Cenit AG (CSH) AI Stock Analysis

• Market Cap: €60.25M
• Dividend Yield: 0.56%
• Average Volume (3M): 2.90K
• Price to Earnings (P/E): ―
• Beta (1Y): 0.59
• Revenue Growth: 3.58%
• EPS Growth: -253.00%
• Country: DE
• Employees: 984
• Sector: Technology
• Sector Strength: 88
• Industry: Software - Application
• EPS (TTM): 0.11
• Shares Outstanding: 8,367,758
• 10 Day Avg. Volume: 3,139
• 30 Day Avg. Volume: 2,898
• PEG Ratio: 8.41
• Price to Book (P/B): 1.44
• Price to Sales (P/S): 0.29
• P/FCF Ratio: 6.88
• 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: N/A
• Price Target Upside: N/A
• Rating Consensus: Moderate Buy
• Number of Analyst Covering: 0
• EPS Forecast (FY): N/A
• Revenue Forecast (FY): N/A

• Rating: 52 Neutral
• Price Target: €7.00 ▼(-2.78% Downside)

Cenit AG's overall stock score is primarily impacted by its financial performance challenges, including declining revenue growth and high debt levels. While technical analysis shows some short-term bullish momentum, the valuation remains a significant concern with a negative P/E ratio. The absence of earnings call data and corporate events means these factors do not influence the score.

Positive Factors

Cash Generation

Strong free cash flow growth indicates effective cash management, providing the company with financial flexibility to invest in growth opportunities and manage debt.

Partnerships

Strategic partnerships enhance Cenit's service offerings and market reach, supporting long-term revenue growth and competitive positioning in the industry.

Industry Demand

Increasing demand for digital transformation solutions presents a structural growth opportunity, aligning with Cenit's core offerings and supporting sustained revenue growth.

Negative Factors

Declining Revenue Growth

Declining revenue growth suggests potential market share loss or competitive pressures, which could impact long-term financial performance and strategic objectives.

High Debt Levels

Rising debt levels increase financial risk and may constrain future investment capabilities, affecting the company's ability to capitalize on growth opportunities.

Profitability Issues

Profitability challenges indicate operational inefficiencies and potential pricing strategy issues, which could hinder long-term financial health and shareholder value.

Cenit AG Business Overview & Revenue Model

Company Description

CENIT Aktiengesellschaft operates as an IT consultancy and software company that serves manufacturing and financial service industries. The company operates through two segments, Product Lifecycle Management (PLM) and Enterprise Information Management (EIM). It offers 3DEXPERIENCE platform for social communication, exchange, information acquisition, and visualization; CATIA for product-design, multidisciplinary construction, and systems engineering; SIMULIA for virtual simulation and optimization of multi-physical product features; ENOVIA for planning, controlling, and monitoring of engineering business processes; DELMIA for planning and simulation of production and production control and optimization; EXALEAD for aggregating and analyzing large amounts of data; 3DCS, a variation analyst suite that supports realistic analysis and simulation of virtual prototypes; and cenitFLEX+ software solution that simplifies system infrastructure management for administrators and users. The company also provides digital factory solutions; and SAP solutions comprising process management, engineering integration, platform integration, data exchanges, and master data management, as well as application management services for PLM system administration. In addition, it offers 360 degree customer communication solution; solutions for processing documents, files, and transactions; application modernization and migration solution; and planning, predictive analytics, and reporting solutions. The company was formerly known as CENIT Aktiengesellschaft Systemhaus and changed its name to CENIT Aktiengesellschaft in May 2010. CENIT Aktiengesellschaft was founded in 1988 and is headquartered in Stuttgart, Germany.

How the Company Makes Money

Cenit AG generates revenue primarily through the sale of software licenses, subscription fees for its cloud-based solutions, and consulting services aimed at implementing and optimizing its software products. The company also earns money from maintenance and support contracts, which provide ongoing service to its existing clients. Significant partnerships with major technology firms, such as SAP and Dassault Systèmes, allow Cenit to enhance its service offerings and reach a broader customer base, contributing to its overall financial performance. Additionally, the company benefits from a growing demand for digital transformation solutions across various industries, further bolstering its revenue streams.

Cenit AG Financial Statement Overview

Summary

Cenit AG demonstrates strong revenue growth and cash flow generation, but faces profitability challenges and increased leverage. The company needs to address operational inefficiencies and manage debt levels to improve financial stability and shareholder returns.

Income Statement

Cenit AG's revenue has shown consistent growth, with a TTM revenue growth rate of 1.63%. However, profitability is a concern, as indicated by a negative net profit margin of -2.24% in the TTM period. The gross profit margin has decreased from 23.66% in 2024 to 21.20% in the TTM, indicating pressure on cost management. The EBIT margin has also turned negative, reflecting operational challenges.

Balance Sheet

The company's debt-to-equity ratio has increased to 1.31 in the TTM, indicating higher leverage and potential risk. Return on equity has turned negative, showing a decline in shareholder returns. However, the equity ratio remains stable, suggesting a balanced asset structure.

Cash Flow

Cenit AG's free cash flow growth is strong at 75.1% in the TTM, indicating improved cash generation. The operating cash flow to net income ratio is positive, suggesting effective cash management despite negative net income. However, the free cash flow to net income ratio has decreased slightly, reflecting challenges in converting profits into cash.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	210.10M	207.33M	184.72M	162.15M	146.07M	142.13M
Gross Profit	43.81M	49.06M	26.34M	17.23M	16.34M	17.05M
EBITDA	6.81M	13.75M	14.26M	15.02M	11.22M	9.85M
Net Income	-4.64M	-71.00K	4.50M	6.28M	4.25M	2.32M
Balance Sheet
Total Assets	147.82M	158.32M	153.62M	127.04M	92.81M	83.45M
Cash, Cash Equivalents and Short-Term Investments	20.42M	16.46M	24.34M	19.91M	26.36M	26.06M
Total Debt	45.81M	50.91M	48.52M	32.85M	10.62M	11.99M
Total Liabilities	107.25M	109.02M	108.61M	82.25M	49.16M	40.73M
Stockholders Equity	37.08M	42.17M	42.34M	42.83M	42.88M	42.06M
Cash Flow
Free Cash Flow	11.40M	8.81M	3.95M	10.18M	7.59M	11.48M
Operating Cash Flow	13.02M	10.34M	5.33M	11.49M	8.24M	12.28M
Investing Cash Flow	-2.40M	-16.27M	-8.16M	-29.23M	-892.00K	-904.00K
Financing Cash Flow	-2.81M	-2.02M	7.23M	10.95M	-7.22M	-3.70M

Cenit AG Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 7.20
• 50DMA: Positive
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For DE:CSH, the sentiment is Negative. The current price of 7.2 is above the 20-day moving average (MA) of 7.17, above the 50-day MA of 7.08, and below the 200-day MA of 7.78, indicating a neutral trend. The MACD of 0.08 indicates Negative momentum. The RSI at 52.74 is Neutral, neither overbought nor oversold. The STOCH value of 77.78 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for DE:CSH.

Cenit AG Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
FAA	74 Outperform	€176.00M	18.99	25.57%	0.63%	4.70%	-0.02%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CSH	52 Neutral	€60.25M	-13.00	-11.64%	0.56%	3.58%	-253.00%