Freightos Limited (CRGO) AI Stock Analysis

• Market Cap: $150.63M
• Dividend Yield: N/A
• Average Volume (3M): 82.59K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.81
• Revenue Growth: 49.48%
• EPS Growth: 80.17%
• Country: US
• Employees: 378
• Sector: Industrials
• Sector Strength: 71
• Industry: Integrated Freight & Logistics
• EPS (TTM): -0.09
• Shares Outstanding: 50,042,740
• 10 Day Avg. Volume: 67,352
• 30 Day Avg. Volume: 82,591
• PEG Ratio: N/A
• Price to Book (P/B): N/A
• Price to Sales (P/S): N/A
• P/FCF Ratio: N/A
• Enterprise Value/Market Cap: 0.17
• Enterprise Value/Revenue: 0.95
• Enterprise Value/Gross Profit: 1.42
• Enterprise Value/Ebitda: -1.51
• 1Y Price Target: $4.25
• Price Target Upside: 41.20% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 2

• Rating: 55 Neutral
• Price Target: $3.50 ▲(16.28% Upside)

Freightos Limited's stock score is primarily influenced by its financial performance, which shows growth but significant profitability challenges. Technical analysis indicates positive momentum, but valuation concerns due to negative earnings weigh heavily. The earnings call provided positive guidance, but its weight was redistributed due to exclusion.

Positive Factors

Revenue Growth

Freightos' strong revenue growth indicates effective market penetration and increasing demand for its digital freight solutions, supporting long-term business expansion.

Platform Expansion

Expanding partnerships with major carriers enhances Freightos' network and service offerings, strengthening its competitive position in the logistics industry.

Solutions Segment Growth

Growth in the solutions segment reflects Freightos' ability to diversify revenue streams and deepen client relationships, contributing to long-term financial stability.

Negative Factors

Profitability Challenges

Ongoing profitability issues may hinder Freightos' ability to reinvest in growth and innovation, potentially impacting its competitive edge over time.

Currency Fluctuation Impact

Currency volatility poses a risk to Freightos' financial performance, affecting profitability and potentially complicating financial planning and forecasting.

Extended Sales Cycles

Extended sales cycles could delay revenue recognition and impact cash flow, challenging Freightos' ability to scale operations efficiently in the near term.

Freightos Limited Business Overview & Revenue Model

Company Description

Freightos Ltd., owns and operates an online freight marketplace. It connects importers and exporters, providing instant comparison, booking, and management of air, ocean, and land shipments from forwarders. Further, the company offers freight software solutions, such as Freightos AcceleRate that offers freight rate management, instant freight quotes, and business intelligence; Enterprise Shipper that offers freight tariff control, real-time landed pricing, routing, and spend analytics; Freightos WebCargo; and Freightos Shipping Calculator which integrates with the e-commerce platform, providing instant international air or ocean pricing for oversized goods and e-commerce. Additionally, the company offers freight shipping tools, including HS Code lookup, an interactive airport and seaport directory; and a freight density calculator. The company caters to forwarders, carriers, enterprise shippers, logistics providers, and e-commerce retailers for automating freight and sales. The company was formerly known as Tradeos Limited and changed its name to Freightos Ltd. in March 2016. The company was founded in 2011 and is based in North Point, Hong Kong with operations in Hong Kong, China, Germany, Israel, and Palestine.

How the Company Makes Money

Freightos Limited generates revenue primarily through transaction fees charged on bookings made via its platform. The company earns money by taking a percentage of the freight costs for each booking processed through its marketplace. Additionally, Freightos may earn from providing premium services or software solutions to logistics companies and shippers, enhancing their operational efficiency and data analytics capabilities. Strategic partnerships with major freight companies and carriers also contribute to its revenue by expanding its network and service offerings.

Freightos Limited Financial Statement Overview

Summary

Freightos Limited shows revenue growth and strong gross margins but struggles with profitability and positive cash flow. The low leverage provides financial flexibility, but negative return on equity and ongoing cash flow issues highlight the need for operational improvements.

Income Statement

Freightos Limited shows a consistent increase in revenue, with a TTM growth rate of 7.02%. However, the company struggles with profitability, as evidenced by negative net profit margins and EBIT margins over the periods. The gross profit margin remains relatively strong at 66.16% in the TTM, indicating efficient cost management at the gross level, but the high operating losses are concerning.

Balance Sheet

The company's debt-to-equity ratio is low at 0.037, indicating minimal leverage and a conservative capital structure. However, the return on equity is negative, reflecting ongoing losses and inefficiencies in generating returns for shareholders. The equity ratio is stable, suggesting a solid asset base relative to equity.

Cash Flow

Freightos Limited has shown improvement in free cash flow growth, with a TTM growth rate of 105.7%. Despite this, the company continues to experience negative operating cash flow, which is a concern for liquidity and operational sustainability. The free cash flow to net income ratio is slightly above 1, indicating that cash flow generation is aligned with reported earnings.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	27.16M	23.79M	20.28M	19.09M	11.12M	8.51M
Gross Profit	18.11M	15.50M	11.80M	11.23M	6.52M	4.24M
EBITDA	-17.02M	-17.29M	-62.38M	-20.56M	-15.25M	-12.47M
Net Income	-21.34M	-22.49M	-65.47M	-24.70M	-16.36M	-14.17M
Balance Sheet
Total Assets	71.64M	73.78M	87.69M	41.81M	54.08M	31.17M
Cash, Cash Equivalents and Short-Term Investments	34.15M	37.27M	51.69M	6.69M	25.08M	21.89M
Total Debt	1.99M	954.00K	1.30M	3.51M	1.74M	2.35M
Total Liabilities	22.87M	18.89M	15.64M	20.15M	19.16M	12.70M
Stockholders Equity	48.77M	54.89M	72.04M	21.66M	34.92M	18.47M
Cash Flow
Free Cash Flow	-10.23M	-12.15M	-27.18M	-15.16M	-17.50M	-8.33M
Operating Cash Flow	-10.13M	-12.10M	-27.10M	-14.91M	-17.32M	-8.27M
Investing Cash Flow	8.51M	2.08M	-32.16M	-4.97M	-4.55M	66.00K
Financing Cash Flow	382.00K	85.00K	73.18M	1.89M	25.23M	-273.00K

Freightos Limited Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.01
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CRGO, the sentiment is Positive. The current price of 3.01 is below the 20-day moving average (MA) of 3.27, above the 50-day MA of 2.96, and above the 200-day MA of 2.71, indicating a neutral trend. The MACD of 0.02 indicates Positive momentum. The RSI at 42.60 is Neutral, neither overbought nor oversold. The STOCH value of 12.44 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CRGO.

Freightos Limited Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
SFWL	79 Outperform	$95.04M	8.10	9.93%	―	21.10%	31.75%
Sector *	63 Neutral	$10.74B	15.33	7.44%	2.00%	2.86%	-14.57%
CRGO	55 Neutral	$150.63M	―	-23.18%	―	49.48%	80.17%
AIRT	55 Neutral	$70.27M	―	-790.22%	―	5.14%	-17.39%
GVH	51 Neutral	$6.54M	0.66	18.17%	―	22.89%	-46.58%
FLX	45 Neutral	$220.50M	124.65	-43.30%	―	-10.97%	-696.45%
NCEW	―	$12.65M	―		―	―	―