CML Microsystems (CML) AI Stock Analysis

• Market Cap: £35.37M
• Dividend Yield: 3.67%
• Average Volume (3M): 28.39K
• Price to Earnings (P/E): 5.9
• Beta (1Y): 0.18
• Revenue Growth: -21.33%
• EPS Growth: -11.35%
• Country: UK
• Employees: 162
• Sector: Technology
• Sector Strength: 88
• Industry: Semiconductors
• EPS (TTM): 0.12
• Shares Outstanding: 16,607,693
• 10 Day Avg. Volume: 52,042
• 30 Day Avg. Volume: 28,394
• PEG Ratio: 18.99
• Price to Book (P/B): 0.70
• Price to Sales (P/S): 1.51
• P/FCF Ratio: -19.67
• 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): N/A
• Revenue Forecast (FY): N/A

• Rating: 56 Neutral
• Price Target: 227.00 p ▼(-20.35% Downside)
• Action: Reiterated Date: 03/11/26
• Date: Action: Reiterated 03/11/26

The score is held back primarily by weak profitability and deteriorating free cash flow, reinforced by bearish technicals (price below key moving averages and negative MACD). These risks are partially offset by an attractive valuation (low P/E and ~5% yield) and a low-leverage balance sheet.

Positive Factors

High gross margin

A 69.39% gross margin indicates structural product-level profitability and operational efficiency in mixed-signal/RF ICs. High gross margin provides a durable buffer versus revenue volatility, enabling reinvestment in R&D and margin preservation across multi‑year customer lifecycles.

Very low leverage

Extremely low debt (D/E 0.046) yields balance-sheet resilience and flexibility to fund working capital, product development, or withstand cyclical downturns without immediate refinancing. This structural strength reduces insolvency risk and supports long-term strategy execution.

OEM design‑in business model

A design‑in model with recurring production revenue creates durable customer stickiness and multi‑year revenue streams common in professional radio and industrial IoT. This structural revenue visibility supports capacity planning, long product lifecycles, and predictable revenue when design wins persist.

Negative Factors

Declining revenue trend

Sustained revenue decline signals weakening end‑market demand or loss of content per device. For a small semiconductor vendor, falling revenues erode scale benefits, increase per-unit overhead, and constrain reinvestment capacity, risking longer‑term competitiveness and product roadmap execution.

Negative operating and net margins

Persistent negative EBIT and net margins indicate core operations are not covering fixed and operating costs. This structural unprofitability can deplete retained earnings, limit self‑funding of R&D, and force cost cuts or external financing, undermining long‑term product and market development.

Deteriorating free cash flow

A ~-171% decline in free cash flow materially weakens the company's ability to invest, service growth or buffer downturns. Weak FCF increases reliance on cash reserves or external funding, raising execution risk for multi‑quarter product programs and long‑term competitiveness.

CML Microsystems Business Overview & Revenue Model

Company Description

CML Microsystems plc, through its subsidiaries, designs, manufactures, and markets mixed-signal, radio frequency (RF), and microwave semiconductors for communications markets worldwide. It primarily offers high performance RF products and mixed-signal baseband/modem processors, as well as microwave/millimetre wave semiconductors for wireless voice and data communications. The company provides its products for professional and industrial voice and data communications products. It serves communications equipment providers and industrial product manufacturers. CML Microsystems Plc was incorporated in 1968 and is headquartered in Maldon, the United Kingdom.

How the Company Makes Money

CML primarily makes money by selling its semiconductor products (integrated circuits and, where applicable, associated modules) to original equipment manufacturers (OEMs) and electronics manufacturers who incorporate these components into their own end-products (e.g., professional radio terminals and infrastructure, industrial communication devices, and embedded systems). Revenue is therefore largely driven by unit sales volumes and per-unit pricing of CML-designed chips across its product lines (mixed-signal/RF/embedded ICs). The company also generates revenue tied to customer design-ins: once a customer selects a CML part for a platform, CML can earn recurring production revenue over the life of that customer product. If material, additional revenue may come from development-related items such as licensing of certain intellectual property or firmware/software deliverables and engineering support associated with product integration; specific amounts and the materiality of these items are not available here and are therefore null.

CML Microsystems Financial Statement Overview

Summary

Financials are pressured by declining revenue (-7.84%), negative EBIT and net margins, and sharply weaker free cash flow (-171.28%). Offsetting this, the company has a strong gross margin (69.39%) and a very low debt-to-equity ratio (0.046), supporting balance-sheet resilience.

Income Statement

CML Microsystems has experienced a decline in revenue growth, with a negative growth rate of -7.84% in the most recent year. The company also reported negative EBIT and net profit margins, indicating challenges in profitability. However, the gross profit margin remains relatively strong at 69.39%, suggesting some operational efficiency.

Balance Sheet

The balance sheet shows a strong equity position with a low debt-to-equity ratio of 0.046, indicating low leverage and financial stability. However, the return on equity is slightly negative, reflecting recent profitability challenges. The equity ratio is healthy, suggesting a solid capital structure.

Cash Flow

The cash flow statement reveals a significant decline in free cash flow, with a growth rate of -171.28%. The operating cash flow to net income ratio is moderate at 0.57, indicating some ability to generate cash from operations despite net losses. However, the negative free cash flow to net income ratio highlights cash flow challenges.

