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

• Market Cap: €94.16M
• Dividend Yield: 1.5%
• Average Volume (3M): 17.87K
• Price to Earnings (P/E): 6.5
• 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): 0.71
• Revenue Forecast (FY): €57.86M

• Rating: 69 Neutral
• Price Target: €12.50 ▼(-2.34% Downside)
• Action: Downgraded Date: 03/04/26
• Date: Action: Downgraded 03/04/26

The score is driven primarily by strong financial performance (rapid revenue growth, improved margins, and a strengthened balance sheet), partially offset by cash flow concerns (negative free cash flow growth). Technical indicators are meaningfully negative with price below key moving averages and a negative MACD, while valuation is supportive with a moderate P/E and a modest dividend yield.

Positive Factors

Strong revenue growth

Sustained 39.7% top-line growth signals durable demand for Ceotronics' specialized communication hardware. Over 2-6 months this reflects expanding market penetration, stronger order wins and repeat purchases from institutional buyers, supporting scalable revenue and long-term contract leverage.

Improved balance sheet and ROE

Material deleveraging (D/E 0.25) and a two-thirds equity financing mix improve resilience to cyclical shocks and enable strategic reinvestment. A 16.7% ROE shows efficient equity use, supporting capital allocation for product development and bid financing across tender-driven revenue cycles.

Positive operating cash generation

A clear swing to positive operating cash flow indicates the core business converts sales into cash, strengthening liquidity for working capital and service obligations. Durable operational cash generation supports investment in integration services and after-sales support critical to institutional customers.

Negative Factors

Negative free cash flow growth

A very large negative FCF growth rate signals potential mismatch between cash from operations and capital/expenditure or working capital needs. Over months this can constrain reinvestment, limit strategic bidding capacity for large tenders, or pressure dividends and balance sheet flexibility.

Gross margin compression

A noticeable drop in gross margin suggests rising input or production costs or pressure on pricing. If structural, margin compression can erode operating leverage and net profitability over time, requiring either cost restructuring or higher pricing power to restore sustainable margins.

Revenue concentration / tender reliance

Heavy reliance on large tenders and public-sector contracts makes revenue lumpy and subject to long sales cycles and procurement timing. This structural concentration increases volatility of orders and working capital needs, complicating forecasting and long-term revenue stability.

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 primarily makes money by selling professional communication hardware and related solutions to institutional and commercial customers. Key revenue streams include: (1) Product sales of specialized communication equipment (e.g., headsets, communication systems, and accessories) designed for demanding operational environments; (2) Solution/integration revenue tied to configuring and delivering complete communication setups (e.g., system components, installation or project delivery elements where applicable); and (3) After-sales revenue such as maintenance, repairs, spare parts, and service support associated with installed equipment. Significant earnings drivers typically include winning larger customer orders or tenders (often from public-sector or safety-related buyers) and repeat purchases/refresh cycles of equipment and accessories. Specific named partnerships, customer contract terms, or segment-level revenue breakdowns are null.

Ceotronics AG Audio Video Data Communication Financial Statement Overview

Summary

Strong top-line growth (+39.66%) and improved profitability (net margin 8.49%) support a solid fundamental picture. Balance sheet quality improved with lower leverage (debt-to-equity 0.25) and higher ROE (16.71%). The main offset is cash flow quality: despite a strong swing to positive operating cash flow (€14.82M), free cash flow growth is sharply negative (-251.18%), raising sustainability concerns.

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

Ceotronics AG Audio Video Data Communication Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 12.80
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Neutral
• 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 12.8 is below the 20-day moving average (MA) of 13.22, below the 50-day MA of 13.91, and below the 200-day MA of 13.37, indicating a bearish trend. The MACD of -0.57 indicates Positive momentum. The RSI at 34.57 is Neutral, neither overbought nor oversold. The STOCH value of 6.84 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	69 Neutral	€94.16M	6.51	26.52%	1.50%	88.29%	245.35%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
QBY	50 Neutral	€19.24M	55.51	-1.93%	―	-3.43%	78.06%
CFC	50 Neutral	€9.50M	-0.78	211.71%	―	―	―