CANCOM SE (COK) AI Stock Analysis

• Market Cap: €824.13M
• Dividend Yield: 3.82%
• Average Volume (3M): 55.26K
• Price to Earnings (P/E): 32.7
• Beta (1Y): 0.71
• 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: 48,494
• 30 Day Avg. Volume: 55,260
• PEG Ratio: -1.66
• Price to Book (P/B): 1.46
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 7.01
• 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: 17.65% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 66 Neutral
• Price Target: €29.00 ▲(10.06%Upside)

CANCOM SE's overall stock score reflects its strong financial health, particularly its solid balance sheet and robust cash flow generation. However, technical indicators show short-term bearish momentum, and the high P/E ratio suggests potential overvaluation. The dividend yield provides some support, but concerns about profitability and revenue growth consistency remain.

Positive Factors

Management Guidance

Management confirmed the full-year guidance in light of recovery signs and 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.

Sales Performance

Preliminary sales increased by +5% year-over-year to €484m.

Negative Factors

Earnings Outlook

Management expects earnings with an EBITDA mid-point that is 4% below consensus.

Profitability Concerns

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 (COK) is a leading IT service provider based in Germany, specializing in digital transformation and cloud-based solutions. The company operates primarily in the IT and telecommunications sectors, offering a wide range of services including IT infrastructure, cloud solutions, managed services, and enterprise software solutions. CANCOM’s mission is to enable businesses to harness the power of technology to improve efficiency, productivity, and innovation.

How the Company Makes Money

CANCOM SE generates revenue through a combination of IT services and solutions tailored to meet the needs of its clients across various industries. The company earns money by providing consulting services, implementing IT infrastructure projects, and offering managed services that include the management and operation of IT systems for clients. A significant portion of its revenue comes from its cloud solutions, where it provides cloud computing services, including public, private, and hybrid cloud options. Additionally, CANCOM partners with leading technology vendors to resell hardware and software solutions, which also contributes to its revenue streams. The company's strategic partnerships and collaborations with major tech firms enhance its offerings and enable it to deliver comprehensive solutions to its clients, thus playing a crucial role in its financial performance.

CANCOM SE Financial Statement Overview

Summary

CANCOM SE exhibits strong financial health, evidenced by a solid balance sheet with low leverage and good equity positioning. The income statement reveals moderate profitability, with low net profit margins and inconsistent revenue growth. Cash flow generation is robust, reflecting effective cash management strategies, though there is room for improvement in profitability and revenue growth consistency.

Income Statement

The company's TTM (Trailing-Twelve-Months) gross profit margin is approximately 40.1%, indicating good profitability. The net profit margin is about 1.54%, which is relatively low, reflecting modest profitability. Revenue growth has been inconsistent, with a decline in the latest TTM period compared to the previous annual report. The EBIT and EBITDA margins are 2.32% and 6.48% respectively, showing moderate operational efficiency.

Balance Sheet

The balance sheet is strong with a low debt-to-equity ratio of 0.0006, indicating low leverage and financial stability. The return on equity (ROE) is approximately 4.58%, which shows a moderate return to shareholders. The equity ratio stands at 43.1%, suggesting a solid equity base compared to total assets.

Cash Flow

The TTM free cash flow of €120.19 million represents a positive cash generation trend, although there is a decline from the previous year. The operating cash flow to net income ratio is 5.29, highlighting strong cash conversion. The free cash flow to net income ratio is 4.54, indicating efficient cash flow management.

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	120.79M	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: Negative
• Last Price: 26.35
• 50DMA: Negative
• 100DMA: Negative
• 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 Negative. The current price of 26.35 is below the 20-day moving average (MA) of 27.17, below the 50-day MA of 27.51, and above the 200-day MA of 25.03, indicating a neutral trend. The MACD of -0.31 indicates Positive momentum. The RSI at 39.98 is Neutral, neither overbought nor oversold. The STOCH value of 22.13 is Neutral, 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	79 Outperform	€488.61M	13.58	16.30%	2.69%	8.63%	-3.90%
BC8	77 Outperform	€4.92B	21.77	12.04%	1.75%	-1.95%	-15.44%
AEIN	70 Outperform	€228.88M	33.66	5.51%	2.51%	-19.12%	-42.01%
A1OS	69 Neutral	€255.08M	15.63	15.04%	3.12%	2.26%	41.87%
ADN1	67 Neutral	€573.96M	73.55	4.09%	0.85%	13.30%	―
COK	66 Neutral	€824.13M	32.70	4.13%	3.82%	3.76%	-22.05%
Sector *	50 Neutral	C$3.05B	2.41	-63.57%	2.27%	4.49%	-6.15%