CANCOM SE (COK) AI Stock Analysis

• Market Cap: €866.67M
• Dividend Yield: 3.64%
• Average Volume (3M): 64.35K
• Price to Earnings (P/E): 50.1
• Beta (1Y): 0.87
• Revenue Growth: -0.61%
• EPS Growth: -52.28%
• Country: DE
• Employees: 5,553
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): 0.24
• Shares Outstanding: 31,515,345
• 10 Day Avg. Volume: 57,773
• 30 Day Avg. Volume: 64,346
• PEG Ratio: -6.03
• Price to Book (P/B): 1.36
• Price to Sales (P/S): 0.45
• P/FCF Ratio: 4.59
• 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: €29.25
• Price Target Upside: 6.36% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 65 Neutral
• Price Target: €30.00 ▲(9.09% Upside)

CANCOM SE's stock score is primarily influenced by its stable financial performance and positive technical indicators. However, the high P/E ratio raises valuation concerns, and cash flow challenges could impact future growth. The stock's bullish momentum is tempered by overbought signals, suggesting caution.

Positive Factors

Business Model Strength

The diversified revenue streams, including cloud services and managed services, provide stability and resilience against market fluctuations.

Partnerships

Partnerships with industry leaders enhance CANCOM's service offerings, strengthening its competitive position and market reach.

Balance Sheet Health

A strong balance sheet with low leverage provides financial flexibility and reduces risk, supporting long-term strategic initiatives.

Negative Factors

Revenue Growth Challenges

Declining revenue growth suggests potential difficulties in market expansion or product adoption, impacting future growth prospects.

Cash Flow Challenges

Deteriorating cash flow limits the company's ability to invest in growth opportunities and maintain operational flexibility.

Profitability Concerns

Decreasing profitability margins indicate pressure on operational efficiency, which could affect long-term financial performance.

CANCOM SE Business Overview & Revenue Model

Company Description

CANCOM SE, together with its subsidiaries, offers information technology (IT) infrastructure and services in Germany and internationally. The company operates in two segments, Cloud Solutions and IT Solutions. The Cloud Solutions segment provides cloud and shared managed services, including project-related cloud hardware, software, and services. The IT Solutions segment offers a range of services related to IT infrastructure and applications. Its services include IT strategy consulting, project planning and implementation, system integration, and IT procurement through e-procurement services, as well as professional IT services and support. The company offers AHP Enterprise Cloud, an IT multi-cloud management software, as well as provides cloud computing, mobile solutions, internet of things, data analytics, and IT security services. It serves commercial end users ranging from small and medium enterprises to large companies and corporations, and public institutions. The company was founded in 1992 and is based in Munich, Germany.

How the Company Makes Money

CANCOM generates revenue through multiple streams, primarily from the sale of IT services and solutions. Key revenue sources include cloud services, where the company provides scalable computing solutions to businesses, and managed services, where it offers ongoing support and maintenance for IT systems. Additionally, CANCOM earns income from hardware sales, including servers and networking equipment, as well as software licensing. Significant partnerships with major technology providers like Microsoft and Cisco further bolster its offerings, allowing CANCOM to deliver comprehensive solutions that meet diverse client needs. The company also benefits from recurring revenue models, particularly in its cloud and managed services segments, which provide stable income over time.

CANCOM SE Financial Statement Overview

Summary

CANCOM SE demonstrates robust revenue growth and a strong balance sheet with low leverage. However, profitability margins are under pressure, and cash flow management needs improvement. The company is well-positioned in the Information Technology Services industry but should focus on enhancing operational efficiency and cash flow generation to sustain growth.

Income Statement

CANCOM SE shows a consistent revenue growth trend with a TTM revenue increase of 5.5%. Gross profit margins remain healthy at around 40%, indicating strong cost management. However, net profit margins are relatively low at 1.5%, suggesting potential inefficiencies or high expenses. EBIT and EBITDA margins have slightly declined, indicating a need for operational improvements.

Balance Sheet

The company's balance sheet is strong with a low debt-to-equity ratio of 0.6%, reflecting prudent financial management. Return on equity is modest at 4.4%, indicating room for improvement in generating returns for shareholders. The equity ratio is stable, suggesting a solid capital structure.

Cash Flow

Operating cash flow is positive, but free cash flow has decreased by 11% in the TTM, indicating potential cash management issues. The operating cash flow to net income ratio is 0.25, suggesting that cash generation is not fully aligned with reported profits. The free cash flow to net income ratio is strong at 0.86, indicating efficient cash conversion.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	1.71B	1.74B	1.53B	1.31B	1.31B	1.66B
Gross Profit	549.15M	693.34M	567.08M	437.69M	431.10M	472.48M
EBITDA	95.64M	120.79M	121.94M	103.66M	124.53M	100.56M
Net Income	17.28M	33.45M	36.83M	30.80M	44.86M	61.76M
Balance Sheet
Total Assets	1.33B	1.41B	1.55B	1.31B	1.41B	1.25B
Cash, Cash Equivalents and Short-Term Investments	119.42M	144.67M	222.55M	393.17M	652.97M	338.37M
Total Debt	15.07M	193.98M	211.06M	137.13M	129.73M	117.78M
Total Liabilities	775.02M	832.53M	824.01M	610.28M	592.58M	635.20M
Stockholders Equity	549.80M	574.00M	724.08M	694.51M	813.72M	614.31M
Cash Flow
Free Cash Flow	105.47M	170.60M	72.61M	-80.00M	39.16M	31.33M
Operating Cash Flow	122.13M	192.88M	98.40M	-53.56M	72.31M	68.24M
Investing Cash Flow	-15.86M	-43.23M	-74.42M	-34.25M	332.17M	-50.56M
Financing Cash Flow	-98.45M	-227.47M	-190.40M	-171.89M	-90.47M	-42.32M

CANCOM SE Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 27.50
• 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:COK, the sentiment is Positive. The current price of 27.5 is above the 20-day moving average (MA) of 27.05, above the 50-day MA of 25.62, and above the 200-day MA of 25.56, indicating a bullish trend. The MACD of 0.70 indicates Negative momentum. The RSI at 58.18 is Neutral, neither overbought nor oversold. The STOCH value of 74.57 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	77 Outperform	€498.09M	14.23	13.78%	2.64%	3.28%	-26.16%
BC8	72 Outperform	€5.47B	25.43	11.35%	1.61%	-0.50%	-13.97%
COK	65 Neutral	€866.67M	50.15	3.09%	3.64%	-0.61%	-52.28%
A1OS	63 Neutral	€199.28M	17.24	10.26%	4.00%	-1.50%	-37.05%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AEIN	59 Neutral	€233.48M	-985.44	0.37%	2.46%	-26.34%	-101.49%
ADN1	56 Neutral	€563.39M	41.50	6.82%	0.87%	12.37%	196.11%