CVD Equipment (CVV) AI Stock Analysis

• Market Cap: $27.40M
• Dividend Yield: N/A
• Average Volume (3M): 37.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.02
• Revenue Growth: 19.84%
• EPS Growth: 95.71%
• Country: US
• Employees: 118
• Sector: Industrials
• Sector Strength: 72
• Industry: Industrial - Machinery
• EPS (TTM): 0.06
• Shares Outstanding: 6,937,338
• 10 Day Avg. Volume: 21,589
• 30 Day Avg. Volume: 37,145
• PEG Ratio: 0.29
• Price to Book (P/B): 1.18
• Price to Sales (P/S): 1.12
• P/FCF Ratio: -18.83
• Enterprise Value/Market Cap: 0.55
• Enterprise Value/Revenue: 0.53
• Enterprise Value/Gross Profit: 1.82
• Enterprise Value/Ebitda: 25.41
• 1Y Price Target: N/A
• Price Target Upside: N/A
• Rating Consensus: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 53 Neutral
• Price Target: $3.50 ▼(-4.37% Downside)

The score is driven primarily by a strong, low-leverage balance sheet and improving margins, partially offset by persistently negative operating/free cash flow and slightly lower TTM revenue. Technicals are moderately constructive with price above key moving averages, but momentum indicators are mixed. Valuation remains challenged due to negative earnings, and the earnings call reinforced a turnaround effort while highlighting weak orders/backlog and a declining cash position.

Positive Factors

Low Leverage / Strong Balance Sheet

Extremely low leverage provides durable financial flexibility to fund R&D, absorb demand volatility and execute restructuring without immediate refinancing. A strong equity base and minimal debt lower bankruptcy risk and enable strategic investments over the next several quarters.

Improving Margins and EBITDA

Rising gross margins and positive EBITDA indicate better pricing, mix or cost control that can sustain profitability improvements. If maintained, higher gross margins create operating leverage that supports breakeven and eventual consistent net income as volumes recover.

Transformation Plan & Focus on Growth Markets

A structural cost-reduction program plus targeting secular markets (aerospace, defense, silicon carbide) improves scalability and aligns revenue mix with higher-margin end markets. Outsourcing fabrication can materially reduce fixed overhead and raise long-term margin potential.

Negative Factors

Negative Operating and Free Cash Flow

Persistent negative operating and free cash flow constrains the firm's ability to self-fund working capital, capital expenditures and R&D. Until cash conversion turns positive, the company may need external financing or will face slower reinvestment, raising execution risk.

Declining Orders and Shrinking Backlog

Material falls in bookings and backlog reduce revenue visibility and amplify cyclicality in capital-equipment demand. Lower sustained bookings impair capacity utilization and delay recovery of fixed-cost absorption, pressuring margins and growth unless order trends reverse.

Fragile Profitability / Small Net Losses

While operating metrics improved, net losses and negative returns persist, limiting the company’s ability to compound shareholder value. Small losses leave little margin for setbacks; sustained profitability is required to convert balance-sheet strength into shareholder returns.

CVD Equipment Business Overview & Revenue Model

Company Description

CVD Equipment Corporation, together with its subsidiaries, designs, develops, manufactures, and sells process equipment and solutions that are used to develop and manufacture materials and coatings for research and industrial applications in the United States. It operates through three segments: CVD, SDC, and CVD Materials. The company offers chemical vapor deposition systems for use in the research, development, and manufacture of aerospace, medical components, semiconductors, LEDs, carbon nanotubes, nanowires, solar cells, and other industrial applications; and rapid thermal processing systems for use in implant activation, oxidation, silicide formation, and other processes. It also provides annealing, diffusion, and low pressure chemical vapor deposition furnaces for use in diffusion, oxidation, implant anneal, solder reflow, solar cell manufacturing, and other processes; and gas and liquid control systems, such as gas cylinder storage cabinets, custom gas and chemical delivery systems, gas and liquid valve manifold boxes, and gas isolation boxes for semiconductor fabrication processes, solar cells, LEDs, carbon nanotubes, nanowires, and industrial applications. In addition, the company offers standard and custom fabricated quartz-ware used in its equipment and other customer tools, as well as repair and replacement services for existing quartz-ware. Further, it provides MesoPlasma direct write printing, a materials deposition process that provides instrumentation, fine feature patterns, and coatings onto conformal components; and Tantaline corrosion resistant coating for valves, fittings, fasteners, vessels, bellows, and custom designed items, as well as offers carbon composites and electronic materials. The company sells its products primarily to aerospace/defense, medical, electronic component manufacturers, universities, and government and industrial laboratories. The company was incorporated in 1982 and is headquartered in Central Islip, New York.