Breakdown	TTM	Mar 2024	Mar 2023	Mar 2022	Mar 2022	Mar 2020
Income Statement
Total Revenue	19.55M	22.90M	22.89M	20.64M	16.96M	13.10M
Gross Profit	9.04M	15.89M	16.21M	12.89M	10.37M	7.65M
EBITDA	5.30M	3.75M	6.04M	8.12M	4.32M	1.96M
Net Income	1.13M	-18.00K	2.06M	4.81M	1.24M	1.82M
Balance Sheet
Total Assets	64.18M	63.19M	69.11M	60.47M	59.33M	65.24M
Cash, Cash Equivalents and Short-Term Investments	10.68M	9.92M	18.21M	22.26M	25.04M	32.20M
Total Debt	1.99M	2.26M	856.00K	1.05M	468.00K	727.00K
Total Liabilities	14.82M	14.18M	18.04M	9.71M	9.48M	11.80M
Stockholders Equity	49.35M	49.01M	51.08M	50.75M	49.85M	53.45M
Cash Flow
Free Cash Flow	1.48M	-1.75M	-53.00K	182.00K	-616.00K	223.00K
Operating Cash Flow	2.27M	3.09M	5.04M	5.67M	4.02M	7.88M
Investing Cash Flow	-147.00K	-3.39M	-10.85M	1.75M	1.81M	15.72M
Financing Cash Flow	-2.46M	-3.09M	-3.88M	-5.56M	-8.92M	-10.79M

CML Microsystems Technical Analysis

• Technical Analysis Sentiment: Negative
• Last Price: 285.00
• 50DMA: Negative
• 100DMA: Negative
• 200DMA: Negative
• MACD: Positive
• RSI: Positive
• STOCH: Neutral

Evaluating momentum and price trends is crucial in stock analysis to make informed investment decisions. For GB:CML, the sentiment is Negative. The current price of 285 is above the 20-day moving average (MA) of 228.35, above the 50-day MA of 243.58, and above the 200-day MA of 271.14, indicating a bearish trend. The MACD of -9.17 indicates Positive momentum. The RSI at 22.84 is Positive, neither overbought nor oversold. The STOCH value of 20.52 is Neutral, not indicating any strong overbought or oversold conditions. Overall, these indicators collectively point to a Negative sentiment for GB:CML.

CML Microsystems Peers Comparison

Name	Overall Rating	Market Cap	P/E Ratio	ROE	Dividend Yield	Revenue Growth	EPS Growth
DSCV	77 Outperform	£563.27M	10.73	8.34%	2.09%	0.49%	61.73%
FTC	75 Outperform	£405.79M	27.44	26.93%	―	121.45%	345.83%
CNC	69 Neutral	£178.76M	18.51	12.09%	0.95%	22.72%	-8.82%
GHH	67 Neutral	£226.63M	25.56	3.10%	2.19%	10.66%	21.19%
Sector *	61 Neutral	$37.18B	12.37	-10.20%	1.83%	8.50%	-7.62%
CML	56 Neutral	£35.37M	5.88	2.29%	3.67%	-21.33%	-11.35%
TTG	54 Neutral	£201.21M	-4.83	-31.42%	―	-16.33%	-448.12%

CML Microsystems Corporate Events

CML Microsystems Updates Voting Rights After Finance Director Exercises Share Options

CML Microsystems has disclosed that Group Director of Finance and Company Secretary Michelle Jones has exercised 2,000 share options at £2.31 each, with the shares satisfied from existing treasury stock rather than newly issued equity. The move is a routine management transaction but marginally reduces the company’s treasury holdings while leaving overall capital structure broadly unchanged.

Following the option exercise, CML’s issued share capital stands at 17,063,888 ordinary shares, of which 456,196 are held in treasury, resulting in 16,607,692 shares carrying voting rights. The updated voting-rights figure provides a new denominator for investors monitoring disclosure thresholds, refining transparency for shareholders and regulators without materially affecting ownership dynamics.

The most recent analyst rating on (GB:CML) stock is a Hold with a £224.00 price target. To see the full list of analyst forecasts on CML Microsystems stock, see the GB:CML Stock Forecast page.

CML Microsystems Uses Treasury Shares for Director Option Exercise, Updates Voting Rights

CML Microsystems reported that Group Director of Finance and Company Secretary Michelle Jones has exercised 2,000 share options at £2.31 each, satisfied by transferring existing treasury shares rather than issuing new equity. Following this transaction, the company’s issued share capital stands at 17,063,888 ordinary shares, of which 456,196 are held in treasury, leaving 16,607,692 voting shares as the new reference figure for regulatory disclosure thresholds.

The adjustment to voting rights is largely administrative but provides clarity for investors tracking their notifiable holdings under UK transparency rules. By using treasury shares to settle the option exercise, CML avoids dilution of existing shareholders, underlining its conservative capital management alongside a cash-generative, debt-free and dividend-paying profile in a typically cyclical semiconductor sector.

The most recent analyst rating on (GB:CML) stock is a Hold with a £224.00 price target. To see the full list of analyst forecasts on CML Microsystems stock, see the GB:CML Stock Forecast page.