C3is Inc. (CISS) AI Stock Analysis

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C3is Inc.

(NASDAQ:CISS)

Rating:73Outperform

Price Target:―

C3is Inc. benefits from strong revenue growth, a robust balance sheet, and attractive valuation metrics. However, recent profitability challenges and bearish technical indicators present risks. The earnings call further highlights both growth opportunities and potential operational challenges.

C3is Inc. (CISS) vs. SPDR S&P 500 ETF (SPY)

Market Cap

$2.83M

Dividend YieldN/A

Average Volume (3M)27.59K

Price to Earnings (P/E)<0.1

Beta (1Y)1.03

Revenue Growth47.17%

EPS Growth-97.95%

CountryUS

EmployeesN/A

SectorIndustrials

Sector Strength93

IndustryMarine Shipping

Share Statistics

EPS (TTM)0.29

Shares Outstanding780,768

10 Day Avg. Volume15,213

30 Day Avg. Volume27,593

Financial Highlights & Ratios

PEG Ratio>-0.01

Price to Book (P/B)<0.01

Price to Sales (P/S)0.00

P/FCF Ratio0.16

Enterprise Value/Market CapN/A

Enterprise Value/RevenueN/A

Enterprise Value/Gross ProfitN/A

Enterprise Value/EbitdaN/A

Forecast

1Y Price TargetN/A

Price Target UpsideN/A

Rating ConsensusN/A

Number of Analyst Covering0

C3is Inc. Business Overview & Revenue Model

Company DescriptionC3is Inc. provides international seaborne transportation services. It provides its services to dry bulk charterers, including national and private industrial users, commodity producers, and traders. The company owns and operates a fleet of two handysize drybulk carriers which transport major bulks, such as iron ore, coal and grains, as well as minor bulks comprising bauxite, phosphate, and fertilizers. C3is Inc. was incorporated in 2022 and is headquartered in Majuro, Marshall Islands.

How the Company Makes MoneyC3is Inc. generates revenue through a combination of subscription-based models, service contracts, and consulting fees. The core revenue streams include selling software licenses for their proprietary cybersecurity solutions and offering managed security services to clients. Additionally, the company capitalizes on strategic partnerships with technology firms and enterprise clients, which not only enhances their service offerings but also expands their customer base. Professional consulting services and custom security solution deployments also contribute to their earnings, allowing them to cater to specialized client needs and complex security environments.

C3is Inc. Earnings Call Summary

Earnings Call Date:May 15, 2025

(Q4-2024)

% Change Since: -3.48%|

Next Earnings Date:Aug 29, 2025

Earnings Call Sentiment Neutral

The earnings call presented robust revenue growth and fleet expansion without incurring bank debt, indicating solid financial management. However, challenges such as decreased daily time charter rates, increased expenses, and a net income decrease balanced the positive aspects.

Q4-2024 Updates

Positive Updates

Significant Revenue Growth

Revenues for 2024 increased by 47% to $42.3 million compared to 2023, with net revenues growing by 33%.

Fleet Expansion

Added the Eco Spitfire Handysize drybulk carrier, increasing fleet capacity by 234% since company's inception, without incurring bank debt.

Strong Cash Balance

Cash balance at the end of Q4 2024 was $12.6 million, a 39% increase from year-end 2023, despite significant CapEx payments.

Positive Adjusted EBITDA

Adjusted EBITDA increased by 11% to $16.4 million from 2023.

No Bank Debt

The company maintained no bank debt while expanding its fleet.

Negative Updates

Decrease in Daily Time Charter Equivalent

Daily time charter equivalent for 2024 was $21,000 per day, a 10% decrease from the previous year.

Net Income Decrease

Adjusted net income decreased by 7% from 2023, and a non-cash item led to a net loss of $2.7 million for 2024.

Increased Voyage and Operating Expenses

Voyage expenses were $14.1 million, and operating expenses were $8.4 million due to higher bunker and port costs.

Depreciation Increase

Depreciation increased by 51%, attributed to the increase in the average number of vessels.

Company Guidance

During the C3is Fourth Quarter Earnings Conference Call, the company provided guidance highlighting several key metrics. For the fiscal year 2024, C3is reported revenues of $42.3 million, marking a 47% increase from 2023. The Aframax tanker, Afrapearl II, was a major contributor, accounting for 76% of total revenues. The company's net revenues were $28 million, up by 33% compared to the previous year, while the adjusted EBITDA rose by 11% to $16.4 million. Despite a 10% decrease in Time Charter Equivalent (TCE) rates to $21,000 per day, the company maintained a strong financial position with a cash balance of $12.6 million by year-end, a 39% increase from 2023. Capital expenditures amounted to $41 million, including $39.5 million for Afrapearl II and a 10% down payment of $1.62 million on the Eco Spitfire bulk carrier. The company operates a fleet of four vessels with a total capacity of 213,000 deadweight tons, reflecting a growth of 234% since its inception. Despite geopolitical challenges and market fluctuations, C3is remains optimistic about future growth and profitability, particularly with potential favorable U.S. policies under the Trump administration.

