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CI&T (CINT)
NYSE:CINT
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CI&T
(NYSE:CINT)
Rating:77Outperform
Price Target:
$7.00
▲(21.53%Upside)
Positive Factors
Client Engagement
CINT showcased recent key platform developments across VW, Nestle, and Culligan, with its GenAI platform, Flow, driving differentiation in top clients.
Financial Performance
CINT posted a solid start to 2025, with leading 1Q organic growth performance of 13.7% y/y CC beating Street by +110bps.
Growth Strategy
CINT's pipeline recently increased by 30% year-over-year, showing that sales activity remains strong despite a challenging macro environment.
Negative Factors
Market Risks
Looming risks involving tariffs tensions and recession fears increase uncertainties for near-term demand.
Operational Risks
Key risks include short-term demand volatility, margin headwind from payroll taxes in Brazil, deflationary pressure, and low share liquidity.
Region-Specific Challenges
Growth in North America was just partially offset by Europe weakness.
CI&T (CINT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$784.83M
Dividend YieldN/A
Average Volume (3M)242.83K
Price to Earnings (P/E)24.1
Beta (1Y)1.06
Revenue Growth2.07%
EPS Growth22.81%
CountryUS
Employees6,907
SectorTechnology
Sector Strength84
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.05
Shares Outstanding22,498,571
10 Day Avg. Volume160,520
30 Day Avg. Volume242,833
Financial Highlights & Ratios
PEG Ratio-6.16
Price to Book (P/B)3.42
Price to Sales (P/S)0.00
P/FCF Ratio348.66
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$8.36Price Target Upside45.14% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering7
CI&T Business Overview & Revenue Model
Company DescriptionCI&T (CINT) is a global digital solutions provider that operates at the intersection of technology and business. The company specializes in offering digital transformation services, focusing on sectors such as financial services, healthcare, retail, and technology. Its core services include software development, IT consulting, data analytics, and customer experience enhancement. CI&T leverages agile methodologies and advanced technologies to help businesses innovate and scale their digital operations effectively.
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 Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -7.25%|
Next Earnings Date:Aug 15, 2025
Earnings Call Sentiment Positive
CI&T reported strong financial performance with significant revenue and profit growth, successful employee expansion, and leadership in AI-driven transformation. Despite macroeconomic uncertainties, the company remains confident with a solid pipeline and positive business outlook. The highlights significantly outweigh the lowlights, indicating a strong position in the market.Q1-2025 Updates
Positive Updates
Strong Revenue Growth
CI&T achieved a net revenue of $110.9 million in Q1 2025, marking a 4.9% increase compared to Q1 2024. At constant currency, the organic net revenue growth was 13.7% year-over-year.
Adjusted EBITDA and Margin Increase
Adjusted EBITDA for Q1 2025 increased by 15.2% to $19.6 million, with an improved adjusted EBITDA margin of 17.6%, up from 16.1% in Q1 2024.
Growth in Key Markets and Verticals
Revenue from Latin America grew by 11%, and North America by 12%. Financial Services revenue rose by 25%, and Retail and Industrial Goods grew by 32%.
Employee Growth and Development
CI&T's employee count increased by 21.6% to 7,400 employees compared to Q1 2024, with a successful onboarding of 420 trainees.
AI and Technology Leadership
CI&T FLOW platform adoption is high, with more than 85% of employees utilizing it daily. The company is at the forefront of AI-driven transformation, enhancing client productivity and engagement.
Cash Flow and Profit Improvement
Adjusted net profit increased by 14.2% to $9.6 million, and the free cash flow to adjusted net income ratio was 151.6%.
Positive Business Outlook
CI&T expects Q2 2025 net revenue to be at least $115.5 million, an 11.9% year-over-year increase at constant currency. The full-year 2025 guidance reaffirms net revenue growth at constant currency to be between 9% and 15%.
