Ceotronics AG Audio Video Data Communication (CEK) AI Stock Analysis

• Market Cap: €108.53M
• Dividend Yield: 1.92%
• Average Volume (3M): 17.87K
• Price to Earnings (P/E): 22.8
• Beta (1Y): 1.26
• Revenue Growth: 88.29%
• EPS Growth: 245.35%
• Country: DE
• Employees: 138
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.38
• Shares Outstanding: 7,980,000
• 10 Day Avg. Volume: 22,943
• 30 Day Avg. Volume: 17,866
• PEG Ratio: 0.10
• Price to Book (P/B): 4.05
• Price to Sales (P/S): 2.06
• P/FCF Ratio: 9.07
• 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: Hold
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 62 Neutral
• Price Target: €11.00 ▲(6.80% Upside)

Ceotronics AG's strong financial performance is a key strength, driven by revenue growth and improved profitability. However, the stock faces significant technical challenges with bearish momentum and oversold indicators. Valuation is moderate, with a fair P/E ratio and a modest dividend yield. The overall score reflects a balance between solid financial health and current market pressures.

Positive Factors

Revenue Growth

Strong revenue growth indicates effective market penetration and product demand, supporting long-term business expansion and competitiveness.

Balance Sheet Health

A lower debt-to-equity ratio enhances financial stability, providing flexibility for future investments and reducing financial risk.

Cash Generation Ability

Positive operating cash flow indicates strong cash generation, essential for funding operations and supporting growth initiatives.

Negative Factors

Free Cash Flow Challenges

Negative free cash flow growth suggests potential issues in sustaining cash flow improvements, which could impact future investments.

Gross Profit Margin Pressure

A declining gross profit margin indicates cost pressures, which could affect profitability if not managed effectively.

Cost Management

Cost management challenges may affect margins and profitability, requiring strategic adjustments to maintain financial performance.

Ceotronics AG Audio Video Data Communication Business Overview & Revenue Model

Company Description

CeoTronics AG provides systems for mobile digital radio networks and end devices used in local applications, and professional communications headsets and intercom systems worldwide. The company offers ATEX expertise and radio adapters; intercom-systems, such as CT-DECT case, CT-DECT conference, CT-DECT system/latency free, CT-DECT EODCom, CT-DECT GateCom compact, and CT-DECT multi products; and remote units comprising CT BluetoothAdapter, CT-HR PTT, CT-MultiCom, T-MultiPTT 1C, CT-MultiPTT 1Cplus, CT-MultiPTT 2C, CT-MultiPTT 3C, and CT-WirelessPTT MIL. It also provides headsets, such as CT-ActionNeckband Headset, a helmet-independent neckband headset; CT-BoomMike, a communication system for a tool free installation; CT-ClipCom and CT-ClipCom Digital, an in-the-ear communication headset; CT-CombiCom, a modular on-ear headset; CT-ContactCom, a communication system for high noise areas; CT-DECT systems for short-range communication needs; CT-EarGuard, a mobile measurement system; CT-Earpieces, an individual ear molds; CT-GroundCom Headset and CT-HN Headset, an over-ear headset; CT-Neckband Headset to wear under helmet; CT-SkullMike, a receiver/talk system with skullcap microphone; CT-ThroatMike, a professional throat microphone; CT-ThroatMike Comfort for use in full protection suits; and CT-WireCom Digital Headset, a wired digital full-duplex communications system. The company's products and systems are used in mechanical engineering, automotive, paper production, and aerospace industries. CeoTronics AG was founded in 1985 and is headquartered in Rödermark, Germany.

How the Company Makes Money

Ceotronics AG generates revenue through multiple streams, including the direct sale of its innovative communication products to government and private sector clients, particularly in defense and industrial markets. The company also offers maintenance and support services for its products, creating a recurring revenue model. Significant partnerships with defense contractors and collaborations with technology firms enhance its market presence and facilitate access to larger contracts. Additionally, the company invests in research and development to innovate and expand its product line, which helps attract new customers and retain existing ones, thereby contributing to its overall earnings.

Ceotronics AG Audio Video Data Communication Financial Statement Overview

Summary

Ceotronics AG exhibits strong financial health with impressive revenue growth and improved profitability margins. The balance sheet reflects reduced leverage and a strong equity position, enhancing financial stability. However, the negative free cash flow growth highlights the need for careful cash management.

Income Statement

Ceotronics AG has demonstrated strong revenue growth of 39.66% in the latest year, significantly improving from previous periods. The gross profit margin decreased slightly to 40.85% from 46.75%, indicating some pressure on cost management. However, the net profit margin improved to 8.49%, reflecting better overall profitability. The EBIT and EBITDA margins also showed positive trends, indicating efficient operational management.

Balance Sheet

The company has improved its financial stability with a reduced debt-to-equity ratio of 0.25, down from 0.92 the previous year, indicating a stronger equity position. Return on equity increased to 16.71%, showcasing effective use of equity to generate profits. The equity ratio stands at 66.56%, reflecting a solid capital structure with a majority of assets financed by equity.

Cash Flow

Ceotronics AG's cash flow performance shows a significant turnaround with a positive operating cash flow of €14.82 million, compared to a negative figure in the previous year. However, free cash flow growth is negative at -251.18%, indicating potential challenges in sustaining cash flow improvements. The operating cash flow to net income ratio is robust at 7.51, suggesting strong cash generation relative to net income.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	55.80M	55.80M	29.63M	30.08M	29.12M	26.56M
Gross Profit	22.79M	22.79M	13.85M	14.49M	14.29M	12.60M
EBITDA	8.92M	9.43M	3.92M	5.27M	4.89M	4.33M
Net Income	4.74M	4.74M	1.25M	2.53M	2.51M	2.10M
Balance Sheet
Total Assets	42.60M	42.60M	43.82M	29.36M	28.75M	24.02M
Cash, Cash Equivalents and Short-Term Investments	4.76M	4.76M	692.00K	1.44M	190.00K	105.00K
Total Debt	7.04M	7.04M	18.37M	6.30M	7.11M	5.82M
Total Liabilities	14.25M	14.25M	23.93M	12.12M	13.04M	9.75M
Stockholders Equity	28.36M	28.36M	19.89M	17.24M	15.71M	14.26M
Cash Flow
Free Cash Flow	12.65M	12.66M	-13.61M	3.86M	285.00K	3.20M
Operating Cash Flow	14.44M	14.82M	-12.12M	4.67M	1.04M	5.04M
Investing Cash Flow	-2.16M	-2.14M	-1.49M	-1.35M	-1.29M	-2.72M
Financing Cash Flow	-857.00K	-1.73M	6.68M	-2.09M	538.00K	-592.00K

Ceotronics AG Audio Video Data Communication Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.30
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:CEK, the sentiment is Negative. The current price of 10.3 is below the 20-day moving average (MA) of 12.59, below the 50-day MA of 13.48, and below the 200-day MA of 12.45, indicating a bearish trend. The MACD of -0.83 indicates Positive momentum. The RSI at 20.28 is Positive, neither overbought nor oversold. The STOCH value of 7.18 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:CEK.

Ceotronics AG Audio Video Data Communication Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEK	62 Neutral	€108.53M	22.81	19.64%	1.92%	88.29%	245.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
QBY	44 Neutral	€105.64M	-32.37	-1.93%	―	-3.43%	78.06%