CANCOM SE (COK) AI Stock Analysis

• Market Cap: €942.31M
• Dividend Yield: 3.25%
• Average Volume (3M): 62.88K
• Price to Earnings (P/E): 37.9
• Beta (1Y): 0.66
• Revenue Growth: 3.76%
• EPS Growth: -22.05%
• Country: DE
• Employees: 5,553
• Sector: Technology
• Sector Strength: 83
• Industry: Information Technology Services
• EPS (TTM): N/A
• Shares Outstanding: 31,515,345
• 10 Day Avg. Volume: 57,049
• 30 Day Avg. Volume: 62,876
• PEG Ratio: -1.78
• Price to Book (P/B): 1.54
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 4.90
• 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: 3.16% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 74 Outperform
• Price Target: €33.00 ▲(9.82%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

Cash Flow Improvement

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

Guidance Confirmation

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

Negative Factors

Margin Deterioration

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 Decline

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

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 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 income statement shows a 16.76% revenue increase, but challenges in net profit margin exist. The balance sheet reflects manageable leverage with a debt-to-equity ratio of 0.34, though declining equity ratio is a concern. Strong cash flow management is evident with impressive free cash flow growth.

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
	EBIT
47.98M	55.78M	49.82M	77.44M	63.85M
	EBITDA
120.79M	124.72M	103.66M	124.53M	100.56M
	Net Income Common Stockholders
33.45M	36.83M	30.80M	44.86M	61.76M
Balance Sheet		Cash, Cash Equivalents and Short-Term Investments
144.67M	222.55M	393.17M	652.97M	338.37M
	Total Assets
1.41B	1.55B	1.31B	1.41B	1.25B
	Total Debt
193.98M	211.06M	137.13M	129.73M	117.78M
	Net Debt
49.31M	-11.49M	-256.04M	-523.24M	-220.59M
	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: 30.05
• 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 30.05 is above the 20-day moving average (MA) of 28.56, above the 50-day MA of 26.87, and above the 200-day MA of 25.80, indicating a bullish trend. The MACD of 0.75 indicates Negative momentum. The RSI at 62.88 is Neutral, neither overbought nor oversold. The STOCH value of 77.63 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
COK	74 Outperform	€942.31M	37.91	4.13%	3.25%	3.76%	-22.05%
Sector *	62 Neutral	$11.72B	10.43	-7.10%	2.91%	7.41%	-7.94%
0N5I		€595.48M	75.88	4.09%	0.77%	―	―
0JCO		€273.01M	17.06	15.04%	2.91%	―	―
0RUM		€234.63M	34.00	5.51%	2.54%	―	―
0DPM		€5.02B	22.21	12.04%	1.76%	―	―
0O2W		€642.35M	14.74	16.30%	2.05%	―	―