CI&T (CINT) AI Stock Analysis

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CI&T

(NYSE:CINT)

72Outperform

CI&T's overall stock score reflects strong financial performance and a positive earnings call, offset by technical indicators suggesting caution and a high P/E ratio impacting valuation. The company's strategic focus on AI and effective cost management are promising for future growth, but FX impacts and geopolitical challenges pose risks.

Positive Factors

AI Platform and Growth Opportunities

The GenAI platform FLOW is yielding net new growth opportunities with clients that are beginning to move the needle.

Client Demand and Resilience

CINT has not yet seen an impact on client spending, indicating resilience in its business model.

Negative Factors

Market Conditions and Uncertainty

Despite rising macro concerns, CINT has shown resilience, but market conditions continue to pose potential risks.

Service Recovery Concerns

The services recovery for CINT remains fragile and could be extended further amid new uncertainties as businesses digest government policy.

CI&T (CINT) vs. S&P 500 (SPY)

Market Cap

$634.35M

Dividend YieldN/A

Average Volume (3M)117.46K

Price to Earnings (P/E)22.4

Beta (1Y)1.20

Revenue Growth-1.77%

EPS Growth-8.52%

CountryUS

Employees6,907

SectorTechnology

Sector Strength51

IndustrySoftware - Infrastructure

Share Statistics

EPS (TTM)0.22

Shares Outstanding22,498,571

10 Day Avg. Volume122,849

30 Day Avg. Volume117,464

Financial Highlights & Ratios

PEG RatioN/A

Price to Book (P/B)N/A

Price to Sales (P/S)9.25

Price to Cash Flow (P/CF)10.30

P/FCF Ratio0.00

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$9.40

Price Target Upside93.02% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering5

CI&T Business Overview & Revenue Model

Company DescriptionCI&T Inc., together with its subsidiaries, provides strategy, design, and software engineering services to enable digital transformation for enterprises worldwide. It develops customizable software through the implementation of software solutions, including machine learning, artificial intelligence, analytics, and cloud and mobility technologies. The company was founded in 1995 and is headquartered in Campinas, Brazil.

How the Company Makes MoneyCI&T primarily generates revenue through its digital transformation services offered to a wide range of industries. The company's revenue model is centered around providing end-to-end digital solutions, which include custom software development, IT consulting, and data analytics services. CI&T earns money by engaging in long-term contracts with businesses seeking to enhance their digital capabilities. A significant portion of its revenue comes from strategic partnerships and collaborations with technology providers, allowing it to deliver comprehensive solutions tailored to client needs. Additionally, CI&T benefits from repeat business and expanding its service offerings to existing clients, contributing to steady revenue growth.

CI&T Financial Statement Overview

Summary

CI&T demonstrates consistent growth across all financial aspects, with strong revenue and profit margins, robust cash flow, and a stable balance sheet. Effective management of debt and equity contributes to financial stability, while continuous improvement in cash flow generation supports operational needs. Overall, the company's financial health is strong, with a positive outlook for future growth.

Income Statement

Very Positive

CI&T has shown strong revenue growth, increasing from $956.5 million in 2020 to $2,367.8 million in 2024. Gross profit margin remains solid at around 34.3% for 2024. The net profit margin improved to 6.8% in 2024 from 6.0% in 2020, demonstrating effective cost management. EBIT and EBITDA margins are robust, indicating strong operating efficiency. Overall, the income statement reflects positive growth and profitability trends.

Balance Sheet

Positive

The company's debt-to-equity ratio is 0.53 in 2024, indicating a manageable level of leverage. Stockholders’ equity has grown steadily, enhancing financial stability. The equity ratio stands at approximately 53.2%, suggesting a strong capital structure. Despite the increase in total debt, the overall balance sheet remains healthy, with a focus on equity growth and asset expansion.

Cash Flow

Very Positive

CI&T displays a positive cash flow trajectory, with operating cash flow increasing significantly from $100.97 million in 2020 to $374.08 million in 2024. The free cash flow has grown consistently, reflecting efficient capital expenditure management. The operating cash flow to net income ratio is strong, indicating good cash conversion. The cash flow statements indicate a solid ability to generate cash and support business operations.

Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Breakdown
Income Statement		Total Revenue
2.37B	2.23B	2.19B	1.44B	956.52M
	Gross Profit
811.70M	745.72M	762.49M	508.65M	355.65M
	EBIT
300.90M	285.48M	447.24M	244.61M	208.24M
	EBITDA
391.33M	386.05M	368.67M	288.46M	232.98M
	Net Income Common Stockholders
161.16M	132.57M	95.71M	125.96M	127.65M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
350.58M	214.80M	282.03M	934.51M	162.83M
	Total Assets
3.26B	2.72B	3.03B	2.36B	585.08M
	Total Debt
917.80M	772.36M	1.04B	870.60M	164.46M
	Net Debt
567.22M	560.72M	851.31M	734.87M	1.63M
	Total Liabilities
1.52B	1.31B	1.69B	1.27B	386.62M
	Stockholders Equity
1.73B	1.41B	1.34B	1.09B	198.46M
Cash Flow		Free Cash Flow
317.00M	271.13M	13.13M	102.47M	79.58M
	Operating Cash Flow
374.08M	295.24M	36.09M	132.38M	100.97M
	Investing Cash Flow
-53.92M	66.19M	-82.56M	-1.51B	-21.39M
	Financing Cash Flow
-205.83M	-333.31M	100.66M	1.38B	5.41M

CI&T Technical Analysis

Technical Analysis Sentiment

Negative

Last Price4.87

Price Trends

50DMA

6.56

Negative

100DMA

6.51

Negative

200DMA

6.52

Negative

Market Momentum

MACD

-0.24

Positive

RSI

31.68

Neutral

STOCH

11.44

Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CINT, the sentiment is Negative. The current price of 4.87 is below the 20-day moving average (MA) of 5.77, below the 50-day MA of 6.56, and below the 200-day MA of 6.52, indicating a bearish trend. The MACD of -0.24 indicates Positive momentum. The RSI at 31.68 is Neutral, neither overbought nor oversold. The STOCH value of 11.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CINT.

