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CI&T (CINT)
NYSE:CINT
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CI&T (CINT) AI Stock Analysis

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CINT

CI&T

(NYSE:CINT)

Rating:70Neutral
Price Target:
$6.50
▲(18.83%Upside)
CI&T's overall score is driven by strong financial performance and positive earnings call insights. Technical indicators and valuation are moderate, with no significant corporate events influencing 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.
Negative Factors
Demand Volatility
Key risks include short-term demand volatility, margin headwind from payroll taxes in Brazil, deflationary pressure, and low share liquidity.
Market Risks
Looming risks involving tariffs tensions and recession fears increase uncertainties for near-term demand.

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

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 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: -11.92%|
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 profitability with solid margins and efficient equity utilization. However, declining revenue and free cash flow growth present challenges.
Income Statement
78
Positive
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.
Balance Sheet
70
Positive
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.
Cash Flow
75
Positive
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.
BreakdownDec 2024Dec 2023Dec 2022Dec 2021Dec 2020
Income Statement
Total Revenue2.37B2.23B2.19B1.44B956.52M
Gross Profit811.70M745.72M762.49M508.65M355.65M
EBITDA391.33M386.05M368.67M288.46M232.98M
Net Income161.16M132.57M95.71M125.96M127.65M
Balance Sheet
Total Assets3.26B2.72B3.03B2.36B585.08M
Cash, Cash Equivalents and Short-Term Investments350.58M214.80M282.03M934.51M162.83M
Total Debt917.80M772.36M1.04B870.60M164.46M
Total Liabilities1.52B1.31B1.69B1.27B386.62M
Stockholders Equity1.73B1.41B1.34B1.09B198.46M
Cash Flow
Free Cash Flow361.04M271.13M13.13M102.47M79.58M
Operating Cash Flow426.38M295.24M36.09M132.38M100.97M
Investing Cash Flow-9.94M66.19M-82.56M-1.51B-21.39M
Financing Cash Flow-35.97M-333.31M100.66M1.38B5.41M

CI&T Technical Analysis

Technical Analysis Sentiment
Negative
Last Price5.47
Price Trends
50DMA
5.90
Negative
100DMA
5.89
Negative
200DMA
6.33
Negative
Market Momentum
MACD
-0.12
Positive
RSI
39.26
Neutral
STOCH
13.70
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 5.47 is below the 20-day moving average (MA) of 5.73, below the 50-day MA of 5.90, and below the 200-day MA of 6.33, indicating a bearish trend. The MACD of -0.12 indicates Positive momentum. The RSI at 39.26 is Neutral, neither overbought nor oversold. The STOCH value of 13.70 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 (63)
Financial Indicators
Name
Overall Rating
Market Cap
P/E Ratio
ROE
Dividend Yield
Revenue Growth
EPS Growth
74
Outperform
$1.32B28.145.32%-2.09%76.96%
70
Neutral
$730.11M22.8611.18%2.07%22.81%
68
Neutral
$1.22B107.543.78%9.54%
68
Neutral
$1.33B-55.90%12.76%16.97%
64
Neutral
$857.73M38.312.85%7.58%-57.13%
63
Neutral
$34.78B5.17-11.38%1.67%5.54%-17.15%
61
Neutral
$410.95M4.87-94.58%-2.75%-4.13%
* Technology Sector Average
Performance Comparison
Ticker
Company Name
Price
Change
% Change
CINT
CI&T
5.47
-0.59
-9.74%
RDWR
Radware
28.51
10.02
54.19%
VRNT
Verint Systems
21.86
-13.29
-37.81%
DAVA
Endava
14.95
-16.01
-51.71%
BASE
Couchbase
24.27
4.47
22.58%
CCSI
Consensus Cloud Solutions
21.03
-0.73
-3.35%
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.Date of analysis: Jul 10, 2025