Cegedim (CGM) AI Stock Analysis

• Market Cap: €143.31M
• Dividend Yield: N/A
• Average Volume (3M): 8.08K
• Price to Earnings (P/E): 90.1
• Beta (1Y): 0.34
• Revenue Growth: 6.25%
• EPS Growth: -97.97%
• Country: FR
• Employees: 6,700
• Sector: Technology
• Sector Strength: 86
• Industry: Medical - Healthcare Information Services
• EPS (TTM): -1.07
• Shares Outstanding: 14,097,155
• 10 Day Avg. Volume: 4,630
• 30 Day Avg. Volume: 8,081
• PEG Ratio: -0.31
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 0.00
• P/FCF Ratio: 19.23
• 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: €14.00
• Price Target Upside: 33.97% Upside
• Rating Consensus: Hold
• Number of Analyst Covering: 1

• Rating: 52 Neutral
• Price Target: ―

Cegedim's overall stock score reflects significant financial challenges despite a positive revenue growth trend. The stock's technical indicators show weak momentum, and the negative P/E ratio suggests valuation concerns. Improving profitability and financial stability are crucial for enhancing stock performance.

Cegedim Business Overview & Revenue Model

Company Description

Cegedim (CGM) is a global technology and services company specializing in the healthcare sector. Founded in 1969 and headquartered in France, Cegedim provides a range of services and solutions aimed at healthcare professionals, pharmaceutical companies, and insurance providers. The company's core offerings include healthcare software, database management, and outsourcing services, which are designed to improve the efficiency and efficacy of healthcare delivery and management.

How the Company Makes Money

Cegedim makes money through a diverse revenue model that primarily focuses on subscription-based software solutions, data services, and outsourcing services for the healthcare industry. Key revenue streams include recurring revenues from software licenses and maintenance contracts, data sales, and consulting services. The company also generates income through strategic partnerships with pharmaceutical companies and healthcare providers, offering specialized solutions such as electronic health records, customer relationship management tools, and healthcare data analytics. Cegedim's operations are supported by a strong presence in the European market, with a particular emphasis on innovation and customer-centric solutions that enhance healthcare management and delivery.

Cegedim Financial Statement Overview

Summary

Cegedim exhibits a solid revenue growth trajectory but faces challenges with profitability and financial stability, as reflected in negative net incomes and fluctuating cash flows. The company needs to focus on cost management and improving operational efficiencies to enhance profitability and strengthen its balance sheet.

Income Statement

Cegedim's revenue has shown a consistent growth trend over recent years, with a notable increase from 2023 to 2024. However, the company struggles with profitability, as indicated by negative net income in the latest period and declining EBIT margins. The gross profit margin remains strong, but net profit margins are negative, highlighting ongoing challenges in managing costs or achieving operational efficiencies.

Balance Sheet

Cegedim's balance sheet shows a moderate debt-to-equity ratio, indicating a balanced approach to leveraging. However, the recent decrease in stockholders' equity and a high level of total debt pose potential financial stability risks. The equity ratio has also declined, reflecting increased liabilities relative to assets.

Cash Flow

Cegedim has demonstrated strong operating cash flow generation, though free cash flow has been volatile, with a significant decline in the latest period. The operating cash flow to net income ratio is high, which is positive, but the free cash flow to net income ratio is lower, indicating potential concerns in sustaining free cash flows.

Breakdown	Dec 2024	Dec 2023	Dec 2022	Dec 2021	Dec 2020
Income Statement
Total Revenue	654.50M	616.00M	555.21M	524.71M	496.94M
Gross Profit	624.93M	255.63M	528.65M	498.01M	471.45M
EBITDA	101.56M	95.25M	94.96M	103.64M	81.45M
Net Income	-14.71M	-7.41M	13.62M	26.22M	10.84M
Balance Sheet
Total Assets	986.89M	924.07M	889.91M	797.59M	905.36M
Cash, Cash Equivalents and Short-Term Investments	49.58M	46.61M	55.55M	24.16M	24.73M
Total Debt	315.53M	285.10M	91.82M	275.50M	266.46M
Total Liabilities	704.39M	629.51M	585.78M	565.20M	697.45M
Stockholders Equity	264.35M	276.18M	285.16M	232.06M	207.66M
Cash Flow
Free Cash Flow	11.93M	22.43M	10.34M	45.23M	35.85M
Operating Cash Flow	101.85M	97.92M	86.48M	95.98M	110.38M
Investing Cash Flow	-111.32M	-75.30M	-20.17M	-70.11M	-69.26M
Financing Cash Flow	13.12M	-31.07M	-33.89M	-26.74M	-45.20M

Cegedim Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 10.45
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Negative
• RSI: Neutral
• STOCH: Positive

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For FR:CGM, the sentiment is Negative. The current price of 10.45 is below the 20-day moving average (MA) of 10.75, below the 50-day MA of 11.28, and below the 200-day MA of 12.03, indicating a bearish trend. The MACD of -0.23 indicates Negative momentum. The RSI at 33.93 is Neutral, neither overbought nor oversold. The STOCH value of 12.22 is Positive, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for FR:CGM.

Cegedim Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
EQS	76 Outperform	€737.51M	20.37	16.07%	2.54%	-1.38%	-22.98%
Sector *	59 Neutral	€3.23B	12.64	-9.91%	2.79%	2.38%	-49.53%
CGM	52 Neutral	€143.31M	90.14	-5.44%	―	6.25%	-97.97%
CLA	52 Neutral	€147.54M	―		―	-0.95%	49.19%
AL2SI	52 Neutral	€152.10M	―		5.16%	―	―