Cherry AG (C3RY) AI Stock Analysis

• Market Cap: €14.58M
• Dividend Yield: N/A
• Average Volume (3M): 36.02K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.94
• Revenue Growth: -25.12%
• EPS Growth: 58.50%
• Country: DE
• Employees: 410
• Sector: Technology
• Sector Strength: 88
• Industry: Computer Hardware
• EPS (TTM): -0.37
• 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: Moderate Sell
• Number of Analyst Covering: 0

• Rating: 39 Underperform
• Price Target: €0.50 ▼(-19.35% Downside)

Cherry AG's overall stock score is primarily impacted by its poor financial performance, with significant losses and declining profitability. Technical analysis indicates a bearish trend, and valuation metrics are unattractive due to negative earnings. The absence of earnings call data and corporate events means these components do not influence the score.

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

Cherry AG is facing significant financial challenges. The income statement shows declining revenue and persistent losses, the balance sheet indicates decreasing equity and moderate leverage, and cash flow analysis reveals liquidity issues with negative operating and free cash flows. These factors highlight substantial financial instability.

Income Statement

Cherry AG's income statement reveals significant challenges. The company has faced a declining revenue trend over the past few years, with the latest TTM revenue of €105.49 million down from €110.45 million in the previous year. The gross profit margin is low at 19.38% TTM, reflecting limited profitability. Additionally, the firm is operating at a loss, evidenced by negative EBIT and net income margins, highlighting ongoing operational difficulties.

Balance Sheet

The balance sheet indicates moderate stability with a debt-to-equity ratio of 0.60 TTM, suggesting manageable leverage. However, stockholders' equity has been declining, and the equity ratio stands at 47.67%, indicating a shrinking equity base relative to total assets. The return on equity is negative due to continued losses, posing a risk to stakeholders.

Cash Flow

Cash flow analysis shows concerning trends. The company has experienced negative operating cash flow TTM, and free cash flow has deteriorated, reflecting operational inefficiencies. The free cash flow to net income ratio is negative, emphasizing the company's struggle to convert earnings into cash. Additionally, the free cash flow growth rate is negative, indicating worsening liquidity.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	94.89M	110.45M	126.46M	132.51M	168.53M	36.26M
Gross Profit	11.50M	23.92M	2.68M	36.87M	68.85M	43.80M
EBITDA	-42.50M	-35.41M	-115.22M	11.29M	40.74M	1.96M
Net Income	-53.27M	-45.45M	-126.88M	-35.73M	9.29M	-7.57M
Balance Sheet
Total Assets	135.94M	168.14M	238.55M	379.07M	410.98M	290.53M
Cash, Cash Equivalents and Short-Term Investments	7.86M	16.37M	46.08M	92.85M	109.68M	22.93M
Total Debt	40.05M	43.32M	65.76M	62.39M	64.57M	95.54M
Total Liabilities	74.00M	90.62M	116.44M	127.24M	117.83M	147.95M
Stockholders Equity	61.93M	77.52M	122.11M	251.83M	293.15M	142.59M
Cash Flow
Free Cash Flow	-12.35M	-5.52M	-35.17M	-4.02M	-1.87M	2.10M
Operating Cash Flow	-5.44M	2.84M	-27.88M	5.77M	7.82M	4.81M
Investing Cash Flow	1.93M	-9.08M	-10.81M	-11.35M	-14.43M	-208.19M
Financing Cash Flow	-4.11M	-23.65M	-7.87M	-11.21M	92.44M	226.62M

Cherry AG Technical Analysis

• Technical Analysis Sentiment: Neutral
• Last Price: 0.62
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• 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 Neutral. The current price of 0.62 is above the 20-day moving average (MA) of 0.62, below the 50-day MA of 0.67, and below the 200-day MA of 0.83, indicating a neutral trend. The MACD of -0.02 indicates Negative momentum. The RSI at 48.18 is Neutral, neither overbought nor oversold. The STOCH value of 30.33 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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%
TGT	47 Neutral	€16.26M	―	-6.60%	―	-2.82%	90.76%
SNG	41 Neutral	€10.90M	―	―	―	-6.99%	10.97%
C3RY	39 Underperform	€14.58M	―	-59.82%	―	-25.12%	58.50%