Cemtrex (CETX) AI Stock Analysis

• Market Cap: $3.10M
• Dividend Yield: N/A
• Average Volume (3M): 160.87K
• Price to Earnings (P/E): <0.1
• Beta (1Y): 1.67
• Revenue Growth: 16.50%
• EPS Growth: N/A
• Country: US
• Employees: 264
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Infrastructure
• EPS (TTM): -26.70
• Shares Outstanding: 682,020
• 10 Day Avg. Volume: 225,253
• 30 Day Avg. Volume: 160,870
• PEG Ratio: 0.75
• Price to Book (P/B): 36.34
• Price to Sales (P/S): 2.56
• P/FCF Ratio: -32.62
• Enterprise Value/Market Cap: 5.62
• Enterprise Value/Revenue: 0.23
• Enterprise Value/Gross Profit: 0.53
• Enterprise Value/Ebitda: -1.03
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: $1.00 ▼(-63.24% 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 Business Overview & Revenue Model

Company Description

Cemtrex, Inc. operates as a technology company in the United States and internationally. The company operates through Advanced Technologies and Industrial Services segments. The Advanced Technologies segment provides Internet of Things products and smart devices under the SmartDesk name for mobile, web, virtual and augmented reality, wearables, and television markets; and security and video surveillance solutions, and virtual and augmented reality solutions for various commercial and industrial applications. This segment also offers browser-based video monitoring systems and analytics-based recognition systems, cameras, servers, and access control systems for security and surveillance in industrial and commercial facilities, federal prisons, hospitals, universities, schools, and federal and state government offices. The Industrial Services segment offers single-source services for rigging, millwrighting, in plant maintenance, equipment erection, relocation, and disassembly; installs high precision equipment in various industrial markets comprising automotive, printing and graphics, industrial automation, packaging, chemicals and others; and provides maintenance and contracting solutions for the machinery, packaging, printing, chemical, and other manufacturing markets. The company was formerly known as Diversified American Holding, Inc. and changed its name to Cemtrex, Inc. in December 2004. Cemtrex, Inc. was incorporated in 1998 and is based in Brooklyn, New York.

How the Company Makes Money

Cemtrex 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 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.

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.

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.

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

• Technical Analysis Sentiment: Negative
• Last Price: 2.72
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: 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 2.72 is below the 20-day moving average (MA) of 4.25, below the 50-day MA of 5.70, and below the 200-day MA of 16.96, indicating a bearish trend. The MACD of -0.87 indicates Positive momentum. The RSI at 28.04 is Positive, neither overbought nor oversold. The STOCH value of 11.47 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CETX.

Cemtrex Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
BLIN	55 Neutral	$11.52M	―	-25.48%	―	0.54%	70.74%
CETX	52 Neutral	$3.10M	<0.01	-1102.76%	―	16.50%	―
RVYL	39 Underperform	$9.82M	―	-993.23%	―	-44.25%	82.71%
TAOP	38 Underperform	$1.67M	―	-46.76%	―	-15.10%	-177.14%
HUBC	38 Underperform	$4.17M	-0.08	―	―	-30.70%	82.02%
DTSS	37 Underperform	$10.54M	―	-93.31%	―	68.56%	89.48%

Cemtrex Corporate Events

Cemtrex Regains Nasdaq Compliance with Equity Increase

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.