How the Company Makes Money

CVD Equipment generates revenue through the sale of its CVD systems, including equipment and related components, along with maintenance and service contracts. The company's primary revenue stream comes from direct sales of manufacturing systems to customers in high-tech industries. Additionally, CVD earns income from offering engineering services, which includes system customization and integration, as well as training and support for clients. The company may also benefit from strategic partnerships with technology developers and research institutions, enhancing its product offerings and expanding its market reach. Furthermore, CVD engages in research and development efforts to innovate and improve its product line, which can lead to new revenue opportunities in emerging markets.

CVD Equipment Financial Statement Overview

Summary

CVD Equipment's financial performance is challenged by negative profitability margins and inconsistent revenue growth. Despite a strong balance sheet with low leverage, the company struggles with negative cash flow and operational inefficiencies.

Income Statement

CVD Equipment's income statement shows mixed results. The TTM gross profit margin is 26.28%, indicating a moderate ability to cover costs, but the net profit margin is negative at -1.26%, reflecting ongoing losses. Revenue growth has been inconsistent, with a recent decline of 4.08% in the TTM period. The EBIT and EBITDA margins are also negative, suggesting challenges in operational efficiency and profitability.

Balance Sheet

The balance sheet is relatively stable with a low debt-to-equity ratio of 0.0035 in the TTM period, indicating minimal leverage risk. However, the return on equity is negative at -1.44%, showing that the company is not generating returns for shareholders. The equity ratio is not explicitly calculated, but the low debt levels suggest a strong equity position.

Cash Flow

Cash flow analysis reveals some concerns. The TTM operating cash flow is negative, and the free cash flow growth rate is high at 74.51%, but this is from a negative base, indicating volatility. The operating cash flow to net income ratio is negative, and the free cash flow to net income ratio is close to 1, suggesting limited cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	28.25M	26.88M	24.11M	25.81M	16.45M	16.92M
Gross Profit	8.22M	6.33M	5.07M	6.63M	3.08M	2.88M
EBITDA	589.00K	-1.17M	-3.38M	655.00K	5.78M	-5.77M
Net Income	-185.00K	-1.90M	-4.18M	-224.00K	4.75M	-6.07M
Balance Sheet
Total Assets	29.77M	31.69M	35.02M	37.91M	35.52M	40.94M
Cash, Cash Equivalents and Short-Term Investments	8.36M	12.60M	14.03M	14.37M	16.65M	7.70M
Total Debt	203.00K	268.00K	349.00K	426.00K	1.77M	13.80M
Total Liabilities	4.00M	6.32M	8.82M	8.51M	6.34M	16.81M
Stockholders Equity	25.77M	25.37M	26.20M	29.40M	29.19M	24.13M
Cash Flow
Free Cash Flow	-1.76M	-1.59M	-624.00K	-524.00K	-4.51M	-2.71M
Operating Cash Flow	-1.82M	-1.49M	-206.00K	194.00K	-4.27M	-1.13M
Investing Cash Flow	263.00K	144.00K	-133.00K	-708.00K	22.84M	-1.58M
Financing Cash Flow	-86.00K	-82.00K	-1.00K	-1.77M	-9.62M	1.75M

CVD Equipment Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 3.66
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Negative
• STOCH: Negative

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For CVV, the sentiment is Positive. The current price of 3.66 is above the 20-day moving average (MA) of 3.25, above the 50-day MA of 3.39, and above the 200-day MA of 3.24, indicating a bullish trend. The MACD of 0.12 indicates Negative momentum. The RSI at 76.67 is Negative, neither overbought nor oversold. The STOCH value of 83.25 is Negative, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for CVV.

CVD Equipment Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GTEC	66 Neutral	$13.96M	1.08	21.29%	―	-1.36%	―
BWEN	65 Neutral	$84.92M	17.07	8.20%	―	-1.47%	52.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVV	53 Neutral	$27.40M	-147.97	-0.73%	―	19.84%	95.71%
CETY	41 Neutral	$3.82M	-0.63	-82.18%	―	-57.40%	52.85%
LASE	41 Neutral	$48.48M	-1.72	-109.15%	―	176.99%	-30.97%
BURU	35 Underperform	$86.24M	-0.16	―	―	-98.20%	93.77%