CVD Equipment (CVV) AI Stock Analysis

• Market Cap: $33.37M
• Dividend Yield: N/A
• Average Volume (3M): 37.15K
• Price to Earnings (P/E): ―
• Beta (1Y): 1.08
• 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: 0.76
• Enterprise Value/Revenue: 0.89
• Enterprise Value/Gross Profit: 3.07
• Enterprise Value/Ebitda: 42.81
• 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: 55 Neutral
• Price Target: $6.00 ▲(28.48% Upside)

The score is driven primarily by a mixed financial profile: a very low-debt balance sheet and improving margins are positives, but persistently negative operating/free cash flow and recent revenue softness keep overall fundamentals constrained. Technicals are supportive (trend strength) but somewhat overextended, while valuation is limited by ongoing losses. The latest earnings call adds cautious optimism from cost-reduction plans, offset by weak orders/backlog and lower cash.

Positive Factors

Balance Sheet Strength

Extremely low debt provides durable financial flexibility to fund R&D, absorb revenue volatility, and execute cost-transformation without immediate external financing. This reduces solvency risk and supports multi-quarter operational plans while margins and orders recover.

Improving Gross Margins

Sustained gross margin improvement across years indicates better product mix, pricing power, or cost control in core CVD equipment. Higher gross margins create a larger buffer for overhead, improving chances that modest revenue growth translates into durable operating profitability over coming quarters.

Structural Cost Reduction Plan

A planned $2M annual fixed-cost reduction via outsourcing and workforce changes materially improves operating leverage. If executed, the action raises break-even scale, accelerates pathway to sustained net profitability, and enhances scalability once order momentum returns.

Negative Factors

Negative Operating & Free Cash Flow

Persistent negative operating and free cash flow constrains reinvestment and increases reliance on cash reserves or financing. Until operating cash flow turns positive, execution of growth initiatives and capital needs remains at risk, limiting durable expansion and raising financing uncertainty.

Weak Orders and Backlog

A sharp, multi-period decline in bookings reduces forward revenue visibility and signals demand softness in end markets. Lower backlog tightens near-term revenue runway and makes recovery dependent on new large orders, increasing execution and growth risk over the next several quarters.

Fragile Profitability & Revenue Slippage

While operating metrics improved, net losses and recent revenue decline indicate earnings resilience is limited. Returns on equity remain negative, constraining the company’s ability to compound shareholder value until consistent top-line growth and sustained net profitability are achieved.

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

Operating performance is improving (stronger gross margin and much smaller losses), and the balance sheet is very strong with minimal leverage. However, the turnaround is not yet durable because operating and free cash flow remain negative and revenue has recently slipped.

Income Statement

TTM (Trailing-Twelve-Months) results show improved operating performance versus prior years (EBIT loss narrowed to -$0.5M and EBITDA turned positive at ~$0.6M), and gross margin has strengthened to ~29% from ~24% in 2024 and ~21% in 2023. However, profitability remains fragile with a small net loss (about -0.7% net margin) and revenue has slipped in the TTM period (-2.7% growth), highlighting uneven demand and limited earnings resilience.

Balance Sheet

The balance sheet is a clear strength: leverage is very low in TTM with only ~$0.2M of debt against ~$25.8M of equity (debt-to-equity ~0.01), providing strong financial flexibility. Total assets are broadly stable over time, and the company has significantly reduced leverage compared with 2020 when debt levels were much higher. The main weakness is that returns on equity remain negative in recent periods due to ongoing net losses, which limits the balance sheet’s ability to compound value without sustained profitability.

Cash Flow

Cash generation is weak: TTM operating cash flow is negative (-$1.8M) and free cash flow is also negative (-$1.8M), with free cash flow deteriorating versus the prior period (TTM free cash flow growth -43.6%). While reported net losses are now small, cash flow has not yet followed—suggesting working-capital swings or ongoing cash needs to support operations—raising execution risk until operating cash flow turns consistently positive.

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: 4.67
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

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 4.67 is above the 20-day moving average (MA) of 4.42, above the 50-day MA of 3.70, and above the 200-day MA of 3.36, indicating a bullish trend. The MACD of 0.53 indicates Negative momentum. The RSI at 64.40 is Neutral, neither overbought nor oversold. The STOCH value of 75.31 is Neutral, 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	68 Neutral	$15.66M	0.92	21.29%	―	-1.36%	―
BWEN	65 Neutral	$69.60M	13.65	8.20%	―	-1.47%	52.65%
Sector *	63 Neutral	$10.79B	15.43	7.44%	2.01%	2.89%	-14.66%
CVV	55 Neutral	$33.37M	-177.49	-0.73%	―	19.84%	95.71%
CETY	42 Neutral	$3.97M	-0.66	-82.18%	―	-57.40%	52.85%
LASE	41 Neutral	$44.18M	-1.50	-109.15%	―	176.99%	-30.97%
BURU	35 Underperform	$91.98M	-0.17	―	―	-98.20%	93.77%