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CI&T (CINT)
NYSE:CINT
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CI&T
(NYSE:CINT)
Rating:68Neutral
Price Target:
$7.00
▲(15.32%Upside)
Positive Factors
Client Engagement
CINT showcased recent key platform developments across major clients, with its GenAI platform Flow driving differentiation.
Earnings
CINT posted a solid start with leading organic growth performance of 13.7%, beating market expectations.
Strategic Positioning
CINT's strategic positioning with top clients and attractive portfolio mix provide more insulation against broader demand deterioration.
Negative Factors
Demand Volatility
Key risks include short-term demand volatility, margin headwinds from payroll taxes in Brazil, and low share liquidity.
Market Risks
Looming risks involving tariffs tensions and recession fears increase uncertainties for near-term demand.
Service Recovery
The services recovery for CINT remains fragile and could be extended further amid new uncertainties as businesses digest government policy.
CI&T (CINT) vs. SPDR S&P 500 ETF (SPY)
Market Cap
$810.19M
Dividend YieldN/A
Average Volume (3M)192.78K
Price to Earnings (P/E)25.4
Beta (1Y)1.03
Revenue Growth2.07%
EPS Growth22.81%
CountryUS
Employees6,907
SectorTechnology
Sector Strength87
IndustrySoftware - Infrastructure
Share Statistics
EPS (TTM)0.05
Shares Outstanding22,498,571
10 Day Avg. Volume99,820
30 Day Avg. Volume192,780
Financial Highlights & Ratios
PEG Ratio-3.45
Price to Book (P/B)14.70
Price to Sales (P/S)0.00
P/FCF Ratio18.90
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$7.75Price Target Upside27.68% Upside
Rating ConsensusStrong Buy
Number of Analyst Covering6
CI&T Business Overview & Revenue Model
Company DescriptionCI&T (CINT) is a global digital solutions provider specializing in digital transformation for enterprises across various industries. The company leverages its expertise in technology and innovation to assist businesses in enhancing their digital capabilities. CI&T's core services include strategy consulting, digital transformation, software development, and data analytics, helping clients improve operational efficiency and customer engagement.
How the Company Makes MoneyCI&T makes money primarily through its digital transformation services offered to enterprises. The company's revenue model is based on project-based contracts where they work closely with clients to deliver tailored digital solutions, from initial strategy development to implementation and ongoing support. Key revenue streams include consulting fees, software development charges, and long-term service agreements. CI&T's strategic partnerships with technology providers and its ability to deliver measurable business outcomes for clients are significant contributors to its earnings.
CI&T Earnings Call Summary
Earnings Call Date:May 13, 2025
(Q1-2025)
| % Change Since: -2.25%|
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 shows strong profitability with solid margins and effective equity utilization. However, a decline in revenue and free cash flow growth rate indicates areas for improvement. The company maintains good leverage management and cash flow ratios.Income Statement
CI&T's income statement reveals a strong position with a gross profit margin of 34.7% and a net profit margin of 7.5% for TTM (Trailing-Twelve-Months). The company shows a healthy EBIT margin of 13.5% and an EBITDA margin of 18.8%. However, the revenue growth rate from 2023 to TTM shows a decline of 17.4%, indicating a need for improvement in revenue generation.78
Positive
Balance Sheet
The balance sheet reflects moderate financial stability with a debt-to-equity ratio of 0.51 for TTM, suggesting manageable leverage. The return on equity (ROE) is a solid 50.3%, indicating efficient use of equity to generate profits. However, the equity ratio of 54.0% suggests a balanced but slightly cautious approach in asset financing.70
Positive
Cash Flow
The cash flow metrics show a robust operating cash flow to net income ratio of 1.86, indicating strong cash generation relative to net income. The free cash flow to net income ratio is 1.53, reflecting effective cash management. Despite a decline in free cash flow growth rate by 38.1% from 2023 to TTM, the company maintains a positive cash flow outlook.75
Positive
| Breakdown | TTM | Dec 2024 | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 |
|---|---|---|---|---|---|---|
Income Statement | ||||||
| Total Revenue | 1.96B | 2.37B | 2.23B | 2.19B | 1.44B | 956.52M |
| Gross Profit | 678.61M | 811.70M | 745.72M | 762.49M | 508.65M | 355.65M |
| EBITDA | 367.44M | 391.33M | 386.05M | 368.67M | 288.46M | 232.98M |
| Net Income | 146.20M | 161.16M | 132.57M | 95.71M | 125.96M | 127.65M |
Balance Sheet | ||||||
| Total Assets | 538.20M | 3.26B | 2.72B | 3.03B | 2.36B | 585.08M |
| Cash, Cash Equivalents and Short-Term Investments | 62.81M | 350.58M | 214.80M | 282.03M | 934.51M | 162.83M |
| Total Debt | 148.47M | 917.80M | 772.36M | 1.04B | 870.60M | 164.46M |
| Total Liabilities | 247.44M | 1.52B | 1.31B | 1.69B | 1.27B | 386.62M |
| Stockholders Equity | 290.76M | 1.73B | 1.41B | 1.34B | 1.09B | 198.46M |
Cash Flow | ||||||
| Free Cash Flow | 223.61M | 361.04M | 271.13M | 13.13M | 102.47M | 79.58M |
| Operating Cash Flow | 272.54M | 426.38M | 295.24M | 36.09M | 132.38M | 100.97M |
| Investing Cash Flow | -48.93M | -9.94M | 66.19M | -82.56M | -1.51B | -21.39M |
| Financing Cash Flow | -251.64M | -35.97M | -333.31M | 100.66M | 1.38B | 5.41M |
CI&T Technical Analysis
Positive
6.07
Price Trends
5.96
Positive
6.13
Negative
6.42
Negative
Market Momentum
>-0.01
Negative
54.62
Neutral
78.35
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CINT, the sentiment is Positive. The current price of 6.07 is above the 20-day moving average (MA) of 5.87, above the 50-day MA of 5.96, and below the 200-day MA of 6.42, indicating a neutral trend. The MACD of >-0.01 indicates Negative momentum. The RSI at 54.62 is Neutral, neither overbought nor oversold. The STOCH value of 78.35 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive 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 (63)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
74 Outperform | $1.29B | 27.69 | 5.32% | ― | -2.09% | 76.96% | |
68 Neutral | $1.30B | 115.01 | 3.78% | ― | 9.54% | ― | |
68 Neutral | $810.19M | 25.37 | 11.18% | ― | 2.07% | 22.81% | |
66 Neutral | $914.99M | 39.72 | 2.85% | ― | 7.58% | -57.13% | |
65 Neutral | $461.17M | 5.46 | -94.58% | ― | -2.75% | -4.13% | |
63 Neutral | $34.07B | 6.13 | -11.73% | 1.80% | 5.33% | -18.31% | |
56 Neutral | $1.34B | ― | -55.90% | ― | 12.76% | 16.97% |
* Technology Sector Average
Performance Comparison
CINT
CI&T
6.07
0.49
8.78%
RDWR
Radware
30.49
11.51
60.64%
VRNT
Verint Systems
21.51
-9.64
-30.95%
DAVA
Endava
15.50
-14.05
-47.55%
BASE
Couchbase
24.42
6.24
34.32%
CCSI
Consensus Cloud Solutions
23.60
7.00
42.17%
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.