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Cemtrex Inc (CETX)
NASDAQ:CETX
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Cemtrex (CETX) AI Stock Analysis

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CETX

Cemtrex

(NASDAQ:CETX)

Rating:52Neutral
Price Target:
$1.00
▼(-14.53% 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)

Cemtrex Business Overview & Revenue Model

Company DescriptionCemtrex, 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 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 is facing significant financial challenges with declining revenues and profitability, high leverage, and weak cash flow generation. The company is heavily reliant on debt financing and has negative operational results, indicating a need for strategic restructuring to improve financial health.
Income Statement
35
Negative
The TTM data shows a significant decline in revenue and profitability, with a revenue decrease from the previous year and negative EBIT and net income margins. Despite a slight improvement in gross profit, the company's operational losses have widened, indicating challenges in cost management and revenue generation.
Balance Sheet
45
Neutral
The company has a high debt-to-equity ratio, reflecting significant leverage, and a low equity ratio, indicating potential financial instability. However, the company has managed to maintain a positive equity position. The decreasing trend in stockholders' equity raises concerns about the company's ability to sustain its capital structure.
Cash Flow
40
Negative
The TTM cash flow analysis reveals a challenging cash position, with negative free cash flow and a low operating cash flow to net income ratio. The company struggles with cash generation from operations, despite positive financing cash flow, suggesting reliance on external funding to cover operational deficits.
BreakdownTTMDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue76.10M66.86M59.37M50.27M43.13M43.52M
Gross Profit33.12M27.48M25.69M19.06M16.97M19.36M
EBITDA-16.91M-3.98M-5.20M5.90M-66.50K
Net Income-20.48M-7.23M-9.20M-13.29M393.78K-8.89M
Balance Sheet
Total Assets46.96M44.12M48.45M45.76M52.94M63.79M
Cash, Cash Equivalents and Short-Term Investments7.05M3.91M5.34M9.91M15.44M20.38M
Total Debt22.56M23.12M26.75M21.84M9.26M15.17M
Total Liabilities43.11M39.15M40.11M31.12M29.39M31.84M
Stockholders Equity3.62M4.71M7.69M13.94M22.59M30.87M
Cash Flow
Free Cash Flow-765.86K-5.25M-4.99M-17.94M-11.12M-5.66M
Operating Cash Flow1.54M-3.95M-2.23M-16.09M-10.05M-4.09M
Investing Cash Flow-2.33M-1.26M-5.63M6.61M840.90K764.55K
Financing Cash Flow1.65M4.40M2.04M5.02M4.45M24.07M

Cemtrex Technical Analysis

Technical Analysis Sentiment
Negative
Last Price1.17
Price Trends
50DMA
1.23
Negative
100DMA
1.29
Negative
200DMA
2.09
Negative
Market Momentum
MACD
-0.01
Positive
RSI
42.94
Neutral
STOCH
31.82
Neutral
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 1.17 is below the 20-day moving average (MA) of 1.25, below the 50-day MA of 1.23, and below the 200-day MA of 2.09, indicating a bearish trend. The MACD of -0.01 indicates Positive momentum. The RSI at 42.94 is Neutral, neither overbought nor oversold. The STOCH value of 31.82 is Neutral, 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

Overall Rating
UnderperformOutperform
Sector (61)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
61
Neutral
$36.05B6.66-10.10%1.86%8.68%-8.81%
56
Neutral
$3.01M0.44-12.71%-5.08%93.27%
52
Neutral
$7.15M<0.01-1102.76%16.50%
46
Neutral
$8.15M-349.71%30.52%56.70%
39
Underperform
$9.88M-2201.06%-33.86%74.09%
34
Underperform
$2.91M470.97%
$31.15M-269.39%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CETX
Cemtrex
1.17
-309.42
-99.62%
TAOP
Taoping
3.20
-13.74
-81.11%
APCX
AppTech
0.23
-0.55
-70.51%
RVYL
Ryvyl
0.31
-0.77
-71.30%
ATCH
AtlasClear Holdings
0.19
-13.00
-98.56%
CISO
Cerberus Cyber Sentinel Corp
0.93
0.41
78.85%

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.

Private Placements and Financing
Cemtrex Completes Public Offering with Aegis Capital
Neutral
Jun 3, 2025

Soluna Holdings, Inc. entered into an underwriting agreement with Aegis Capital Corp. to sell 1,250,000 shares of its common stock at $1.00 per share in a public offering. On June 3, 2025, the company closed the offering, including an over-allotment option, resulting in gross proceeds of approximately $187,500.

Private Placements and Financing
Cemtrex Completes Stock Offering to Raise $1.25 Million
Neutral
May 29, 2025

On May 28, 2025, Cemtrex, Inc. entered into an underwriting agreement with Aegis Capital Corp. to sell 1,250,000 shares of its common stock at $1.00 per share, expecting to raise approximately $1.25 million in gross proceeds. The offering, which closed on May 29, 2025, is intended to support general corporate purposes, debt reduction, and working capital, potentially impacting Cemtrex’s financial flexibility and market positioning.

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: Aug 28, 2025