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Cambium Networks (CMBM)
NASDAQ:CMBM
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Cambium Networks
(NASDAQ:CMBM)
41Neutral
Cambium Networks (CMBM) vs. S&P 500 (SPY)
Market Cap
$21.69M
Dividend YieldN/A
Average Volume (3M)144.15K
Price to Earnings (P/E)―
Beta (1Y)1.68
Revenue Growth-34.89%
EPS Growth-579.83%
CountryUS
Employees625
SectorTechnology
Sector Strength46
IndustryHardware & Equipment
Share Statistics
EPS (TTM)-3.53
Shares Outstanding28,243,809
10 Day Avg. Volume96,097
30 Day Avg. Volume144,153
Financial Highlights & Ratios
PEG RatioN/A
Price to Book (P/B)N/A
Price to Sales (P/S)0.13
Price to Cash Flow (P/CF)0.60
P/FCF Ratio0.80
Enterprise Value/Market CapN/A
Enterprise Value/RevenueN/A
Enterprise Value/Gross ProfitN/A
Enterprise Value/EbitdaN/A
Forecast
1Y Price Target
$3.00Price Target Upside289.61% Upside
Rating ConsensusModerate Buy
Number of Analyst Covering0
Cambium Networks Business Overview & Revenue Model
Company DescriptionCambium Networks (CMBM) is a leading global provider of wireless broadband networking infrastructure solutions. The company operates primarily in the telecommunications sector, delivering innovative technology solutions that enhance connectivity in both urban and rural areas. Cambium Networks offers a comprehensive portfolio of products, including fixed wireless broadband point-to-point (PTP) and point-to-multipoint (PMP) platforms, Wi-Fi access solutions, and network management software, catering to a wide range of industries such as enterprise, service providers, and industrial markets.
How the Company Makes MoneyCambium Networks generates revenue through the sale of its wireless broadband networking products and solutions. The company's revenue streams are primarily derived from the sale of its PTP and PMP platforms, which provide high-capacity, secure, and reliable connectivity solutions. Additionally, Cambium Networks earns money from its Wi-Fi access solutions, which include indoor and outdoor access points and cloud-based management software. These products are sold directly to enterprises, service providers, and various channel partners. Furthermore, Cambium Networks benefits from ongoing maintenance and support services, as well as from software licensing fees associated with its network management solutions. Strategic partnerships and collaborations with distributors and resellers also play a crucial role in expanding its market reach and contributing to its overall earnings.
Cambium Networks Financial Statement Overview
Summary
Cambium Networks is facing significant financial challenges across its income statement, balance sheet, and cash flow. The company is dealing with declining revenues, negative profitability, and increased financial leverage, which together pose substantial risks to its financial health. Cash flow metrics indicate difficulties in cash generation, further exacerbating financial stability concerns. Immediate strategic actions are required to address these issues and improve overall financial performance.Income Statement
Cambium Networks has faced significant challenges in recent periods, reflected in declining revenues and negative profitability metrics. The gross profit margin for the TTM is approximately 15.67%, which is below industry standards. The net profit margin is notably negative at -48.94%, indicating substantial losses. Revenue growth has been negative, with a significant drop of around 21.77% from 2022 to 2023. The EBIT margin and EBITDA margin are also deeply negative at -46.02% and -42.74% respectively, highlighting operational inefficiencies and cost management issues.35
Negative
Balance Sheet
The balance sheet presents a mixed picture with some stability concerns. The debt-to-equity ratio has increased to 1.76, suggesting higher leverage and potential financial risk. Return on equity (ROE) is negative at -193.16%, primarily due to the negative net income. The equity ratio stands at 19.60%, indicating a relatively low equity base compared to total assets, which may affect long-term financial stability.40
Negative
Cash Flow
Cambium Networks' cash flow situation is concerning, with negative free cash flow and operating cash flow in the TTM period. The operating cash flow to net income ratio is 0.13, suggesting weak cash generation relative to net losses. Free cash flow to net income is negative, further indicating challenges in generating free cash. The company has also experienced a free cash flow decline of 31.66% from 2022 to 2023, underlining cash management issues.30
Negative
| Breakdown | |||||
| TTM | Dec 2023 | Dec 2022 | Dec 2021 | Dec 2020 | Dec 2019 |
|---|---|---|---|---|---|
| Income Statement | Total Revenue | ||||
| 172.22M | 220.19M | 296.90M | 335.85M | 278.46M | 267.03M | Gross Profit |
| 26.98M | 68.83M | 145.14M | 160.80M | 139.41M | 131.23M | EBIT |
| -79.26M | -60.85M | 19.88M | 36.42M | 23.95M | 755.00K | EBITDA |
| -73.60M | -52.10M | 27.59M | 42.85M | 30.73M | 6.62M | Net Income Common Stockholders |
| -84.27M | -77.42M | 20.20M | 37.42M | 18.57M | -17.60M |
| Balance Sheet | Cash, Cash Equivalents and Short-Term Investments | ||||
| 4.44M | 18.71M | 48.16M | 59.29M | 62.47M | 19.35M | Total Assets |
| 142.06M | 217.88M | 269.46M | 232.27M | 205.75M | 172.14M | Total Debt |
| 103.02M | 33.24M | 29.79M | 33.57M | 57.49M | 68.95M | Net Debt |
| 98.58M | 14.53M | -18.37M | -25.73M | -4.98M | 49.60M | Total Liabilities |
| 162.63M | 136.94M | 124.09M | 120.13M | 142.37M | 132.21M | Stockholders Equity |
| -20.57M | 80.93M | 145.37M | 112.14M | 63.39M | 39.93M |
| Cash Flow | Free Cash Flow | ||||
| -19.25M | -28.18M | -12.30M | 19.79M | 51.84M | -393.00K | Operating Cash Flow |
| -10.70M | -16.95M | -3.05M | 29.96M | 56.90M | 3.55M | Investing Cash Flow |
| -13.20M | -11.22M | -9.24M | -10.17M | -5.40M | -8.61M | Financing Cash Flow |
| 42.87M | -1.27M | 1.25M | -22.95M | -8.37M | 20.02M |
Cambium Networks Technical Analysis
Negative
0.77
Price Trends
1.00
Negative
1.01
Negative
1.48
Negative
Market Momentum
-0.06
Negative
45.49
Neutral
63.81
Neutral
Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CMBM, the sentiment is Negative. The current price of 0.77 is above the 20-day moving average (MA) of 0.73, below the 50-day MA of 1.00, and below the 200-day MA of 1.48, indicating a neutral trend. The MACD of -0.06 indicates Negative momentum. The RSI at 45.49 is Neutral, neither overbought nor oversold. The STOCH value of 63.81 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for CMBM.
