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

• Market Cap: €114.91M
• Dividend Yield: 1.5%
• Average Volume (3M): 17.87K
• Price to Earnings (P/E): 14.7
• Beta (1Y): 1.48
• Revenue Growth: 88.29%
• EPS Growth: 245.35%
• Country: DE
• Employees: 138
• Sector: Technology
• Sector Strength: 88
• Industry: Communication Equipment
• EPS (TTM): 0.49
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 76 Outperform
• Price Target: €16.50 ▲(28.91% Upside)

The score is driven primarily by strong financial performance (rapid revenue growth, improving margins, and a significantly strengthened balance sheet), tempered by weak free cash flow growth. Technicals are supportive with price above major moving averages and a positive MACD, while valuation is fair with a moderate P/E and a modest dividend yield.

Positive Factors

Strong revenue growth

Sustained ~40% revenue growth indicates durable product-market fit in safety-critical communication niches. It supports scale economies, expands installed base for after-sales revenue, and provides a structural runway for continued investment in product development and customer wins over months.

Improved balance sheet

Much lower leverage and a high equity ratio increase financial flexibility for bidding tenders, funding integration projects, and absorbing contract timing gaps. A stronger capital structure reduces refinancing risk and preserves strategic optionality over the medium term.

Positive operating cash generation

A material turnaround to positive operating cash flow and a high OCF-to-net-income ratio imply earnings quality and internal funding capacity. This underpins capacity to service operations, support working-capital needs, and fund targeted growth without immediate external financing.

Negative Factors

Sharp negative free cash flow growth

A steep FCF decline signals acute working-capital strain or heavy investment that may not yet convert to cash. Over months this can pressure liquidity, force external funding, or limit discretionary investment and dividends if operating cash does not continue improving.

Gross margin compression

A notable drop in gross margin suggests rising input or production costs or unfavorable product mix. If sustained, weaker gross margins reduce room to absorb SG&A or R&D, constraining long-term operating profit and competitiveness unless pricing power is restored.

Tender-driven revenue lumpiness

Dependence on big orders and public-sector tenders creates revenue and cashflow volatility and concentrated order risk. Over 2–6 months this can lead to uneven backlog, planning challenges, and sensitivity to procurement cycles, affecting predictability of results.

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

Strong revenue growth (+39.66%) and improved profitability (net margin 8.49%) support a high score, reinforced by a stronger balance sheet (debt-to-equity 0.25; equity ratio 66.56%). The main offset is cash-flow quality: despite positive operating cash flow (€14.82m), free cash flow growth is sharply negative (-251.18%), indicating potential sustainability/working-capital or investment pressure.

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: Neutral
• Last Price: 12.80
• 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 DE:CEK, the sentiment is Neutral. The current price of 12.8 is below the 20-day moving average (MA) of 14.38, below the 50-day MA of 13.53, and below the 200-day MA of 13.52, indicating a bullish trend. The MACD of 0.43 indicates Negative momentum. The RSI at 51.03 is Neutral, neither overbought nor oversold. The STOCH value of 53.59 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Neutral 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	76 Outperform	€114.91M	14.67	19.64%	1.50%	88.29%	245.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
QBY	50 Neutral	€100.91M	40.30	-1.93%	―	-3.43%	78.06%
CFC	50 Neutral	€12.02M	―	―	―	―	―