset by challenges in the Security segment and increased losses. The company remains optimistic about future growth and operating profit due to strategic initiatives and cost control measures.Q3-2024 Updates
Positive Updates
Significant Revenue Growth in Industrial Services Segment
Revenue in the Industrial Services segment increased by 49% to $8.5 million, driven by increased demand for services and the acquisition of Heisey.
Strengthened Balance Sheet
The company improved its balance sheet with a $10 million upsized underwritten public offering, using proceeds to pay off indebtedness.
Inventory Reduction
The company successfully reduced its inventory by over $1 million this fiscal year.
Negative Updates
Decrease in Security Segment Revenue
Security segment revenues decreased by 31% to $6.2 million due to project delays and broader economic conditions.
Increased Operating Loss
The operating loss for the third quarter was $3.2 million compared to an operating income of $0.1 million a year ago, primarily due to decreased gross profit in the Security segment and increased G&A expenses.
Increased Net Loss
Net loss for the third quarter of 2024 was $9.1 million, significantly higher than the net loss of $1.2 million in the same period of 2023.
Company Guidance
During the CETX Q3 2024 earnings call, the company highlighted several key metrics and strategic plans. The revenue for the third quarter remained steady at $14.7 million compared to the previous year. The Industrial Services segment experienced a substantial 49% revenue increase, reaching $8.5 million, driven by heightened demand and contributions from the Heisey acquisition. However, the Security segment saw a 31% decline to $6.2 million, attributed to project delays and challenging economic conditions. The company's operating loss widened to $3.2 million from an operating income of $0.1 million a year ago, largely due to decreased gross profit in the Security segment and increased general and administrative expenses. The net loss increased significantly to $9.1 million, compared to $1.2 million in Q3 2023. Despite these challenges, the company improved its balance sheet with a $10 million upsized public offering and reduced inventory by over $1 million. Looking ahead, Cemtrex is optimistic about future growth, particularly with the launch of its new cloud security platform, Anavio, and expects the Industrial Services segment to achieve over 30% annual revenue growth in fiscal year 2024.Cemtrex Financial Statement Overview
Summary
Cemtrex faces significant financial challenges, with high leverage, negative profitability, and weak cash flow generation. While revenue is growing, the company must address its operational inefficiencies and financial risks to achieve sustainable growth and stability.Income Statement
Cemtrex's revenue has shown moderate growth with a 3.09% increase in the TTM period. However, the company is struggling with profitability, as indicated by negative net profit and EBIT margins. The gross profit margin is relatively healthy at 43.53%, but the negative EBITDA margin suggests operational inefficiencies.45
Neutral
Balance Sheet
The balance sheet reveals high leverage, with a debt-to-equity ratio of 6.24 in the TTM period, indicating significant financial risk. The return on equity is negative, reflecting ongoing losses. The equity ratio is low, suggesting limited financial stability.30
Negative
Cash Flow
Cemtrex's cash flow situation is concerning, with negative free cash flow and a significant decline in free cash flow growth. The operating cash flow to net income ratio is low, indicating challenges in converting earnings into cash. The company needs to improve its cash generation capabilities.35
Negative
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 76.10M | 66.86M | 59.37M | 50.27M | 43.13M | 43.52M |
| Gross Profit | 33.12M | 27.48M | 25.69M | 19.06M | 16.97M | 19.36M |
| EBITDA | -16.91M | -3.98M | ― | -5.20M | 5.90M | -66.50K |
| Net Income | -20.48M | -7.23M | -9.20M | -13.29M | 393.78K | -8.89M |
Balance Sheet | ||||||
| Total Assets | 46.96M | 44.12M | 48.45M | 45.76M | 52.94M | 63.79M |
| Cash, Cash Equivalents and Short-Term Investments | 7.05M | 3.91M | 5.34M | 9.91M | 15.44M | 20.38M |
| Total Debt | 22.56M | 23.12M | 26.75M | 21.84M | 9.26M | 15.17M |
| Total Liabilities | 43.11M | 39.15M | 40.11M | 31.12M | 29.39M | 31.84M |
| Stockholders Equity | 3.62M | 4.71M | 7.69M | 13.94M | 22.59M | 30.87M |
Cash Flow | ||||||
| Free Cash Flow | -765.86K | -5.25M | -4.99M | -17.94M | -11.12M | -5.66M |
| Operating Cash Flow | 1.54M | -3.95M | -2.23M | -16.09M | -10.05M | -4.09M |
| Investing Cash Flow | -2.33M | -1.26M | -5.63M | 6.61M | 840.90K | 764.55K |
| Financing Cash Flow | 1.65M | 4.40M | 2.04M | 5.02M | 4.45M | 24.07M |
Cemtrex Technical Analysis
Negative
4.92
Price Trends
9.55
Negative
13.76
Negative
20.02
Negative
Market Momentum
-1.10
Negative
32.05
Neutral
14.20
Positive
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CETX, the sentiment is Negative. The current price of 4.92 is below the 20-day moving average (MA) of 5.42, below the 50-day MA of 9.55, and below the 200-day MA of 20.02, indicating a bearish trend. The MACD of -1.10 indicates Negative momentum. The RSI at 32.05 is Neutral, neither overbought nor oversold. The STOCH value of 14.20 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CETX.
Cemtrex Risk Analysis
Cemtrex disclosed 52 risk factors in its most recent earnings report. Cemtrex 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
Cemtrex Peers Comparison
UnderperformOutperform
Sector (61)
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
| ― | $37.18B | 12.37 | -10.20% | 1.83% | 8.50% | -7.62% | |
| ― | $16.02M | -4.91 | -25.48% | ― | 0.54% | 70.74% | |
| ― | $3.36M | <0.01 | -1102.76% | ― | 16.50% | ― | |
| ― | $15.69M | ― | -374.57% | ― | 198.70% | 78.41% | |
| ― | $11.41M | ― | -2201.06% | ― | -33.86% | 74.09% | |
| ― | $4.84M | -0.10 | ― | ― | -30.70% | 82.02% | |
| ― | $2.20M | -0.21 | -46.76% | ― | -15.10% | -177.14% |
* Technology Sector Average
CETX
Cemtrex
4.92
-146.86
-96.76%
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RVYL
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Cemtrex Corporate Events
Delistings and Listing ChangesRegulatory Filings and Compliance
Cemtrex Regains Nasdaq Compliance with Equity Increase
Positive
Jun 9, 2025
Cemtrex, Inc. faced a compliance issue with Nasdaq’s minimum stockholder’s equity requirement, which mandates a minimum equity of $2.5 million. On February 21, 2025, the company was notified of its non-compliance due to its equity falling below this threshold. However, by June 4, 2025, Cemtrex had successfully regained compliance, reporting a stockholder’s equity of $6,403,022, thus resolving the issue.
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.