CI&T (CINT) AI Stock Analysis

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CI&T

(NYSE:CINT)

Rating:77Outperform

Price Target:

$7.00

▲(15.51%Upside)

CI&T's strong financial performance and positive earnings call are the primary drivers of its overall stock score. The company demonstrates robust growth and profitability, supported by effective management. While technical analysis and valuation present some caution, the positive business outlook and strategic positioning in AI leadership contribute significantly to the score.

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

$808.86M

Dividend YieldN/A

Average Volume (3M)245.20K

Price to Earnings (P/E)25.0

Beta (1Y)1.09

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. Volume363,764

30 Day Avg. Volume245,198

Financial Highlights & Ratios

PEG Ratio0.29

Price to Book (P/B)2.71

Price to Sales (P/S)0.00

P/FCF Ratio14.78

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price Target

$8.36

Price Target Upside37.95% Upside

Rating ConsensusStrong Buy

Number of Analyst Covering7

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 Earnings Call Summary

Earnings Call Date:May 13, 2025

(Q1-2025)

% Change Since: -2.42%|

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 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
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

Technical Analysis Sentiment

Negative

Last Price6.06

Price Trends

50DMA

5.76

Positive

100DMA

6.29

Negative

200DMA

6.52

Negative

Market Momentum

MACD

0.04

Positive

RSI

49.09

Neutral

STOCH

23.60

Neutral

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 6.06 is below the 20-day moving average (MA) of 6.19, above the 50-day MA of 5.76, and below the 200-day MA of 6.52, indicating a neutral trend. The MACD of 0.04 indicates Positive momentum. The RSI at 49.09 is Neutral, neither overbought nor oversold. The STOCH value of 23.60 is Neutral, 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

We may not be able to sustain our revenue growth rate in the future. Q4, 2023

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

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
CINT	77 Outperform	$808.86M	25.04	11.18%	―	2.07%	22.81%
VRNT	73 Outperform	$1.07B	18.81	6.35%	―	-0.13%	263.78%
RDWR	72 Outperform	$1.03B	90.23	3.78%	―	9.54%	―
BASE	64 Neutral	$990.55M	―	-55.90%	―	12.76%	16.97%
Sector *	62 Neutral	$11.70B	10.39	-7.10%	2.92%	7.45%	-8.42%
DAVA	60 Neutral	$888.42M	39.57	2.85%	―	7.58%	-57.13%
CCSI	56 Neutral	$414.07M	5.06	-94.58%	―	-2.75%	-4.13%

* Technology Sector Average

Performance Comparison

CINT

CI&T

5.99

1.14

23.51%

RDWR

Radware

23.92

5.05

26.76%

VRNT

Verint Systems

18.34

-18.04

-49.59%

DAVA

Endava

16.28

-10.61

-39.46%

BASE

Couchbase

19.13

0.72

3.91%

CCSI

Consensus Cloud Solutions

22.26

2.85

14.68%

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.