Cherry AG (C3RY) AI Stock Analysis

• Market Cap: €13.27M
• Dividend Yield: N/A
• Average Volume (3M): 36.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.77
• Revenue Growth: -20.62%
• EPS Growth: 59.32%
• Country: DE
• Employees: 410
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.26
• Shares Outstanding: 24,300,000
• 10 Day Avg. Volume: 18,150
• 30 Day Avg. Volume: 36,021
• PEG Ratio: <0.01
• Price to Book (P/B): 0.34
• Price to Sales (P/S): 0.24
• P/FCF Ratio: -4.79
• Enterprise Value/Market Cap: N/A
• Enterprise Value/Revenue: N/A
• Enterprise Value/Gross Profit: N/A
• Enterprise Value/Ebitda: N/A
• 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: 41 Neutral
• Price Target: €0.58 ▼(-0.52% Downside)
• Action: Reiterated Date: 01/10/26
• Date: Action: Reiterated 01/10/26

Overall score is constrained primarily by poor financial performance, including negative profitability and negative operating/free cash flow, alongside rising leverage risk. Technicals are only mildly supportive in the short term and remain weak longer term, while valuation is hard to justify with negative earnings and no dividend yield data.

Positive Factors

Diversified End Markets

Serving automotive, industrial and consumer electronics across direct sales and OEM/ODM channels reduces concentration risk. This multi-industry footprint helps smooth revenue volatility, preserves customer options, and supports steadier demand and order flows over a multi-month horizon.

Product and Engineering Strength

Specialized expertise in mechanical and electronic switches, plus a diverse product lineup (key, tactile, customized solutions), creates technical barriers and strong OEM relationships. This engineering focus supports long-term product differentiation and niche pricing power with industrial customers.

Long-term Contracts & OEM Partnerships

Long-term contracts and OEM/ODM partnerships provide predictable baseline revenue and deepen customer integration. Such structural agreements enable better capacity planning, recurring order visibility and higher switching costs that can stabilize cash flows across quarters.

Negative Factors

Declining Revenue Trend

A ~20% decline in recent revenue indicates loss of scale and potential weakening demand. Sustained revenue erosion pressures fixed-cost absorption, reduces investment capacity, and can accelerate margin deterioration and competitive disadvantage over several months if not reversed.

Negative Profitability and Margins

Consistently negative EBIT and net margins reflect structural operational inefficiencies or pricing/cost pressure. Ongoing losses erode equity, limit reinvestment and R&D, and make it harder to rebuild margins without sustained revenue recovery or material cost restructuring.

Weak Cash Generation and Rising Leverage

Negative operating and free cash flows combined with an increasing debt-to-equity trend heighten refinancing and liquidity risk. Poor cash conversion constrains capex and working capital funding, potentially forcing external financing or asset sales within months if operational cash flow isn’t restored.

Cherry AG Business Overview & Revenue Model

Company Description

Cherry AG manufactures and sells computer input devices in Germany. It offers office and home office products, such as mice, keyboards, desktop sets, and equipment; switches for mechanical keyboards; gaming products comprising mice, keyboards, and accessories; security related products; and USB terminals, card readers, accessories, and other products. The company sells its products through distributors, resellers, representatives, and partners. Cherry AG was founded in 1953 and is headquartered in Auerbach, Germany.

How the Company Makes Money

Cherry AG generates revenue through multiple streams, primarily by selling its core products, which include mechanical switches, key switches, and electronic components. The company serves a wide range of industries, allowing it to tap into various markets and reduce dependency on a single sector. In addition to direct sales, Cherry AG also earns revenue from partnerships with original equipment manufacturers (OEMs) and original design manufacturers (ODMs), where it provides customized solutions and components for their products. Moreover, the company has been known to engage in long-term contracts with clients, ensuring a steady revenue flow. Its ability to innovate and adapt to market demands, along with strategic alliances, contributes significantly to its earnings, allowing it to maintain a competitive edge in the rapidly evolving tech landscape.

Cherry AG Financial Statement Overview

Summary

Weak profitability and cash generation drive a low score: declining revenue trend with pressured margins (negative net profit and EBIT margins) and negative operating/free cash flow indicate liquidity strain. Balance sheet is somewhat steadier via a relatively stable equity ratio, but rising leverage and negative ROE increase financial risk.

Income Statement

Cherry AG's income statement reveals significant challenges. The company has experienced declining revenue over the past few years, with a slight uptick in the TTM period. Margins are under pressure, with negative net profit and EBIT margins indicating operational inefficiencies. The gross profit margin has also decreased, suggesting increased cost pressures or pricing challenges.

Balance Sheet

The balance sheet shows moderate leverage with a debt-to-equity ratio that has increased over time, indicating rising financial risk. The return on equity is negative, reflecting ongoing losses. However, the equity ratio remains relatively stable, suggesting some level of asset backing despite financial difficulties.

Cash Flow

Cash flow analysis indicates significant issues, with negative operating and free cash flows in the TTM period. The free cash flow growth rate is negative, and the operating cash flow to net income ratio is unfavorable, highlighting liquidity concerns. The company struggles to convert earnings into cash, which could impact its ability to sustain operations without external financing.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	96.91M	110.45M	126.46M	132.51M	168.53M	36.26M
Gross Profit	8.51M	23.92M	2.68M	36.87M	68.85M	43.80M
EBITDA	-41.95M	-35.41M	-115.22M	11.29M	40.74M	1.96M
Net Income	-52.02M	-45.45M	-126.88M	-35.73M	9.29M	-7.57M
Balance Sheet
Total Assets	130.17M	168.14M	238.55M	379.07M	410.98M	290.53M
Cash, Cash Equivalents and Short-Term Investments	9.25M	16.37M	46.08M	92.85M	109.68M	22.93M
Total Debt	39.21M	43.32M	65.76M	62.39M	64.57M	95.54M
Total Liabilities	73.87M	90.62M	116.44M	127.24M	117.83M	147.95M
Stockholders Equity	56.30M	77.52M	122.11M	251.83M	293.15M	142.59M
Cash Flow
Free Cash Flow	-7.00M	-5.52M	-35.17M	-4.02M	-1.87M	2.10M
Operating Cash Flow	-1.54M	2.84M	-27.88M	5.77M	7.82M	4.81M
Investing Cash Flow	4.50M	-9.08M	-10.81M	-11.35M	-14.43M	-208.19M
Financing Cash Flow	-3.78M	-23.65M	-7.87M	-11.21M	92.44M	226.62M

Cherry AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 0.58
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:C3RY, the sentiment is Negative. The current price of 0.58 is above the 20-day moving average (MA) of 0.56, above the 50-day MA of 0.58, and below the 200-day MA of 0.72, indicating a bearish trend. The MACD of >-0.01 indicates Positive momentum. The RSI at 40.57 is Neutral, neither overbought nor oversold. The STOCH value of 62.31 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:C3RY.

Cherry AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
SNG	49 Neutral	€14.32M	-2.03	―	―	-6.99%	10.97%
TGT	48 Neutral	€15.61M	-35.12	-14.65%	―	-3.43%	72.86%
C3RY	41 Neutral	€13.27M	-0.25	-59.82%	―	-20.62%	59.32%