Cambium Networks Risk Analysis
Cambium Networks disclosed 64 risk factors in its most recent earnings report. Cambium Networks 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
Cambium Networks Peers Comparison
Overall Rating
UnderperformOutperform
Sector (58)
Financial Indicators
Name | Overall Rating | Market Cap | P/E Ratio | ROE | Dividend Yield | Revenue Growth | EPS Growth |
|---|---|---|---|---|---|---|---|
75 Outperform | $99.58B | 35.47 | 33.14% | ― | 19.50% | 34.64% | |
74 Outperform | $245.86B | 26.73 | 20.02% | 2.59% | -5.34% | -30.57% | |
60 Neutral | $12.03B | 41.96 | 6.21% | 2.44% | -8.82% | -10.01% | |
58 Neutral | $21.67B | 10.60 | -18.43% | 2.42% | 4.66% | -24.45% | |
55 Neutral | $716.82M | 63.91 | 2.30% | ― | -8.65% | ― | |
44 Neutral | $1.98B | ― | -152.77% | ― | -24.49% | -250.61% | |
41 Neutral | $21.69M | ― | -112.88% | ― | -34.89% | -579.83% |
* Technology Sector Average
Performance Comparison
CMBM
Cambium Networks
0.77
-3.53
-82.09%
CSCO
Cisco Systems
61.40
12.89
26.57%
EXTR
Extreme Networks
14.68
3.18
27.65%
JNPR
Juniper Networks
36.15
-0.02
-0.06%
NTGR
Netgear
24.83
9.13
58.15%
ANET
Arista Networks
78.96
4.02
5.36%
Cambium Networks Earnings Call Summary
Earnings Call Date: Feb 13, 2025 | % Change Since: -42.96% | Next Earnings Date: May 1, 2025
Earnings Call Sentiment Neutral
The earnings call reflects a mixed performance with strong growth in the Enterprise segment and improved financial metrics like gross margin and cash flow. However, this is offset by challenges in defense revenues, compliance issues with bank covenants, and overall revenue decline. The sentiment is balanced with both positive operational strides and significant financial concerns.Highlights
Enterprise Business Growth
Revenues in the Enterprise business grew by 34% sequentially to $15.2 million, with growth across all geographies.
Improved Non-GAAP Gross Margin
Non-GAAP gross margin improved to 42.3% from the previous quarter, indicating better inventory management and cost control.
Positive Free Cash Flow
Free cash flow was positive at $5.2 million during Q3 '24, with a cash balance of $46.5 million as of September 30.
Successful New Product Launches
Introduction of new products like the PMP 450b subscriber module and market apps which are expected to drive future growth.
Lowlights
Overall Revenue Decline
Total Q3 '24 revenue was $43.7 million, which is a 5% sequential decrease, impacted by reduced defense and P2P revenues.
Defense Revenue Weakness
Defense revenues declined due to budget constraints related to active conflict zones, particularly impacting Europe.
Bank Covenant Non-Compliance
The company was not in compliance with its trailing consolidated EBITDA covenant and monthly liquidity covenant as of October 31, leading to negotiations with the bank.
Continued Market Pressure
Ongoing price pressure in the commercial segment is expected to persist, affecting future margins.
Company Guidance
During Cambium Networks' Q3 2024 earnings call, the company provided several financial metrics and guidance for the upcoming quarter. The revenues for Q3 2024 were reported at $43.7 million, reflecting a 5% sequential decrease. However, the enterprise business showed significant growth with a 34% sequential increase in revenue to $15.2 million. The non-GAAP gross margin improved to 42.3%, and the free cash flow was a positive $5.2 million with a cash balance of $46.5 million as of September 30, 2024. Looking ahead to Q4 2024, the company expects revenues to range between $40 million and $45 million, with a non-GAAP gross margin of 42.5% to 45.5%, and an adjusted EBITDA loss of between $1 million to $3 million. Despite challenges, particularly in the defense sector, Cambium remains optimistic about its financial direction and is taking measures to control expenses and improve results.Cambium Networks Corporate Events
Executive/Board Changes
Cambium Networks Promotes Melissa Cada-Bartoli to Key Role
Positive
Nov 14, 2024
Cambium Networks Corporation has announced the promotion of Melissa Cada-Bartoli to Global Controller and Chief Accounting Officer, effective November 18, 2024. Cada-Bartoli, who joined Cambium in 2018, brings a wealth of experience from her previous roles in financial reporting and technical accounting, making her a valuable asset to the company’s leadership team. Her comprehensive background and expertise are expected to support Cambium’s financial strategies and growth.
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.