CANCOM SE (COK) AI Stock Analysis

• Market Cap: €746.91M
• Dividend Yield: 4.29%
• Average Volume (3M): 64.35K
• Price to Earnings (P/E): 40.1
• Beta (1Y): 0.74
• Revenue Growth: -0.29%
• EPS Growth: -48.23%
• Country: DE
• Employees: 5,553
• Sector: Technology
• Sector Strength: 88
• Industry: Information Technology Services
• EPS (TTM): -0.01
• 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: €29.88
• Price Target Upside: 28.24% Upside
• Rating Consensus: Strong Buy
• Number of Analyst Covering: 5
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 64 Neutral
• Price Target: €26.00 ▲(11.59% Upside)

CANCOM SE's overall stock score is primarily influenced by its strong financial performance, despite challenges in profitability and cash flow management. The technical analysis suggests a lack of strong momentum, while the high P/E ratio indicates potential overvaluation. The dividend yield provides some support to the valuation.

Positive Factors

Strong Balance Sheet

A strong balance sheet with low leverage provides financial stability and flexibility, allowing CANCOM SE to invest in growth opportunities and weather economic downturns.

Revenue Growth

Consistent revenue growth indicates successful market penetration and product adoption, supporting long-term business expansion and shareholder value.

Recurring Revenue Streams

Recurring revenue from long-term contracts provides stable cash flow, reducing financial volatility and enhancing predictability in financial performance.

Negative Factors

Profitability Margins Under Pressure

Pressure on profitability margins can impact long-term financial health, requiring strategic cost management and efficiency improvements to maintain competitiveness.

Decreasing Free Cash Flow

A decline in free cash flow suggests potential challenges in cash management, which could limit the company's ability to invest in growth initiatives or return capital to shareholders.

Low Net Profit Margins

Low net profit margins indicate potential inefficiencies or high expenses, which may hinder the company's ability to generate sufficient returns on investment and sustain long-term growth.

CANCOM SE Business Overview & Revenue Model

Company Description

CANCOM SE is a leading IT service provider based in Germany, specializing in digital transformation and cloud solutions. The company operates primarily in the IT services and solutions sector, offering a comprehensive range of services including IT consulting, managed services, and cloud computing. CANCOM serves a diverse clientele across various industries, providing tailored solutions that enhance business efficiency and drive innovation.

How the Company Makes Money

CANCOM SE generates revenue through multiple streams, primarily by offering IT solutions and services. Key revenue streams include the sale of hardware and software products, consulting services, and managed IT services. The company also derives significant income from its cloud services, where it provides infrastructure and platform solutions to businesses. Strategic partnerships with major technology vendors like Microsoft and Cisco bolster its offerings and enhance revenue potential. Additionally, CANCOM benefits from recurring revenue through long-term service contracts and maintenance agreements, which contribute to stable cash flow.

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	690.14M	693.34M	567.08M	437.69M	431.10M	472.48M
EBITDA	99.50M	120.79M	124.72M	103.66M	124.53M	100.56M
Net Income	18.95M	33.45M	36.83M	30.80M	44.86M	61.76M
Balance Sheet
Total Assets	1.34B	1.41B	1.55B	1.31B	1.41B	1.25B
Cash, Cash Equivalents and Short-Term Investments	85.13M	144.67M	222.55M	393.17M	652.97M	338.37M
Total Debt	191.57M	193.98M	211.06M	137.13M	129.73M	117.78M
Total Liabilities	795.25M	832.53M	824.01M	610.28M	592.58M	635.20M
Stockholders Equity	545.22M	574.00M	724.08M	694.51M	813.72M	614.31M
Cash Flow
Free Cash Flow	106.88M	170.60M	72.61M	-80.00M	39.16M	31.33M
Operating Cash Flow	125.17M	192.88M	98.40M	-53.56M	72.31M	68.24M
Investing Cash Flow	-25.24M	-43.23M	-74.42M	-34.25M	332.17M	-50.56M
Financing Cash Flow	-185.10M	-227.47M	-190.40M	-171.89M	-90.47M	-42.32M

CANCOM SE Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 23.30
• 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:COK, the sentiment is Negative. The current price of 23.3 is below the 20-day moving average (MA) of 24.62, below the 50-day MA of 24.44, and below the 200-day MA of 25.31, indicating a bearish trend. The MACD of -0.32 indicates Positive momentum. The RSI at 34.12 is Neutral, neither overbought nor oversold. The STOCH value of 8.37 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative 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	€447.01M	11.54	15.59%	2.93%	5.12%	-20.33%
BC8	74 Outperform	€4.32B	20.19	11.61%	2.04%	-1.21%	-18.02%
A1OS	66 Neutral	€200.28M	12.34	15.12%	4.00%	1.97%	11.25%
COK	64 Neutral	€746.91M	40.14	3.11%	4.29%	-0.29%	-48.23%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
AEIN	60 Neutral	€209.90M	44.79	4.26%	2.96%	-22.64%	-55.86%
ADN1	56 Neutral	€596.68M	48.66	6.72%	0.82%	12.68%	―