C3is Inc. Financial Statement Overview

Summary

C3is Inc. demonstrates strong financial growth, particularly in revenue and profitability. The balance sheet is robust with zero debt, and the company is effectively converting income into operating cash flow. However, the lack of historical cash flow growth and potential scalability challenges warrant attentive management as the company continues to expand.

Income Statement

Very Positive

C3is Inc. shows a robust growth trajectory with a significant revenue growth rate of 68.9% from 2022 to 2023. The company maintains a strong gross profit margin of 38.7% and a net profit margin of 34.1%, indicating high profitability. Both EBIT (38.3%) and EBITDA (54.2%) margins are impressive, showcasing efficient operations and cost management. However, the rapid growth might lead to future scalability challenges.

Balance Sheet

Positive

The balance sheet is strong with no debt and a debt-to-equity ratio of 0, highlighting financial stability. The return on equity stands at a healthy 16.7%, supported by high equity relative to total assets (58.2%). The company increased its assets significantly, indicating strategic growth and investment. However, the growing asset base should be monitored for efficiency.

Cash Flow

Neutral

Cash flow analysis shows improvement with a positive free cash flow of $1.34 million, recovering from the previous year's $0. Operating cash flow to net income ratio is healthy at 0.61, indicating good conversion of income to cash. However, the free cash flow growth rate cannot be calculated due to the previous year's zero value, posing a challenge for assessing long-term cash sustainability.

TTM	Dec 2023	Dec 2022	Dec 2021
Breakdown
Income Statement		Total Revenue
46.66M	27.26M	16.13M	6.27M
	Gross Profit
18.43M	10.54M	8.24M	3.78M
	EBIT
15.03M	10.43M	5.95M	3.65M
	EBITDA
11.50M	14.76M	6.03M	4.10M
	Net Income Common Stockholders
2.68M	9.29M	5.83M	3.61M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
5.00M	9.06M	5.00M	18.99K
	Total Assets
44.70M	95.47M	44.86M	16.36M
	Total Debt
0.00	0.00	0.00	7.28M
	Net Debt
-5.00M	-695.29K	-5.00M	7.26M
	Total Liabilities
757.55K	39.93M	965.47K	7.61M
	Stockholders Equity
43.94M	55.54M	43.89M	8.75M
Cash Flow		Free Cash Flow
18.83M	1.34M	0.00	-11.65M
	Operating Cash Flow
20.45M	5.64M	0.00	-12.08K
	Investing Cash Flow
-1.54M	-12.43M	0.00	-11.64M
	Financing Cash Flow
-19.85M	7.48M	0.00	12.42M

C3is Inc. Technical Analysis

Technical Analysis Sentiment

Negative

Last Price3.61

Price Trends

50DMA

3.80

Negative

100DMA

5.18

Negative

200DMA

10.49

Negative

Market Momentum

MACD

-0.07

Positive

RSI

43.77

Neutral

STOCH

21.10

Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CISS, the sentiment is Negative. The current price of 3.61 is below the 20-day moving average (MA) of 3.80, below the 50-day MA of 3.80, and below the 200-day MA of 10.49, indicating a bearish trend. The MACD of -0.07 indicates Positive momentum. The RSI at 43.77 is Neutral, neither overbought nor oversold. The STOCH value of 21.10 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CISS.

C3is Inc. Risk Analysis

C3is Inc. disclosed 86 risk factors in its most recent earnings report. C3is Inc. reported the most risks in the “Finance & Corporate” category.

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

Latest Risks Added 0 New Risks

C3is Inc. Peers Comparison

Overall Rating

UnderperformOutperform

Sector (65)

Financial Indicators

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CISS	73 Outperform	$2.83M	0.08	1.43%	―	47.17%	-97.95%
PSHG	73 Outperform	$20.02M	1.09	22.49%	―	-15.10%	-9.38%
Sector *	65 Neutral	$4.45B	12.17	5.23%	249.78%	4.08%	-12.31%
CTRM	63 Neutral	$21.26M	2.44	3.07%	―	-45.58%	45.06%
GLBS	52 Neutral	$21.41M	55.12	0.24%	―	11.74%	-91.84%
OP	46 Neutral	$5.63M	―	-20.19%	―	35.58%	-64.92%
USEA	45 Neutral	$11.97M	―	-10.92%	18.08%	-2.85%	-280.26%

* Industrials Sector Average

Performance Comparison

CISS

C3is Inc.

3.61

-20.99

-85.33%

PSHG

Performance Shipping

1.67

-0.71

-29.83%

GLBS

Globus Maritime

1.15

-1.15

-50.00%

CTRM

Castor Maritime

2.20

-2.48

-52.99%

OceanPal Inc

0.76

-1.47

-65.92%

USEA

United Maritime Corp.

1.29

-1.13

-46.69%

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.