CI&T Risk Analysis

CI&T disclosed 34 risk factors in its most recent earnings report. CI&T reported the most risks in the “Legal & Regulatory” category.

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

Latest Risks Added 0 New Risks

CI&T Peers Comparison

Overall Rating

UnderperformOutperform

Sector (57)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CINT	72 Outperform	$634.35M	22.44	10.34%	―	-1.77%	-8.52%
VRNT	68 Neutral	$986.76M	16.29	6.35%	―	-0.13%	263.78%
RDWR	66 Neutral	$840.92M	149.96	2.01%	―	5.20%	―
CCSI	63 Neutral	$374.31M	4.15	-94.58%	―	-3.36%	17.62%
Sector *	57 Neutral	$19.95B	9.66	-12.05%	2.76%	5.40%	-24.89%
DAVA	57 Neutral	$1.04B	150.21	0.89%	―	2.06%	-91.82%
BASE	57 Neutral	$807.65M	―	-57.86%	―	16.35%	14.27%

* Technology Sector Average

Performance Comparison

CINT

CI&T

4.87

0.82

20.25%

RDWR

Radware

20.62

4.17

25.35%

VRNT

Verint Systems

15.88

-13.46

-45.88%

DAVA

Endava

17.95

-12.65

-41.34%

BASE

Couchbase

15.21

-8.81

-36.68%

CCSI

Consensus Cloud Solutions

19.17

6.56

52.02%

CI&T Earnings Call Summary

Earnings Call Date: Mar 12, 2025 | % Change Since: -26.10% | Next Earnings Date: May 15, 2025

Earnings Call Sentiment Positive

The earnings call highlighted CI&T's strong fourth-quarter performance, driven by significant revenue growth from top clients and a robust financial position. However, there are concerns over FX impacts, regional challenges, and modest full-year growth. The proactive approach to managing cost increases and strategic focus on AI and talent development are positive indicators for future growth.

Highlights

Record Net Revenue Growth in Q4 2024

CI&T reported a record net revenue of R$656.5 million for Q4 2024, representing a 25.6% increase compared to Q4 2023. At constant currency, net revenue grew 14.7% year-over-year.

Strong Performance from Top Clients

Revenue from the top 10 clients increased by 40% in Q4 2024 versus the same period in 2023, driven by the adoption of the CI&T FLOW AI-powered platform.

Adjusted EBITDA Margin Surpassing Industry Average

CI&T achieved an adjusted EBITDA margin of 19.5% in Q4 2024, surpassing industry averages, and an adjusted net profit of R$78 million, reflecting a 41.3% year-over-year increase.

Robust Cash Generation and Financial Efficiency

For 2024, CI&T reported cash generation from operating activities totaling R$467 million, a 12.7% increase from the previous year, with a free cash flow conversion to adjusted net income ratio of 131%.

Recognition and Strategic Initiatives

CI&T was recognized by Forrester Research as a leader in modern application development services and is focusing on AI-driven solutions, talent development, and client-centric approaches.

Lowlights

FX Impact and Regional Challenges

CI&T anticipates significant FX impacts throughout 2025, with geopolitical and macroeconomic challenges noted particularly in Europe.

Modest Full Year Growth

Full year 2024 net revenue grew by 6.0% compared to 2023, and at constant currency, the growth was only 1.3% year-over-year, indicating slower growth compared to the quarterly performance.

Impact of Brazilian Payroll Taxes

The return of payroll taxes in Brazil starting in 2025 is expected to impact costs, although CI&T is taking measures to minimize the effect through productivity gains and cost-saving initiatives.

Company Guidance

During CI&T's earnings call for the fourth quarter and full year of 2024, the company reported strong financial performance and provided guidance for 2025. CI&T achieved a record net revenue of R$656.5 million for Q4 2024, marking a 25.6% year-over-year increase, with net revenue growing 14.7% at constant currency. The adjusted EBITDA margin stood at 19.5%, and adjusted net profit totaled R$78 million, reflecting a 41.3% increase. For the full year 2024, net revenue reached R$2,368 million, up 6.0% from 2023, and cash generation from operating activities amounted to R$467 million. Looking ahead, CI&T anticipates first-quarter 2025 net revenue of at least $110.5 million, with a 12.6% year-over-year growth at constant currency. For the full year 2025, the company projects organic net revenue growth in the range of 9% to 15% at constant currency, translating to an 8.4% increase in U.S. dollars and a 16.8% growth in Brazilian reais. The adjusted EBITDA margin for 2025 is estimated to be between 18% and 20%. CI&T's strategic focus remains on AI-driven solutions, with significant investment in its CI&T FLOW platform to drive efficiency and innovation.

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.