CANCOM SE (COK) AI Stock Analysis

• Market Cap: €716.97M
• Dividend Yield: 4.4%
• Average Volume (3M): 64.02K
• Price to Earnings (P/E): 28.2
• Beta (1Y): 0.77
• Revenue Growth: 3.76%
• EPS Growth: -22.05%
• Country: DE
• Employees: 5,553
• Sector: Technology
• Sector Strength: 94
• Industry: Information Technology Services
• EPS (TTM): -0.01
• Shares Outstanding: 31,515,345
• 10 Day Avg. Volume: 96,584
• 30 Day Avg. Volume: 64,020
• PEG Ratio: N/A
• Price to Book (P/B): 0.00
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 0.00
• 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: €28.17
• Price Target Upside: 23.82% Upside
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 7

• Rating: 58 Neutral
• Price Target: €23.50 ▲(3.30% Upside)

The overall stock score of 58 reflects strong financial stability but is tempered by bearish technical signals and valuation concerns. The company's robust balance sheet and cash flow management are significant positives. However, technical analysis indicates oversold conditions and negative momentum, which are important short-term risk factors. The high P/E ratio suggests the stock may be overvalued, though the attractive dividend yield provides some compensation.

Positive Factors

Cash Flow

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

Earnings Outlook

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.

Sales Performance

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

Negative Factors

Guidance Revision

Management lowered FY25 guidance by 4% and 26% on revenue and EBITA midpoints, respectively.

Profitability

Profitability looks even worse than in 1Q25, with EBITA down 81% year-over-year, reaching a margin of merely 0.6%.

Revenue Decline

H1 revenues declined by 4% year-over-year to €803.8m, while EBITDA dropped by 34% year-over-year to €36.7m.

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 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: 22.75
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• 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 22.75 is below the 20-day moving average (MA) of 24.49, below the 50-day MA of 26.40, and below the 200-day MA of 24.96, indicating a bearish trend. The MACD of -1.17 indicates Positive momentum. The RSI at 34.45 is Neutral, neither overbought nor oversold. The STOCH value of 42.72 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	€460.70M	11.89	15.59%	2.86%	5.12%	-20.33%
BC8	73 Outperform	€5.06B	23.64	11.61%	1.74%	-1.21%	-18.02%
A1OS	67 Neutral	€225.68M	13.90	15.12%	3.53%	1.97%	11.25%
ADN1	66 Neutral	€546.81M	69.96	6.72%	0.89%	13.30%	―
Sector *	61 Neutral	$36.30B	7.26	-7.27%	1.97%	7.74%	-7.92%
COK	58 Neutral	€716.97M	28.23	3.11%	4.40%	3.76%	-22.05%
AEIN	55 Neutral	€203.58M	30.24	5.51%	2.82%	-19.12%	-42.01%