Groupe CRIT (CEN) AI Stock Analysis

• Market Cap: €670.49M
• Dividend Yield: 9.9%
• Average Volume (3M): 837.00
• Price to Earnings (P/E): 9.8
• Beta (1Y): 0.42
• Revenue Growth: 25.10%
• EPS Growth: -1.46%
• Country: FR
• Employees: 11,444
• Sector: Services
• Sector Strength: N/A
• Industry: Staffing & Employment Services
• EPS (TTM): 1.61
• Shares Outstanding: 11,250,000
• 10 Day Avg. Volume: 1,012
• 30 Day Avg. Volume: 837
• PEG Ratio: 1.88
• Price to Book (P/B): 0.96
• Price to Sales (P/S): 0.23
• P/FCF Ratio: 7.44
• 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: N/A
• Number of Analyst Covering: 0
• EPS Forecast (FY): 5.38
• Revenue Forecast (FY): €2.89B

• Rating: 75 Outperform
• Price Target: €68.00 ▲(12.58% Upside)

Groupe CRIT's overall stock score is driven by its strong financial performance and attractive valuation. The company's solid revenue growth and cash flow generation are significant strengths, although declining profit margins warrant attention. The stock's low P/E ratio and high dividend yield enhance its appeal, despite some bearish technical indicators.

Positive Factors

Revenue Growth

Consistent revenue growth indicates expanding market reach and effective business strategies, supporting long-term sustainability.

Cash Generation

Strong cash generation enhances financial flexibility, enabling strategic investments and resilience against economic fluctuations.

Balance Sheet Health

Low leverage and a robust equity base provide financial stability, reducing risk and supporting long-term growth initiatives.

Negative Factors

Declining Profit Margins

Declining margins may impact profitability, suggesting the need for cost management to maintain competitive advantage and shareholder returns.

Earnings Growth

Negative EPS growth indicates challenges in profitability, which could affect investor confidence and limit reinvestment capabilities.

Profitability Concerns

Moderate profitability margins suggest limited pricing power or cost pressures, potentially affecting long-term financial performance.

Groupe CRIT Business Overview & Revenue Model

Company Description

Groupe CRIT (CEN) is a leading French company specializing in human resource management and staffing solutions. Established in 1962, the company operates primarily in the temporary employment and recruitment sectors, providing a range of services that include temporary staffing, permanent recruitment, and outsourcing. Groupe CRIT serves various industries, including construction, automotive, logistics, and healthcare, ensuring that it meets the diverse needs of its clients with tailored workforce solutions.

How the Company Makes Money

Groupe CRIT generates revenue primarily through its staffing and recruitment services, which involve charging clients for temporary and permanent placements of workers. The company earns money by marking up the hourly rates paid to temporary workers, as well as through service fees for recruitment services. Additionally, CRIT's outsourcing solutions provide another revenue stream, as clients pay for the management of their workforce needs. The company benefits from long-term contracts with major corporations and has established strategic partnerships with various industry players, enhancing its market presence and contributing to consistent revenue growth.

Groupe CRIT Financial Statement Overview

Summary

Groupe CRIT demonstrates solid financial health with strong revenue growth and cash flow generation. While profitability margins have declined, the company maintains a stable balance sheet with low leverage. Overall, the financial statements reflect a well-managed company with growth potential, though attention to improving profit margins is advisable.

Income Statement

Groupe CRIT has shown strong revenue growth of 16.02% in the latest year, indicating a positive trajectory. However, the gross profit margin has decreased to 3.36%, which is a concern. The net profit margin is stable at 2.41%, and the EBIT margin is at 3.46%, reflecting moderate profitability. Overall, the income statement reflects solid growth but with declining margins.

Balance Sheet

The company maintains a healthy debt-to-equity ratio of 0.31, indicating low leverage and financial stability. The return on equity is 10.16%, showing effective use of equity to generate profits. The equity ratio stands at 44.77%, suggesting a strong equity base relative to total assets. The balance sheet is robust, with low debt levels and good returns on equity.

Cash Flow

Free cash flow has grown significantly by 85.95%, showcasing strong cash generation capabilities. The operating cash flow to net income ratio is 1.59, indicating efficient cash conversion. The free cash flow to net income ratio is 0.81, reflecting good cash flow relative to profits. The cash flow statement is strong, with impressive growth and efficient cash management.

Breakdown	TTM	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	3.37B	3.12B	2.54B	2.34B	2.03B	1.75B
Gross Profit	128.37M	105.03M	137.62M	100.28M	80.87M	34.91M
EBITDA	-1.25B	165.65M	148.74M	139.78M	112.99M	64.31M
Net Income	65.23M	73.01M	72.81M	67.93M	44.07M	1.56M
Balance Sheet
Total Assets	1.66B	1.66B	1.43B	1.37B	1.26B	1.18B
Cash, Cash Equivalents and Short-Term Investments	313.96M	335.10M	473.80M	475.62M	405.63M	320.01M
Total Debt	194.83M	230.50M	145.80M	136.65M	129.44M	135.11M
Total Liabilities	967.94M	906.20M	671.82M	644.02M	592.99M	561.94M
Stockholders Equity	687.22M	742.41M	753.77M	720.99M	661.63M	614.03M
Cash Flow
Free Cash Flow	118.95M	95.64M	94.17M	119.08M	114.33M	112.67M
Operating Cash Flow	135.32M	118.70M	111.75M	131.56M	123.71M	120.66M
Investing Cash Flow	-39.84M	-162.59M	-70.50M	-29.25M	-4.31M	-4.87M
Financing Cash Flow	-53.51M	-127.76M	-47.05M	-33.91M	-33.46M	-23.74M

Groupe CRIT Technical Analysis

• Technical Analysis Sentiment: Positive
• Last Price: 60.40
• 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 FR:CEN, the sentiment is Positive. The current price of 60.4 is above the 20-day moving average (MA) of 60.07, above the 50-day MA of 59.77, and below the 200-day MA of 60.72, indicating a neutral trend. The MACD of 0.16 indicates Negative momentum. The RSI at 53.04 is Neutral, neither overbought nor oversold. The STOCH value of 60.00 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Positive sentiment for FR:CEN.

Groupe CRIT Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
CEN	75 Outperform	€670.49M	9.75	9.42%	9.90%	25.10%	-1.46%
SDG	74 Outperform	€750.69M	11.83	8.63%	1.57%	1.91%	-4.82%
ALFRE	72 Outperform	€121.50M	5.12	14.15%	3.72%	11.26%	53.45%
DBG	67 Neutral	€973.92M	9.13	10.31%	2.15%	1.10%	10.21%
Sector *	55 Neutral	$13.29B	17.42	10.03%	0.93%	7.13%	-12.93%
ALMAR	38 Underperform	€3.33M	-0.35	―	―	-26.73%	42.29%