CANCOM SE (COK) AI Stock Analysis

• Market Cap: €882.43M
• Dividend Yield: 3.57%
• Average Volume (3M): 59.62K
• Price to Earnings (P/E): 34.7
• Beta (1Y): 0.70
• Revenue Growth: 3.76%
• EPS Growth: -22.05%
• Country: DE
• Employees: 5,553
• Sector: Technology
• Sector Strength: 86
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 31,515,345
• 10 Day Avg. Volume: 68,043
• 30 Day Avg. Volume: 59,623
• PEG Ratio: -1.38
• Price to Book (P/B): 1.41
• Price to Sales (P/S): 0.00
• P/FCF Ratio: -12.28
• 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: €31.00
• Price Target Upside: 10.71% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: €33.00 ▲(17.86%Upside)

CANCOM SE's overall stock score reflects strong technical momentum and robust cash flow management as key strengths. The company demonstrates solid revenue growth and effective cash conversion, which supports its financial health. However, a high P/E ratio suggests the stock is priced at a premium, and investors should be cautious about potential overvaluation. Attention to profitability and equity management will be crucial for future performance.

Positive Factors

Management Guidance

Management confirmed the full-year guidance in light of first recovery signs and in anticipation of a stronger second half due to reviving public client business.

Operating Cash Flow

Operating cash flow improved by nearly €100m this year to €192.9m.

Negative Factors

Profitability

Margins deteriorated significantly, with EBITDA decreasing by 31% year-over-year to €21.1m, translating into a margin of 5.1% compared to the previous year's 7.0%.

Revenue Performance

Revenues in the first quarter are down 6% year-over-year as SME customers remained cautious to invest in light of US tariff uncertainty.

SME Investment Reluctance

The main driver for the muted outlook is the ongoing weak macro landscape and investment reluctance from SME customers in light of US tariffs.

CANCOM SE Business Overview & Revenue Model

Company Description

CANCOM SE is a leading provider of IT infrastructure and services, primarily operating in the technology and telecommunications sectors. Headquartered in Munich, Germany, the company specializes in offering a wide range of digital transformation solutions, including cloud computing, cybersecurity, and IT management services. With a focus on helping businesses optimize their IT environments, CANCOM SE serves a diverse clientele across various industries, providing both hardware and software solutions tailored to meet specific organizational needs.

How the Company Makes Money

CANCOM SE generates revenue through a combination of hardware sales, software licensing, and IT services. The company sells IT infrastructure products such as servers, storage systems, and networking equipment, which form a significant portion of its income. Additionally, CANCOM SE provides managed services, consulting, and system integration, allowing clients to outsource their IT needs. The company also earns from software licensing agreements and subscription-based cloud services, which offer recurring revenue streams. Strategic partnerships with major technology firms enhance CANCOM SE's offerings, enabling it to deliver comprehensive solutions that drive its earnings.

CANCOM SE Financial Statement Overview

Summary

CANCOM SE exhibits a solid financial performance with strong cash flow and revenue growth. The company excels in cash flow management, as evidenced by an increase in operating cash flow and impressive free cash flow growth. However, there are challenges in controlling non-operating expenses and a decreasing equity ratio, which need attention.

Income Statement

CANCOM SE's income statement shows a solid performance with a consistent increase in revenue over the years. The revenue growth rate from 2022 to 2023 was approximately 16.76%, indicating strong demand for its software services. Gross profit margin stands at roughly 39.6% for 2023, reflecting effective cost management. However, the net profit margin decreased slightly from 2022, signaling potential challenges in controlling non-operating expenses or taxes. The EBIT and EBITDA margins are healthy, showing effective core business operations, although there was a slight decline in EBIT margin compared to previous years.

Balance Sheet

The balance sheet indicates a moderate financial position with a debt-to-equity ratio of approximately 0.34 for 2023, which is quite reasonable and suggests manageable leverage. However, the equity ratio shows a decreasing trend, going from 55.8% in 2022 to 46.8% in 2023, which could indicate rising liabilities. Return on equity for 2023 is around 4.6%, which is modest, suggesting room for improvement in generating profits from equity. The decline in stockholders' equity over the years might pose a challenge if not addressed.

Cash Flow

CANCOM SE demonstrated strong cash flow management, as evidenced by a significant increase in operating cash flow from 2022 to 2023. The operating cash flow to net income ratio is robust, indicating efficient conversion of net income into cash. The free cash flow growth rate was impressive, showcasing improved capital expenditure management. The free cash flow to net income ratio in 2023 is also strong, underscoring healthy cash generation relative to net income.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.75B	1.53B	1.31B	1.31B	1.66B
Gross Profit	693.34M	567.08M	437.69M	431.10M	472.48M
EBITDA	122.90M	124.72M	103.66M	124.53M	100.56M
Net Income	33.45M	36.83M	30.80M	44.86M	61.76M
Balance Sheet
Total Assets	1.41B	1.55B	1.31B	1.41B	1.25B
Cash, Cash Equivalents and Short-Term Investments	144.67M	222.55M	393.17M	652.97M	338.37M
Total Debt	193.98M	211.06M	137.13M	129.73M	117.78M
Total Liabilities	832.53M	824.01M	610.28M	592.58M	635.20M
Stockholders Equity	574.00M	724.08M	694.51M	813.72M	614.31M
Cash Flow
Free Cash Flow	170.60M	72.61M	-80.00M	39.16M	31.33M
Operating Cash Flow	192.88M	98.40M	-53.56M	72.31M	68.24M
Investing Cash Flow	-43.23M	-74.42M	-34.25M	332.17M	-50.56M
Financing Cash Flow	-227.47M	-190.40M	-171.89M	-90.47M	-42.32M

CANCOM SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 28.00
• 50DMA: Positive
• 100DMA: Positive
• 200DMA: Positive
• MACD: Positive
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:COK, the sentiment is Positive. The current price of 28 is below the 20-day moving average (MA) of 28.13, above the 50-day MA of 27.21, and above the 200-day MA of 25.01, indicating a neutral trend. The MACD of 0.09 indicates Positive momentum. The RSI at 53.74 is Neutral, neither overbought nor oversold. The STOCH value of 26.02 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for DE:COK.

CANCOM SE Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
GFT	79 Outperform	€594.97M	13.85	16.30%	1.90%	8.63%	-3.90%
COK	74 Outperform	€882.43M	34.75	4.13%	3.57%	3.76%	-22.05%
BC8	74 Outperform	€4.93B	21.85	12.04%	1.54%	-1.95%	-15.44%
A1OS	68 Neutral	€274.01M	17.06	15.04%	2.91%	2.26%	41.87%
ADN1	66 Neutral	€572.66M	73.29	4.09%	0.74%	13.30%	―
AEIN	66 Neutral	€219.11M	32.55	5.51%	2.63%	-19.12%	-42.01%
Sector *	63 Neutral	€10.00B	18.73	6.74%	1.79%	2.60%	-31.99%