Negative Updates
Macro Uncertainty and Volatility
Despite strong growth, there is ongoing macroeconomic uncertainty and volatility, particularly in the U.S. and Brazil markets.
Challenges in Scaling AI Solutions
While CI&T is pushing AI solutions, the broader market is still adapting, with clients needing to be guided through AI adoption and transformation.
Company Guidance
During the first quarter of 2025, CI&T reported a net revenue of $110.9 million, reflecting a year-over-year organic net revenue growth of 13.7% at constant currency. The adjusted EBITDA increased by 15.2% to $19.6 million, yielding an adjusted EBITDA margin of 17.6%. The company's financial performance was bolstered by strong growth in key geographic regions, with revenue from Latin America up by 11% and North America by 12%. Industry verticals such as Financial Services and Retail and Industrial Goods saw revenue growth of 25% and 32%, respectively. CI&T's top 10 clients experienced a revenue increase of 7.2% compared to the previous year. Looking ahead, the company expects a second-quarter net revenue of at least $115.5 million, an 11.9% year-over-year increase at constant currency, and maintains a full-year net revenue growth guidance of 9% to 15%, with an adjusted EBITDA margin ranging from 18% to 20%.CI&T Financial Statement Overview
Summary
CI&T demonstrates strong financial performance with robust revenue growth, solid profit margins, and a stable balance sheet. The company has effectively managed its debt and equity, contributing to financial stability and a positive outlook for future growth.Income Statement
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.85
Very Positive
Balance Sheet
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.78
Positive
Cash Flow
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.82
Very Positive
| Breakdown | ||||
| Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|
| 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 | |||
| 361.04M | 271.13M | 13.13M | 102.47M | 79.58M | Operating Cash Flow |
| 426.38M | 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
Negative
5.76
Price Trends
5.73
Positive
6.28
Negative
6.49
Negative
Market Momentum
-0.03
Positive
43.81
Neutral
14.79
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 5.76 is below the 20-day moving average (MA) of 6.11, above the 50-day MA of 5.73, and below the 200-day MA of 6.49, indicating a neutral trend. The MACD of -0.03 indicates Positive momentum. The RSI at 43.81 is Neutral, neither overbought nor oversold. The STOCH value of 14.79 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 3 New Risks
1.
We may not be able to sustain our revenue growth rate in the future. Q4, 2023
2.
We may need additional capital, and a failure by us to raise additional capital on terms favorable to us, or at all, could limit our ability to grow our business and develop or enhance our service offerings to respond to market demand or competitive challenges. Q4, 2023
3.
Potential future acquisitions could prove difficult to integrate, disrupt our business, dilute shareholder value and strain our resources. Q4, 2023
CI&T Peers Comparison
Overall Rating
UnderperformOutperform
Sector (62)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
77 Outperform | $784.83M | 24.07 | 11.18% | ― | 2.07% | 22.81% | |
75 Outperform | $1.15B | 24.39 | 5.32% | ― | -2.09% | 76.96% | |
72 Outperform | $1.04B | 91.70 | 3.78% | ― | 9.54% | ― | |
64 Neutral | $1.05B | ― | -55.90% | ― | 12.76% | 16.97% | |
63 Neutral | $449.44M | 5.32 | -94.58% | ― | -2.75% | -4.13% | |
62 Neutral | $11.93B | 10.60 | -7.51% | 3.00% | 7.40% | -8.09% | |
59 Neutral | $999.99M | 42.36 | 2.85% | ― | 7.58% | -57.13% |
* Technology Sector Average
Performance Comparison
CINT
CI&T
5.76
1.09
23.34%
RDWR
Radware
24.37
5.62
29.97%
VRNT
Verint Systems
18.94
-18.29
-49.13%
DAVA
Endava
16.53
-9.17
-35.68%
BASE
Couchbase
19.38
0.75
4.03%
CCSI
Consensus Cloud Solutions
22.99
3.06
15.35%
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.